<DOCUMENT>
<TYPE>10-K
<SEQUENCE>1
<FILENAME>n6-7k01.txt
<DESCRIPTION>ANNUAL REPORT
<TEXT>
                                    FORM 10-K

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                   (Mark One)

|X| ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
                                    OF 1934

                    For the fiscal year ended March 31, 2001

                                       OR

|_| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
                                  ACT OF 1934

           For the transition period from ____________ to ____________

                         Commission file number: 333-24111


                      WNC HOUSING TAX CREDIT FUND VI, L.P., Series 7

             California                          33-0745418
      State or other  jurisdiction  of       (I.R.S.  Employer

        incorporation or organization         Identification No.)


              3158 Redhill Avenue, Suite 120, Costa Mesa, CA 92626

                                 (714) 662-5565

                    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

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     No    X
----   -------

Indicate by check mark if disclosure of delinquent  filers  pursuant to Item 405
of Regulation  S-K is not contained  herein,  and will not be contained,  to the
best of registrant's  knowledge,  in definitive proxy or information  statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. |X|



<PAGE>

State the aggregate market value of the voting and non-voting common equity held
by non-affiliates of the registrant.

                                  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).





                                       2
<PAGE>

PART 1.

Item 1.  Business

Organization

WNC Housing Tax Credit Fund, VI, L.P., Series 7 (the  "Partnership")  was formed
under  the  California  Revised  Limited  Partnership  Act on June 16,  1997 and
commenced  operations  on September 3, 1999,  the  effective  date of its public
offering  pursuant to the Securities and Exchange  Commission's  approval of the
Partnership's Pre-Effective Amendment No. 3 to Form S-11 filed on July 16, 1999.
The Partnership was formed to invest primarily in other limited  partnerships or
limited  liability  companies  which will own and  operate  multifamily  housing
complexes  that are  eligible  for  low-income  housing  federal and, in certain
cases, California income tax credits ("Low Income Housing Credit").

The general partner of the Partnership is WNC & Associates,  Inc.  ("Associates"
or the "General  Partner".) Wilfred N. Cooper, Sr., through the Cooper Revocable
Trust,  owns 66.8% of the outstanding stock of Associates.  John B. Lester,  Jr.
was the original limited partner of the Partnership and owns, through the Lester
Family Trust,  28.6% of the outstanding stock of Associates.  Wilfred N. Cooper,
Jr., President of Associates,  owns 2.1% of the outstanding stock of Associates.
The business of the Partnership is conducted  primarily through  Associates,  as
the Partnership has no employees of its own.

Pursuant to a  registration  statement  filed with the  Securities  and Exchange
Commission on April 16, 1999,  the  Partnership  commenced a public  offering of
25,000 units of Limited Partnership Interest ("Units"), at a price of $1,000 per
Unit.  As  of  March  31,  2001,  the  Partnership  had  received  and  accepted
subscriptions  for 18,850 Units in the amount of  $18,828,745  net of volume and
dealer  discounts of $21,255,  of which  $397,000 was  represented by promissory
notes of the  subscribers.  Holders of Units are  referred to herein as "Limited
Partners."

Description of Business

The  Partnership's  principal  business  objective  is to  provide  its  Limited
Partners with Low Income Housing Credits.  The Partnership's  principal business
therefore  consists of investing as a limited partner or non-managing  member in
Local  Limited  Partnerships  each of which will own and operate a  multi-family
housing  complex (the "Housing  Complex")  which will qualify for the Low Income
Housing Credit.  In general,  under Section 42 of the Internal  Revenue Code, an
owner of low-income housing can receive the Low Income Housing Credit to be used
to reduce  Federal  taxes  otherwise due in each year of a ten-year  period.  In
general,  under Section 17058 of the  California  Revenue and Taxation  Code, an
owner of low-income housing can receive the Low Income Housing Credit to be used
against  California taxes otherwise due in each year of a four-year period.  The
Housing Complex is subject to a fifteen-year  compliance period (the "Compliance
Period"),  and under state law may have to be maintained  as low income  housing
for 30 or more years.

In general,  in order to avoid  recapture  of Low Income  Housing  Credits,  the
Partnership  does not  expect  that it will  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.  Because  of  (i)  the  nature  of  the  Housing
Complexes,  (ii) the  difficulty of predicting  the resale market for low-income
housing  15 or more years in the  future,  and (iii) the  ability of  government
lenders to  disapprove  of transfer,  it is not possible at this time to predict
whether 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,  as amended "by Supplements thereto" (the "Partnership Agreement"),
will be able to be accomplished  promptly at the end of the 15-year period. If a
Local  Limited  Partnership  is  unable  to  sell  its  Housing  Complex,  it is
anticipated that the local general partner ("Local General Partner") will either
continue to operate such Housing Complex or take such other actions as the Local
General  Partner  believes  to be in the  best  interest  of the  Local  Limited
Partnership.  Notwithstanding the preceding, circumstances beyond the control of
the  General  Partner  or the  Local  General  Partners  may  occur  during  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 Credits.

                                       3
<PAGE>


As of March 31,  2001,  the  Partnership  had  invested in eight  Local  Limited
Partnerships  five  of  which  were  still  under   construction  or  undergoing
rehabilitation  at that date.  Each of these Local Limited  Partnerships  owns a
Housing Complex that is or is expected to be eligible for the federal Low Income
Housing  Credit.  Certain  Local  Limited  Partnerships  may also  benefit  from
government programs promoting low- or moderate-income housing.

The Partnership's  investments in Local Limited  Partnerships are subject to the
risks incident to the management and ownership of low-income  housing and to the
management and ownership of multi-unit  residential  real estate.  Some of these
risks  are that the Low  Income  Housing  Credit  could be  recaptured  and that
neither the  Partnership's  investments  nor the Housing  Complexes owned by the
Local Limited Partnerships will be 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 Local Limited Partnership Interests;  limitations on
removal of Local General Partners; limitations on subsidy programs; and possible
changes in applicable regulations. The Housing Complexes are subject to mortgage
indebtedness.  If a  Local  Limited  Partnership  does  not  make  its  mortgage
payments,  the lender could foreclose resulting in a loss of the Housing Complex
and Low Income Housing Credits.  As a limited partner or non-managing  member of
the Local Limited  Partnerships,  the Partnership  will have very limited rights
with respect to  management  of the Local  Limited  Partnerships,  and will rely
totally  on the  general  partners  or  managing  members  of the Local  Limited
Partnerships for management of the Local Limited Partnerships.  The value of the
Partnership's  investments  will be subject to  changes  in  national  and local
economic conditions,  including unemployment  conditions,  which could adversely
impact vacancy levels, rental payment defaults and operating expenses.  This, in
turn, could substantially  increase the risk of operating losses for the Housing
Complexes and the Partnership.  In addition,  each Local Limited  Partnership is
subject to risks relating to environmental hazards and natural disasters,  which
might be uninsurable.  Because the Partnership's operations will depend on these
and other  factors  beyond the  control  of the  General  Partner  and the Local
General  Partners,  there can be no assurance  that the  anticipated  Low Income
Housing Credits will be available to Limited Partners.

In addition,  Limited  Partners are subject to risks in that the rules governing
the Low Income  Housing  Credit are  complicated,  and the use of credits can be
limited.  The only  material  benefit from an investment in Units may be the Low
Income Housing Credits. There are limits on the transferability of Units, and it
is unlikely that a market for Units will  develop.  All  Partnership  management
decisions are made by the General Partner.

As a limited partner or non-managing  member,  the  Partnership's  liability for
obligations of each Local Limited Partnership is limited to its investment.  The
Local General Partners of each Local Limited  Partnership retain  responsibility
for developing,  constructing,  maintaining,  operating and managing the Housing
Complexes.

Item 2. Properties

Through its investments in Local Limited  Partnerships,  the  Partnership  holds
limited  partnership  interests in the Housing  Complexes.  The following  table
reflects the status of the eight  Housing  Complexes as of the dates and for the
periods indicated:


                                       4
<PAGE>

<TABLE>
<CAPTION>
                                                                   ------------------------------  ---------------------------------
                                                                        As of March 31, 2001              December 31, 2000
                                                                   ------------------------------  ---------------------------------
Partnership Name          Location         General Partner    Partnership's     Amount of                    Estimated  Encumbrances
                                               Name          Total Investment  Investment                    Low Income    of Local
                                                             in Local Limited   Paid to    Number            Housing        Limited
                                                              Partnerships      Date     of Units Occupancy  Credits (1)Partnerships
-------------------------------------------------------------------------------------------------  ---------------------------------
<S>                       <C>              <C>            <C>            <C>              <C>      <C>      <C>          <C>
2nd Fairhaven, LLC        Federalsburg,    Larry C. Porter and
                          Maryland         Carter
                                           Chinniss       $   360,000     $ 360,000        18      100%     $ 470,000    $ 1,001,000

ACN Southern Hills        Oskaloosa,       ACN
Partners II, L.P.         Iowa             Partnership      1,339,000       760,000        30        -      1,792,000          - (1)

Hickory Lane              Sioux City,      Lewis F. Weinberg,
Partners, L.P.            Iowa             Weinberg Investments, Inc.
                                           and Sioux Falls
                                           Environmental
                                           Access, Inc.       633,000       252,000        40        -        845,000      1,950,000

Lake Village              Kewanee,         Quad Cities Redevelopment
Apartments, L.P.          Illinois         Resources,
                                           Inc.             2,978,000       429,000        50        -      3,972,000        809,000

Montrose County Estates   Montrose,        Raymond T. Cato, Jr.,
Limited Dividend Housing  Michigan         Christopher R. Cato and
Association, L.P.                          Kenneth
                                           Bradner            553,000             -        32        -        747,000          - (1)

Pierce Street             Sioux City,      Lewis F. Weinberg,
Partners, L.P.            Iowa             Weinberg Investments, Inc.
                                           and Sioux Falls
                                           Environmental
                                           Access, Inc.     1,527,000       580,000        80        -      1,729,000      2,930,000

Red Oaks                  Holly Springs,   Douglas B. Parker and
Estates, L.P.             Mississippi      Billy D. Cobb      245,000       184,000        24      100%       341,000        734,000

School Square,            Albany,          Bradley V.
L.P.                      Minnesota        Larson             286,000       214,000        17       94%       397,000      1,073,000
                                                          ------------   -----------      ----      ----  -----------     ----------
                                                          $ 7,921,000    $2,779,000       291       N/A   $10,293,000     $8,497,000
                                                          ============   ===========      =====     =====  ===========    ==========
(1)      The Housing Complex is under construction at December 31, 2000.

N/A - Not Applicable
</TABLE>

                                       5
<PAGE>

<TABLE>
<CAPTION>

                                   -------------------------------------------------------------------------------------
                                                                            Low Income Housing Credits
                                   -----------------------------------------   -----------------------------------------
                                                              Net Income        Credits Allocated to      Year to be
         Partnership Name               Rental Income           (Loss)               Partnership       First Available
----------------------------------------------------------------------------   -----------------------------------------
<S>                                               <C>            <C>                           <C>                <C>
2nd Fairhaven, LLC                                $ 99,000       $ (30,000)                    99.98%             2000

ACN Southern Hills
Partners II, L.P.                                        -               -                     99.98%             2001

Hickory Lane
Partners, L.P.                                     155,000         (27,000)                    99.98%             2001

Lake Village
Apartments, L.P.                                         -               -                     99.98%             2002

Montrose County Estates Limited
Dividend Housing Association, L.P.                       -               -                     99.98%             2001

Pierce Street
Partners, L.P.                                     375,000          61,000                     99.98%             2001

Red Oaks
Estates, L.P.                                       59,000          (9,000)                    99.98%             2000

School Square, L.P.                                 43,000         (52,000)                    99.98%             2000
                                                -----------      -----------
                                                $  731,000       $ (57,000)
                                                ===========      ===========
(1) The Housing Complex is under construction and has not yet begun operations.
</TABLE>

                                       6
<PAGE>

Item 3.  Legal Proceedings

NONE

Item 4.  Submission of Matters to a Vote of Security Holders

NONE

PART II.

Item 5.  Market for Registrant's Common Equity and Related Stockholder Matters

Item 5a.

(a)  The Units are not traded on a public  exchange but are being sold through a
     public offering.  It is not anticipated that any public market will develop
     for the  purchase  and sale of any  Unit.  Units  can be  assigned  only if
     certain requirements in the Partnership Agreement are satisfied.

(b)  At March 31, 2001, there were 961 Limited Partners.

(c)  The Partnership was not designed to provide cash  distributions  to Limited
     Partners in  circumstances  other than  refinancing  or  disposition of its
     investments in Local Limited Partnerships.

(d)  No unregistered  securities were sold by the Partnership  during the period
     from September 3, 1999 (date of inception) to March 31, 2001.

Item 6.  Selected Financial Data

Selected balance sheet information for the Partnership is as follows:
<TABLE>
<CAPTION>
                                                                                          March 31
                                                                                ------------------------------------
                                                                                       2001                2000
<S>                                                                             <C>                 <C>
                                                                                ---------------     ----------------
ASSETS

Cash and cash equivalents                                                       $      5,103,916    $       4,295,471
Funds held in escrow
  disbursement account                                                                 5,664,138              142,815
Subscriptions and notes
  receivable                                                                             398,750              579,000
Investments in limited
  partnerships, net                                                                    9,482,570            1,284,221
Loans receivable                                                                       1,080,974              154,000
Accrued interest receivable                                                               65,377                4,635
Other assets                                                                                 188                  810
                                                                                  ---------------     ----------------
                                                                                $     21,795,913    $       6,460,952
                                                                                  ===============     ================
LIABILITIES

Due to limited partnerships                                                     $      5,142,481    $         502,601
Accrued fees and expenses due to
  general partner and affiliates                                                         112,886              145,659
                                                                                  ---------------     ----------------
                                                                                       5,255,367              648,260
                                                                                  ---------------     ----------------
PARTNERS' EQUITY                                                                      16,540,546            5,812,692
                                                                                  ---------------     ----------------
                                                                                $     21,795,913    $       6,460,952
                                                                                  ===============     ================
</TABLE>

                                       7
<PAGE>

Selected  results of  operations,  cash  flows,  and other  information  for the
Partnership  is as follows for the year ended March 31, 2001 and the period from
September-3, 1999 (date operations commenced) to March 31, 2000:
<TABLE>
<CAPTION>
                                                                                                   For The
                                                                            For The               Period From
                                                                           Year Ended            September-13, 1999
                                                                            March-31                to March 31
                                                                       --------------------    -----------------------
                                                                              2001                      2000
                                                                       --------------------    -----------------------
<S>                                                                  <C>                   <C>
Income from operations                                               $             233,508 $                   27,702
Equity in losses of limited
  partnerships                                                                     (90,404)                         -
                                                                       --------------------    -----------------------

Net income                                                           $             143,104 $                   27,702
                                                                       ====================    =======================
Net income allocated to:

  General partner                                                    $                 143 $                       28
                                                                       ====================    =======================
   Limited partners                                                  $             142,961 $                   27,674
                                                                       ====================    =======================
Net income  per limited partner
  unit                                                               $               10.13 $                     5.73
                                                                       ====================    =======================
Outstanding weighted limited
  partner units                                                                     14,110                      4,831
                                                                       ====================    =======================
</TABLE>
<TABLE>
<CAPTION>

                                                                                                   For The
                                                                            For The               Period From
                                                                           Year Ended            September-13, 1999
                                                                            March-31                to March 31
                                                                       --------------------    -----------------------
                                                                              2001                      2000
                                                                       --------------------    -----------------------
<S>                                                                  <C>                     <C>
Net cash provided by (used in):
  Operating activities                                               $             304,387   $                 27,424
  Investing activities                                                         (10,183,597)                (1,037,023)
  Financing activities                                                          10,687,655                  5,305,070
                                                                       --------------------    -----------------------
Net change in cash and cash
  equivalents                                                                      808,445                  4,295,471

Cash and cash equivalents,
  beginning of period                                                            4,295,471                          -
                                                                       --------------------    -----------------------
Cash and cash equivalents, end
  of period                                                          $           5,103,916   $              4,295,471
                                                                       ====================    =======================
Low Income Housing Credit per Unit was as follows for the period ended December 31:
</TABLE>
<TABLE>
<CAPTION>

                                                                                   2000                1999
                                                                              ---------------    -----------------
<S>                                                                         <C>                <C>
 Federal                                                                    $              5   $                -
 State                                                                                     -                    -
                                                                              ---------------    -----------------

 Total                                                                      $              5   $                -
                                                                              ===============    =================

</TABLE>


                                       8
<PAGE>

Item 7. Management's  Discussion and Analysis of Financial Condition and Results
of Operation

Forward Looking Statements

With  the  exception  of  the  discussion  regarding   historical   information,
"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.

Risks and uncertainties  inherent in forward looking statements include, but are
not  limited  to,  our  future  cash  flows and  ability  to  obtain  sufficient
financing, level of operating expenses, conditions in the low income housing tax
credit property market and the economy in general, as well as legal proceedings.
Historical  results are not necessarily  indicative of the operating results for
any future period.

Subsequent  written and oral forward  looking  statements  attributable to us or
persons  acting on our behalf  are  expressly  qualified  in their  entirety  by
cautionary  statements  in this Form 10-K and in other reports we filed with the
Securities and Exchange  Commission.  The following discussion should be read in
conjunction  with the  Consolidated  Financial  Statements and the Notes thereto
included elsewhere in this filing.

Financial Condition

The Partnership's  assets at March 31, 2001 consisted primarily of $5,104,000 in
cash,  $5,664,000  in cash in  escrow,  $399,000  in  subscriptions  receivable,
aggregate  investments in the eight Local Limited Partnerships of $9,483,000 and
$1,081,000  in  loans  receivable.  Liabilities  at  March  31,  2001  primarily
consisted of $5,142,000  due to limited  partnerships,  and $113,000 in advances
and other payables due to the General Partner or affiliates.

Results of Operations

The Partnership  commenced  operations on September 3, 1999. As a result,  there
are no  comparative  results of  operations  or financial  condition  from prior
periods  to  report.  Net  income  for the  period  ended  March  31,  2000  was
principally  composed  of  interest  income,  offset by  amortization  and other
operating expenses. Net income of $143,000 for the year ended March 31, 2001 was
principally composed of interest income of $343,000 offset by operating expenses
of $(110,000) and equity in losses of $(90,000).

The two periods are not  comparable as minimal  operations  occurred  during the
period ended March 31, 2000.

As of  March  31,  2001,  five of the  Local  Limited  Partnerships  were  under
construction or undergoing rehabilitation. During the year ended March 31, 2001,
six Housing Complexes owned by six Local Limited Partnerships were acquired, two
of which were operating at the time of acquisition.

Cash Flows

Cash flows  provided by operating  activities  for the year ended March 31, 2001
included interest income from cash investments offset by miscellaneous  costs of
operations.  For the year ended  March 31,  2001,  cash flows used in  investing
activities  substantially  consisted  of  capital  contributions  paid to  Local
Limited  Partnerships of $2,636,000,  capitalized  acquisition fees and costs of
$1,053,000, net transfers to escrow of $5,521,000 and loans advanced in the form
of  property  deposits  totaling  $927,000.  Cash flows  provided  by  financing
activities for the year ended March-31,  2001 totaling  $10,688,000  principally
consisted of capital  contributions  from sale of units of $12,266,000 offset by
offering costs of $1,578,000.

Cash flows provided by operating  activities for the period ended March 31, 2000
included  interest  income from cash  investments  less  miscellaneous  costs of
operations.  Cash flows  provided by financing  activities  for the period ended
March  31,  2000,  primarily  consisted  of  proceeds  from the sale of Units of
$6,128,000,  net of promissory  notes of


                                       9
<PAGE>


$434,000,  subscriptions  receivable of $579,000 and dealer and volume discounts
of $7,000, less offering expenses paid of $823,000.

Cash flows used in investing activities consisted of capital  contributions paid
to Local Limited  Partnerships  of $143,000,  capitalized  acquisition  fees and
costs  totaling  $597,000 and advances to developers  of $154,000.  In addition,
$143,000 was deposited in an escrow account in connection  with the  acquisition
of a Local Limited Partnership.

The Partnership  expects its future cash flows,  together with its net available
assets at March 31, 2001, to be  sufficient  to meet all  currently  foreseeable
future cash requirements.

Item 7a.  Quantitative and Qualitative Disclosures About Market Risk

NONE.

Item 8.  Financial Statements and Supplementary Data


                                       10

<PAGE>




               REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
               --------------------------------------------------

To the Partners
WNC Housing Tax Credit Fund VI, L.P., Series 7


We have audited the  accompanying  balance sheets of WNC Housing Tax Credit Fund
VI, L.P., Series 7 (a California Limited  Partnership) (the "Partnership") as of
March 31, 2001 and 2000,  and the related  statements of  operations,  partners'
equity  (deficit)  and cash flows for the year ended  March 31, 2001 and for the
period  September 3, 1999 (date  operations  commenced)  through March 31, 2000.
These  financial   statements  are  the   responsibility  of  the  Partnership's
management.  Our  responsibility  is to express  an  opinion on these  financial
statements  based  on  our  audits.  A  significant  portion  of  the  financial
statements of the limited  partnerships  in which the  Partnership  is a limited
partner were audited by other  auditors whose reports have been furnished to us.
As discussed in Note 3 to the financial statements, the Partnership accounts for
its investments in limited  partnerships using the equity method. The portion of
the Partnership's  investment in limited  partnerships audited by other auditors
represented  6% and 0% of the total assets of the  Partnership at March 31, 2001
and 2000,  respectively.  Our  opinion,  insofar as it  relates  to the  amounts
included in the financial  statements  for the limited  partnerships  which were
audited by others, is based solely on the reports of the other auditors.

We conducted our audits in accordance with auditing standards generally accepted
in the  United  States of  America.  Those  standards  require  that we plan and
perform the audits to obtain  reasonable  assurance  about whether the financial
statements are free of material misstatement.  An audit includes examining, on a
test basis,  evidence  supporting  the amounts and  disclosures in the financial
statements.  An audit also includes assessing the accounting principles used and
significant  estimates  made by  management,  as well as evaluating  the overall
financial statement presentation.  We believe that our audits and the reports of
the other auditors, provide a reasonable basis for our opinion.

In our opinion,  based on our audits and the reports of the other auditors,  the
financial  statements referred to above present fairly in all material respects,
the  financial  position of WNC Housing  Tax Credit Fund VI,  L.P.,  Series 7 (a
California  Limited  Partnership) as of March 31, 2001 and 2000, and the results
of its  operations  and its cash flows for the year ended March 31, 2001 and the
period September 3, 1999 (date operations commenced) through March-31,  2000, in
conformity with accounting principles generally accepted in the United States of
America.




                                              /S/ BDO SEIDMAN, LLP
                                                  BDO SEIDMAN, LLP
Orange County, California
August 23, 2001

                                       11
<PAGE>

                 WNC HOUSING TAX CREDIT FUND VI, L.P., SERIES 7
                       (A California Limited Partnership)

                                 BALANCE SHEETS

                             March 31, 2001 and 2000
<TABLE>
<CAPTION>
                                                                                          2001             2000
                                                                                       -------------    -------------
<S>                                                                                  <C>              <C>
ASSETS

Cash and cash equivalents                                                            $    5,103,916   $    4,295,471
Funds held in escrow disbursement account                                                 5,664,138          142,815
Subscriptions and notes receivable (Note 8)                                                 398,750          579,000
Investments in limited partnerships (Note 3)                                              9,482,570        1,284,221
Loans receivable (Note 2)                                                                 1,080,974          154,000
Accrued interest receivable                                                                  65,377            4,635
Other assets                                                                                    188              810
                                                                                       -------------    -------------
                                                                                     $   21,795,913   $    6,460,952
                                                                                       =============    =============
LIABILITIES AND PARTNERS' EQUITY
  (DEFICIT)

Liabilities:
   Due to limited partnerships (Note 6)                                              $    5,142,481   $      502,601
   Accrued fees and expenses due to General
     Partner and affiliates (Note 4)                                                        112,886          145,659
                                                                                       -------------    ------------
     Total liabilities                                                                    5,255,367          648,260
                                                                                       -------------    -------------
Commitments and contingencies (Note 9)

Partners' equity (deficit) (Note 8)
   General partner                                                                           (1,424)            (301)
   Limited partners (25,000 units authorized, 18,850 and
     7,147 units outstanding at March 31, 2001 and 2000, respectively)                   16,541,970        5,812,993
                                                                                       -------------    -------------
     Total partners' equity                                                              16,540,546        5,812,692
                                                                                       -------------    -------------

                                                                                     $   21,795,913   $    6,460,952
                                                                                       =============    =============
</TABLE>

                 See accompanying notes to financial statements

                                       12
<PAGE>

                 WNC HOUSING TAX CREDIT FUND VI, L.P., SERIES 7
                       (A California Limited Partnership)

                            STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>




                                                                                                    For The Period
                                                                                                   September 3, 1999
                                                                                                   (Date Operations
                                                                               For The Year          Commenced)
                                                                              Ended March-31       through March-31
                                                                            -------------------   -------------------
                                                                                   2001                  2000
                                                                            -------------------   --------------------
<S>                                                                       <C>                   <C>
Interest income                                                           $            343,152  $              36,456
                                                                            -------------------   --------------------
Operating expenses:
   Amortization (Notes 3 and 4)                                                         40,617                  4,398
   Asset management fees (Note 4)                                                       34,573                    424
   Other                                                                                34,454                  3,932
                                                                            -------------------   --------------------
    Total operating expenses                                                           109,644                  8,754
                                                                            -------------------   --------------------
Income (loss) from operations                                                          233,508                 27,702

Equity in losses of limited
  partnerships (Note 3)                                                                (90,404)                     -
                                                                            -------------------   --------------------
Net income                                                                $            143,104  $              27,702
                                                                            ===================   ====================
Net income allocated to:
   General partner                                                        $                143  $                  28
                                                                            ===================   ====================
   Limited partners                                                       $            142,961  $              27,674
                                                                            ===================   ====================
Net income per limited partner unit                                       $              10.13  $                5.73
                                                                            ===================   ====================
Outstanding weighted limited partner units                                              14,110                  4,831
                                                                            ===================   ====================
                 See accompanying notes to financial statements
</TABLE>


                                       13
<PAGE>

                 WNC HOUSING TAX CREDIT FUND VI, L.P., SERIES 7
                       (A California Limited Partnership)

                    STATEMENTS OF PARTNERS' EQUITY (DEFICIT)

                      For The Year Ended March 31, 2001 and
          For The Period September 3, 1999 (Date Operations Commenced)
                             through March 31, 2000
<TABLE>
<CAPTION>

                                                               General            Limited
                                                               Partner            Partners               Total
                                                            ---------------    ---------------     ---------------
<S>                                                       <C>                <C>                 <C>
Contribution from General Partner and initial
   limited partner on September 3, 1999                   $            100   $          1,000    $          1,100

Sale of limited partnership units, net of
   discounts of $7,225                                                   -          7,139,775           7,139,775

Sale of limited partnership units issued for
   promissory notes receivable (Note 8)                                  -           (434,000)           (434,000)

Offering expenses                                                     (429)          (921,456)           (921,885)

Net income                                                              28             27,674              27,702
                                                            ---------------    ---------------     ---------------

Partners' equity (deficit) at March 31, 2000                          (301)         5,812,993           5,812,692

Sale of limited partnership units, net of
   discounts of $14,030                                                  -         11,688,970          11,688,970

Collection of promissory notes receivable, net
   (Note 8)                                                              -            397,000             397,000

Offering expenses                                                   (1,266)        (1,498,954)         (1,500,220)

Withdrawal of initial limited partner                                    -             (1,000)             (1,000)

Net income                                                             143            142,961             143,104
                                                            ---------------    ---------------     ---------------
Partners' equity (deficit) at March 31, 2001              $         (1,424) $      16,541,970    $     16,540,546
                                                            ===============    ===============     ===============
                 See accompanying notes to financial statements
</TABLE>

                                       14
<PAGE>

                 WNC HOUSING TAX CREDIT FUND VI, L.P., SERIES 7
                       (A California Limited Partnership)

                            STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
                                                                                                    For The Period
                                                                                                   September 3, 1999
                                                                                                   (Date Operations
                                                                               For The Year          Commenced)
                                                                              Ended March-31       through  March-31
                                                                            -------------------   -------------------
                                                                                   2001                  2000
                                                                            -------------------   --------------------

<S>                                                                       <C>                   <C>
Cash flows from operating activities:
   Net income                                                             $            143,104  $              27,702
   Adjustments to reconcile net income to
     net cash provided by operating activities:
    Amortization                                                                        40,617                  4,398
    Equity in losses of limited partnerships                                            90,404                      -
    Change in interest receivable                                                      (60,742)                (4,635)
    Change in other assets                                                                 622                   (810)
    Change in accrued fees and expenses due
      to general partner and affiliates                                                 90,382                    769
                                                                            -------------------   --------------------
Net cash provided by operating
  activities                                                                           304,387                 27,424
                                                                            -------------------   --------------------
Cash flows from investing activities:
   Investments in limited partnerships, net                                         (2,636,220)              (142,788)
   Funds held in escrow disbursement account, net                                   (5,521,323)              (142,815)
   Accrued and unpaid acquisition fees and advances
    due to affiliate of general partner                                                (45,810)                     -
   Loans receivable                                                                   (926,974)              (154,000)
   Capitalized acquisition costs and fees                                           (1,053,270)              (597,420)
                                                                            -------------------   --------------------
Net cash used in investing activities                                              (10,183,597)            (1,037,023)
                                                                            -------------------   --------------------
Cash flows from financing activities:
   Capital contributions                                                            12,266,220              6,127,875
   Offering expenses                                                                (1,577,565)              (822,805)
   Withdrawal of initial limited partner                                                (1,000)                     -
                                                                            -------------------   --------------------
Net cash provided by financing activities                                           10,687,655              5,305,070
                                                                            -------------------   --------------------
Net increase in cash and cash
  equivalents                                                                          808,445              4,295,471

Cash and cash equivalents, beginning of period                                       4,295,471                      -
                                                                            -------------------   --------------------
Cash and cash equivalents, end of period                                  $          5,103,916  $           4,295,471
                                                                            ===================   ====================
SUPPLEMENTAL DISCLOSURE OF CASH
  FLOW INFORMATION:
   Taxes paid                                                             $                800  $                 800
                                                                            ===================   ====================
   Interest paid                                                          $              4,295  $                   -
                                                                            ===================   ====================
                 See accompanying notes to financial statements
</TABLE>


                                       15

<PAGE>

                 WNC HOUSING TAX CREDIT FUND VI, L.P., SERIES 7
                       (A California Limited Partnership)

                          NOTES TO FINANCIAL STATEMENTS

          For The Period September 3, 1999 (Date Operations Commenced)
                             through March 31, 2000


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
---------------------------------------------------
Organization
------------
WNC Housing Tax Credit Fund VI, L.P., Series 7, a California Limited Partnership
(the "Partnership"),  was formed on June 16, 1997 under the laws of the state of
California, and commenced operations on September 3, 1999, the effective date of
its  public  offering  pursuant  to the  Securities  and  Exchange  Commission's
approval of the Partnership's  Pre-Effective  Amendment No. 3 to Form S-11 filed
on July 16, 1999.  Prior to September 3, 1999, the  Partnership was considered a
development-stage  enterprise. The Partnership was formed to invest primarily in
other limited  partnerships and limited liability  companies (the "Local Limited
Partnerships")  which  own  and  operate  multi-family  housing  complexes  (the
"Housing  Complex") that are eligible for low income housing credits.  The local
general   partners  (the  "Local  General   Partners")  of  each  Local  Limited
Partnership retain  responsibility  for maintaining,  operating and managing the
Housing Complex.

The general partner is WNC & Associates, Inc. ("WNC") (the "General Partner"), a
California  limited  partnership.  Wilfred N.  Cooper,  Sr.,  through the Cooper
Revocable Trust,  owns 66.8% of the outstanding stock of WNC. John B. Lester was
the original  limited partner of the  Partnership  and owns,  through the Lester
Family Trust,  28.6% of the outstanding  stock of WNC.  Wilfred N. Cooper,  Jr.,
President of WNC, owns 2.1% of the outstanding stock of WNC.

The Partnership shall continue in full force and effect until December 31, 2060,
unless terminated prior to that date,  pursuant to the partnership  agreement or
law.

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

The  partnership  agreement  authorized the sale of up to 25,000 units at $1,000
per  Unit  ("Units").   As  of  March  31,  2001,  18,850  Units,   representing
subscriptions  in the amount of  $18,828,745,  net of discount of $45 for volume
purchases  and  $21,210 for dealer  discounts,  had been  accepted.  The General
Partner has a 0.1% interest in operating profits and losses,  taxable income and
losses, in cash available for distribution from the Partnership and tax credits.
The  limited  partners  will  be  allocated  the  remaining  99.9%  interest  in
proportion to their respective investments.

After the limited  partners  have received  proceeds from a sale or  refinancing
equal to their capital  contributions and their return on investment (as defined
in the  Partnership  Agreement)  and the General  Partner has received  proceeds
equal  to its  capital  contribution  and a  subordinated  disposition  fee  (as
described in Note 4) from the  remainder,  any  additional  sale or  refinancing
proceeds will be distributed 90% to the limited partners (in proportion to their
respective investments) and 10% to the General Partner.

                                       16
<PAGE>

                 WNC HOUSING TAX CREDIT FUND VI, L.P., SERIES 7
                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

          For The Period September 3, 1999 (Date Operations Commenced)
                             through March 31, 2000

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
--------------------------------------------------------------
Risks and Uncertainties
-----------------------
The Partnership's  investments in Local Limited  Partnerships are subject to the
risks incident to the management and ownership of low-income  housing and to the
management and ownership of multi-unit  residential  real estate.  Some of these
risks  are that the low  income  housing  credit  could be  recaptured  and that
neither the  Partnership's  investments  nor the Housing  Complexes owned by the
Local Limited Partnerships will be 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 Local Limited Partnership Interests;  limitations on
removal of Local General Partners; limitations on subsidy programs; and possible
changes in applicable regulations.  The Housing Complexes are or will be subject
to  mortgage  indebtedness.  If a Local  Limited  Partnership  does not make its
mortgage payments, the lender could foreclose resulting in a loss of the Housing
Complex  and  low-income  housing  credits.  As a limited  partner  of the Local
Limited Partnerships, the Partnership will have very limited rights with respect
to management of the Local  Limited  Partnerships,  and will rely totally on the
Local General  Partners of the Local Limited  Partnerships for management of the
Local Limited Partnerships.  The value of the Partnership's  investments will be
subject  to  changes  in  national  and  local  economic  conditions,  including
unemployment  conditions,  which could adversely  impact vacancy levels,  rental
payment  defaults and operating  expenses.  This, in turn,  could  substantially
increase  the  risk of  operating  losses  for  the  Housing  Complexes  and the
Partnership.  In addition,  each Local Limited  Partnership  is subject to risks
relating  to  environmental  hazards  and  natural  disasters,  which  might  be
uninsurable. Because the Partnership's operations will depend on these and other
factors  beyond  the  control  of the  General  Partner  and the  Local  General
Partners,  there can be no assurance  that the  anticipated  low income  housing
credits will be available to Limited Partners.

In addition,  Limited  Partners are subject to risks in that the rules governing
the low income  housing  credit are  complicated,  and the use of credits can be
limited.  The only  material  benefit from an investment in Units may be the low
income housing credits. There are limits on the transferability of Units, and it
is unlikely that a market for Units will develop.  All management decisions will
be made by the General Partner.

Method of Accounting for Investments in Limited Partnerships
------------------------------------------------------------
The Partnership  accounts for its investments in limited  partnerships using the
equity method of  accounting,  whereby the  Partnership  adjusts its  investment
balance for its share of the Local Limited  Partnership's  results of operations
and for any distributions received. The accounting policies of the Local Limited
Partnership's  are consistent with those of the  Partnership.  Costs incurred by
the  Partnership  in acquiring the  investments  are  capitalized as part of the
investment account and are being amortized over 30 years (see Notes 3 and 4).

Offering Expenses
-----------------
Offering  expenses consist of underwriting  commissions,  legal fees,  printing,
filing and recordation fees, and other costs incurred in connection with selling
limited  partnership  interests  in the  Partnership.  The  General  Partner  is
obligated to pay all offering and organization  costs in excess of 4% (excluding
sales  commissions  and the dealer manager fee) of the total offering  proceeds.
Offering  expenses are reflected as a reduction of limited partners' capital and
amounted to $2,422,105 and $921,885 as of March 31, 2001 and 2000, respectively.

                                       17
<PAGE>



                 WNC HOUSING TAX CREDIT FUND VI, L.P., SERIES 7
                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

          For The Period September 3, 1999 (Date Operations Commenced)
                             through March 31, 2000


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
--------------------------------------------------------------
Use of Estimates
----------------
The preparation of financial statements in conformity with accounting principles
generally  accepted in the United States of America requires  management to make
estimates  and  assumptions  that  affect  the  reported  amounts  of assets and
liabilities  and disclosure of contingent  assets and liabilities at the date of
the  financial  statements,  and the  reported  amounts of revenues and expenses
during the reporting  period.  Actual results could materially differ from those
estimates.

Cash and Cash Equivalents
-------------------------
The  Partnership   considers  all  highly  liquid   investments  with  remaining
maturities of three months or less when purchased to be cash equivalents.  As of
March 31, 2001 and 2000, the Partnership had cash  equivalents of  approximately
$2,100,000 and $3,800,000, respectively.

Concentration of Credit Risk
----------------------------
At March 31, 2001, the Partnership maintained cash balances at certain financial
institutions in excess of the federally insured maximum.

Net Income Per Limited Partner Unit
-----------------------------------
Net income per limited  partnership unit is calculated  pursuant to Statement of
Financial  Accounting Standards No. 128, Earnings Per Share. Net income per unit
includes no dilution  and is computed by dividing  income  available  to limited
partners by the weighted average number of units outstanding  during the period.
Calculation of diluted net income per unit is not required.

Reporting Comprehensive Income
------------------------------
In June 1997,  the FASB  issued  Statement  of  Financial  Accounting  Standards
("SFAS") No. 130, Reporting  Comprehensive  Income.  This statement  establishes
standards for reporting the components of comprehensive income and requires that
all items that are  required to be  recognized  under  accounting  standards  as
components of comprehensive  income be included in a financial statement that is
displayed with the same prominence as other financial statements.  Comprehensive
income  includes net income as well as certain items that are reported  directly
within a separate  component of partners' equity and bypass net income.  For the
periods  presented,  the  Partnership  has no  elements  of other  comprehensive
income, as defined by SFAS No. 130.

Reclassification
----------------
Certain  prior  year  balances  have been  reclassified  to  conform to the 2001
presentation.

NOTE 2 - LOANS RECEIVABLE
-------------------------
Loans  receivable  represent  amounts loaned by the Partnership to certain Local
Limited  Partnerships  in which the  Partnership  may  invest.  These  loans are
generally applied against the first capital  contribution due if the Partnership
ultimately invests in such entities.  In the event that the Partnership does not
invest in such  entities,  the loans are to be repaid  with  interest  at a rate
which is equal to the rate  charged  to the  holder.  At March 31,  2001,  loans
receivable were due from five different Local Limited Partnerships. As of August
23,  2001,  the   Partnership  had  invested  in  one  of  these  Local  Limited
Partnerships to which it had loaned $150,000 at March 31, 2001 (see Note 9).


                                       18
<PAGE>




                 WNC HOUSING TAX CREDIT FUND VI, L.P., SERIES 7
                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

          For The Period September 3, 1999 (Date Operations Commenced)
                             through March 31, 2000

NOTE 3 - INVESTMENTS IN LIMITED PARTNERSHIPS
--------------------------------------------
As of March 31, 2001, the Partnership has acquired limited partnership interests
in 8 Local  Limited  Partnerships,  each  of  which  owns  one  Housing  Complex
consisting  of an  aggregate  of 291  apartment  units.  As of  March  31,  2001
construction  or  rehabilitation  of five of the Housing  Complexes was still in
process.  The  respective  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 99.98%, as specified
in the Local  Limited  Partnership  agreements,  of the  operating  profits  and
losses,  taxable  income  and  losses  and  tax  credits  of the  Local  Limited
Partnerships.

The  Partnership's  investments  in limited  partnerships  as  reflected  in the
balance sheets at March 31, 2001, are approximately  $7,240,000 greater than the
Partnership's  equity  as  shown in the  Local  Limited  Partnerships'  combined
financial   statements.   This  difference  is  primarily  due  to  acquisition,
selection,  and other costs related to the acquisition of the investments  which
have been  capitalized in the  Partnership's  investment  account and to capital
contributions  payable to the limited  partnerships  which were  netted  against
partner  capital in the Local Limited  Partnerships'  financial  statements (see
Note 4).

Equity  in  losses  of the  Local  Limited  Partnerships  is  recognized  in the
financial  statements until the related  investment account is reduced to a zero
balance. Losses incurred after the investment account is reduced to zero are not
recognized. 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.

Distributions  received by limited  partners are accounted for as a reduction of
the investment balance.  Distributions received after the investment has reached
zero are recognized as income.  As of March 31, 2001, no investment  accounts in
Local Limited Partnerships had reached a zero balance.

The following is a summary of the equity method  activity of the  investments in
limited partnerships for the periods presented:
<TABLE>
<CAPTION>
                                                                                                 For The Period
                                                                                                September 3, 1999
                                                                                                (Date Operations
                                                                             For The Year         Commenced)
                                                                             Ended March 31      through March 31
                                                                         --------------------   --------------------
                                                                                2001                   2000
                                                                         --------------------   --------------------
<S>                                                                    <C>                    <C>
Investments per balance sheet, beginning of period                     $           1,284,221  $                   -
Capital contributions paid, net                                                    2,205,074                142,788
Capital contributions payable                                                      5,071,026                502,601
Capitalized acquisition fees and costs                                             1,053,270                643,230
Equity in losses of Limited Partnerships                                             (90,404)                     -
Amortization of paid acquisition fees and costs                                      (40,617)                (4,398)
                                                                         --------------------   --------------------
Investments in limited partnerships, end of period                     $           9,482,570  $           1,284,221
                                                                         ====================   ====================
</TABLE>



                                       19
<PAGE>



                 WNC HOUSING TAX CREDIT FUND VI, L.P., SERIES 7
                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

          For The Period September 3, 1999 (Date Operations Commenced)
                             through March 31, 2000

NOTE 3 - INVESTMENTS IN LIMITED PARTNERSHIPS, continued
-------------------------------------------------------
The  financial  information  from the  individual  financial  statements  of the
Limited Partnerships include rental and interest subsidies.  As no Local Limited
Partnerships  were  acquired  as of December  31,  1999,  no combined  condensed
information  is  presented  for  that  period.  Approximate  combined  condensed
financial  information  from the  individual  financial  statements of the Local
Limited  Partnerships  as of and for the  year  ended  December  31,  2000 is as
follows:

                        COMBINED CONDENSED BALANCE SHEETS
<TABLE>
<CAPTION>

                                                                                                   2000
                                                                                         -------------------
<S>                                                                                          <C>
ASSETS

Buildings and improvements (net of accumulated depreciation
   of $159,000)                                                                              $          7,774,000
Land                                                                                                      989,000
Construction in progress                                                                                  276,000
Other assets                                                                                            2,186,000
                                                                                               -------------------
                                                                                             $         11,225,000
                                                                                               ===================
LIABILITIES AND PARTNERS' EQUITY

Mortgage and construction loans payable                                                      $          8,497,000
Other liabilities (including payables to affiliates of
   $132,000)                                                                                              307,000
                                                                                               -------------------
                                                                                                        8,804,000
                                                                                               -------------------
PARTNERS' CAPITAL

WNC Housing Tax Credit Fund VI, L.P., Series 7                                                          2,243,000
Other partners                                                                                            178,000
                                                                                               -------------------
                                                                                                        2,421,000
                                                                                               -------------------
                                                                                             $         11,225,000
                                                                                               ===================


                   COMBINED CONDENSED STATEMENTS OF OPERATIONS






                                                                                                      2000
                                                                                               -------------------


Revenues                                                                                     $            867,000
                                                                                               -------------------
Expenses:
    Operating expenses                                                                                    398,000
    Interest expense                                                                                      372,000
    Depreciation and amortization                                                                         154,000
                                                                                               -------------------
Total expenses                                                                                            924,000
                                                                                               -------------------
Net income(loss)                                                                             $            (57,000)
                                                                                               ===================
Net income (loss) allocable to the Partnership                                               $            (56,000)
                                                                                               ===================
Net income (loss) recorded by the Partnership                                                $            (90,000)
                                                                                               ===================
</TABLE>


                                       20
<PAGE>



                 WNC HOUSING TAX CREDIT FUND VI, L.P., SERIES 7
                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

          For The Period September 3, 1999 (Date Operations Commenced)
                             through March 31, 2000

NOTE 4 - RELATED PARTY TRANSACTIONS
-----------------------------------
Under the terms of the  Partnership  Agreement,  the  Partnership has paid or is
obligated to the General Partner or their affiliates for the following items:

     Acquisition  fees of 7% of the  gross  proceeds  from  the sale of Units as
     compensation  for services  rendered in connection  with the acquisition of
     Local Limited Partnerships.  As of March 31, 2001 and 2000, the Partnership
     incurred   acquisition   fees  of  $1,319,500  and  $500,290.   Accumulated
     amortization of these  capitalized costs was $34,881 and $3,420 as of March
     31, 2001 and 2000, respectively.

     Acquisition  costs of 2% of the  gross  proceeds  from the sale of Units as
     full  reimbursement  of costs incurred by the General Partner in connection
     with the  acquisition of Local Limited  Partnerships.  As of March 31, 2001
     and 2000,  the  Partnership  incurred  acquisition  costs of  $377,000  and
     $142,940,  which have been included in investments in limited partnerships.
     Accumulated  amortization  was  $10,134  and $978 as of March 31,  2001 and
     2000, respectively.

     An annual asset  management  fee not to exceed 0.2% of the invested  assets
     (defined as the Partnership's  capital  contributions  plus reserves of the
     Partnership of up to 5% of gross proceeds plus its allocable  percentage of
     the mortgage debt  encumbering the housing  complexes) of the Local Limited
     Partnerships.  Management fees of $34,573 and $424 were incurred during the
     years ended March 31, 2001 and 2000, respectively.

     A subordinated  disposition fee in an amount equal to 1% of the sales price
     of real estate  sold.  Payment of this fee is  subordinated  to the limited
     partners  receiving a return on investment  (as defined in the  Partnership
     Agreement)  and is payable  only if the General  Partner or its  affiliates
     render services in the sales effort.

The accrued fees and expenses due to General  Partner and affiliates  consist of
the following:
<TABLE>
<CAPTION>
                                                                                            March 31
                                                                                 ----------------------------------
                                                                                      2001               2000
                                                                                 ---------------    ---------------
<S>                                                                            <C>                <C>
Acquisition fees payable                                                       $              -   $         35,630
Acquisition expenses payable                                                                  -             10,180
Organizational, offering and selling costs payable                                       21,735             99,080
Asset management fee payable                                                             24,715                424
Reimbursements for expenses paid by the General Partner or an affiliate                       -                345
Interest payable to Local Limited Partnerships                                           66,436                  -
                                                                                 ---------------    ---------------
Total                                                                          $        112,886   $        145,659
                                                                                 ===============    ===============
</TABLE>

                                       21
<PAGE>


                 WNC HOUSING TAX CREDIT FUND VI, L.P., SERIES 7
                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

          For The Period September 3, 1999 (Date Operations Commenced)
                             through March 31, 2000


NOTE 5 - QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)
----------------------------------------------------
<TABLE>
<CAPTION>
                                           June 30           September 30       December 31           March 31
                                        ---------------     ---------------    ---------------     ---------------
               2001
               ----
<S>                                   <C>                 <C>                <C>                 <C>
Income                                $         66,000    $         86,000   $         79,000    $       112,000

Operating expenses                             (14,000)            (27,000)           (39,000)           (30,000)

Equity in income (losses) of
     limited partnerships                      (37,000)            (83,000)           (84,000)           114,000
                                        ---------------     ---------------    ---------------     ---------------
Net income (loss)                     $         15,000    $        (24,000)$          (44,000)  $        196,000
                                        ===============     ===============    ===============     ===============
Income (loss) available to
     limited partner                  $         15,000    $        (24,000)$          (44,000)  $        196,000
                                        ===============     ===============    ===============     ===============
Earnings (loss) per limited
     partnership unit                 $              1    $             (2)$               (2)  $             10
                                        ===============     ===============    ===============     ===============
</TABLE>

NOTE 6 - PAYABLES TO LIMITED PARTNERSHIPS
-----------------------------------------
Payables  to limited  partnerships  represent  amounts  which are due at various
times  based on  conditions  specified  in the  respective  limited  partnership
agreements.  These  contributions  are payable in installments and are generally
due upon the limited  partnerships  achieving certain  development and operating
benchmarks (generally within two years of the Partnership's initial investment).
Subsequent  to March 31,  2001 and  through  August 23,  2001,  the  Partnership
disbursed $1,224,323 relating to the payables to limited partnerships  reflected
at March 31, 2001.

NOTE 7 - INCOME TAXES
---------------------
No provision  for income taxes has been recorded in the  accompanying  financial
statements as any  liability for income taxes is the  obligation of the partners
of the Partnership.

NOTE 8 - SUBSCRIPTIONS AND NOTES RECEIVABLE
-------------------------------------------
As of March 2000, the  Partnership  had received  subscriptions  for 7,147 units
which  included  subscriptions  receivable of $584,000 and  promissory  notes of
$434,000. Limited Partners who subscribed for ten or more units of Local Limited
Partnerships  interest ($10,000) could elect to pay 50% of the purchase price in
cash upon  subscription  and the  remaining  50% by the delivery of a promissory
note payable  together with interest at the rate of 5.5% per annum, due no later
than 13 months after the subscription  date.  Subscriptions and notes receivable
collected  subsequent to year-end are recorded as a capital  contribution and an
asset in the accompanying financial statements.  Any unpaid balance is reflected
as a reduction of partners' equity in the accompanying financial statements.

From April 1, 2000 through  October 31, 2000,  the date of closing the fund, the
Partnership received  subscriptions for an additional 11,703 Units, for which it
has received net cash totaling  $11,688,970.  Notes receivable totaling $435,750
were  outstanding  as of  March  31,  2001  of  which  $398,750  were  collected
subsequent to year end and prior to the issuance of these financial  statements.
The  balance  of  $37,000  has  not  been  reflected  as  a  receivable  on  the
accompanying financial statements.

NOTE 9 - COMMITMENTS AND CONTINGENCIES
--------------------------------------
Subsequent  to March 31,  2001 and  through  August 23,  2001,  the  Partnership
acquired three  additional  Local Limited  Partnership  interests which required
capital  contributions of $3,058,653,  of which $150,000 had been advanced as of
March 31, 2001.  Of this amount,  $519,631 has been  contributed  subsequent  to
March 31, 2001 and prior to the issuance of these financial statements.


                                       22

<PAGE>


Item  9.  Changes  in and  Disagreements  With  Accountants  on  Accounting  and
Financial Disclosure

NOT APPLICABLE

PART III

Item 10. Directors and Executive Officers of the Registrant

The Partnership has no directors or executive officers of its own. The following
biographical  information is presented for the directors and executive  officers
of Associates which has principal responsibility for the Partnership's affairs.

Directors and Executive Officers of WNC & Associates, Inc.

The directors of WNC & Associates,  Inc. are Wilfred N. Cooper,  Sr., who serves
as Chairman of the Board,  John B.  Lester,  Jr.,  David N.  Shafer,  Wilfred N.
Cooper, Jr. and Kay L. Cooper.  The principal  shareholders of WNC & Associates,
Inc. are trusts established by Wilfred N. Cooper, Sr. and John B. Lester, Jr.

Wilfred N.  Cooper,  Sr.,  age 70, is the  founder,  Chairman,  Chief  Executive
Officer  and a Director  of WNC &  Associates,  Inc.,  a Director of WNC Capital
Corporation,  and a general partner in some of the programs previously sponsored
by the  Sponsor.  Mr.  Cooper has been  involved in real estate  investment  and
acquisition  activities  since 1968.  Previously,  during 1970 and 1971,  he was
founder and principal of Creative Equity Development Corporation,  a predecessor
of WNC & Associates,  Inc., and of Creative  Equity  Corporation,  a real estate
investment firm. For 12 years prior to that, Mr. Cooper was employed by Rockwell
International  Corporation,  last  serving as its  manager of housing  and urban
developments where he had  responsibility  for factory-built  housing evaluation
and project  management  in urban  planning  and  development.  Mr.  Cooper is a
Director of the  National  Association  of Home  Builders  (NAHB) and a National
Trustee  for NAHB's  Political  Action  Committee,  a Director  of the  National
Housing  Conference  (NHC)  and a member  of  NHC's  Executive  Committee  and a
Director of the National Multi-Housing Council (NMHC). Mr. Cooper graduated from
Pomona College in 1956 with a Bachelor of Arts degree.

John B. Lester, Jr., age 67, is Vice-Chairman,  a Director,  and a member of the
Acquisition  Committee of WNC & Associates,  Inc., and a Director of WNC Capital
Corporation.   Mr.  Lester  has  27  years  of  experience  in  engineering  and
construction  and has been involved in real estate  investment  and  acquisition
activities since 1986 when he joined the Sponsor. Previously, he was Chairman of
the Board and Vice President or President of E & L Associates,  Inc., a provider
of engineering and construction  services to the oil refinery and  petrochemical
industries,  which  he  co-founded  in  1973.  Mr.  Lester  graduated  from  the
University of Southern  California in 1956 with a Bachelor of Science  degree in
Mechanical Engineering.

Wilfred N.  Cooper,  Jr.,  age 38, is  President,  Chief  Operating  Officer,  a
Director and a member of the Acquisition Committee of WNC & Associates,  Inc. He
is President of, and a registered  principal  with, WNC Capital  Corporation,  a
member firm of the NASD, and is a Director of WNC  Management,  Inc. He has been
involved in investment and  acquisition  activities  with respect to real estate
since he joined the  Sponsor  in 1988.  Prior to this,  he served as  Government
Affairs  Assistant with Honda North America in Washington,  D.C. Mr. Cooper is a
member of the Advisory Board for LIHC Monthly Report,  a Director of NMHC and an
Alternate  Director of NAHB. He graduated  from The American  University in 1985
with a Bachelor of Arts degree.

David N.  Shafer,  age 49, is  Executive  Vice  President,  a Director,  General
Counsel,  and a member of the Acquisition  Committee of WNC & Associates,  Inc.,
and a  Director  and  Secretary  of WNC  Management,  Inc.  Mr.  Shafer has been
involved in real estate investment and acquisition  activities since 1984. Prior
to joining the Sponsor in 1990, he was  practicing  law with a specialty in real
estate and taxation.  Mr.  Shafer is a Director and President of the  California
Council of Affordable  Housing and a member of the State Bar of California.  Mr.
Shafer graduated from the University of California at Santa Barbara in 1978 with
a Bachelor of Arts  degree,  from the New  England  School of Law in 1983 with a
Juris  Doctor  degree (cum laude) and from the  University  of San Diego in 1986
with a Master of Law degree in Taxation.

                                       23
<PAGE>

Thomas J. Riha, age 46, became Chief Financial  Officer  effective January 2001.
Prior to his  appointment  as Chief  Financial  Officer he was Vice  President -
Asset Management and a member of the Acquisition  Committee of WNC & Associates,
Inc. and a Director and Chief Executive Officer of WNC Management, Inc. Mr. Riha
has been involved in acquisition and investment  activities with respect to real
estate since 1979.  Prior to joining the Sponsor in 1994,  Mr. Riha was employed
by Trust Realty Advisor, a real estate acquisition and management company,  last
serving as Vice  President - Operations.  Mr. Riha graduated from the California
State  University,  Fullerton in 1977 with a Bachelor of Arts degree (cum laude)
in Business Administration with a concentration in Accounting and is a Certified
Public  Accountant  and a member of the American  Institute of Certified  Public
Accountants.

Sy P. Garban,  age 55, is Vice  President - National  Sales of WNC & Associates,
Inc.  and has been  employed by the  Sponsor  since  1989.  Mr.  Garban has been
involved in real estate  investment  activities since 1978. Prior to joining the
Sponsor he served as  Executive  Vice  President  of MRW,  Inc.,  a real  estate
development  and management  firm.  Mr. Garban is a member of the  International
Association of Financial  Planners.  He graduated from Michigan State University
in 1967 with a Bachelor of Science degree in Business Administration.

N. Paul Buckland,  age 38, is Vice President - Acquisitions  and a member of the
Acquisition  Committee of WNC &  Associates,  Inc. He has been  involved in real
estate  acquisitions and investments since 1986 and has been employed with WNC &
Associates, Inc. since 1994. Prior to that, he served on the development team of
the Bixby Ranch that  constructed  apartment  units and Class A office  space in
California and neighboring  states,  and as a land acquisition  coordinator with
Lincoln  Property   Company  where  he  identified  and  analyzed   multi-family
developments. Mr. Buckland graduated from California State University, Fullerton
in 1992 with a Bachelor of Science degree in Business Finance.

David Turek, age 46, is Vice President - Originations of WNC & Associates,  Inc.
He has been involved with real estate  investment and finance  activities  since
1976 and has been employed by WNC & Associates,  Inc.  since 1996.  From 1995 to
1996,  Mr. Turek served as a consultant  for a national Tax Credit sponsor where
he was responsible for on-site feasibility studies and due diligence analyses of
Tax Credit properties.  From 1990 to 1995, he was involved in the development of
conventional  and tax credit  multi-family  housing.  He is a Director  with the
Texas Council for Affordable Rural Housing and graduated from Southern Methodist
University in 1976 with a Bachelor of Business Administration degree.

Kay L. Cooper,  age 64, is a Director of WNC & Associates,  Inc. Mrs. Cooper was
the founder and sole  proprietor  of Agate 108, a  manufacturer  and retailer of
home  accessory  products,  from 1975 until 1998.  She is the wife of Wilfred N.
Cooper,  Sr.,  the mother of Wilfred  N.  Cooper,  Jr. and the sister of John B.
Lester,  Jr. Ms. Cooper graduated from the University of Southern  California in
1958 with a Bachelor of Science degree.

Item 11.  Executive Compensation

The Partnership has no officers,  employees,  or directors.  However,  under the
terms of the  Partnership  Agreement the Partnership is obligated to the General
Partner or its affiliates for the following fees:

(a)  Organization  and Offering  Expenses.  The Partnership  accrued or paid the
     General   Partner  or  its  affiliates  as  of  March  31,  2001  and  2000
     approximately  $2,422,105  and $921,885 for selling  commissions  and other
     fees and  expenses of the  Partnership's  offering  of Units.  Of the total
     accrued  or  paid,  approximately  $1,291,105  was  paid  or to be  paid to
     unaffiliated persons participating in the Partnership's offering.

(b)  Acquisition Fees.  Acquisition fees in an amount equal to 7.0% of the gross
     proceeds of the Partnership's Offering ("Gross Proceeds").  As of March 31,
     2001 and 2000 the aggregate  amount of acquisition fees paid or accrued was
     approximately $1,320,000 and $500,000, respectively.

(c)  Acquisition  Expense.  The  Partnership  reimbursed the General Partner for
     acquisition  expenses  in an  amount  equal  to 2% of the  Gross  Proceeds,
     pursuant to the terms of the  partnership  agreement.  As of March 31, 2001
     and 2000,  the  aggregate  amount of  acquisition  fees paid or accrued was
     approximately $377,000 and $143,000, respectively.

(d)  Annual Asset  Management  Fee. An annual asset  management fee in an amount
     equal to 0.2% of the Invested Assets of the Partnership.  "Invested Assets"
     is  defined as the sum of the  Partnership's  Investment  in Local  Limited
     Partnerships  and the  Partnership's  allocable  share of the amount of the
     mortgage  loans

                                       24
<PAGE>


     and other  debts  related  to the  Housing  Complexes  owned by such  Local
     Limited Partnerships.  Fees of approximately $35,000 and $400 were incurred
     for the year ended March 31, 2001 and the period September 3, 1999 (date of
     operations  commenced)  through  March  31,  2000,  of which  approximately
     $10,000 and $0 was paid during the respective period.

(e)  Operating Expenses.  The Partnership  reimbursed the General Partner or its
     affiliates  for  operating  expenses  of  approximately  $35,500 and $3,600
     during the year ended March 31, 2001 and the period September 3, 1999 (date
     operations  commenced)  through March 31, 2000,  respectively,  expended by
     such persons on behalf of the Partnership.

(f)  Subordinated  Disposition Fee. A subordinated  disposition fee in an amount
     equal to 1% of the  sale  price  received  in  connection  with the sale or
     disposition of an Apartment Complex or Local Limited Partnership  Interest.
     Subordinated  disposition  fees will be subordinated to the prior return of
     the Limited  Partners'  capital  contributions and payment of the Return on
     Investment to the Limited Partners. "Return on Investment" means an annual,
     cumulative but not compounded,  "return" to the Limited Partners (including
     Low  Income  Housing   Credits)  as  a  class  on  their  adjusted  capital
     contributions  commencing  for each Limited  Partner on the last day of the
     calendar quarter during which the Limited Partner's capital contribution is
     received by the  Partnership,  calculated at the following  rates:  (i) 11%
     through December-31,  2010, and (ii) 6% for the balance of the Partnerships
     term. No disposition fees have been paid.

(g)  Interest in  Partnership.  The General Partner will receive 0.1% of the Low
     Income Housing  Credits.  No Low Income Housing  Credits were allocated for
     the period ended December 31, 1999. The General  Partners are also entitled
     to receive 0.1% of cash distributions.  There were no distributions of cash
     to the General  Partner  during the year ended March 31, 2001 or during the
     period  September 3, 1999 (date  operations  commenced)  through  March 31,
     2000.

Item 12.  Security Ownership of Certain Beneficial Owners and Management

(a)  Security Ownership of Certain Beneficial Owners
     -----------------------------------------------

     No person is known to own  beneficially  in excess of 5% of the outstanding
     Units.

(b)  Security Ownership of Management
     --------------------------------
     Neither the General  Partner,  its  affiliates,  nor any of the officers or
     directors  of  the  General  Partner  or its  affiliates  own  directly  or
     beneficially any Units in the Partnership.

(c)  Changes in Control
     ------------------
     The  management  and control of the  General  Partner may be changed at any
     time in accordance with its organizational  documents,  without the consent
     or approval of the Limited Partners. In addition, the Partnership Agreement
     provides for the admission of one or more additional and successor  General
     Partners in certain circumstances.

     First,   with  the   consent   of  any  other   General   Partners   and  a
     majority-in-interest  of the  Limited  Partners,  any  General  Partner may
     designate  one or  more  persons  to be  successor  or  additional  General
     Partners. In addition,  any General Partner may, without the consent of any
     other General Partner or the Limited Partners,  (i) substitute in its stead
     as General  Partner  any  entity  which has,  by merger,  consolidation  or
     otherwise,  acquired  substantially  all  of its  assets,  stock  or  other
     evidence of equity interest and continued its business, or (ii) cause to be
     admitted to the Partnership an additional General Partner or Partners if it
     deems such  admission to be necessary or desirable so that the  Partnership
     will be classified a partnership for Federal income tax purposes.  Finally,
     a  majority-in-interest  of the Limited Partners may at any time remove the
     General Partner of the Partnership and elect a successor General Partner.

                                       25
<PAGE>





Item 13.  Certain Relationships and Related Transactions

The General Partner manages all of the Partnership's  affairs.  The transactions
with  the  General  Partner  are  primarily  in the  form  of  fees  paid by the
Partnership for services  rendered to the Partnership and the General  Partner's
interest in the  Partnership,  as  discussed  in Item 11 and in the notes to the
Partnership's financial statements.


                                       26
<PAGE>

PART IV.

Item 14.  Exhibits, Financial Statement Schedules, and Reports on Form 8-K

(a)(1) Financial statements included in Part II hereof:
       ------------------------------------------------
       Report of Independent Certified Public Accountants  Independent Auditors'
       Report Balance  Sheets,  March 31, 2001 and 2000 Statements of Operations
       for the year ended March 31, 2001 and the period  September 3, 1999 (Date
       Operations  Commenced)  through  March-31,  2000  Statements of Partners'
       Equity  (Deficit)  for the year  ended  March  31,  2001  and the  period
       September  3, 1999 (Date  Operations  Commenced)  through  March 31, 2000
       Statements of Cash Flows for the year ended March 31, 2001 and the period
       September 3, 1999 (Date  Operations  Commenced)  through  March-31,  2000
       Notes to Financial Statements

(a)(2) Financial statement schedules included in Part IV hereof:
       ---------------------------------------------------------
       Report of Independent Certified Public Accountants on Financial Statement
       Schedules Schedule III - Real Estate Owned by Local Limited Partnerships

(b)    Reports on Form 8-K.
       --------------------
1.     A Form 8-K dated October 2, 2000 was filed on October 11, 2000  reporting
       the acquisition of a Local Limited Partnership  Interest under Item 2. No
       financial statements were included.

2.     A Form 8-K/A was filed on December  18, 2000  amending the Form 8-K filed
       on October 11,  2000.  Pro forma  financial  information  respecting  the
       acquisition was included.

3.     A Form 8-K dated December 18, 2000 was filed on January 2, 2001 reporting
       the acquisition of a Local Limited Partnership  Interest under Item 2. No
       financial statements were included.

4.     A Form  8-K/A was filed on March 5, 2001  amending  the Form 8-K filed on
       January  2,  2001.  Pro  forma  financial   information   respecting  the
       acquisition was included.

5.     A Form 8-K dated April 16, 2001 was filed on April 27, 2001 reporting the
       acquisition  of a Local  Limited  Partnership  Interest  under Item 2. No
       financial statements were included.

6.     A Form  8-K/A was filed on July 2,  2001  amending  the Form 8-K filed on
       April  27,  2001.  Pro  forma   financial   information   respecting  the
       acquisition was included.

(c)    Exhibits.
       ---------

3.1    First Amended and Restated  Agreement of Limited  Partnership dated as of
       April 1, 1999 included as Exhibit B to the  Registration  Statement filed
       on April 16, 1999, is hereby incorporated herein as Exhibit 3.1.

10.1   Amended and  Restated  Limited  Partnership  Agreement  of School  Square
       Limited  Partnership  filed as exhibit 10.1 to the current report on Form
       8-K dated  February  9, 2000,  is herein  incorporated  by  reference  as
       Exhibit 10.1.

10.2   Second Amended and Restated Operating Agreement of 2nd Fairhaven,  L.L.C.
       filed as Exhibit 10.2 to the current report on Form 8-K dated January 25,
       2000, is herein incorporated by reference as Exhibit 10.2.

10.3   Amended and Restated agreement of Red Oaks, L.P. filed as exhibit 10.5 to
       Post Effective  Amendment No 3 to Form S-11 dated September  20,2000,  is
       herein incorporated by reference as exhibit 10.3.

                                       27
<PAGE>


10.4   Third Amended and Restated  Agreement of Limited  Partnership  of Hickory
       Lane Partners Limited Partnership filed as exhibit 10.6 to Post Effective
       Amendment  No 3 to Form  S-11  filed  on  September  20,2000,  is  herein
       incorporated by reference as exhibit 10.4

10.5   Second  Amended and Restated  agreement of Limited  Partnership of Pierce
       Street Partners Limited  Partnership filed as Exhibit 10.1 to the current
       report on Form 8-K dated  January 25,  2000,  is herein  incorporated  by
       reference as Exhibit 10.5.

10.6   Amended and  Restated  Agreement of Limited  Partnership  of Lake Village
       Apartments  L.P.  filed as Exhibit 10.1 to the current report on Form 8-K
       dated December 18, 2000, is herein  incorporated  by reference as Exhibit
       10.6.

10.7   Amended  and  Restated   Agreement  of  Limited   Partnership  of  United
       Development Limited Partnership 2000 filed as Exhibit 10.1 to the current
       report  on Form 8-K dated  April 16,  2001,  is  herein  incorporated  by
       reference as Exhibit 10.7.

10.8   Amended and  Restated  Agreement of Limited  Partnership  of ACN Southern
       Hills II, L.P. filed as Exhibit 10.10 to Post Effective Amendment No 6 to
       Form S-11 filed on May 1, 2001,  is herein  incorporated  by reference as
       exhibit 10.8.

10.9   Amended and Restated Agreement of Limited Partnership of Montrose Country
       Estates  Limited  Dividend  Housing   Association,   a  Michigan  limited
       partnership,  filed as Exhibit 10.9 to Post  Effective  Amendment No 6 to
       Form S-11 filed on May 1, 2001,  is herein  incorporated  by reference as
       exhibit 10.9


(d)    Financial  statement  schedules follow, as set forth in subsection (a)(2)
       --------------------------------------
       hereof.

                                       28
<PAGE>

              Report of Independent Certified Public Accountants on
                          Financial Statement Schedules


To the Partners
WNC Housing Tax Credit Fund VI, L.P., Series 7


The audits referred to in our report dated August 23, 2001, relating to the 2001
and 2000 financial  statements of WNC Housing Tax Credit Fund VI, L.P., Series 7
(the  "Partnership"),  which is contained in Item 8 of this Form 10-K,  included
the audit of the  accompanying  financial  statement  schedules.  The  financial
statement schedules are the responsibility of the Partnership's management.  Our
responsibility is to express an opinion on these financial  statement  schedules
based upon our audits.

In our opinion,  such  financial  statement  schedules  present  fairly,  in all
material respects, the financial information set forth therein.




                                            /s/ BDO SEIDMAN, LLP
                                                BDO SEIDMAN, LLP
Orange County, California
August 23, 2001


                                       29
<PAGE>

WNC Housing Tax Credit Fund VI, L.P., Series 7
Schedule III
Real Estate Owned by Local Limited Partnerships
<TABLE>
<CAPTION>

                                                  ------------------------------------- --------------------------------------------
                                                          As of March 31, 2001                As of December 31, 2000
                                                  ------------------------------------- --------------------------------------------
                                                  Total Investment   Amount of     Encumbrances of
                                                  in Local Limited InvestmentPaid  Local Limited  Property and  Accumulated Net Book
         Partnership Name          Location           Partnerships    to Date       Partnerships   Equipment     Depreciation  Value
------------------------------------------------------------------------------------------------------------------------------------
<S>                                <C>                  <C>              <C>        <C>           <C>         <C>        <C>

2nd Fairhaven, LLC                 Federalsburg,
                                   Maryland              $  360,000      $ 360,000  $ 1,001,000  $ 1,245,000  $ 49,000  $  1,196,000

ACN Southern Hills                 Oskaloosa,
Partners II, L.P.                  Oklahoma               1,339,000        760,000         - (1)        - (1)     - (1)        - (1)

Hickory Lane                       Sioux City,
Partners, L.P.                     Iowa                     633,000        252,000    1,950,000    1,848,000    17,000     1,831,000

Lake Village                       Kewanee,
Apartments, L.P.                   Illinois               2,978,000        429,000      809,000      809,000      - (1)      809,000

Montrose County                    Montrose,
Estates Limited                    Michigan
Dividend Housing
Association, L.P.                                           553,000               -        - (1)        - (1)     - (1)        - (1)

Pierce Street                      Sioux City,
Partners, L.P.                     Iowa                   1,527,000        580,000    2,930,000    2,990,000    32,000     2,958,000

Red Oaks                           Holly Springs,
Estates, L.P.                      Mississippi              245,000        184,000      734,000    1,016,000    17,000       999,000

School Square, L.P.                Albany,
                                   Minnesota                286,000        214,000    1,073,000    1,290,000    44,000     1,246,000
                                                        ------------   -----------  -----------  ----------- ----------  -----------
                                                        $ 7,921,000    $ 2,779,000  $ 8,497,000  $ 9,198,000 $ 159,000   $ 9,039,000
                                                        ============   ===========  ===========  ===========  =========  ===========
(1) The Housing Complex was under construction at December 31, 2000.

</TABLE>

                                       30
<PAGE>

WNC Housing Tax Credit Fund VI, L.P., Series 7
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2001
<TABLE>
<CAPTION>
                                  -------------------------------------------------------------------------------------
                                                          For the year ended December 31, 2000
                                  -------------------------------------------------------------------------------------
        Partnership Name             Rental      Net Income      Year         Status         Estimated     Estimated
                                                              Investment                    Useful Life    Completion
                                     Income        (Loss)      Acquired                       (Years)         Date
-----------------------------------------------------------------------------------------------------------------------
<S>                                   <C>          <C>               <C>     <C>                      <C>         <C>

2nd Fairhaven, LLC                    $ 99,000     $ (30,000)        2000       Completed              40         1999

ACN Southern Hills Partners II,                                                     Under
L.P.                                         -              -        2000    Construction               -         2001

Hickory Lane                                                                        Under
Partners, L.P.                                                              Construction/
                                       155,000       (27,000)        2000  Rehabilitation              40         2001

Lake Village                                                                        Under
Apartments, L.P.                             -              -        2000    Construction               -         2001

Montrose County Estates Limited
Dividend Housing Association,                                                       Under
L.P.                                         -              -        2001    Construction               -         2001

Pierce Street                                                                       Under
Partners, L.P.                                                              Construction/
                                       375,000         61,000        2000  Rehabilitation              40         2001

Red Oaks
Estates, L.P.                           59,000        (9,000)        2000       Completed            27.5         2000

School Square, L.P.                     43,000       (52,000)        2000       Completed            27.5         2000
                                     ---------     ----------
                                     $ 731,000     $ (57,000)
                                     =========     ==========
</TABLE>

                                       31
<PAGE>

WNC Housing Tax Credit Fund VI, L.P., Series 7
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2000
<TABLE>
<CAPTION>
                                                  ------------------------------------- --------------------------------------------
                                                          As of March 31, 2001                As of December 31, 2000
                                                  ------------------------------------- --------------------------------------------
                                                  Total Investment   Amount of     Encumbrances of
                                                  in Local Limited InvestmentPaid  Local Limited  Property and  Accumulated Net Book
         Partnership Name          Location           Partnerships    to Date       Partnerships   Equipment     Depreciation  Value
------------------------------------------------------------------------------------------------------------------------------------
<S>                                <C>                 <C>               <C>                <C>           <C>        <C>      <C>

2nd Fairhaven, LLC                 Federalsburg,
                                   Mary                $   360,000       $        -            (1)           (1)        (1)      (1)
School Square Ltd.
Partnership                        Albany,
                                   Minnesota               285,000          142,000            (1)           (1)        (1)      (1)
                                                       -----------       -----------        -------       -------    -------  ------
                                                       $   645,000       $  142,000         $  (1)        $  (1)     $  (1)   $  (1)
                                                       ===========       ===========        ========      =======    =======  ======
</TABLE>

(1) The Housing Complex was under construction at December 31, 1999.


                                       32
<PAGE>


WNC Housing Tax Credit Fund VI, L.P., Series 7
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2000
<TABLE>
<CAPTION>
                                  -------------------------------------------------------------------------------------
                                                          For the year ended December 31, 1999
                                  -------------------------------------------------------------------------------------
        Partnership Name             Rental      Net Income      Year         Status         Estimated     Estimated
                                                              Investment                    Useful Life    Completion
                                     Income        (Loss)      Acquired                       (Years)         Date
-----------------------------------------------------------------------------------------------------------------------
<S>                                        <C>            <C>        <C>     <C>                       <C>        <C>

2nd Fairhaven, LLC                         (1)            (1)        2000       Completed              40            -

                                                                                    Under
School Square Ltd. Partnership             (1)            (1)        2000    Construction               -         2001


</TABLE>


                                       33
<PAGE>

Pursuant to the  requirements of Section 13 or 15(d) of the Securities  Exchange
Act of 1934,  the  registrant  has duly  caused  this report to be signed on its
behalf by the undersigned, thereunto duly authorized.

WNC HOUSING TAX CREDIT FUND VI, L.P., Series 7

By:  WNC & Associates, Inc.         General Partner



By:  /s/ Wilfred N. Cooper, Jr.
     --------------------------
Wilfred N. Cooper, Jr.     President - Chief Operating Officer of
WNC & Associates, Inc.

Date: September 12, 2001




By:  /s/ Thomas J. Riha
     ------------------
Thomas J. Riha    Vice-President - Chief Financial Officer of
WNC & Associates, Inc.

Date: September 12, 2001





         Pursuant to the  requirements  of the  Securities  Exchange Act of
         1934,  this report has been signed  below by the  following



persons on behalf of the registrant and in the capacities and on the dates
indicated.



By  /s/ Wilfred N. Cooper, Sr.
    --------------------------
Wilfred N. Cooper, Sr.     Chairman of the Board of WNC & Associates, Inc.

Date: September 12, 2001




By: /s/ John B. Lester, Jr.
    -----------------------
John B. Lester, Jr.        Director of WNC & Associates, Inc.

Date: September 12, 2001




By:  /s/ David N. Shafer
     -------------------
David N Shafer             Director of WNC & Associates, Inc.

Date: September 12, 2001




</TEXT>
</DOCUMENT>
