UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

(Mark One)

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

~~ACT~~For the OFfiscal ~~1934~~year ended March 31, 2013

For the fiscal year ended March 31, 2012

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

EXCHANGE ACT OF 1934

For the transition period from __________ to __________

Commission file number: 0-21895

WNC HOUSING TAX CREDIT FUND V, L.P., Series 3

(Exact name of registrant as specified in its charter)

Californias	33-6163848
California	33-6163848
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)
17782 Sky Park Circle
Irvine, CA	92614-6404
(Address of principal executive offices)	(Zip Code)

(714) 662-5565

(Telephone Number)

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

NONE

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

UNITS OF LIMITED PARTNERSHIP INTEREST

(Title of Class)

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes [ ] No [X]

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

Yes [ ] No [X]

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes [X] No [ ]

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

Yes [X] No [ ]

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. [X]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definition of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer [ ] Accelerated filer [ ] Non-accelerated filer [X] Smaller reporting company [ ]

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

Yes [ ] No [X]

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

INAPPLICABLE

DOCUMENTS INCORPORATED BY REFERENCE

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

NONE

TABLE OF CONTENTS

		Page

Part I
Item 1.	Business	3
Item 1A.	Risk Factors	6
Item 1B.	Unresolved Staff Comments	14
Item 2.	Properties	14
Item 3.	Legal Proceedings	19
Item 4.	Mining Safety Disclosure	19

Part II
Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	19
Item 6.	Selected Financial Data	20
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	21
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	25
Item 8.	Consolidated Financial Statements and Supplementary Data	26
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	29
Item 9A.	Controls and Procedures	29
Item 9B.	Other Information	30

Part III
Item 10.	Directors, Executive Officers and Corporate Governance	31
Item 11.	Executive Compensation	33
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	35
Item 13.	Certain Relationships and Related Transactions, and Director Independence	36
Item 14.	Principal Accounting Fees and Services	36

Part IV
Item 15.	Exhibits and Financial Statement Schedules	37
Signatures		45

PART I.

Item 1. Business

Organization

WNC Housing Tax Credit Fund V, L.P., Series 3 (the “Partnership”) is a California limited partnership formed under the laws of the State of California on March 28, 1995, and commenced operations on October 24, 1995. The Partnership was formed to acquire limited partnership interests in other limited partnerships (“Local Limited Partnerships”) which ~~owns~~own multi-family or senior housing complexes (“Housing Complexes”) that are eligible for Federal low income housing tax credits (“Low Income Housing Tax Credits”). The local general partners (the “Local General Partners”) of each Local Limited Partnership retain responsibility for maintaining, operating and managing the Housing Complex. Each Local Limited Partnership is governed by its agreement of limited ~~partnership~~ partnership(the “Local Limited Partnership Agreement”).

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

Pursuant to a registration statement filed with the Securities and Exchange Commission (the “SEC”) on July 26, 1995, the Partnership commenced a public offering of 25,000 units of limited partnership interest (“Partnership Units”) at a price of $1,000 per Partnership Unit. As of the close of the public offering on January 21, 1996 a total of 18,000 Partnership Units representing $17,558,985 had been sold. Holders of Partnership Units are referred to herein as “Limited Partners.” As of March 31, 2013, a total of 17,946 Partnership Units remains outstanding.

Sempra Energy Financial, a California corporation, which is not an affiliate of the Partnership or General Partner, has purchased 4,560 Partnership Units, which ~~represents~~represent 25.3% of the Partnership Units outstanding. Sempra Energy Financial invested $4,282,600. A discount of $277,400 was allowed due to a volume discount. On July 1, 2006 Sempra Energy Financial transferred their 4,560 Partnership Units to Sempra Section 42, LLC. Western Financial Savings Bank, which is not an affiliate of the Partnership or General Partner, has purchased 1,068 Partnership Units, which represent 5.9% of the Partnership Units outstanding. Western Financial Savings Bank invested $1,000,000. A discount of $68,000 was allowed due to a volume discount. See Item 12(b) in this 10-K.

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

Description of Business

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

As a consequence of the provisions of tax law in effect for dispositions of buildings prior to August 2008, in order to avoid recapture of Low Income Housing Tax Credits, the Partnership expected that it would not dispose of its interests in Local Limited Partnerships (“Local Limited Partnership Interests”) or approve the sale by any Local Limited Partnership of its Housing Complex prior to the end of the applicable Compliance Period. That provision of law was amended in 2008 (i) to provide that there would be no recapture on sale of a Low Income Housing Tax Credit building during the Compliance Period if it were reasonable to expect at the time of sale that the building would continue to be operated as qualified low income housing (see “Exit Strategy” below) and (ii) to eliminate the possibility of posting a bond against potential recapture. The Partnership is seeking to sell its Local Limited Partnership Interests. Nonetheless, because of (i) the nature of the Housing Complexes and the Local Limited Partnership Interests, (ii) the difficulty of predicting the resale market for low income housing, (iii) the current economy, and (iv) the ability of lenders to disapprove of transfer, it is not possible at this time to predict 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 dated March 28, 1995 (the “Partnership Agreement”), will be accomplished in the near term. Furthermore, the recent codification of the economic substance doctrine as part of 2010 legislation has created some uncertainty about the deductibility of losses from low income housing that is not generating Low Income Housing Tax Credits, and this could have an adverse effect on the resale market for Housing Complexes and Local Limited Partnership Interests. If a Local Limited ~~Partnership~~ Partnership Interest or the related Housing Complex is not sold, it is anticipated that the Local General Partner would continue to operate such Housing Complex.

The Partnership originally invested in eighteen Local Limited Partnerships, ~~six~~fifteen of which had been sold or otherwise disposed of as of March 31, ~~2012~~2013. Each of these Local Limited Partnerships owns or owned a single Housing Complex that was eligible for the Low Income Housing Tax Credits. Certain Local Limited Partnerships may also benefit from additional government programs promoting low- or moderate-income housing.

Exit Strategy

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

Upon the sale of a Local Limited Partnership Interest or Housing Complex after the end of the Compliance Period, there would be no recapture of Low Income Housing Tax Credits. A sale prior to the end of the Compliance Period must satisfy the “reasonable belief” test outlined above to avoid recapture.

The following table reflects the 15-year compliance period of the ~~twelve~~three remaining Housing Complexes:

Expiration Date for 15-year compliance period
Local Limited Partnership Name		15-year Expiration Date
Blessed Rock of El Monte		2012
Broadway Apartments, Limited Partnership		2013
Curtis Associates I, L.P.		2012
Escatawpa Village Associates, Limited Partnership		2011
Heritage Apartments I, L.P.		2012
Hillcrest Associates, A Limited Partnership		2011
Prairieland Properties of Syracuse II, L.P.		2012
Rosedale Limited Partnership		2011
Shepherd South Apartments I, Ltd.		2010
Solomon Associates I, L.P.		2012
Talladega County Housing Ltd.		2011
The Willows Apartments, L.P.		2011

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

3Upon identifying those Housing Complexes with the highest potential for a successful sale, refinancing or re-syndication, the Partnership expects to proceed with efforts to liquidate them. The objective is to maximize the Limited Partners’ return wherever possible and, ultimately, to wind down the Partnership. Local Limited Partnership Interests may be disposed of any time by the General Partner in its discretion. While liquidation of the Housing Complexes continues to be evaluated, the dissolution of the Partnership was not imminent as of March 31, 2013. As of March 31, 2013,two of the remaining Housing Complexes had completed their 15 year compliance period. The proceeds from the disposition of any of the Housing Complexes will be used first to pay debts and other obligations per the respective Local Limited Partnership Agreement. Any remaining proceeds will then be paid to the partners of the Local Limited Partnership, including the Partnership, in accordance with the terms of the particular Local Limited Partnership Agreement. The sale of a Housing Complex may be subject to other restrictions and obligations. Accordingly, there can be no assurance that a Local Limited Partnership will be able to sell its Housing Complex. Even if it does so, there can be no assurance that any significant amounts of cash will be distributed to the Partnership. Should such distributions occur, the Limited Partners will be entitled to receive distributions from the proceeds remaining after payment of Partnership obligations and funding of reserves, equal to their capital contributions and their return on investment (as defined in the Partnership Agreement). The General Partner would then be entitled to receive proceeds equal to their capital contributions 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.

Upon identifying those Housing Complexes with the highest potential for a successful sale, refinancing or re-syndication, the Partnership expects to proceed with efforts to liquidate them. The objective is to maximize the Limited Partners’ return wherever possible and, ultimately, to wind down the Partnership. Local Limited Partnership Interests may be disposed of any time by the General Partner in its discretion. While liquidation of the Housing Complexes continues to be evaluated, the dissolution of the Partnership was not imminent as of March 31, 2012. As of March 31, 2012, six of the Housing Complexes had completed their 15 year compliance period. The proceeds from the disposition of any of the Housing Complexes will be used first to pay debts and other obligations per the respective Local Limited Partnership Agreement. Any remaining proceeds will then be paid to the partners of the Local Limited Partnership, including the Partnership, in accordance with the terms of the particular Local Limited Partnership Agreement, The sale of a Housing Complex may be subject to other restrictions and obligations. Accordingly, there can be no assurance that a Local Limited Partnership will be able to sell its Housing Complex. Even if it does so, there can be no assurance that any significant amounts of cash will be distributed to the Partnership. Should such distributions occur, the Limited Partners will be entitled to receive distributions from the proceeds remaining after payment of Partnership obligations and funding of reserves, equal to their capital contributions and their return on investment (as defined in the Partnership Agreement). The General Partner would then be entitled to receive proceeds equal to their capital contributions 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.4

As of March 31, ~~2011~~2012, the Partnership sold the Housing Complex of two Local Limited Partnerships, Cascade Pines II, L.P. (“Cascade Pines”), and Evergreen Apartments I L.P. (“Evergreen”). The Partnership also sold its Local Limited Partnership Interest in Raymond S. King Apartments, L.P, Patten Towers, L.P. II, Alliance Apartments I, L.P., and Hastings Apartment I, L.P.

~~Patten Towers L.P. II (“Patten Towers”)~~During ~~had~~the ~~its~~year ~~annual~~ended ~~HUD~~March ~~inspection~~31, ~~for~~2013, ~~2010~~the onPartnership ~~February~~sold 3,the ~~2011~~Housing ~~and~~Complex ~~received~~of aShepherd ~~score~~South ofI, ~~71C~~L.P. The ~~property~~Partnership ~~was~~also ~~listed~~sold ~~for sale with a~~its ~~national~~Local ~~brokerage~~Limited ~~firm~~Partnership ~~from~~Interest ~~July~~in ~~2008~~Escatawpa ~~through~~Village ~~September~~Associates, ~~2009.~~Hillcrest ~~Patten~~Associates, ~~Towers~~Rosedale ~~was~~Limited ~~appraised for $7~~Partnership,~~200,000~~ ~~and had a mortgage note~~Heritage ~~balance~~Apartments ~~of $4~~I,~~200,000~~ L.P., AnCurtis ~~acceptable~~Associates ~~offer~~I, ~~was received in December 2010~~L.P., ~~The~~Prairieland ~~Local~~Properties ~~Limited~~of ~~Partnership~~Syracuse ~~interest~~II, ~~was~~L.P., ~~sold~~Solomon onAssociates ~~July 1~~I, ~~2011 for $10~~L.P., ~~The~~and ~~Partnership’s~~Talladega County ~~investment~~Housing ~~balance~~Ltd. ~~was~~No ~~zero~~distributions atwill ~~the~~be ~~time~~made ofto the ~~sale~~Limited ~~and~~Partners ~~the~~as ~~Partnership~~a ~~incurred~~result ~~expenses~~ of ~~$10,925~~these ~~related to the disposition~~dispositions. ~~Therefore,~~Each ~~a loss on sale~~ of ~~Local Limited Partnership in~~ the ~~amount of $(10,915) was recorded~~Local asLimited ofPartnerships ~~March~~had ~~31,~~completed ~~2012.~~its ~~The~~ Compliance Period ~~has expired~~ so there is no risk of ~~tax~~recapture ~~credit~~to ~~recapture~~the investors in the Partnership.

On October 26, 2011, Alliance Apartments I L.P. (“Alliance”) was sold to an affiliate of the Local Limited Partnership for $26,108. Alliance was appraised for $230,000 and had a mortgage note balance of $308,123 as of December 31, 2010. The Partnership incurred $3,000 in appraisal expenses and $5,073 in legal fees related to the disposition which will be netted against the proceeds from the sale in calculating the gain on the sale. The Partnership’s investment balance was zero at the time of sale; therefore a gain of $18,035 was recorded. In addition, the replacement reserves held by the bank were released. In accordance with the Purchase Agreement, the Partnership received the reserve proceeds in the amount of $9,915 which was recorded as an additional gain on sale during the respective period. No cash distribution will be made to the Limited Partners as a result of this sale. The Compliance Period has expired so there is no risk of tax credit recapture.

Local Limited Partnership	Debt at 12/31/11		Appraisal Value		Date of Sale		Sales Price		Sales Related Expenses		Gain on Sale
Shepherd South I L.P.	$	507,000	$	350,000		06/28/2012	$	89,280	$	27,709	$	61,571
Escatawpa Village Associates		849,000		655,000		06/01/2012		22,450		3,289		19,161
Hillcrest Associates		1,232,000		805,000		12/31/2012		40,000		3,895		36,105
Rosedale Limited Partnership		1,257,000		510,000		12/31/2012		30,000		4,675		25,325
Heritage Apartments I, L.P.		509,000		160,000		12/31/2012		15,000		3,295		11,705
Curtis Associates I, L.P.		401,000		235,000		03/29/2013		5,000		2,916		2,084
Prairieland Properties of Syracuse II, L.P.		280,000		80,000		03/29/2013		5,000		2,866		2,134
Solomon Associates I, L.P.		544,000		230,000		03/29/2013		12,000		2,866		9,134
Talladega County Housing Ltd.		676,000		270,000		03/29/2013		5,000		2,667		2,333

~~On October 26, 2011, Hastings Apartments I~~The ~~L.P.~~sales ~~(“Hastings”)~~proceeds ~~was~~from ~~sold~~the tosale anof ~~affiliate~~Escatawpa ofVillage ~~the~~Associates ~~Local~~were ~~Limited~~paid ~~Partnership~~directly ~~for~~to ~~$50,980~~Associates. ~~Hastings~~As ~~was~~shown ~~appraised~~in ~~for $300,000~~the ~~and~~table ~~had a mortgage note balance of $115~~below,~~251~~ ~~as of December 31, 2010. The Partnership incurred~~ $319,~~000 in appraisal expenses~~450 ~~and~~was ~~$996~~used ~~in legal fees related~~ to reimburse the ~~disposition~~General ~~which~~Partner ~~will~~or beaffiliates ~~netted~~for ~~against~~accrued ~~the~~asset ~~proceeds~~management ~~from~~fees ~~the~~or ~~sale~~operating inexpenses ~~calculating~~paid ~~the~~on ~~gain~~behalf onof the ~~sale~~Partnership. The ~~Partnership’s~~remaining ~~investment balance was zero at the time of sale; therefore a gain of~~ $463,~~984~~000 was ~~recorded. In~~returned ~~addition,~~to the ~~replacement~~Partnership’s reserves ~~held~~during by the ~~bank~~year ~~were~~ended ~~released.~~March ~~In accordance with the Purchase Agreement~~31, ~~the Partnership received the reserve proceeds in the amount of $9,978 which was recorded as an additional gain on sale during the respective period~~2013. ~~No cash distribution will be made to the Limited Partners as a result of this sale. The Compliance Period has expired so there is no risk of tax credit recapture.~~

~~As of March 31, 2012, Shepherd South I Apartments, Ltd. (“Shepherd South”) has been identified~~The ~~for~~following ~~sale.~~table ~~Contracts~~represents ~~have been drafted and are currently under review by~~ the ~~potential~~anticipated ~~purchaser~~use of the ~~Local~~cash ~~Limited~~proceeds ~~Partnership Interest.~~from ~~Shepherd~~the ~~South~~disposition ~~was appraised for $350,000 and had a mortgage note balance~~ of ~~$507,000 as of December 31, 2011. The Partnership estimates a closing date of June 22, 2012 for~~ the nine Local Limited ~~Partnership Interest sale~~Partnerships. ~~The purchase price is still under negotiation.~~

Subsequent to March 31, 2012, the Local Limited Partnership Interest in Escatawpa Village Associates (“Escatawpa Village”), Limited was identified to be sold to an affiliate of the Local General Partner. The buyer offered $30,000 to purchase the Local Limited Partnership Interest. The funds will be placed into the Partnership’s reserves and will be used to reimburse the General Partner or an affiliate for prepaid operating expenses. Escatawpa Village was appraised for $655,000 and had a mortgage note balance of $849,000 as of December 31, 2011. The Partnership has incurred $3,000 in appraisal expenses which will be netted against the proceeds from the sale in calculating the gain on the sale. The Partnership’s investment balance is zero; therefore a gain of $27,000 will be recorded during the respective period. No cash distribution will be made to the Limited Partners as a result of this sale. The Compliance Period has been completed therefore there is no risk of recapture and investor approval is not required. The sale of the Local Limited Partnership is expected to close on June 15, 2012.

Local Limited Partnership	Sale Proceeds		Payment of accrued asset management fees		Reimburse GP or affiliates for expenses		Remaining cash to remain in reserves for future expenses
Shepherd South I L.P.	$	89,280	$	25,000	$	12,164	$	52,116
Escatawpa Village Associates		22,450		7,286		12,164		3,000
Hillcrest Associates		40,000		17,500		17,500		5,000
Rosedale Limited Partnership		30,000		12,500		12,500		5,000
Heritage Apartments I, L.P.		15,000		5,000		5,000		5,000
Curtis Associates I, L.P.		5,000		4,000		-		1,000
Prairieland Properties of Syracuse II, L.P.		5,000		4,000		-		1,000
Solomon Associates I, L.P.		12,000		11,000		-		1,000
Talladega County Housing Ltd.		5,000		2,499		-		2,501

~~Item~~As of 1AMarch 31, 2013, the Partnership has identified Blessed Rock of El Monte, L.P. ~~Risk~~(“Blessed ~~Factors~~Rock”), The Willows Apartments Limited Partnership (“The Willows”) and Broadway Apartments, L.P. (“Broadway”) for disposition.

Set forth below are the risks the Partnership believes are the most significant material to the Limited Partners. The Partnership and the Local Limited Partnerships operate in a continually changing business environment and, therefore, new risks emerge from time to time. This section contains some forward-looking statements. For an explanation of the qualifications and limitations on forward-looking statements, see Item 7.5

Subsequent to March 31, 2013, the 49.49% Local Limited Partnership Interest in Blessed Rock was sold for an adjusted price of $4,707,317. Blessed Rock was appraised for $6,910,000 and had a mortgage note balance of $2,054,000 as of December 31, 2012. Proceeds in the amount of $2,355,383 were received from the sale of Blessed Rock, of which $250,000 was received in advance and is included in prepaid disposition proceeds on the balance sheet as of March 31, 2013. The Partnership used the cash proceeds to pay $493,380 in accrued asset management fees, $1,448 to reimburse the General Partner or an affiliate for expense paid on its behalf, $1,760,555 to reimburse the general partner or its affiliates for debts previously written off and the remaining $100,000 was placed in the Partnership’s reserves for future operating expenses. No cash distribution will be made to the Limited Partners as a result of this sale. The Compliance Period had been completed therefore there is no risk of recapture and investor approval is not required.

(Subsequent to March 31, 2013, The Willows was sold for $30,000. The Willows was appraised for $720,000 and had a) ~~Risks~~mortgage ~~arising~~note balance of $937,000 as of December 31, 2012. Cash proceeds of $30,000 were received in advance for the sale the Local Limited Partnership Interest and is included in prepaid disposition proceeds on the balance sheet as of March 31, 2013. The Partnership has incurred $3,000 in appraisal expenses which will be netted against the proceeds from the ~~Internal~~sale ~~Revenue~~in ~~Code~~calculating ~~rules~~the ~~governing~~gain ~~Low~~on ~~Income~~the ~~Housing~~sale. ~~Tax~~The ~~Credits~~Partnership’s investment balance is zero; therefore a gain of $27,000 will be recorded during the respective period. No cash distribution will be made to the Limited Partners as a result of this sale. The Compliance Period has been completed therefore there is no risk of recapture and investor approval is not required.

~~Low~~Contracts regarding ~~Income~~the ~~Housing~~potential ~~Tax Credits~~sale ~~might~~of ~~not~~Broadway behave ~~available.~~been Ifdrafted aand ~~Housing~~are ~~Complex~~currently ~~does~~under ~~not~~review ~~satisfy~~by the ~~requirements~~potential purchaser of ~~Internal~~the ~~Revenue~~Local Limited ~~Code~~Partnership ~~Section~~Interest. 42Broadway was appraised for $875,000 and had a mortgage note balance of $1,131,000 as of December ~~then~~31, ~~the~~2012. ~~Housing~~The ~~Complex~~Partnership ~~will~~estimates ~~not~~a beclosing ~~eligible~~date of June 30, 2013 for ~~Low~~the ~~Income~~Local ~~Housing~~Limited ~~Tax~~Partnership ~~Credits~~Interest sale. The purchase price is estimated to be $30,000.

~~Low Income Housing Tax~~Item ~~Credits might be less than anticipated~~1A. ~~The~~Risk ~~Local~~Factors General Partners will calculate the amount of the Low Income Housing Tax Credits. No opinion of counsel will cover the calculation of the amount of Low Income Housing Tax Credits. The IRS could challenge the amount of the Low Income Housing Tax Credits claimed for any Housing Complex under any of a number of provisions set forth in Internal Revenue Code Section 42. A successful challenge by the IRS would decrease the amount of the Low Income Housing Tax Credits from the amount paid for by the Partnership.

~~Unless a bond is posted~~Set orforth abelow ~~Treasury~~are ~~Direct~~the ~~Account~~risks isthe ~~established,~~Partnership ~~Low~~believes ~~Income~~are ~~Housing~~the ~~Tax~~most ~~Credits~~significant ~~may~~material beto ~~recaptured~~the ifLimited ~~Housing~~Partners. ~~Complexes~~The ~~are not owned~~Partnership and ~~operated~~the ~~for~~Local 15Limited ~~years.~~Partnerships ~~Housing~~operate ~~Complexes~~in ~~must~~a ~~comply~~continually ~~with~~changing ~~Internal~~business ~~Revenue~~environment ~~Code~~and, ~~Section~~therefore, 42new ~~for~~risks ~~the~~emerge ~~15-year Compliance Period.~~from ~~Low~~time ~~Income Housing Tax Credits will be recaptured with interest~~ to ~~the~~time. ~~extent~~This ~~that~~section acontains ~~Housing Complex is not rented as low income housing or in~~ some ~~other~~forward-looking ~~way~~statements. ~~does~~For ~~not~~an ~~satisfy~~explanation ~~the requirements~~ of ~~Internal Revenue Code Section 42 during~~ the ~~Compliance~~qualifications ~~Period.~~and limitations ~~For~~on ~~example,~~forward-looking ~~unless a bond is posted or a Treasury Direct Account is established~~statements, ~~recapture~~see ~~with~~Item ~~interest would occur if:~~7.

· (a) ~~Local~~Risks ~~Limited~~arising ~~Partnership~~from ~~disposed~~the ofInternal ~~its~~Revenue ~~interest~~Code inrules agoverning ~~Housing~~Low ~~Complex~~Income ~~during~~Housing ~~the~~Tax ~~Compliance Period, or~~Credits

·Low Income ~~the~~Housing ~~Partnership~~Tax ~~disposed~~Credits ofmight ~~its~~not ~~interest~~be inavailable. If a ~~Local~~Housing ~~Limited~~Complex ~~Partnership~~does ~~during~~not satisfy the ~~Compliance~~requirements ~~Period~~of Internal Revenue Code Section 42, then the Housing Complex will not be eligible for Low Income Housing Tax Credits.

~~For~~Low Income ~~these~~Housing ~~purposes,~~Tax ~~disposition~~Credits ~~includes~~might ~~transfer~~be less than anticipated. The Local General Partners will calculate the amount of the Low Income Housing Tax Credits. No opinion of counsel will cover the calculation of the amount of Low Income Housing Tax Credits. The IRS could challenge the amount of the Low Income Housing Tax Credits claimed for any Housing Complex under any of a number of provisions set forth in Internal Revenue Code Section 42. A successful challenge by ~~way~~the IRS would decrease the amount of ~~foreclosure~~the Low Income Housing Tax Credits from the amount paid for by the Partnership.

ItUnless a ~~will~~bond beis upposted toor ~~the~~a ~~Partnership~~Treasury toDirect ~~determine~~Account is established, Low Income Housing Tax Credits may be recaptured if Housing Complexes ~~whether~~are tonot ~~post~~owned aand ~~bond~~operated for 15 years. ~~There~~Housing isComplexes nomust ~~obligation~~comply ~~under~~with Internal Revenue Code Section 42 for the ~~agreements~~15-year Compliance Period. Low Income Housing Tax Credits will be recaptured with ~~the~~interest ~~Local~~to ~~Limited~~the ~~Partnerships~~extent that ~~the~~a ~~Local~~Housing ~~Limited~~Complex is not ~~Partnerships~~rented ~~must~~as dolow soincome housing or in some other way does not satisfy the requirements of Internal Revenue Code Section 42 during the Compliance Period. For example, unless a bond is posted or a Treasury Direct Account is established, recapture with interest would occur if:

~~There~~● ~~can~~a beLocal noLimited ~~assurance~~Partnership ~~that~~disposed ~~recapture will not occur. If it does, recapture will be~~ of aits ~~portion~~interest ~~of all Low Income Housing Tax Credits taken~~ in ~~prior~~a ~~years for that~~ Housing Complex, ~~plus~~during ~~interest. During~~ the ~~first 11 years of the~~ Compliance Period, ~~non-compliance results in one-third of the credits up to that point for the particular Housing Complex being recaptured, plus interest. Between years 12 and 15, the recapture is phased out ratably.~~or

~~Sales~~● ofthe ~~Housing Complexes after 15 years are subject to limitations which may impact a Local Limited~~ Partnership’s ~~ability~~disposed toof ~~sell~~ its ~~Housing~~interest ~~Complex. Each Local Limited Partnership executes an extended low income housing commitment with the state~~ in ~~which~~a ~~the Housing Complex is located. The extended low income housing commitment states the number of years that the~~ Local Limited Partnership and any subsequent owners must rent the Housing Complex as low income housing. Under Federal law, the commitment must be for at least 30 years. The commitment actually agreed to may be significantly longer than 30 years. In prioritizing applicants for Low Income Housing Tax Credits, most states give additional points for commitment periods in excess of 30 years. On any sale of the Housing Complex during ~~the~~ ~~commitment period,~~ the ~~purchaser~~Compliance ~~would have to agree to continue to rent the Housing Complex as low income housing for the duration of the commitment period~~Period. This requirement reduces the potential market, and possibly the sales price, for the Housing Complexes. The sale of a Housing Complex may be subject to other restrictions. For example, Federal lenders or subsidizers may have the right to approve or disapprove a purchase of a Housing Complex. Accordingly, there can be no assurance that a Local Limited Partnership will be able to sell its Housing Complex. Even if it does so, there can be no assurance that any significant amount of cash will be distributed to the Limited Partners. As a result, a material portion of the Low Income Housing Tax Credits may represent a return of the money originally invested in the Partnership.

~~As part of the recently~~For ~~enacted~~these ~~health care legislation~~purposes, ~~Congress~~disposition ~~has~~includes ~~codified~~transfer ~~the~~by ~~economic~~way ~~substance doctrine. Because~~ of ~~its recent enactment, the full reach of this provision is unclear~~foreclosure. Inasmuch as Housing Complexes might offer no benefit to a purchaser other than tax benefits, it is possible that the economic substance doctrine could be interpreted to limit deduction of tax losses from Housing Complexes, which would be expected to have a significant adverse effect on the sale value of the Housing Complexes and the Local Limited Partnership Interests.

~~Limited Partners can~~It ~~only~~will ~~use~~be ~~Low~~up ~~Income~~to ~~Housing~~the ~~Tax~~Partnership ~~Credits~~to indetermine ~~limited~~whether ~~amounts. The ability of an individual or other non-corporate Limited Partner~~ to ~~claim~~post ~~Low~~a ~~Income~~bond. ~~Housing~~There ~~Tax Credits on his individual tax return~~ is ~~limited.~~no ~~For~~obligation ~~example,~~under anthe ~~individual~~agreements ~~Limited~~with ~~Partner~~the ~~can~~Local ~~use~~Limited ~~Low~~Partnerships ~~Income~~that ~~Housing~~the ~~Tax~~Local ~~Credits~~Limited toPartnerships ~~reduce~~must ~~his~~do ~~tax liability on:~~so.

·There can anbe ~~unlimited~~no ~~amount~~assurance that recapture will not occur. If it does, recapture will be of ~~passive~~a ~~income~~portion of all Low Income Housing Tax Credits taken in prior years for that Housing Complex, ~~which~~plus isinterest. ~~income~~During ~~from~~the ~~entities~~first ~~such~~11 asyears of the ~~Partnership~~Compliance Period, non-compliance results in one-third of the credits up to that point for the particular Housing Complex being recaptured, plus interest. Between years 12 and 15, the recapture is phased out ratably.

·Sales of ~~$25~~Housing Complexes after 15 years are subject to limitations which may impact a Local Limited Partnership’s ability to sell its Housing Complex. Each Local Limited Partnership executes an extended low income housing commitment with the state in which the Housing Complex is located. The extended low income housing commitment states the number of years that the Local Limited Partnership and any subsequent owners must rent the Housing Complex as low income housing. Under Federal law,~~000~~ the commitment must be for at least 30 years. The commitment actually agreed to may be significantly longer than 30 years. In prioritizing applicants for Low Income Housing Tax Credits, most states give additional points for commitment periods in excess of 30 years. On any sale of the Housing Complex during the commitment period, the purchaser would have to agree to continue to rent the Housing Complex as low income ~~from~~housing for the duration of the commitment period. This requirement reduces the potential market, and possibly the sales price, for the Housing Complexes. The sale of a Housing Complex may be subject to other ~~sources~~restrictions. For example, Federal lenders or subsidizers may have the right to approve or disapprove a purchase of a Housing Complex. Accordingly, there can be no assurance that a Local Limited Partnership will be able to sell its Housing Complex. Even if it does so, there can be no assurance that any significant amount of cash will be distributed to the Limited Partners. As a result, a material portion of the Low Income Housing Tax Credits may represent a return of the money originally invested in the Partnership.

~~However,~~As part of the ~~use~~recently ofenacted ~~Low~~health ~~Income~~care ~~Housing~~legislation, ~~Tax Credits~~Congress byhas ancodified ~~individual~~the ~~against~~economic ~~these~~substance ~~types~~doctrine. Because of ~~income~~its recent enactment, the full reach of this provision is ~~subject~~unclear. toInasmuch ~~ordering~~as ~~rules,~~Housing ~~which~~Complexes ~~may~~might ~~further~~offer ~~limit~~no ~~the~~benefit ~~use~~to ofa ~~Low~~purchaser ~~Income~~other ~~Housing~~than ~~Tax~~tax ~~Credits.~~benefits, ~~Some~~it ~~corporate~~is ~~Limited~~possible ~~Partners~~that ~~are~~the ~~subject~~economic substance doctrine could be interpreted to ~~similar~~limit ~~and~~deduction ~~other~~of ~~limitations.~~tax ~~They~~losses ~~include~~from Housing ~~corporations~~Complexes, which ~~provide~~ ~~personal~~would ~~services,~~be ~~and~~expected ~~corporations~~to ~~which~~have ~~are~~a ~~owned~~significant byadverse ~~five~~effect oron ~~fewer~~the ~~shareholders~~sale value of the Housing Complexes and the Local Limited Partnership Interests.

~~Any~~Limited Partners ~~portion~~can ofonly ause Low Income Housing Tax ~~Credit which~~Credits isin ~~allowed~~limited toamounts. aThe ~~Limited~~ability ~~Partner~~of ~~under~~an ~~such~~individual ~~rules~~or isother ~~then aggregated with all of the~~ non-corporate Limited Partner’s ~~other~~to ~~business credits.~~claim ~~The~~Low ~~aggregate~~Income isHousing ~~then~~Tax ~~subject~~Credits toon ~~the~~his ~~general~~individual ~~limitation~~tax onreturn ~~all~~is ~~business credits~~limited. ~~That~~For ~~limitation~~example, ~~provides~~an ~~that~~individual a Limited Partner can use ~~business~~Low ~~credits~~Income toHousing ~~offset~~Tax ~~the~~Credits ~~Limited Partner’s annual tax liability equal~~ to ~~$25,000~~reduce ~~plus~~his ~~75% of the Limited Partner’s~~ tax liability ~~in excess of $25,000. However, business credits may not be used to offset any alternative minimum tax. All of these concepts are extremely complicated.~~on:

~~(b)~~● ~~Risks~~an ~~related~~unlimited toamount ~~investment~~of inpassive ~~Local~~income, ~~Limited~~which ~~Partnerships~~is ~~and~~income ~~Housing~~from ~~Complexes~~entities such as the Partnership, and

~~Because~~● ~~the Partnership has few investments~~$25,000 ~~each~~in ~~investment~~income ~~will~~from ~~have~~other ~~a great impact on the Partnership’s results of operations~~sources. ~~Any single Housing Complex experiencing poor operating performance, impairment of value or recapture of Low Income Housing Tax Credits will have a significant impact upon the Partnership as a whole.~~

~~The failure to pay mortgage~~However, ~~debt~~the ~~could~~use ~~result in a forced sale~~ of aLow Income Housing ~~Complex.~~Tax ~~Each~~Credits ~~Local Limited Partnership leverages the Partnership’s investment therein~~ by ~~incurring~~an ~~mortgage~~individual ~~debt.~~against Athese ~~Local~~types ~~Limited~~of ~~Partnership’s~~income ~~revenues~~is ~~could~~subject ~~be less than its debt payments and taxes and other operating costs. If so, the Local Limited Partnership would have~~ to ~~use~~ordering ~~working capital reserves~~rules, ~~seek additional funds, or suffer a forced sale of its Housing Complex,~~ which ~~could include a foreclosure. The same results could occur if government subsidies~~may ~~ceased.~~further ~~Foreclosure~~limit ~~would result in a loss of~~ the ~~Partnership’s~~use ~~capital invested in the Housing Complex. Foreclosure could also result in a recapture~~ of Low Income Housing Tax Credits~~, and a loss of Low Income Housing Tax Credits for the year in which the foreclosure occurs~~. IfSome ~~the~~corporate ~~Housing Complex is highly-leveraged, a relatively slight decrease in the rental revenues could adversely affect the Local~~ Limited ~~Partnership’s~~Partners ~~ability~~are tosubject ~~pay its debt service requirements. Mortgage debt may be repayable in a self-amortizing series of equal installments or with a large balloon final payment. Balloon payments maturing prior~~ to ~~the~~similar ~~end of~~and ~~the~~other ~~anticipated holding period for the Housing Complex create the risk of a forced sale if the debt cannot be refinanced~~limitations. ~~There~~ ~~can~~They beinclude nocorporations ~~assurance~~which ~~that~~provide ~~additional~~personal ~~funds~~services, ~~will~~and becorporations ~~available~~which toare ~~any~~owned ~~Local~~by ~~Limited~~five ~~Partnership if needed on acceptable terms~~ or ~~at all~~fewer shareholders.

~~The Partnership does~~Any ~~not~~portion ~~control~~of ~~the~~a ~~Local~~Low ~~Limited~~Income ~~Partnerships~~Housing ~~and~~Tax ~~must~~Credit ~~rely~~which onis ~~the~~allowed ~~Local~~to ~~General~~a ~~Partners.~~Limited ~~The~~Partner ~~Local~~under ~~General~~such ~~Partners~~rules ~~will~~is ~~make all~~then ~~management~~aggregated ~~decisions~~with ~~for~~all of the ~~Local~~ Limited ~~Partnerships~~Partner’s ~~and~~other ~~the~~business ~~Housing Complexes~~credits. The ~~Partnership~~aggregate ~~has~~is ~~very~~then ~~limited~~subject ~~rights with respect~~ to ~~management~~the ofgeneral ~~the~~limitation ~~Local~~on ~~Limited~~all ~~Partnerships~~business credits. ~~The~~That ~~Partnership~~limitation ~~will~~provides ~~not~~that bea ~~able~~Limited toPartner ~~exercise~~can ~~any~~use ~~control~~business ~~with~~credits ~~respect~~ to ~~Local~~offset the Limited ~~Partnership~~Partner’s ~~business~~annual tax ~~decisions~~liability ~~and~~equal ~~operations.~~to ~~Consequently~~$25,000 ~~the~~plus ~~success~~75% of the ~~Partnership~~Limited ~~will~~Partner’s ~~depend~~tax onliability ~~the~~in excess of $25,000. However, business credits ~~abilities~~may not be used to offset any alternative minimum tax. All of ~~the~~these ~~Local~~concepts ~~General~~are ~~Partners~~extremely complicated.

~~Housing~~(b) ~~Complexes~~Risks ~~subsidized by~~related ~~other government programs are subject~~ to ~~additional~~investment ~~rules~~in ~~which~~Local ~~may~~Limited ~~make~~Partnerships ~~it difficult to operate~~ and ~~sell~~ Housing Complexes. Some or all of the Housing Complexes receive or may receive government financing or operating subsidies in addition to Low Income Housing Tax Credits. The following are risks associated with some such subsidy programs:

6Because the Partnership has few investments, each investment will have a great impact on the Partnership’s results of operations. Any single Housing Complex experiencing poor operating performance, impairment of value or recapture of Low Income Housing Tax Credits will have a significant impact upon the Partnership as a whole.

· Obtaining tenants for the Housing Complexes. Government regulations limit the types of people who can rent subsidized housing. These regulations may make it more difficult to rent the residential units in the Housing Complexes.7

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

·The Partnership ~~Limitations~~does not control the Local Limited Partnerships and must rely on ~~cash~~the ~~distributions~~Local General Partners. The ~~amount~~Local ofGeneral Partners ~~cash~~will ~~that~~make ~~may~~all bemanagement ~~distributed~~decisions tofor ~~owners~~the ofLocal ~~subsidized~~Limited Partnerships and the Housing Complexes. isThe ~~less~~Partnership ~~than~~has very limited rights with respect to management of the ~~amount~~Local ~~that~~Limited ~~could~~Partnerships. The Partnership will not be ~~earned~~able byto exercise any control with respect to Local Limited Partnership business decisions and operations. Consequently, the ~~owners~~success of ~~non-subsidized~~the ~~Housing~~Partnership will ~~Complexes~~depend on the abilities of the Local General Partners.

~~· Limitations on sale or refinancing of the~~ Housing Complexes. Asubsidized ~~Local~~by ~~Limited~~other ~~Partnership~~government ~~may~~programs beare ~~unable~~subject to ~~sell~~additional ~~its~~rules ~~Housing~~which ~~Complex~~may ormake toit ~~refinance~~difficult ~~its~~to ~~mortgage~~operate ~~loan~~and ~~without~~sell Housing ~~the prior approval of the lender~~Complexes. ~~The~~Some ~~lender~~or ~~may~~all ~~withhold~~of ~~such approval in~~ the ~~discretion~~Housing ofComplexes ~~the~~receive ~~lender.~~or ~~Approval~~ may bereceive ~~subject~~government tofinancing ~~conditions,~~or ~~including~~operating ~~the~~subsidies in ~~condition~~addition ~~that the purchaser continues~~ to ~~operate~~Low ~~the~~Income ~~property~~Housing asTax ~~affordable housing for terms which could be as long as 30 years or more~~Credits. InThe ~~addition,~~following ~~any~~are ~~prepayment~~risks ofassociated awith ~~mortgage~~some ~~may~~such ~~result~~subsidy ~~in the assessment of a prepayment penalty.~~programs:

·● Obtaining tenants for the Housing Complexes. Government regulations limit the types of people who can rent subsidized housing. These regulations may make it more difficult to rent the residential units in the Housing Complexes. ● Obtaining rent increases. In many cases rents can only be increased with the prior approval of the subsidizing agency. ● Limitations on cash distributions. The amount of cash that may be distributed to owners of subsidized Housing Complexes is less than the amount that could be earned by the owners of non-subsidized Housing Complexes. ● Limitations on sale or refinancing of the Housing Complexes. A Local Limited Partnership may be unable to sell its Housing Complex or to refinance its mortgage loan without the prior approval of the lender. The lender may withhold such approval in the discretion of the lender. Approval may be subject to conditions, including the condition that the purchaser continues to operate the property as affordable housing for terms which could be as long as 30 years or more. In addition, any prepayment of a mortgage may result in the assessment of a prepayment penalty. ● Limitations on transfers of interests in Local Limited Partnerships. The Partnership may be unable to sell its interest in a Local Limited Partnership without the prior approval of the ~~Lender~~lender. The ~~Lender~~lender may withhold such approval in the discretion of the ~~Lender~~lender. Approval may be subject to conditions. ● Limitations on removal and admission of Local General Partners. The Partnership may be unable to remove a Local General Partner from a Local Limited Partnership except for cause, such as the violation of the rules of the lender or state allocating authority. Regulations may prohibit the removal of a Local General Partner or permit removal only with the prior approval of the lender. Regulations may also require approval of the admission of a successor Local General Partner even upon the death or other disability of a Local General Partner. ● Limitations on subsidy payments. Subsidy payments may be fixed in amount and subject to annual legislative appropriations. The rental revenues of a Housing Complex, when combined with the maximum committed subsidy, may be insufficient to meet obligations. Congress or the state legislature, as the case may be, may fail to appropriate or increase the necessary subsidy. In those events, the mortgage lender could foreclose on the Housing Complex unless a workout arrangement could be negotiated. ● Possible changes in applicable regulations. Legislation may be enacted which adversely revises provisions of outstanding mortgage loans. Such legislation has been enacted in the past.

· Limitations on removal and admission of Local General Partners. The Partnership may be unable to remove a Local General Partner from a Local Limited Partnership except for cause, such as the violation of the rules of the lender or state allocating authority. Regulations may prohibit the removal of a Local General Partner or permit removal only with the prior approval of the lender. Regulations may also require approval of the admission of a successor Local General Partner even upon the death or other disability of a Local General Partner.8

·● ~~Limitations~~Limited onPartners ~~subsidy~~may ~~payments~~not receive distributions if Housing Complexes are sold. ~~Subsidy~~There ~~payments~~is ~~may~~no beassurance ~~fixed~~that inLimited ~~amount~~Partners ~~and~~will ~~subject~~receive toany ~~annual~~cash ~~legislative~~distributions ~~appropriations.~~from ~~The~~the ~~rental~~sale ~~revenues~~or refinancing of a Housing Complex,. ~~when~~The ~~combined~~price ~~with~~at ~~the~~which ~~maximum~~a ~~committed~~Housing ~~subsidy,~~Complex is sold may not be ~~insufficient~~high enough to ~~meet~~pay ~~obligations.~~the ~~Congress~~mortgage orand ~~the~~other ~~state~~expenses ~~legislature,~~at as the ~~case~~Local ~~may~~Limited ~~be,~~Partnership ~~may~~and ~~fail~~partnership tolevels ~~appropriate~~which ormust ~~increase~~be ~~the~~paid ~~necessary~~at ~~subsidy~~such time. InIf ~~those~~that ~~events~~happens, ~~the~~a ~~mortgage~~Limited ~~lender~~Partner’s ~~could~~return ~~foreclose~~would onbe ~~the~~derived ~~Housing~~only ~~Complex~~from ~~unless~~the aLow ~~workout~~Income ~~arrangement~~Housing ~~could~~Tax beCredits ~~negotiated~~and tax losses.

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

·Housing Complexes ~~Limited~~without ~~Partners~~financing ~~may~~or ~~not~~operating ~~receive~~subsidies ~~distributions~~may ifbe ~~Housing~~unable ~~Complexes~~to ~~are~~pay ~~sold~~operating expenses. ~~There~~If isa noLocal ~~assurance~~Limited ~~that~~Partnership were ~~Limited~~unable ~~Partners~~to ~~will~~pay ~~receive~~operating ~~any~~expenses, ~~cash~~one ~~distributions~~result ~~from~~could ~~the~~be ~~sale~~a orforced ~~refinancing~~sale of aits Housing Complex. ~~The~~In ~~price~~this atregard, ~~which~~some aof the Local Limited Partnerships may own Housing ~~Complex~~Complexes iswhich ~~sold~~have ~~may~~no ~~not~~subsidies beother ~~high~~than ~~enough~~Low toIncome ~~pay~~Housing ~~the~~Tax ~~mortgage~~Credits. ~~and~~Those ~~other~~Housing Complexes ~~expenses~~do atnot have the ~~Local~~benefit ~~Limited~~of ~~Partnership~~below-market-interest-rate ~~and~~financing ~~partnership~~or ~~levels~~operating subsidies which ~~must~~often beare ~~paid~~important atto the ~~such~~feasibility ~~time~~of low income housing. IfThose ~~that~~Housing ~~happens,~~Complexes arely ~~Limited~~solely ~~Partner’s~~on ~~return~~rents ~~would~~to bepay ~~derived~~expenses. ~~only~~However, ~~from~~in ~~the~~order for any Housing Complex to be eligible for Low Income Housing Tax Credits, ~~and~~it ~~tax~~must ~~losses~~restrict the rent which may be charged to tenants. Over time, the expenses of a Housing Complex will increase. If a Local Limited Partnership cannot increase its rents, it may be unable to pay increased operating expenses.

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

~~Housing Complexes without~~Fluctuating ~~financing~~economic orconditions ~~operating~~can ~~subsidies~~reduce ~~may~~the bevalue ~~unable~~of toreal ~~pay operating expenses~~estate. IfThe ~~a Local Limited~~ Partnership’s ~~were~~principal ~~unable~~business toobjective ~~pay operating~~is ~~expenses, one result could be a forced sale of~~ providing its ~~Housing Complex In this regard, some of the Local~~ Limited ~~Partnerships may~~Partners ~~own~~with ~~Housing Complexes which have no subsidies other than~~ Low Income Housing Tax Credits., ~~Those~~not ~~Housing~~the ~~Complexes~~generation doof ~~not~~gains ~~have~~ from the ~~benefit~~appreciation of ~~below-market-interest-rate~~real ~~financing~~estate orheld by ~~operating~~the ~~subsidies~~Local ~~which~~Limited ~~often~~Partnerships. ~~are~~In ~~important~~its tofinancial statements, the ~~feasibility~~Partnership ofhas ~~low income~~carried ~~housing.~~its ~~Those~~investments ~~Housing~~in ~~Complexes~~Local ~~rely~~Limited ~~solely~~Partnerships at onvalues ~~rents~~reflecting tothe ~~pay~~sum ~~expenses.~~of ~~However,~~the intotal ~~order~~amount ~~for~~of ~~any~~the ~~Housing~~remaining ~~Complex~~future ~~to be eligible for~~ Low Income Housing Tax Credits, itestimated ~~must~~to ~~restrict~~be allocated to the ~~rent~~Partnership ~~which~~and ~~may~~the beestimated ~~charged~~residual value to ~~tenants.~~the ~~Over~~Partnership ~~time,~~of ~~the~~its ~~expenses~~interests ofin athe ~~Housing Complex~~Local ~~will~~Limited ~~increase~~Partnerships. IfAs of aall ~~Local~~periods ~~Limited~~presented, the Partnership ~~cannot~~had ~~increase~~reduced ~~its~~the ~~rents,~~carrying itamount ~~may~~to be$0 ~~unable~~with respect to ~~pay~~all ~~increased~~of ~~operating~~its ~~expenses~~investments.

7Any investment in real estate is subject to risks from fluctuating economic conditions. These conditions can adversely affect the ability to realize a profit or even to recover invested capital. Among these conditions are:

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

Fluctuating economic conditions can reduce the value of real estate. The Partnership’s principal business objective is providing its Limited Partners with Low Income Housing Tax Credits, not the generation of gains from the appreciation of real estate held by the Local Limited Partnerships. In its financial statements, the Partnership has carried its investments in Local Limited Partnerships at values reflecting the sum of the total amount of the remaining future Low Income Housing Tax Credits estimated to be allocated to the Partnership and the estimated residual value to the Partnership of its interests in the Local Limited Partnerships. As of all periods presented, the Partnership had reduced the carrying amount to $0 with respect to all of its investments.9

~~Any~~● ~~investment~~the insupply ~~real estate~~of isand ~~subject~~demand tofor ~~risks~~similar ~~from~~properties, ~~fluctuating~~● ~~economic~~neighborhood conditions., ~~These~~● ~~conditions can adversely affect~~ the ~~ability~~availability toand ~~realize~~cost ~~a profit~~of orutilities ~~even~~and ~~to recover invested capital~~water. ~~Among these conditions are:~~

·(c) ~~the~~Tax ~~general~~risks ~~and~~other ~~local~~than ~~job~~those ~~market,~~relating to tax credits

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

·No opinion ~~monetary~~of ~~inflation,~~counsel as to certain matters. No legal opinion is obtained regarding matters:

·● ~~tax,~~the ~~environmental~~determination of which depends on future factual circumstances, ~~land~~● ~~use~~which ~~and~~are ~~zoning~~peculiar ~~policies~~to individual Limited Partners, or ● which are not customarily the subject of an opinion.

·The more ~~the~~significant ~~supply~~ of ~~and~~these ~~demand~~matters ~~for similar properties,~~include:

·● ~~neighborhood~~allocating ~~conditions~~purchase price among components of a property, particularly as between buildings and fixtures, the cost of which is depreciable, and the underlying land, the cost of which is not depreciable, ● characterizing expenses and payments made to or by the Partnership or a Local Limited Partnership, ● identifying the portion of the costs of any Housing Complex which qualify for historic and other tax credits, ● applying to any specific Limited Partner the limitation on the use of tax credits and tax losses. Limited Partners must determine for themselves the extent to which they can use tax credits and tax losses, and ● the application of the alternative minimum tax to any specific Limited Partner, or the calculation of the alternative minimum tax by any Limited Partner. The alternative minimum tax could reduce the tax benefits from an investment in the Partnership.

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

~~(c)~~Passive activity ~~Tax~~rules ~~risks~~will limit deduction of the Partnership’s losses and impose tax on interest income. The Internal Revenue Code imposes limits on the ability of most investors to claim losses from investments in real estate. An individual may claim these so-called passive losses only as an offset to income from investments in real estate or rental activities. An individual may not claim passive losses as an offset against other ~~than~~types ~~those~~of ~~relating~~income, such as salaries, wages, dividends and interest. These passive activity rules will restrict the ability of most Limited Partners to ~~tax~~use ~~credits~~losses from the Partnership as an offset of non-passive income.

InThe Partnership ~~addition~~may toearn ~~the~~interest ~~risks~~income ~~pertaining~~on ~~specifically to~~its ~~Low~~reserves ~~Income~~and ~~Housing~~loans. ~~Tax~~The ~~Credits,~~passive ~~there~~activity ~~are~~rules ~~other~~generally ~~Federal~~will ~~income~~categorize ~~tax~~interest as ~~risks.~~portfolio ~~Additional Federal~~ income, ~~tax~~and ~~risks~~not ~~associated~~passive ~~with the~~income. ~~ownership~~Passive oflosses ~~Partnership~~cannot ~~Units~~be ~~and~~used ~~the~~as ~~operations~~an ofoffset ~~the~~to ~~Partnership~~portfolio ~~and~~income. ~~the~~Consequently, ~~Local~~a Limited Partner ~~Partnerships~~could ~~include,~~pay ~~but~~tax ~~are~~liability ~~not limited~~on ~~to,~~portfolio income from the ~~following:~~Partnership.

NoAt risk ~~opinion~~rules might limit deduction of ~~counsel~~the Partnership’s losses. If a significant portion of the financing used to purchase asHousing Complexes does not consist of qualified nonrecourse financing, the “at risk” rules will limit a Limited Partner’s ability to ~~certain~~claim ~~matters~~Partnership losses to the amount the Limited Partner invests in the Partnership. NoThe ~~legal~~“at ~~opinion~~risk” isrules of ~~obtained~~the ~~regarding~~Internal ~~matters~~Revenue Code generally limit a Limited Partner’s ability to deduct Partnership losses to the sum of:

·● the ~~determination~~amount of ~~which~~cash ~~depends~~the onLimited ~~future~~Partner ~~factual~~invests ~~circumstances~~in the Partnership, and ● the Limited Partner’s share of Partnership qualified nonrecourse financing.

·Qualified nonrecourse ~~which~~financing ~~are~~is ~~peculiar~~non-convertible, tononrecourse ~~individual~~debt ~~Limited~~which ~~Partners~~is borrowed from a government, or with exceptions, any person actively and regularly engaged in the business of lending money.

~~· which are not customarily the subject of an opinion.~~10

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

·● ~~allocating~~the ~~purchase~~sales ~~price~~proceeds ~~among~~plus ~~components~~the amount of aindebtedness ~~property,~~secured ~~particularly~~by asthe ~~between~~Housing ~~buildings~~Complex, and ~~fixtures,~~● the ~~cost~~adjusted ofbasis ~~which~~for isthe ~~depreciable,~~Housing ~~and~~Complex. ~~the~~The ~~underlying~~adjusted ~~land,~~basis ~~the~~for ~~cost~~a ofHousing ~~which~~Complex is ~~not~~its ~~depreciable~~original cost, plus capital expenditures, minus depreciation.

·Similarly, when ~~characterizing~~the ~~expenses~~Partnership ~~and~~sells ~~payments~~an ~~made~~interest toin ora byLocal Limited Partnership the Partnership ormay arecognize ~~Local~~gain. ~~Limited~~Such ~~Partnership,~~gain is equal to the difference between:

·● ~~identifying~~the sales proceeds plus the ~~portion~~Partnership’s share of the ~~costs~~amount of ~~any~~indebtedness secured by the Housing Complex, ~~which~~and ~~qualify~~● the adjusted basis for ~~historic~~the ~~and~~interest. ~~other~~The ~~tax~~adjusted ~~credits~~basis for an interest in a Local Limited Partnership is the amount paid for the interest, plus income allocations and cash distributions, less loss allocations.

·Accordingly, gain ~~applying~~will tobe ~~any~~increased ~~specific~~by ~~Limited~~the ~~Partner~~depreciation ~~the~~deductions ~~limitation~~taken onduring the ~~use~~holding ofperiod ~~tax~~for ~~credits~~the ~~and~~Housing ~~tax losses~~Complex. In some cases, a Limited ~~Partners~~Partner ~~must~~could ~~determine~~have ~~for~~a ~~themselves~~tax ~~the~~liability ~~extent~~from toa ~~which~~sale ~~they~~greater ~~can~~than ~~use~~the ~~tax~~cash ~~credits~~distributed ~~and~~to ~~tax~~the ~~losses,~~Limited ~~and~~Partner from the sale.

·IRS could audit the ~~application~~returns of the ~~alternative~~Partnership, ~~minimum~~the ~~tax~~Local toLimited ~~any~~Partnerships ~~specific~~or the Limited ~~Partner,~~Partners. The IRS can audit the Partnership or a Local Limited Partnership at the ~~calculation~~entity oflevel with regard to issues affecting the ~~alternative~~entity. ~~minimum~~The ~~tax~~IRS bydoes ~~any~~not have to audit each Limited Partner. ~~The~~in ~~alternative~~order ~~minimum~~to ~~tax~~challenge ~~could~~a ~~reduce~~position taken by the ~~tax~~Partnership ~~benefits~~or ~~from~~a Local Limited Partnership. Similarly, only one judicial proceeding can be filed to contest an ~~investment~~IRS indetermination. A contest by the Partnership of any IRS determination might result in high legal fees.

8An audit of the Partnership or a Local Limited Partnership also could result in an audit of a Limited Partner. An audit of a Limited Partner’s tax returns could result in adjustments both to items that are related to the Partnership and to unrelated items. The Limited Partner could then be required to file amended tax returns and pay additional tax plus interest and penalties.

~~There~~A successful ~~can~~IRS bechallenge noto ~~assurance,~~tax ~~therefore,~~allocations ~~that~~ of the ~~IRS~~Partnership ~~will~~or ~~not~~a ~~challenge~~Local ~~some~~Limited ofPartnership would reduce the tax ~~positions~~benefits ~~adopted~~of an byinvestment in the Partnership. Under the Internal Revenue Code, a partnership’s allocation of income, gains, deductions, losses and tax credits must have substantial economic effect. Substantial economic effect is a highly-technical concept. The ~~courts~~fundamental principle ~~could~~is ~~sustain~~two-fold. If a partner will benefit economically from an ~~IRS~~item ~~challenge.~~of Anpartnership income or gain, that item must be allocated ~~IRS~~to ~~challenge~~him so that he bears the correlative tax burden. Conversely, if ~~successful~~a partner will suffer economically from an item of partnership deduction or loss, ~~could~~that ~~have~~item must be allocated to him so that he bears the correlative tax benefit. If a ~~detrimental~~partnership’s allocations do not have substantial economic effect, onthen the ~~Partnership~~partnership’s ~~ability~~tax toitems ~~realize~~are ~~its~~allocated ~~investment~~in ~~objectives~~accordance with each partner’s interest in the partnership. The IRS might challenge the allocations made by the Partnership:

~~Passive~~● ~~activity~~between ~~rules will limit deduction of~~ the ~~Partnership’s~~Limited ~~losses~~Partners and ~~impose tax on interest income. The Internal Revenue Code imposes limits on~~ the ~~ability~~General of most investors to claim losses from investments in real estate. An individual may claim these so-called passive losses only as an offset to income from investments in real estate or rental activities. An individual may not claim passive losses as an offset against other types of incomePartner, ~~such~~● asamong ~~salaries, wages, dividends and interest. These passive activity rules will restrict~~ the ~~ability of most~~ Limited Partners, toor ~~use~~● ~~losses~~between ~~from~~ the Partnership asand ana ~~offset~~Local ofGeneral ~~non-passive income~~Partner.

~~The Partnership may~~If ~~earn~~any ~~interest~~allocations ~~income~~were onsuccessfully ~~its~~challenged, ~~reserves~~a ~~and~~greater ~~loans.~~share ~~The~~of ~~passive~~the ~~activity~~income ~~rules~~or ~~generally~~gain ~~will~~or ~~categorize~~a ~~interest~~lesser asshare ~~portfolio income,~~of ~~and~~the ~~not~~losses ~~passive~~or ~~income.~~tax ~~Passive~~credits might ~~losses cannot~~ be ~~used~~allocated ~~as an offset~~ to ~~portfolio~~the ~~income~~Limited Partners. ~~Consequently,~~This awould ~~Limited~~increase ~~Partner could~~the ~~pay~~ tax liability onor ~~portfolio~~reduce ~~income~~the ~~from~~tax benefits to the ~~Partnership~~Limited Partners.

AtTax liabilities ~~risk~~could ~~rules~~arise ~~might limit~~in ~~deduction~~later years of the Partnership~~’s losses~~. IfAfter a ~~significant~~period ~~portion~~ of ~~the~~years ~~financing~~following ~~used~~commencement toof ~~purchase~~operations ~~Housing Complexes~~by ~~does~~a ~~not~~Local ~~consist~~Limited ~~of qualified nonrecourse financing~~Partnership, the ~~“at~~Local ~~risk”~~Limited ~~rules~~Partnership ~~will~~may ~~limit~~generate aprofits ~~Limited~~rather ~~Partner’s~~than ~~ability to claim Partnership~~ losses. toA ~~the amount the~~ Limited Partner ~~invests~~would inhave tax ~~the~~liability ~~Partnership.~~on ~~The~~his ~~“at~~share ~~risk” rules~~ of ~~the Internal~~such ~~Revenue~~profits ~~Code~~unless ~~generally~~he ~~limit~~could aoffset ~~Limited Partner’s ability to deduct Partnership losses to~~ the ~~sum~~income ofwith:

·● ~~the~~unused ~~amount~~passive oflosses ~~cash~~from the ~~Limited~~Partnership ~~Partner~~or ~~invests~~other ininvestments, ~~the~~or ~~Partnership,~~● ~~and~~current passive losses from other investments.

~~· the Limited Partner’s share of Partnership qualified nonrecourse financing.~~11

~~Qualified~~In such ~~nonrecourse financing is non-convertible~~circumstances, ~~nonrecourse~~ ~~debt~~the ~~which~~Limited isPartner ~~borrowed~~would ~~from~~not receive a ~~government,~~cash ordistribution ~~with~~from ~~exceptions,~~the ~~any~~Partnership ~~person~~with ~~actively~~which ~~and~~to ~~regularly~~pay ~~engaged~~any intax ~~the business of lending money~~liability.

~~Tax~~IRS challenge ~~liability~~to ontax ~~sale~~ treatment of aexpenditures ~~Housing~~could ~~Complex~~reduce orlosses. ~~Local~~The ~~Limited~~IRS ~~Partnership Interest~~ may ~~exceed~~contend ~~the~~that ~~cash~~fees ~~available~~and ~~from~~payments of the ~~sale.~~Partnership or ~~When~~ a Local Limited ~~Partnership~~ ~~sells a Housing Complex it may recognize gain. Such gain is equal to the difference between~~Partnership:

·● ~~the~~should ~~sales~~be ~~proceeds~~deductible ~~plus~~over ~~the~~a ~~amount~~longer period of ~~indebtedness~~time ~~secured~~or byin ~~the~~a ~~Housing~~later ~~Complex~~year, ● are excessive and may not be capitalized or deducted in full, ● should be capitalized and not deducted, or ● may not be included as part of the basis for computing tax credits.

·Any such ~~the~~contention ~~adjusted~~by ~~basis for~~ the ~~Housing~~IRS ~~Complex.~~could ~~The~~adversely ~~adjusted basis for a Housing Complex is its original cost~~impact, ~~plus~~among ~~capital~~other ~~expenditures, minus depreciation.~~things:

~~Similarly~~● the eligible basis of a Housing Complex used to compute Low Income Housing Tax Credits, ~~when~~● the ~~Partnership~~adjusted ~~sells~~basis anof ~~interest in~~ a ~~Local~~Housing ~~Limited~~Complex ~~Partnership~~used ~~the~~to ~~Partnership~~compute ~~may~~depreciation, ~~recognize~~● ~~gain.~~the ~~Such~~correct ~~gain~~deduction isof ~~equal~~fees, to● the ~~difference~~amortization ~~between:~~of organization and offering expenses and start-up expenditures.

· If the ~~sales~~IRS ~~proceeds~~were ~~plus~~successful ~~the~~in ~~Partnership’s~~any ~~share~~such ofcontention, the ~~amount~~anticipated ofLow ~~indebtedness~~Income ~~secured~~Housing byTax Credits and losses of the ~~Housing~~Partnership ~~Complex~~would be reduced, ~~and~~perhaps substantially.

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

~~Accordingly,~~New administrative ~~gain~~or ~~will~~judicial beinterpretations ~~increased~~of bythe law might reduce the ~~depreciation~~ ~~deductions~~value ~~taken~~of ~~during~~tax credits. Many of the ~~holding~~provisions ~~period~~of ~~for~~the Internal Revenue Code related to low income housing and real estate investments have not been interpreted by the ~~Housing~~IRS ~~Complex~~in regulations, rulings or public announcements, or by the courts. In ~~some~~the ~~cases~~future, athese ~~Limited~~provisions ~~Partner~~may ~~could~~be ~~have~~interpreted aor clarified by the IRS ~~tax~~or ~~liability~~the ~~from~~courts in a ~~sale~~manner ~~greater~~adverse ~~than~~to the ~~cash~~Partnership ~~distributed~~or to the Local Limited ~~Partner~~Partnerships. ~~from~~The IRS constantly reviews the ~~sale~~Federal tax rules, and can revise its interpretations of established concepts. Any such revisions could reduce or eliminate tax benefits associated with an investment in the Partnership.

~~IRS could audit the~~State ~~returns~~income oftax ~~the~~laws ~~Partnership,~~may ~~the~~adversely ~~Local~~affect ~~Limited Partnerships or~~ the Limited Partners. ~~The~~A ~~IRS~~Limited ~~can~~Partner ~~audit~~may ~~the~~be ~~Partnership~~required orto ~~a Local~~file ~~Limited~~income ~~Partnership~~tax atreturns ~~the~~and be ~~entity~~subject ~~level with regard~~ to ~~issues~~tax ~~affecting~~and ~~the~~withholding ~~entity.~~in ~~The~~each ~~IRS~~state ~~does~~or ~~not~~local ~~have~~taxing tojurisdiction ~~audit each Limited Partner~~ in ~~order~~which: ~~to challenge~~ a ~~position~~Housing ~~taken~~Complex byis located, the Partnership or a Local Limited Partnership. ~~Similarly,~~engages ~~only~~in ~~one~~business ~~judicial proceeding~~activities, ~~can~~or bethe ~~filed~~Limited toPartner ~~contest~~is ana ~~IRS determination~~resident. ACorporate ~~contest~~Limited byPartners may ~~the~~be ~~Partnership~~required ofto ~~any~~pay ~~IRS~~state ~~determination~~franchise ~~might result in high legal fees~~taxes.

AnThe tax ~~audit~~treatment of ~~the~~particular ~~Partnership~~ items under state or alocal ~~Local~~income ~~Limited~~tax ~~Partnership~~laws ~~also~~may ~~could~~vary ~~result~~materially infrom anthe ~~audit~~Federal ofincome atax ~~Limited~~treatment of ~~Partner~~such items. AnNonetheless, ~~audit~~many of athe ~~Limited~~Federal ~~Partner’s~~income tax ~~returns~~ ~~could~~risks ~~result~~associated inwith ~~adjustments~~an ~~both~~investment toin ~~items~~the ~~that~~Partnership ~~are~~may ~~related~~also apply tounder ~~the~~state ~~Partnership~~or ~~and~~local toincome ~~unrelated~~tax ~~items~~law. The ~~Limited~~Partnership ~~Partner could~~may ~~then~~ be required to ~~file~~withhold ~~amended~~state ~~tax~~taxes ~~returns~~from ~~and~~distributions ~~pay~~or ~~additional~~income allocations ~~tax~~to ~~plus~~Limited ~~interest~~Partners ~~and~~in ~~penalties~~some instances.

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

~~A successful IRS challenge~~The toPartnership ~~tax~~may ~~allocations~~be ofunable ~~the~~to ~~Partnership~~timely orprovide afinancial ~~Local~~reports ~~Limited~~to ~~Partnership would reduce~~ the ~~tax~~Limited ~~benefits~~Partners ofwhich anwould ~~investment~~adversely inaffect ~~the~~their ~~Partnership.~~ability ~~Under~~to ~~the~~monitor ~~Internal~~Partnership ~~Revenue~~operations. ~~Code~~Historically, athe ~~partnership’s~~Partnership ~~allocation~~has ofbeen ~~income,~~unable ~~gains,~~to ~~deductions,~~timely ~~losses~~file and ~~tax~~provide ~~credits~~investors ~~must~~with ~~have~~all ~~substantial~~of ~~economic~~its ~~effect~~required periodic reports. ~~Substantial~~In ~~economic~~some ~~effect~~instances, isthe adelay ~~highly-technical~~has ~~concept~~been significant. ~~The~~Each ~~fundamental~~Local ~~principle~~General Partner is ~~two-fold.~~required Ifto aretain ~~partner~~independent ~~will~~public ~~benefit~~accountants ~~economically~~and ~~from~~to anreport ~~item~~financial ofinformation ~~partnership~~to ~~income~~the orPartnership ~~gain,~~in ~~that~~a ~~item~~timely ~~must~~manner. There cannot be ~~allocated~~any toassurance ~~him~~that sothe ~~that~~Local ~~he bears~~General ~~the~~Partners ~~correlative~~will ~~tax~~satisfy ~~burden~~these obligations. ~~Conversely~~If not, ifthe aPartnership ~~partner~~would ~~will~~be ~~suffer~~unable ~~economically~~to ~~from~~provide to anthe ~~item~~Limited ofPartners ~~partnership~~in ~~deduction~~a ortimely ~~loss, that~~manner ~~item~~its ~~must~~financial bestatements ~~allocated~~and toother ~~him~~reports. soThat ~~that~~would heimpact ~~bears~~ the ~~correlative~~Limited ~~tax~~Partners’ ability ~~benefit.~~to Ifmonitor aPartnership ~~partnership~~operations. The Partnership’s ~~allocations~~failure doto ~~not~~meet ~~have~~its filing requirements under the Securities ~~substantial~~Exchange ~~economic~~Act ~~effect,~~of ~~then~~1934 could reduce the ~~partnership’s~~liquidity ~~tax~~for ~~items~~the ~~are~~Partnership ~~allocated~~Units indue ~~accordance~~to ~~with~~the ~~each~~unavailability ~~partner’s~~of ~~interest in~~public information concerning the ~~partnership~~Partnership. The ~~IRS~~failure ~~might~~to ~~challenge~~file could also result in sanctions imposed by the ~~allocations~~SEC. ~~made~~Any defense mounted by the Partnership: in the face of such sanctions could entail legal and other fees, which would diminish cash reserves.

~~· between the Limited Partners and the General Partner,~~12

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

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

IfIndividual Limited ~~any~~Partners ~~allocations~~will ~~were~~have ~~successfully~~no ~~challenged, a~~recourse ~~greater~~if ~~share~~they ofdisagree ~~the~~with ~~income~~actions orauthorized ~~gain~~by or a ~~lesser~~vote ~~share~~ of the ~~losses~~majority. orThe ~~tax~~Partnership ~~credits~~Agreement grants ~~might be allocated~~ to ~~the~~ Limited Partners~~. This~~ ~~would~~owning ~~increase~~more ~~the~~than ~~tax~~50% ~~liability~~of ~~or reduce~~ the ~~tax~~Partnership ~~benefits~~Units to the ~~Limited~~right ~~Partners.~~to:

~~Tax~~● ~~liabilities~~remove ~~could arise in later years of~~ the ~~Partnership.~~General ~~After~~Partner aand ~~period~~elect ~~of years following commencement of operations by~~ a ~~Local~~replacement ~~Limited~~general ~~Partnership~~partner, ~~the~~ ~~Local~~● ~~Limited~~amend the Partnership ~~may~~Agreement, ~~generate~~● ~~profits~~terminate ~~rather than losses. A Limited Partner would have tax liability on his share of such profits unless he could offset~~ the ~~income with:~~Partnership.

·Accordingly, a ~~unused~~majority-in-interest ~~passive~~of ~~losses~~the ~~from~~Limited ~~the~~Partners ~~Partnership~~could orcause ~~other~~any ~~investments~~such events to occur, oreven if Limited Partners owning 49% of the Partnership Units opposed such action.

·Limitations on ~~current~~liability ~~passive~~of ~~losses~~the ~~from~~General ~~other~~Partner ~~investments~~to the Partnership. The ability of Limited Partners to sue the General Partner and it affiliates is subject to limitations. The Partnership Agreement limits the liability of the General Partner and it affiliates to the Limited Partners. The General Partner and it affiliates will not be liable to the Limited Partners for acts and omissions: performed or omitted in good faith, and performed or omitted in a manner which the General Partner reasonably believed to be within the scope of its authority and in the best interest of the Limited Partners, provided such conduct did not constitute negligence or misconduct.

InTherefore, Limited ~~such~~Partners ~~circumstances,~~may be less able to sue the ~~Limited~~General Partner ~~would~~ ~~not~~and ~~receive~~it aaffiliates ~~cash~~than ~~distribution~~would ~~from~~be the ~~Partnership~~case ~~with~~if ~~which~~such toprovisions ~~pay~~were not ~~any~~included ~~tax~~in ~~liability~~the Partnership Agreement.

~~IRS~~Associates and ~~challenge~~its toaffiliates ~~tax~~are serving as the general partners of many other partnerships. Depending on their corporate area of responsibility, ~~treatment~~the officers of ~~expenditures~~Associates ~~could~~initially ~~reduce~~devote ~~losses~~approximately 5% to 50% of their time to the Partnership. ~~The~~These ~~IRS~~individuals ~~may~~spend significantly ~~contend~~less ~~that~~time ~~fees~~devoted ~~and~~to ~~payments~~the Partnership after the investment of the Partnership’s orcapital ain Local Limited Partnerships. ~~Partnership:~~

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

~~· are excessive and may not be capitalized or deducted in full,~~13

·Anticipated future ~~should~~and beexisting ~~capitalized~~cash ~~and~~resources of the Partnership are not ~~deducted~~sufficient to pay existing liabilities of the Partnership. However, substantially all of the existing liabilities of the Partnership are payable to the General Partner and/or its affiliates.

·The Partnership’s ~~may~~accrued payables consist primarily of the asset management fees payable to the General Partner. These asset management fees payable increased (decreased) by approximately $(56,000), $29,000, and $49,500 for the years ended March 31 2013, 2012 and 2011, respectively. The Partnership’s future contractual cash obligations consist solely of its obligations to pay future annual asset management fees. These will equal approximately $7,000 per year through the termination of the Partnership, which must occur no later than December 31, 2050. Though the amounts payable to the General Partner and/or its affiliates are contractually currently payable, the Partnership anticipates that the General Partner and/or its affiliates will not require the payment of these contractual obligations until capital reserves are in excess of the aggregate of the existing contractual obligations and anticipated future foreseeable obligations of the Partnership. The Partnership would be ~~included~~adversely asaffected ~~part~~should the General Partner and/or its affiliates demand current payment of the ~~basis~~existing contractual obligations and or suspend services for ~~computing~~this or ~~tax~~any ~~credits~~other reason.

~~Any~~Associates agreed ~~such~~to ~~contention~~continue byproviding advances sufficient enough to fund the ~~IRS~~operations ~~could~~and ~~adversely~~working capital requirements of the Partnership ~~impact,~~through ~~among~~May ~~other~~31, ~~things:~~2014.

·Item 1B. ~~the~~Unresolved ~~eligible~~Staff ~~basis~~Comments ~~of a Housing Complex used to compute Low Income Housing Tax Credits,~~

·Not Applicable ~~the adjusted basis of a Housing Complex used to compute depreciation,~~

·Item 2. ~~the correct deduction of fees,~~Properties

·Through its investments in Local Limited Partnerships, the ~~amortization~~Partnership holds indirect ownership interests in the Housing Complexes. The following table reflects the status of ~~organization~~the ~~and~~seven ~~offering~~Housing ~~expenses~~Complexes ~~and~~for ~~start-up~~which ~~expenditures~~the Partnership had ownership during the year, as of the dates or for the periods indicated.

~~If the IRS were successful in any such contention, the anticipated Low Income Housing Tax Credits and losses of the Partnership would be reduced, perhaps substantially.~~14

~~Changes in tax law might~~WNC ~~reduce the value of Low Income~~ Housing Tax ~~Credits.~~Credit ~~Although~~Fund ~~all Low Income Housing Tax Credits are allocated to a Housing Complex at commencement of the 10-year credit period~~V, ~~there can be no assurance that future legislation may not adversely affect an investment in the Partnership~~L. ~~For example, legislation could reduce or eliminate the value of Low Income Housing Tax Credits~~P. ~~In this regard~~, ~~before~~Series 1986, the principal tax benefit of an investment in low income housing was tax losses. These tax losses generally were used to reduce an investor’s income from all sources on a dollar-for-dollar basis. Investments in low income housing were made in reliance on the availability of such tax benefits. However, tax legislation enacted in 1986 severely curtailed deduction of such losses.3

			As of March 31, 2013				As of December 31, 2012
Local Limited Partnership Name	Location	General Partner Name	Partnership’s Total Investment in Local Limited Partnerships		Amount of Investment Paid to Date		Number of Units		Estimated Aggregate Low Income Housing Tax Credits (1)		Mortgage Balances of Local Limited Partnerships

Blessed Rock of El Monte (3)	El Monte, California	Everland, Inc.	$	2,511,000	$	2,511,000		137	$	4,404,000	$	2,055,000

Broadway Apartments, Limited Partnership (4)	Hobbs, New Mexico	Trianon - Broadway, LLC, a New Mexico Limited Liability Company		2,029,000		2,029,000		78		2,335,000		1,110,000

Curtis Associates I, L.P. (2)	Curtis, Nebraska	Joseph A. Shepard and Kenneth M. Vitor		N/A		N/A		12		156,000		398,000

Prairieland Properties of Syracuse II, L.P. (2)	Syracuse, Kansas	Kenneth M. Vitor		N/A		N/A		8		152,000		278,000

Solomon Associates I, L.P. (2)	Solomon, Kansas	Joseph A. Shepard and Kenneth M. Vitor		N/A		N/A		16		250,000		541,000

Talladega County Housing Ltd. (2)	Talladega, Alabama	Apartment Developers, Inc. and Thomas H. Cooksey		N/A		N/A		30		1,200,000		658,000

The Willows Apartments Limited Partnership (3)	Morganton, North Carolina	John C. Loving, Gordon D. Brown, Jr. and Western N.C. Housing Partnership		841,000		841,000		36		1,545,000		937,000

			$	5,381,000	$	5,381,000		317	$	10,042,000	$	5,977,000

New administrative or judicial interpretations of the law might reduce the value of tax credits. Many of the provisions of the Internal Revenue Code related to low income housing and real estate investments have not been interpreted by the IRS in regulations, rulings or public announcements, or by the courts. In the future, these provisions may be interpreted or clarified by the IRS or the courts in a manner adverse to the Partnership or the Local Limited Partnerships. The IRS constantly reviews the Federal tax rules, and can revise its interpretations of established concepts. Any such revisions could reduce or eliminate tax benefits associated with an investment in the Partnership.

(1)	Represents aggregate anticipated Low Income Housing Tax Credits to be received over the 10-year credit period if Housing Complexes are retained and rented in compliance with credit rules for the 15-year Compliance Period. All of the anticipated Low Income Housing Tax Credits have been received from the Local Limited Partnerships and are no longer available to the Limited Partners .

(2)	The Partnership sold its interest in the Local Limited Partnership subsequent to December 31, 2012 but prior to March 31, 2013.

(3)	The Local Limited Partnership interest was identified for disposition as of March 31, 2013 and sold subsequent thereto.

(4)	The Local Limited Partnership was identified for disposition as of March 31, 2013.

State income tax laws may adversely affect the Limited Partners. A Limited Partner may be required to file income tax returns and be subject to tax and withholding in each state or local taxing jurisdiction in which: a Housing Complex is located, the Partnership or a Local Limited Partnership engages in business activities, or the Limited Partner is a resident. Corporate Limited Partners may be required to pay state franchise taxes.15

~~The~~WNC ~~tax treatment of~~Housing ~~particular~~Tax ~~items~~Credit ~~under~~Fund ~~state~~V, ~~or local income tax laws may vary materially from the Federal income tax treatment of such items~~L. ~~Nonetheless~~P., ~~many~~Series of the Federal income tax risks associated with an investment in the Partnership may also apply under state or local income tax law. The Partnership may be required to withhold state taxes from distributions or income allocations to Limited Partners in some instances.3

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

	For the year ended December 31, 2012
Local Limited Partnership Name	Rental Income		Net Income (Loss)			Low Income Housing Tax Credits Allocated to Partnership

Blessed Rock of El Monte (2)	$	987,000	$	77,000		N/A

Broadway Apartments, Limited Partnership (3)		460,000		(199,000	)	N/A

Curtis Associates I, L.P. (1)		45,000		(21,000	)	N/A

Prairieland Properties of Syracuse II, L.P. (1)		48,000		(16,000	)	N/A

Solomon Associates I, L.P. (1)		86,000		(22,000	)	N/A

Talladega County Housing Ltd. (1)		116,000		(15,000	)	N/A

The Willows Apartments Limited Partnership (2)		158,000		(37,000	)	N/A

	$	1,900,000	$	(233,000	)

~~The Partnership may~~N/A be– ~~unable~~All toof ~~timely provide financial reports to~~ the ~~Limited~~Low ~~Partners~~Income ~~which~~Housing ~~would~~Tax ~~adversely~~Credits ~~affect~~have ~~their~~been ~~ability~~allocated to ~~monitor Partnership operations. Historically,~~ the Partnership ~~has been unable to timely file~~ and ~~provide~~there ~~investors~~are ~~with~~no ~~all~~future ofLow ~~its~~Income ~~required periodic~~Housing ~~reports. In~~Tax ~~some~~Credits ~~instances,~~expected ~~the delay has been significant. Each Local General Partner is required~~ to ~~retain independent public accountants and to report financial information to the Partnership in a timely manner. There cannot~~ be ~~any assurance that the Local General Partners will satisfy these obligations~~received. If not, the Partnership would be unable to provide to the Limited Partners in a timely manner its financial statements and other reports. That would impact the Limited Partners’ ability to monitor Partnership operations. The Partnership’s failure to meet its filing requirements under the Securities Exchange Act of 1934 could reduce the liquidity for the Partnership Units due to the unavailability of public information concerning the Partnership. The failure to file could also result in sanctions imposed by the SEC. Any defense mounted by the Partnership in the face of such sanctions could entail legal and other fees, which would diminish cash reserves.

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

(1)	The Local Limited Partnership interest was sold subsequent to December 31, 2012 but prior to March 31, 2013.

(2)	The Local Limited Partnership interest was sold subsequent to March 31, 2013.

(3)	The Local Limited Partnership was identified for disposition as of March 31, 2013.

The Limited Partners will not control the Partnership and must rely totally on the General Partner. The General Partner will make all management decisions for the Partnership. Management decisions include exercising powers granted to the Partnership by a Local Limited Partnership. Limited Partners have no right or power to take part in Partnership management.16

~~Individual~~WNC ~~Limited Partners will have no recourse~~Housing ifTax ~~they~~Credit ~~disagree~~Fund ~~with~~V, ~~actions authorized by a vote of the majority~~L.P., ~~The~~Series ~~Partnership Agreement grants to Limited Partners owning more than 50% of the Partnership Units the right to:~~3

· remove the General Partner and elect a replacement general partner,

			Occupancy Rates
			As of December 31,
Local Limited Partnership Name	Location	General Partner Name	2012			2011			2010			2009			2008

Alliance Apartments I Limited Partnership	Alliance, Nebraska	Retro Development, Inc.		N/A			N/A			95	%		100	%		89	%

Blessed Rock of El Monte	El Monte, California	Everland, Inc.		100	%		100	%		100	%		100	%		100	%

Broadway Apartments, Limited Partnership	Hobbs, New Mexico	Trianon - Broadway, LLC, a New Mexico Limited Liability Company		100	%		99	%		96	%		97	%		97	%

Curtis Associates I, L.P.	Curtis, Nebraska	Joseph A. Shepard and Kenneth M. Vitor		67	%		92	%		92	%		92	%		83	%

Escatawpa Village Associates, Limited Partnership	Escatawpa, Mississippi	Clifford E. Olsen		N/A			100	%		100	%		100	%		100	%

Hastings Apartments I, Limited Partnership	Hastings, Nebraska	Retro Development, Inc. of Oklahoma and Most Worshipful Prince Hall Grand Lodge		N/A			N/A			89	%		100	%		83	%

Heritage Apartments I, L.P.	Berkeley, Missouri	Joseph A. Shepard and Kenneth M. Vitor		87	%		100	%		100	%		100	%		100	%

Hillcrest Associates, A Limited Partnership	Ontario, Oregon	Riley J. Hill		86	%		93	%		86	%		100	%		93	%

Patten Towers, L.P. II	Chattanooga, Tennessee	Patten Towers Partners, LLC		N/A			N/A			98	%		97	%		96	%

Prairieland Properties of Syracuse II, L.P.	Syracuse, Kansas	Kenneth M. Vitor		100	%		88	%		100	%		100	%		88	%

~~· amend the Partnership Agreement,~~17

·WNC ~~terminate~~Housing Tax ~~the~~Credit ~~Partnership~~Fund V, L.P., Series 3

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

			Occupancy Rates
			As of December 31,
Local Limited Partnership Name	Location	General Partner Name	2012			2011			2010			2009			2008

Raymond S. King Apartments Limited Partnership	Greensboro, North Carolina	Project Homestead, Inc.		N/A			N/A			N/A			N/A			83	%

Rosedale Limited Partnership	Silver City, New Mexico	Deke Noftsker and ABO Corporation		100	%		100	%		100	%		59	%		100	%

Shepherd South Apartments I, Ltd.	Shepherd, Texas	Donald W. Sowell		N/A			100	%		88	%		100	%		96	%

Solomon Associates I, L.P.	Solomon, Kansas	Joseph A. Shepard and Kenneth M. Vitor		69	%		88	%		75	%		81	%		88	%

Talladega County Housing Ltd.	Talladega, Alabama	Apartment Developers, Inc. and Thomas H. Cooksey		97	%		90	%		100	%		87	%		97	%

The Willows Apartments Limited Partnership	Morganton, North Carolina	John C. Loving, Gordon D. Brown, Jr. and Western N.C. Housing Partnership		94	%		94	%		94	%		97	%		100	%

		Weighted average		95	%		97	%		93	%		96	%		96	%

11N/A- The Local Limited Partnership was sold prior to the respective year end.

Limitations on liability of the General Partner to the Partnership. The ability of Limited Partners to sue the General Partner and it affiliates is subject to limitations. The Partnership Agreement limits the liability of the General Partner and it affiliates to the Limited Partners. The General Partner and it affiliates will not be liable to the Limited Partners for acts and omissions: performed or omitted in good faith, and performed or omitted in a manner which the General Partner reasonably believed to be within the scope of its authority and in the best interest of the Limited Partners, provided such conduct did not constitute negligence or misconduct.18

~~Therefore, Limited Partners may be less able~~Item to3. ~~sue~~Legal ~~the General Partner and it affiliates than would be the case if such provisions were not included in the Partnership Agreement.~~Proceedings

Associates and its affiliates are serving as the general partners of many other partnerships. Depending on their corporate area of responsibility, the officers of Associates initially devote approximately 5% to 50% of their time to the Partnership. These individuals spend significantly less time devoted to the Partnership after the investment of the Partnership’s capital in Local Limited Partnerships.NONE

~~The interests of Limited~~Item ~~Partners may conflict with the interests of the General Partner and its affiliates~~4. ~~The~~Mine ~~General~~Safety Partner and its affiliates are committed to the management of more than 100 other limited partnerships that have investments similar to those of the Partnership. The General Partner and its affiliates receive substantial compensation from the Partnership. The General Partner decides how the Partnership’s investments in Housing Complexes are managed, and when the investments will be sold. The General Partner may face a conflict in these circumstances because the General Partner’s share of fees and cash distributions from the transaction may be more or less than their expected share of fees if a Housing Complex was not sold. The result of these conflicts could be that the General Partner may make investments which are less desirable, or on terms which are less favorable, to the Partnership than might otherwise be the case. The Partnership has not developed any formal process for resolving conflicts of interest. However, the General Partner is subject to a fiduciary duty to exercise good faith and integrity in handling the affairs of the Partnership, and that duty will govern its actions in all such matters. Furthermore, the manner in which the Partnership can operate and sell investments is subject to substantial restrictions as outlined in the Partnership Agreement.Disclosures

~~Anticipated future and existing cash resources~~NOT of the Partnership are not sufficient to pay existing liabilities of the Partnership. However, substantially all of the existing liabilities of the Partnership are payable to the General Partner and/or its affiliates.APPLICABLE

~~The Partnership’s~~PART ~~accrued payables consist primarily of the asset management fees payable to the General Partner~~II. These asset management fees payable increased by approximately $29,000, $49,500, and $49,500 for each of the years ended March 31 2012, 2011 and 2010, respectively. The Partnership’s future contractual cash obligations consist solely of its obligations to pay future annual asset management fees. These will equal approximately $24,000 per year through the termination of the Partnership, which must occur no later than December 31, 2050. Though the amounts payable to the General Partner and/or its affiliates are contractually currently payable, the Partnership anticipates that the General Partner and/or its affiliates will not require the payment of these contractual obligations until capital reserves are in excess of the aggregate of the existing contractual obligations and anticipated future foreseeable obligations of the Partnership. The Partnership would be adversely affected should the General Partner and/or its affiliates demand current payment of the existing contractual obligations and or suspend services for this or any other reason.

~~Associates agreed to continue~~Item ~~providing~~5. ~~advances~~Market ~~sufficient~~for ~~enough~~Registrant’s toCommon ~~fund~~Equity, ~~the~~Related ~~operations~~Stockholder Matters and ~~working~~Issuer ~~capital~~Purchases ~~requirements~~ of ~~the~~Equity ~~Partnership through June 30, 2013.~~Securities

Item 1B 5a. ~~Unresolved Staff Comments~~

~~Not~~a) ~~Applicable~~ The Partnership Units are not traded on a public exchange but were sold through a public offering. It is not anticipated that any public market will develop for the purchase and sale of any Partnership Units and none exists. Partnership Units can be assigned or otherwise transferred only if certain requirements in the Partnership Agreement are satisfied. b) At March 31, 2013, there were 866 Limited Partners and 0 assignees of Partnership Units who were not admitted as Limited Partners. c) The Partnership was not designed to provide cash distributions to Limited Partners. It is possible that the partnership could make distributions from sale proceeds if the partnership is able to sell its Local Limited Partnership Interests or Housing Complexes for more than the related closing costs and any then accrued obligations of the partnership. There can be no assurance in this regard. Any distributions would be made in accordance with the terms of the Partnership Agreement. For all periods presented there were no cash distributions to the Limited Partners. d) No securities are authorized for issuance by the Partnership under equity compensation plans. e) The Partnership does not issue common stock. f) No unregistered securities were sold by the Partnership during the year ended March 31,2013.

Item 2 5b. ~~Properties~~Use of Proceeds

~~Through its investments in Local Limited Partnerships,~~NOT the Partnership holds indirect ownership interests in the Housing Complexes. The following table reflects the status of the twelve Housing Complexes for which the Partnership had ownership during the year, as of the dates or for the periods indicated:APPLICABLE

12Item 5c. Purchases of Equity Securities by the Issuers and Affiliated Purchasers

~~WNC Housing Tax Credit Fund V, L.P., Series 3~~NONE

			As of March 31, 2012				As of December 31, 2011
Local Limited Partnership Name	Location	General Partner Name	Partnership’s Total Investmentin Local Limited Partnerships		Amount of Investment Paid to Date		Number of Units		Estimated Aggregate Low Income Housing Tax Credits (1)		Mortgage Balances of Local Limited Partnerships
Blessed Rock of El Monte	El Monte, California	Everland, Inc.	$	2,511,000	$	2,511,000		137	$	4,404,000	$	2,604,000
Broadway Apartments, Limited Partnership	Hobbs, New Mexico	Trianon - Broadway, LLC, a New Mexico Limited Liability Company	2,029,000		2,029,000			78		2,335,000		1,166,000
Curtis Associates I, L.P.	Curtis, Nebraska	Joseph A. Shepard and Kenneth M. Vitor	88,000		88,000			12		156,000		401,000
Escatawpa Village Associates, Limited Partnership (3)	Escatawpa, Mississippi	Clifford E. Olsen	249,000		249,000			32		458,000		849,000
Heritage Apartments I, L.P.	Berkeley, Missouri	Joseph A. Shepard and Kenneth M. Vitor	752,000		752,000			30		1,333,000		509,000
Hillcrest Associates, A Limited Partnership	Ontario, Oregon	Riley J. Hill	354,000		354,000			28		683,000		1,232,000
Prairieland Properties of Syracuse II, L.P.	Syracuse, Kansas	Kenneth M. Vitor	85,000		85,000			8		152,000		280,000
Rosedale Limited Partnership	Silver City, New Mexico	Deke Noftsker and ABO Corporation	309,000		309,000			32		547,000		1,257,000

13Item 6. Selected Financial Data

~~WNC~~Selected balance ~~Housing~~sheet ~~Tax~~information ~~Credit~~for ~~Fund~~the V,Partnership ~~L.P.,~~is ~~Series~~as 3follows:

				As of March 31, 2012						As of December 31, 2011
	March 31,
Local Limited Partnership Name	Location		General Partner Name	Partnership’s Total Investmentin Local Limited Partnerships			Amount of Investment Paid to Date			Number of Units				Estimated Aggregate Low Income Housing Tax Credits (1)				Mortgage Balances of Local Limited Partnerships
	2013			2012				2011				2010				2009
Shepherd South Apartments I, Ltd. (2)	Shepherd, Texas		Donald W. Sowell	121,000			121,000				24				223,000				507,000
ASSETS
Solomon Associates I, L.P.	Solomon, Kansas		Joseph A. Shepard and Kenneth M. Vitor	138,000			138,000				16				250,000				544,000
Cash	$	359,455		$	11,489			$	27,292			$	12,762			$	9,498
Talladega County Housing Ltd.	Talladega, Alabama		Apartment Developers, Inc. and Thomas H. Cooksey	653,000			653,000				30				1,200,000				676,000
Investments in Local Limited Partnerships, net		-			-				-				-				-
The Willows Apartments Limited Partnership	Morganton, North Carolina		John C. Loving, Gordon D. Brown, Jr. and Western N.C. Housing Partnership	841,000			841,000				36				1,545,000				953,000
Other assets		7,520			2,100				4,857				-				-
				$	8,130,000		$	8,130,000			463			$	18,286,000			$	10,978,000
Total Assets	$	366,975		$	13,589			$	32,149			$	12,762			$	9,498
LIABILITIES
Accrued expenses	$	665		$	-			$	-			$	-			$	4,000
Accrued fees and expenses due to General Partner and affiliates		495,501			560,653				731,192				707,256				648,548
Prepaid disposition proceeds		280,000			-				-				-				-
Total Liabilities		776,166			560,653				731,192				707,256				652,548
PARTNERS’ DEFICIT		(409,191	)		(547,064	)			(699,043	)			(694,494	)			(643,050	)
Total Liabilities and Partners’ Deficit	$	366,975		$	13,589			$	32,149			$	12,762			$	9,498

~~(1) Represents aggregate anticipated Low Income~~Selected ~~Housing~~results ~~Tax~~of ~~Credits~~operations, tocash beflows ~~received over the 10-year credit period if Housing Complexes are retained~~ and ~~rented~~other ininformation ~~compliance with credit rules~~ for the ~~15-year~~Partnership ~~Compliance Period. All of the anticipated Low Income Housing Tax Credits have been received from the Local Limited Partnerships and~~ are noas ~~longer available to the Limited Partners.~~follows:

(2) The Local Limited Partnership was identified for disposition as of March 31, 2012.

	For the Years Ended March 31,
	2013			2012			2011			2010			2009
Loss from operations	$	(31,716	)	$	(169,064	)	$	(281,208	)	$	(198,808	)	$	(1,532,255	)
Equity in losses of Local Limited Partnerships		-			-			-			-			(903	)
Gain (loss) on sale of Local Limited Partnership		169,552			73,997			-			(5,724	)		-
Interest income		37			7			4			4			23
Net income (loss)	$	137,873		$	(95,060	)	$	(281,204	)	$	(204,528	)	$	(1,533,135	)

Net income (loss) allocated to:
General Partner	$	1,379		$	(950	)	$	(2,812	)	$	(2,045	)	$	(15,331	)

Limited Partners	$	136,494		$	(94,110	)	$	(278,392	)	$	(202,483	)	$	(1,517,804	)

Net income (loss) per Partnership Unit	$	7.61		$	(5.23	)	$	(15.47	)	$	(11.25	)	$	(84.32	)

Outstanding weighted Partnership Units		17,946			18,000			18,000			18,000			18,000

~~(3)~~Note ~~The~~1 ~~Local~~- Loss ~~Limited~~from ~~Partnership~~operations ~~was~~for ~~identified~~the years ended March 31,2013,2012, 2011, 2010, and 2009 include a charge for ~~disposition~~impairment losses on investments ~~subsequent~~in toLocal ~~March~~Limited 31Partnerships of $0,$0, ~~2012~~$0,$0, and $1,115,739, respectively (See Note 2 to the financial statements).

1420

WNC Housing Tax Credit Fund V, L.P., Series 3

	For the Years Ended March 31,
	2013			2012			2011		2010		2009

Net cash provided by (used in):

Operating activities	$	(136,314	)	$	(112,794	)	$	14,530	$	3,264	$	(73,950	)
Investing activities		484,280			96,991			-		-		-

Net change in cash		347,966			(15,803	)		14,530		3,264		(73,950	)

Cash, beginning of year		11,489			27,292			12,762		9,498		83,448

Cash, end of year	$	359,455		$	11,489		$	27,292	$	12,762	$	9,498

	For the year ended December 31, 2011
Local Limited Partnership Name	Rental Income		Net Income (Loss)			Low Income Housing Tax Credits Allocated to Partnership
Blessed Rock of El Monte	$	974,000	$	76,000			N/A
Broadway Apartments, Limited Partnership		453,000		58,000			N/A
Curtis Associates I, L.P.		51,000		(19,000	)		N/A
Escatawpa Village Associates, Limited Partnership (2)		220,000		(9,000	)		N/A
Heritage Apartments I, L.P.		151,000		(41,000	)		N/A
Hillcrest Associates, A Limited Partnership		208,000		(20,000	)		N/A
Prairieland Properties of Syracuse II, L.P.		47,000		(18,000	)		N/A
Rosedale Limited Partnership		211,000		(28,000	)		N/A
Shepherd South Apartments I, Ltd. (1)		131,000		-			N/A
Solomon Associates I, L.P.		82,000		(17,000	)		N/A
Talladega County Housing Ltd.		117,000		(14,000	)		N/A
The Willows Apartments Limited Partnership		164,000		(15,000	)		N/A
	$	2,809,000	$	(47,000	)

Low Income Housing Tax Credits per Partnership Unit were as follows for the years ended December 31:

N/A – All of the Low Income Housing Tax Credits have been allocated to the Partnership and there are no future Low Income Housing Tax Credits expected to be received.

	2012		2011		2010		2009		2008

Federal	$	-	$	-	$	-	$	-	$	6
State		-		-		-		-		-

Total	$	-	$	-	$	-	$	-	$	6

~~(1)~~Item 7. ~~The~~Management’s ~~Local~~Discussion ~~Limited~~and ~~Partnership~~Analysis ~~was~~of ~~identified for~~Financial ~~disposition~~Condition asand Results of ~~March 31, 2012.~~Operations

~~(2) The Local Limited Partnership was identified~~Forward ~~for~~Looking ~~sale subsequent to March 31, 2012.~~Statements

15With the exception of the discussion regarding historical information, this “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and other discussions elsewhere in this Form 10-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.

~~WNC~~Risks and uncertainties inherent in forward looking statements include, but are not limited to, the Partnership’s future cash flows and ability to obtain sufficient financing, level of operating expenses, conditions in the Low Income Housing Tax ~~Credit~~Credits property ~~Fund~~market Vand the economy in general, ~~L.P.~~changes in law rules and regulations, ~~Series~~and 3legal proceedings. Historical results are not necessarily indicative of the operating results for any future period.

			Occupancy Rates
Local Limited		General Partner	As of December 31,
Partnership Name	Location	Name	2011		2010		2009		2008		2007
Alliance Apartments I Limited Partnership	Alliance, Nebraska	Retro Development, Inc.	N/A		95	%	100	%	89	%	100	%
Blessed Rock of El Monte	El Monte, California	Everland, Inc.	100	%	100	%	100	%	100	%	99	%
Broadway Apartments, Limited Partnership	Hobbs, New Mexico	Trianon - Broadway, LLC, a New Mexico Limited Liability Company	99	%	96	%	97	%	97	%	99	%
Curtis Associates I, L.P.	Curtis, Nebraska	Joseph A. Shepard and Kenneth M. Vitor	92	%	92	%	92	%	83	%	92	%
Escatawpa Village Associates, Limited Partnership	Escatawpa, Mississippi	Clifford E. Olsen	100	%	100	%	100	%	100	%	100	%
Hastings Apartments I, Limited Partnership	Hastings, Nebraska	Retro Development, Inc. of Oklahoma and Most Worshipful Prince Hall Grand Lodge	N/A		89	%	100	%	83	%	94	%
Heritage Apartments I, L.P.	Berkeley, Missouri	Joseph A. Shepard and Kenneth M. Vitor	100	%	100	%	100	%	100	%	100	%
Hillcrest Associates, A Limited Partnership	Ontario, Oregon	Riley J. Hill	93	%	86	%	100	%	93	%	96	%
Patten Towers, L.P. II	Chattanooga, Tennessee	Patten Towers Partners, LLC	N/A		98	%	97	%	96	%	93	%
Prairieland Properties of Syracuse II, L.P.	Syracuse, Kansas	Kenneth M. Vitor	88	%	100	%	100	%	88	%	100	%

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

16Critical Accounting Policies and Certain Risks and Uncertainties

~~WNC~~The Partnership ~~Housing~~believes ~~Tax~~that ~~Credit~~the ~~Fund~~following Vdiscussion addresses the Partnership’s most significant accounting policies, ~~L.P.~~which are the most critical to aid in fully understanding and evaluating the Partnership’s reported financial results, ~~Series~~and 3certain of the Partnership’s risks and uncertainties.

			Occupancy Rates
Local Limited		General Partner	As of December 31,
Partnership Name	Location	Name	2011		2010		2009			2008			2007
Raymond S. King Apartments Limited Partnership	Greensboro, North Carolina	Project Homestead, Inc.	N/A		N/A			N/A			83	%		96	%
Rosedale Limited Partnership	Silver City, New Mexico	Deke Noftsker and ABO Corporation	100	%	100	%		59	%		100	%		88	%
Shepherd South Apartments I, Ltd.	Shepherd, Texas	Donald W. Sowell	100	%	88	%		100	%		96	%		92	%
Solomon Associates I, L.P.	Solomon, Kansas	Joseph A. Shepard and Kenneth M. Vitor	88	%	75	%		81	%		88	%		81	%
Talladega County Housing Ltd.	Talladega, Alabama	Apartment Developers, Inc. and Thomas H. Cooksey	90	%	100	%		87	%		97	%		90	%
The Willows Apartments Limited Partnership	Morganton, North Carolina	John C. Loving, Gordon D. Brown, Jr. and Western N.C. Housing Partnership	94	%	94	%		97	%		100	%		97	%
		Weighted average	97	%	93	%		96	%		96	%		95	%

~~N/A - The Local Limited Partnership was sold prior to the respective~~Use ~~year~~of ~~end.~~Estimates

17The 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.

~~Item~~Method of 3.Accounting ~~Legal~~for ~~Proceedings~~Investments in Local Limited Partnerships

~~NONE~~The Partnership accounts for its investments in Local Limited Partnerships using the equity method of accounting, whereby the Partnership adjusts its investment balance for its share of the Local Limited Partnerships’ results of operations and for any contributions made and distributions received. The Partnership reviews the carrying amount of an individual investment in a Local Limited Partnership for possible impairment at least annually or whenever events or changes in circumstances indicate that the carrying amount of such investment may not be recoverable. Recoverability of such investment is measured by the estimated value derived by management, generally consisting of the product of the remaining future Low Income Housing Tax Credits estimated to be allocable to the Partnership and the estimated residual value to the Partnership. If an investment is considered to be impaired, the Partnership reduces the carrying value of its investment in any such Local Limited Partnership. The accounting policies of the Local Limited Partnerships, generally, are expected to be consistent with those of the Partnership. Costs incurred by the Partnership in acquiring the investments are capitalized as part of the investment account and were being amortized over 27.5 years. (See Notes 2 and 3 to the financial statements.)

~~Item~~“Equity in 4losses of Local Limited Partnerships” for each year ended March 31 has been recorded by the Partnership based on the twelve months of reported results provided by the Local Limited Partnerships for each year ended December 31. ~~Mine~~Equity ~~Safety~~in ~~Disclosures~~losses from the Local Limited Partnerships allocated to the Partnership is not recognized to the extent that the investment balance would be adjusted below zero. If the Local Limited Partnerships report net income in future years, the Partnership will resume applying the equity method only after its share of such net income equals the share of net losses not recognized during the period(s) the equity method was suspended.

~~NOT~~Distributions received ~~APPLICABLE~~from the Local Limited Partnerships are accounted for as a reduction of the investment balance. Distributions received after the investment has reached zero are recognized as distribution income.

~~PART~~In accordance IIwith the accounting guidance for the consolidation of variable interest entities, the Partnership determines when it should include the assets, liabilities, and activities of a variable interest entity (VIE) in its financial statements, and when it should disclose information about its relationship with a VIE. The analysis that must be performed to determine which entity should consolidate a VIE focuses on control and economic factors. A VIE is a legal structure used to conduct activities or hold assets, which must be consolidated by a company if it is the primary beneficiary because it has (1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (2) the obligation to absorb losses or receive benefits that could potentially be significant to the VIE. If multiple unrelated parties share such power, as defined, no party will be required to consolidate the VIE. Further, the guidance requires continual reconsideration of the primary beneficiary of a VIE.

~~Item~~Based on 5this guidance, the Local Limited Partnerships in which the Partnership invests meet the definition of a VIE because the owners of the equity at risk in these entities do not have the power to direct their operations. ~~Market~~However, ~~for~~management ~~Registrant~~does not consolidate the Partnership’s ~~Common~~interests ~~Equity~~in these VIEs, ~~Related~~as ~~Stockholder~~it ~~Matters~~is not considered to be the primary beneficiary since it does not have the power to direct the activities that are considered most significant to the economic performance of these entities. The Partnership currently records the amount of its investment in these Local Limited Partnerships as an asset on its balance sheets, recognizes its share of partnership income or losses in the statements of operations, and ~~Issuer~~discloses ~~Purchases~~how it accounts for material types of these investments in its financial statements. The Partnership’s balance in investment in Local Limited Partnerships, plus the risk of ~~Equity~~recapture ~~Securities~~of tax credits previously recognized on these investments, represents its maximum exposure to loss. The Partnership’s exposure to loss on these Local Limited Partnerships is mitigated by the condition and financial performance of the underlying Housing Complexes as well as the strength of the Local General Partners and their guarantee against credit recapture to the investors in the Partnership.

~~Item 5a.~~22

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

b)The Partnership Athas ~~March~~elected 31to be treated as a pass-through entity for income tax purposes and, ~~2012~~as such, ~~there~~is ~~were~~not ~~871~~subject ~~Limited~~to ~~Partners~~income taxes. ~~and~~Rather, 0all ~~assignees~~items of taxable income, deductions and tax credits are passed through to and are reported by its owners on their respective income tax returns. The Partnership’s ~~Units~~federal ~~who~~tax ~~were~~status as a pass-through entity is based on its legal status as a partnership. Accordingly, the Partnership is not ~~admitted~~required to take any tax positions in order to qualify as ~~Limited~~a ~~Partners~~pass-through entity. The Partnership is required to file and does file tax returns with the Internal Revenue Service and other taxing authorities. Accordingly, these financial statements do not reflect a provision for income taxes and the Partnership has no other tax positions which must be considered for disclosure .Income tax returns filed by the Partnership are subject to examination by the Internal Revenue Service for a period of three years. While no income tax returns are currently being examined by the Internal Revenue Service, tax years since 2009 remain open.

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

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

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

f)Certain Risks Noand ~~unregistered securities were sold by the Partnership during the year ended March 31, 2012.~~Uncertainties

See Item ~~5b.~~1A ~~Use~~for a discussion of ~~Proceeds~~risks regarding the Partnership.

~~NOT~~All of ~~APPLICABLE~~the Low Income Housing Tax Credits anticipated to be realized from the Local Limited Partnerships have been realized. The Partnership does not anticipate being allocated any Low Income Housing Tax Credits from the Local Limited Partnerships in the future. Until all Local Limited Partnerships have completed the Compliance Period, risks exist for potential recapture of prior Low Income Housing Tax Credits.

~~Item~~To date, 5ccertain Local Limited Partnerships have incurred significant operating losses and have working capital deficiencies. ~~Purchases~~In the ofevent ~~Equity~~these ~~Securities~~Local Limited Partnerships continue to incur significant operating losses, additional capital contributions by the Partnership and/or the ~~Issuers~~Local General Partners may be required to sustain the operations of such Local Limited Partnerships. If additional capital contributions are not made when they are required, the Partnership’s investment in certain of such Local Limited Partnerships could be lost, and ~~Affiliated~~the ~~Purchasers~~loss and recapture of the related Low Income Housing Tax Credits could occur.

~~NONE~~Anticipated future and existing cash resources of the Partnership are not sufficient to pay existing liabilities of the Partnership. However, substantially all of the existing liabilities of the Partnership are payable to the General Partner and/or its affiliates. Though the amounts payable to the General Partner and/or its affiliates are contractually currently payable, the Partnership anticipates that the General Partner and/or its affiliates will not require the payment of these contractual obligations until capital reserves are in excess of the aggregate of then existing contractual obligations and then anticipated future foreseeable obligations of the Partnership. The Partnership would be adversely affected should the General Partner and/or its affiliates demand current payment of the existing contractual obligations and or suspend services for this or any other reason.

1823

~~Item 6. Selected~~ Financial ~~Data~~ Condition

~~Selected~~The Partnership’s ~~balance~~assets ~~sheet~~at ~~information~~March ~~for~~31, ~~the~~2013 ~~Partnership~~consisted isof as$359,000 ~~follows:~~in cash and $8,000 in other assets. Liabilities at March 31, 2013 consisted of $496,000 of accrued fees and expenses due to General Partner and affiliates, $1,000 in accrued expenses, and $280,000 in prepaid disposition proceeds.

	March 31,
	2012			2011			2010			2009			2008
ASSETS
Cash	$	11,489		$	27,292		$	12,762		$	9,498		$	83,448
Investments in Local Limited Partnerships, net		-			-			-			-			1,120,103
Other assets		2,100			4,857			-			-			-
Total Assets	$	13,589		$	32,149		$	12,762		$	9,498		$	1,203,551
LIABILITIES
Accrued expenses	$	-		$	-		$	-		$	4,000		$	4,000
Accrued fees and expenses due to General Partner and affiliates		560,653			731,192			707,256			648,548			1,781,320
Total Liabilities		560,653			731,192			707,256			652,548			1,785,320
PARTNERS’ EQUITY (DEFICIT)		(547,064	)		(699,043	)		(694,494	)		(643,050	)		(581,769	)
Total Liabilities and Partners’ Equity (Deficit)	$	13,589		$	32,149		$	12,762		$	9,498		$	1,203,551

Results of Operations

~~Selected~~Year Ended ~~results~~March 31, 2013 Compared to Year Ended March 31, 2012 The Partnership’s net income for the year ended March 31, 2013 was $138,000, reflecting an increase of ~~operations~~approximately $233,000 ~~cash~~from ~~flows~~the net loss experienced for the year ended March 31, 2012 of $(95,000). The increase in net income was due in part to a $96,000 increase in gain on sale of Local Limited Partnerships for the year ended March 31, 2013. The gain on sale in Local Limited Partnerships will vary from period to period depending on the values and ~~other~~sales ~~information~~prices of the Housing Complexes that have been identified for disposition and the closing dates of such transactions. There was also a decrease of $115,000 in write off of advances to Local Limited Partnerships. The advances and write offs vary from period to period based on the needs of the Local Limited Partnerships. There was a $13,000 decrease in asset management fees for the ~~Partnership~~year ended March 31, 2013. The fees are ascalculated ~~follows:~~based on the value of invested assets which decreased due to the sales of Local Limited Partnerships. Additionally, there was a $3,000 decrease in legal and accounting fees for the year ended March 31, 2013 due to the timing of the accounting work performed. Reporting fees and distribution income decreased by $(4,000) and increased by $13,000, respectively, for the year ended March 31, 2013. Local Limited Partnerships pay the reporting fees and distribution income to the Partnership when the Local Limited Partnerships’ cash flow will allow for the payment.

	For the Years Ended March 31,
	2012			2011			2010			2009			2008
Loss from operations	$	(169,064	)	$	(281,208	)	$	(198,808	)	$	(1,532,255	)	$	(590,333	)
Equity in losses of Local Limited Partnerships		-			-			-			(903	)		(208,618	)
Gain (loss) on sale of Local Limited Partnership		73,997			-			(5,724	)		-			-
Interest income		7			4			4			23			100
Net loss	$	(95,060	)	$	(281,204	)	$	(204,528	)	$	(1,533,135	)	$	(798,851	)
Net loss allocated to:
General Partner	$	(950	)	$	(2,812	)	$	(2,045	)	$	(15,331	)	$	(7,989	)
Limited Partners	$	(94,110	)	$	(278,392	)	$	(202,483	)	$	(1,517,804	)	$	(790,862	)
Net loss per Partnership Unit	$	(5.23	)	$	(15.47	)	$	(11.25	)	$	(84.32	)	$	(43.94	)
Outstanding weighted Partnership Units		18,000			18,000			18,000			18,000			18,000

Year Ended March 31, 2012 Compared to Year Ended March 31, 2011 The Partnership’s net loss for the year ended March 31, 2012 was $(95,000), reflecting a decrease of approximately $186,000 from the net loss experienced for the year ended March 31, 2011 of $(281,000). This was mainly due to a decrease in write off of advances to Local Limited Partnerships of $125,000 for the year ended March 31, 2012. The advances made to the troubled Local Limited Partnerships can vary each year depending on the operations of the individual Local Limited Partnerships. There was an $11,000 decrease in asset management fees for the year ended March 31, 2012. The fees are calculated based on the value of the invested assets, which decreased due to the sales of Local Limited Partnerships. Reporting fees and distribution income increased by $1,000 and decreased by $(21,000), respectively, for the year ended March 31, 2012. Local Limited Partnerships pay the reporting fees and distribution income to the Partnership when the Local Limited Partnerships’ cash flow will allow for the payment.

~~Note 1 - Loss from operations for the years ended March 31, 2012,~~Liquidity ~~2011, 2010, 2009,~~ and ~~2008~~Capital ~~include a charge for impairment losses on investments in Local Limited Partnerships of $0, $0, $0, $1,115,739, and $559,408, respectively (See Note 2 to the financial statements).~~Resources

19Year Ended March 31, 2013 Compared to Year Ended March 31, 2012 The net increase in cash during the year ended March 31, 2013 was $348,000 compared to a $(16,000) decrease in cash for the year ended March 31, 2012. During the year ended March 31, 2013, the Partnership received $204,000 in disposition proceeds compared to $97,000 received during the year ended March 31, 2012. Also, during the year end March 31, 2013, the Partnership received a prepayment of $280,000 of sales proceeds related to the subsequent disposition of two Local Limited Partnerships. During the year ended March 31, 2012, the Partnership made advances that totaled $(115,000), to a Local Limited Partnership compared to no advances during the year ended March 31, 2013. During the year ended March 31, 2013 the Partnership paid the General Partner or an affiliate $174,000 in accrued asset management fees and reimbursements of operating expenses that were paid on the Partnership’s behalf compared to $122,000 paid during the year ended March 31, 2012. The amount paid varies depending on the cash that the Partnership collected throughout the period. Lastly, the Partnership had received $38,000 in cash for reporting fees and distribution income for the year ended March 31, 2013 compared to $29,000 received during the year ended March 31, 2012. As explained above the reporting fees and distribution income will vary year to year depending on the operations of the underlying Housing Complexes.

	For the Years Ended March 31,
	2012			2011		2010		2009			2008
Net cash provided by (used in):
Operating activities	$	(112,794	)	$	14,530	$	3,264	$	(73,950	)	$	24,504
Investing activities		96,991			-		-		-			11,950
Financing activities		-			-		-		-			-
Net change in cash		(15,803	)		14,530		3,264		(73,950	)		36,454
Cash, beginning of period		27,292			12,762		9,498		83,448			46,994
Cash, end of period	$	11,489		$	27,292	$	12,762	$	9,498		$	83,448

Year Ended March 31, 2012 Compared to Year Ended March 31, 2011 The net decrease in cash during the year ended March 31, 2012 was $(16,000) compared to a net increase in cash for the year ended March 31, 2011 of $15,000. During the year ended March 31, 2012, the Partnership made advances that totaled $(115,000), to a Local Limited Partnership compared to $(240,000) advanced during the year ended March 31, 2011. At the time the advances were needed the Partnership did not have sufficient cash to make the advances to the Local Limited Partnerships. Therefore, $115,000 and $240,000 of those advances were first advanced from the General Partner or an affiliate to the Partnership then the Partnership advanced the funds to the Local Limited Partnerships for the years ended March 31, 2012 and 2011, respectively. During the year ended March 31, 2012 the Partnership reimbursed the General Partner or an affiliate $(112,000) for operating expenses paid on its behalf compared to $(35,000) reimbursed during the year ended March 31, 2011. Lastly, the Partnership had received $29,000 in cash for reporting fees and distribution income for the year ended March 31, 2012 compared to $50,000 received during the year ended March 31, 2011. As explained above the reporting fees and distribution income will vary year to year depending on the operations of the underlying Housing Complexes.

~~Low Income Housing Tax Credits per Partnership Unit were as follows for the years ended December 31:~~24

	2011		2010		2009		2008		2007
Federal	$	-	$	-	$	-	$	6	$	51
State		-		-		-		-		-
Total	$	-	$	-	$	-	$	6	$	51

Accrued payables, which consist primarily of related party management fees due to the General Partner, increased (decreased) by approximately$(65,000), $(170,000), and $24,000, for the years ended March 31, 2013, 2012 and 2011, respectively. The General Partner does not anticipate that these accrued fees will be paid until such time as capital reserves are in excess of future foreseeable working capital requirements of the Partnership.

~~Item~~The Partnership 7currently has insufficient working capital to fund its operations. ~~Management’s~~Associates ~~Discussion~~has ~~and~~agreed ~~Analysis~~to ofcontinue ~~Financial~~providing ~~Condition~~advances sufficient enough to fund the operations and ~~Results~~working capital requirements of ~~Operations~~the Partnership through May 31, 2014.

~~Forward~~Partnership’s Future ~~Looking~~Contractual ~~Statements~~Cash Obligations

~~With~~The following ~~the~~table ~~exception~~summarizes of the ~~discussion regarding historical information, this “Management~~Partnership’s ~~Discussion~~future ~~and~~contractual ~~Analysis~~cash ofobligations ~~Financial~~as ~~Condition and Results~~ of ~~Operations” and~~March 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. Further31, ~~certain forward-looking statements are based upon assumptions about future events which may not prove to be accurate.~~2013:

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

	2014		2015		2016		2017		2018		Thereafter		Total

Asset management fees⁽¹⁾	$	502,101	$	6,600	$	6,600	$	6,600	$	6,600	$	211,200	$	739,701
Total contractual cash obligations	$	502,101	$	6,600	$	6,600	$	6,600	$	6,600	$	211,200	$	739,701

~~Subsequent~~(1) ~~written~~Asset ~~and~~management ~~oral~~fees ~~forward~~are ~~looking statements~~payable ~~attributable~~annually tountil termination of the Partnership, orwhich ~~persons~~is ~~acting~~to onoccur ~~its~~no ~~behalf~~later ~~are~~than ~~expressly~~December ~~qualified~~31, in2050. ~~their~~The ~~entirety~~estimate byof ~~cautionary statements~~the infees ~~this~~payable ~~Form~~included ~~10-K~~herein ~~and~~assumes the retention of the Partnership’s interest in ~~other~~the ~~reports~~remaining ~~filed~~Housing ~~with~~Complexes until December 31, 2050. Amounts due to the ~~SEC~~General Partner as of March 31, 2013 have been included in the 2014 column. The ~~following~~General ~~discussion~~Partner ~~should~~does not anticipate that these fees will be ~~read~~paid until such time as capital reserves are in ~~conjunction~~excess ~~with~~ of the ~~Financial~~aggregate ~~Statements~~of the existing contractual obligations and the ~~Notes~~anticipated ~~thereto~~future ~~included~~foreseeable ~~elsewhere~~obligations inof ~~this~~the ~~filing~~Partnership.

~~Critical~~For additional ~~Accounting~~information ~~Policies~~regarding ~~and~~our ~~Certain Risks~~asset ~~and~~management ~~Uncertainties~~fees, see Note 3 to the financial statements included elsewhere herein.

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

20The Partnership has no off-balance sheet arrangements.

~~Use of Estimates~~Exit Strategy

~~The preparation of financial statements in~~See ~~conformity~~Item ~~with~~1 ~~accounting~~for ~~principles~~information ~~generally accepted~~ in ~~the~~this 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 periodregard. ~~Actual results could materially differ from those estimates.~~

~~Method~~ Impact of Recent Accounting ~~for Investments in Local Limited Partnerships~~Pronouncements

~~The Partnership accounts for its investments~~See infootnote ~~Local~~1 Limited Partnerships using the equity method of accounting, whereby the Partnership adjusts its investment balance for its share of the Local Limited Partnerships’ results of operations and for any contributions made and distributions received. The Partnership reviews the carrying amount of an individual investment in a Local Limited Partnership for possible impairment at least annually or whenever events or changes in circumstances indicate that the carrying amount of such investment may not be recoverable. Recoverability of such investment is measured by the estimated value derived by management, generally consisting of the product of the remaining future Low Income Housing Tax Credits estimated to ~~be allocable to~~ the ~~Partnership~~audited and the estimated residual value to the Partnership. If an investment is considered to be impaired, the Partnership reduces the carrying value of its investment in any such Local Limited Partnership. The accounting policies of the Local Limited Partnerships, generally, are expected to be consistent with those of the Partnership. Costs incurred by the Partnership in acquiring the investments are capitalized as part of the investment account and were being amortized over 27.5 years. (See Notes 2 and 3 to the financial statements.)

~~“Equity in losses of Local Limited Partnerships”~~Item ~~for each year ended March 31 has been recorded by the Partnership based on the twelve months of reported results provided by the Local Limited Partnerships for each year ended December 31~~7A. ~~Equity~~Quantitative inand ~~losses~~Qualitative ~~from~~Disclosures ~~the~~Above ~~Local~~Market Limited Partnerships allocated to the Partnership is not recognized to the extent that the investment balance would be adjusted below zero. If the Local Limited Partnerships report net income in future years, the Partnership will resume applying the equity method only after its share of such net income equals the share of net losses not recognized during the period(s) the equity method was suspended.Risk

~~Distributions~~NOT received from the Local Limited Partnerships are accounted for as a reduction of the investment balance. Distributions received after the investment has reached zero are recognized as distribution income.APPLICABLE

In accordance with the accounting guidance for the consolidation of variable interest entities, the Partnership determines when it should include the assets, liabilities, and activities of a variable interest entity (VIE) in its financial statements, and when it should disclose information about its relationship with a VIE. The analysis that must be performed to determine which entity should consolidate a VIE focuses on control and economic factors. A VIE is a legal structure used to conduct activities or hold assets, which must be consolidated by a company if it is the primary beneficiary because it has (1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (2) the obligation to absorb losses or receive benefits that could potentially be significant to the VIE. If multiple unrelated parties share such power, as defined, no party will be required to consolidate the VIE. Further, the guidance requires continual reconsideration of the primary beneficiary of a VIE.25

~~Based on this guidance, the Local Limited Partnerships~~Item ~~in which the Partnership invests meet the definition of a VIE because the owners of the equity at risk in these entities do not have the power to direct their operations~~8. ~~However,~~Financial ~~management~~Statements does not consolidate the Partnership’s interests in these VIEs, as it is not considered to be the primary beneficiary since it does not have the power to direct the activities that are considered most significant to the economic performance of these entities. The Partnership currently records the amount of its investment in these Local Limited Partnerships as an asset on its balance sheets, recognizes its share of partnership income or losses in the statements of operations, and ~~discloses~~Supplementary how it accounts for material types of these investments in its financial statements. The Partnership’s balance in investment in Local Limited Partnerships, plus the risk of recapture of tax credits previously recognized on these investments, represents its maximum exposure to loss. The Partnership’s exposure to loss on these Local Limited Partnerships is mitigated by the condition and financial performance of the underlying Housing Complexes as well as the strength of the Local General Partners and their guarantee against credit recapture to the investors in the Partnership.Data

21Index to Financial Statements

Income Taxes

		PAGE

Reports of Independent Registered Public Accounting Firms		F-1

Balance Sheets as of March 31, 2013 and 2012		F-3

Statements of Operations for the years ended March 31, 2013, 2012 and 2011		F-4

Statements of Partners’ Equity (Deficit) for the years ended March 31, 2013, 2012 and 2011		F-5

Statements of Cash Flows for the years ended March 31, 2013, 2012 and 2011		F-6

Notes to Financial Statements		F-7

The Partnership has elected to be treated as a pass-through entity for income tax purposes and, as such, is not subject to income taxes. Rather, all items of taxable income, deductions and tax credits are passed through to and are reported by its owners on their respective income tax returns. The Partnership’s federal tax status as a pass-through entity is based on its legal status as a partnership. Accordingly, the Partnership is not required to take any tax positions in order to qualify as a pass-through entity. The Partnership is required to file and does file tax returns with the Internal Revenue Service and other taxing authorities. Accordingly, these financial statements do not reflect a provision for income taxes and the Partnership has no other tax positions which must be considered for disclosure.26

~~Impact~~ Report of ~~Recent~~Independent Registered Public Accounting ~~Pronouncements~~Firm

~~In September 2006, the Financial Accounting~~To ~~Standards Board (~~the “FASB”) issued accounting guidance for Fair Value Measurements, which defines fair value, establishes a framework for measuring fair value and expands disclosure about fair value measurements. This guidance is effective for financial statements issued for fiscal years beginning after November 15, 2007 and shall be applied prospectively except for very limited transactions. In February 2008, the FASB delayed for one year implementation of the guidance as it pertains to certain non-financial assets and liabilities. The Partnership adopted U.S. generally accepted accounting principles (“GAAP”) for Fair Value Measurements effective April 1, 2008, except as it applies to those non-financial assets and liabilities, for which the effective date was April 1, 2009. The Partnership has determined that adoption of this guidance has no material impact on the Partnership’s financial statements.Partners

~~In November 2008, the FASB issued accounting~~WNC ~~guidance~~Housing onTax ~~Equity~~Credit ~~Method~~Fund ~~Investment Accounting Considerations that addresses how the initial carrying value of an equity method investment should be determined~~V, how an impairment assessment of an underlying indefinite-lived intangible asset of an equity method investment should be performed, how an equity method investee’s issuance of shares should be accounted for, and how to account for a change in an investment from the equity method to the cost methodL. ~~This guidance is effective in fiscal years beginning on or after December 15, 2008, and interim periods within those fiscal years~~P. ~~The Partnership adopted the guidance for the interim quarterly period beginning April 1~~, ~~2009.~~Series ~~The impact of adopting it did not have a material impact on the Partnership’s financial condition or results of operations.~~3

InWe have ~~April~~audited ~~2009,~~ the ~~FASB~~accompanying ~~issued~~balance ~~accounting~~sheet ~~guidance for~~of ~~Interim~~WNC ~~Disclosures~~Housing ~~about~~Tax ~~Fair~~Credit ~~Value~~Fund ofV, ~~Financial Instruments~~L.P., ~~This~~Series ~~requires~~3 ~~disclosure~~as ~~about~~of ~~the~~March ~~method~~31, 2013, and ~~significant~~the ~~assumptions~~related ~~used~~statements toof ~~establish~~operations, ~~the~~partners’ ~~fair~~equity ~~value~~(deficit), ofand ~~financial~~cash ~~instruments~~flows for ~~interim~~the ~~reporting~~year ~~periods~~then asended. ~~well~~WNC asHousing ~~annual~~Tax ~~statements.~~Credit ~~It became~~Fund ~~effective~~V, ~~for~~L.P., asSeries of3’s ~~and~~management ~~for~~is ~~the~~responsible ~~interim~~for ~~period~~these ~~ended~~financial ~~June~~statements. ~~30,~~Our ~~2009~~responsibility ~~and~~is ~~had~~to noexpress ~~impact~~an opinion on ~~the~~these ~~Partnership’s~~ financial ~~condition or~~statements ~~results~~based ofon ~~operations~~our audit.

InWe conducted ~~May~~our ~~2009,~~audit ~~the~~in ~~FASB~~accordance ~~issued~~with ~~guidance~~the ~~regarding subsequent~~standards ~~events,~~of ~~which~~the ~~was~~Public ~~subsequently~~Company ~~updated~~Accounting inOversight ~~February~~Board ~~2010~~(United States). ~~This~~Those ~~guidance established general~~ standards require ofthat ~~accounting~~we ~~for~~ plan and ~~disclosure~~perform ofthe ~~events~~audit ~~that~~to ~~occur~~obtain ~~after~~reasonable ~~the~~assurance ~~balance~~about ~~sheet~~whether ~~date~~the ~~but before~~ financial statements are ~~issued~~free orof ~~are~~material misstatement. ~~available~~WNC ~~to be~~Housing ~~issued.~~Tax InCredit ~~particular~~Fund V, ~~this~~L.P., ~~guidance~~Series ~~sets~~3 ~~forth~~is ~~the~~not ~~period~~required ~~after~~to ~~the~~have, ~~balance~~nor ~~sheet~~were ~~date~~we ~~during~~engaged ~~which~~to ~~management~~perform, ofan ~~a reporting~~audit ~~entity~~of ~~should~~its ~~evaluate~~internal ~~events~~control orover ~~transactions~~financial ~~that~~reporting. ~~may~~Our ~~occur~~audit ~~for~~included ~~potential~~consideration ~~recognition~~of orinternal ~~disclosure~~control inover ~~the~~ financial ~~statements,~~reporting ~~the~~as ~~circumstances~~a ~~under~~basis ~~which~~for andesigning ~~entity~~audit ~~should~~procedures ~~recognize~~that ~~events~~are orappropriate ~~transactions~~in ~~occurring after~~ the ~~balance~~circumstances, ~~sheet~~but ~~date~~not infor ~~its financial statements, and~~ the ~~disclosures~~purpose ~~that~~of expressing an opinion ~~entity~~on ~~should make about events or transactions that occurred after~~ the ~~balance~~effectiveness ~~sheet~~of ~~date. This~~WNC ~~guidance~~Housing ~~was~~Tax ~~effective~~Credit ~~for~~Fund ~~financial statements issued for fiscal years and interim periods ending after June 15~~V, ~~2009~~L.P., ~~and~~ ~~was~~Series ~~therefore~~3’s ~~adopted~~internal bycontrol ~~the~~over ~~Partnership~~financial ~~for~~reporting. Accordingly, ~~the~~we ~~quarter~~express ~~ended~~no ~~June~~such ~~30, 2009~~opinion. ~~The~~An ~~adoption~~audit ~~did~~also ~~not~~includes ~~have~~examining, ~~a significant impact~~ on ~~the~~a ~~subsequent~~test ~~events that the Partnership reports~~basis, ~~either~~evidence ~~through~~supporting ~~recognition~~the oramounts ~~disclosure,~~and disclosures in the financial statements~~. In February 2010~~, assessing the ~~FASB~~accounting ~~amended~~principles ~~its~~used ~~guidance~~and onsignificant ~~subsequent~~estimates ~~events~~made toby ~~remove~~management, as ~~the~~well ~~requirement~~as toevaluating ~~disclose~~ the ~~date~~overall ~~through~~financial ~~which an~~statement ~~entity~~presentation. ~~has~~We ~~evaluated~~believe ~~subsequent~~that ~~events,~~our ~~alleviating~~audit ~~conflicts~~provides ~~with~~a ~~current~~reasonable ~~SEC~~basis ~~guidance. This amendment was effective immediately~~for ~~and~~our ~~therefore the Partnership did not include the disclosure in this Form 10-K~~opinion.

In our ~~June 2009~~opinion, the ~~FASB~~financial ~~issued~~statements anreferred ~~amendment~~ to ~~the~~above ~~accounting~~present ~~and~~fairly, ~~disclosure~~in ~~requirements~~all ~~for~~material ~~the consolidation of variable interest entities (VIEs). The amended guidance modifies the consolidation model to one based on control and economics~~respects, ~~and replaced quantitative primary beneficiary analysis with a qualitative analysis. The primary beneficiary of a VIE will be~~ the ~~entity~~financial ~~that~~position ~~has (1) the power to direct the activities~~ of ~~the VIE that most significantly impact the VIE’s economic performance and (2) the obligation to absorb losses or~~WNC ~~receive~~Housing ~~benefits~~Tax ~~that~~Credit ~~could~~Fund ~~potentially~~V, ~~be significant to the VIE~~L.P., IfSeries ~~multiple~~3 ~~unrelated parties share such power,~~ as ~~defined, no~~of ~~party~~March ~~will be required to consolidate the VIE. Further~~31, ~~the~~2013 ~~amended~~and ~~guidance requires continual reconsideration of~~ the ~~primary beneficiary~~results of aits ~~VIE~~operations and ~~adds~~its ancash ~~additional~~flows ~~reconsideration event~~ for ~~determination~~the ~~of whether an entity is a VIE. Additionally,~~year ~~the~~then ~~amendment~~ended ~~requires~~in ~~enhanced~~conformity ~~and~~with ~~expanded~~accounting ~~disclosures~~principles ~~around~~generally ~~VIEs.~~accepted ~~This~~in ~~amendment~~the isUnited ~~effective~~States ~~for fiscal years beginning after November 15, 2009. The adoption~~ of ~~this guidance on April 1, 2010 did not have a material effect on the Partnership’s financial statements~~America.

22Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The schedule listed under Item 15(a)(2) in the index related to the year ended March 31, 2013 is presented for the purpose of complying with the Securities and Exchange Commission’s rules and is not part of the basic financial statements. This schedule has been subjected to the auditing procedures applied to the audit of the basic financial statements and, in our opinion, fairly states in all material respects the financial statement data required to be set forth therein in relation to the basic financial statements taken as a whole.

In/s/ ~~June~~CohnReznick ~~2009,~~LLP ~~the FASB issued the Accounting Standards Codification (Codification). Effective July 1~~Bethesda, ~~2009,~~Maryland ~~the~~May Codification is the single source of authoritative accounting principles recognized by the FASB to be applied by non-governmental entities in the preparation of financial statements in conformity with GAAP. The Codification is intended to reorganize14, rather than change, existing GAAP. Accordingly, all references to currently existing GAAP have been removed and have been replaced with plain English explanations of the Partnership’s accounting policies. The adoption of the Codification did not have a material impact on the Partnership’s financial position or results of operations.2013

~~Certain Risks and Uncertainties~~F-1

~~See Item 1A for a discussion of risks regarding~~REPORT ~~the~~OF ~~Partnership.~~INDEPENDENT REGISTERED

~~All of the Low Income Housing Tax Credits anticipated~~PUBLIC toACCOUNTING be realized from the Local Limited Partnerships have been realized. The Partnership does not anticipate being allocated any Low Income Housing Tax Credits from the Local Limited Partnerships in the future. Until all Local Limited Partnerships have completed the Compliance Period, risks exist for potential recapture of prior Low Income Housing Tax Credits.FIRM

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

~~Anticipated future and existing cash resources~~WNC ofHousing ~~the~~Tax ~~Partnership~~Credit ~~are~~Fund ~~not sufficient to pay existing liabilities of the Partnership. However~~V, ~~substantially all of the existing liabilities of the Partnership are payable to the General Partner and/or its affiliates~~L. ~~Though the amounts payable to the General Partner and/or its affiliates are contractually currently payable~~P., ~~the~~Series Partnership anticipates that the General Partner and/or its affiliates will not require the payment of these contractual obligations until capital reserves are in excess of the aggregate of then existing contractual obligations and then anticipated future foreseeable obligations of the Partnership. The Partnership would be adversely affected should the General Partner and/or its affiliates demand current payment of the existing contractual obligations and or suspend services for this or any other reason.3

~~Financial~~We have ~~Condition~~audited the accompanying balance sheet of WNC Housing Tax Credit Fund V, L.P., Series 3 (the Partnership) as of March 31, 2012, and the related statements of operations, partners’ equity (deficit) and cash flows for each of the years in the two-year period ended March 31, 2012. The Partnership’s management is responsible for these financial statements. Our responsibility is to express an opinion on these financial statements based on our audits.

~~For~~We conducted our audits in accordance with the ~~year~~standards ~~ended~~of ~~March~~the 31Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Partnership is not required to have, ~~2012~~nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Partnership’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

~~The~~In our ~~Partnership’s~~opinion, ~~assets~~the atfinancial ~~March~~statements ~~31, 2012~~referred ~~consisted~~to ofabove ~~$11~~present fairly,~~000~~ in ~~cash~~all ~~and~~material $2respects,~~000~~ inthe ~~other~~financial ~~assets~~position of WNC Housing Tax Credit Fund, V, L.P., ~~Liabilities~~Series at3 as of March 31, 2012, ~~consisted~~and ofthe ~~$561,000~~results of ~~accrued fees~~its operations and ~~expenses~~its ~~due~~cash toflows ~~General~~for ~~Partner~~each of ~~and~~the ~~affiliates~~years in the two-year period ended March 31, 2012, in conformity with accounting principles generally accepted in the United States of America.

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

~~Year Ended March 31, 2012 Compared to Year Ended March 31, 2011 The Partnership’~~/s/ ~~net~~Reznick ~~loss for the year ended March 31~~Group, ~~2012 was $(95,000), reflecting a decrease of approximately $186,000 from the net loss experienced for the year ended March 31, 2011 of $(281,000)~~P. ~~This was mainly due to a decrease in write off of advances to Local Limited Partnerships of $125,000 for the year ended March 31, 2012~~C. ~~The advances made to the troubled Local Limited Partnerships can vary each year depending on the operations of the individual Local Limited Partnerships. There was an $11~~Bethesda,~~000~~ ~~decrease~~Maryland inJune ~~asset management fees for the year ended March 31~~14, 2012. The fees are calculated based on the value of the invested assets, which decreased due to the sales of Local Limited Partnerships. Reporting fees and distribution income increased by $1,000 and decreased by $(21,000), respectively, for the year ended March 31, 2012. Local Limited Partnerships pay the reporting fees and distribution income to the Partnership when the Local Limited Partnerships’ cash flow will allow for the payment.

23www.reznickgroup.com

Year Ended March 31, 2011 Compared to Year Ended March 31, 2010 The Partnership’s net loss for the year ended March 31, 2011 was $(281,000), reflecting an increase of $(76,000) from the net loss experienced for the year ended March 31, 2010 of $(205,000). This was mainly caused by a large increase in write off of advances to Local Limited Partnerships of $(143,000). The advances made to the troubled Local Limited Partnerships can vary each year depending on the operations of the individual Local Limited Partnerships. The accounting and legal fees decreased by $70,000 largely due to the timing of the accounting work performed. Reporting fees and distribution income decreased by $(29,000) and increased by $20,000, respectively, for the year ended March 31, 2011. Local Limited Partnerships pay the reporting fees and distribution income to the Partnership when the Local Limited Partnerships’ cash flow will allow for the payment.F-2

~~Liquidity~~WNC ~~and~~HOUSING ~~Capital~~TAX CREDIT ~~Resources~~FUND V, L.P., SERIES 3

~~Year Ended March 31, 2012 Compared to Year Ended March 31, 2011 The net decrease in cash during the year ended March 31, 2012 was $~~(~~16,000)~~A ~~compared~~California ~~to a net increase in cash for the year ended March 31, 2011 of $15,000. During the year ended March 31, 2012, the Partnership made advances that totaled $(115,000), to a Local~~ Limited Partnership ~~compared to $(240,000~~) advanced during the year ended March 31, 2011. At the time the advances were needed the Partnership did not have sufficient cash to make the advances to the Local Limited Partnerships. Therefore, $115,000 and $240,000 of those advances were first advanced from the General Partner or an affiliate to the Partnership then the Partnership advanced the funds to the Local Limited Partnerships for the years ended March 31, 2012 and 2011, respectively. During the year ended March 31, 2012 the Partnership reimbursed the General Partner or an affiliate $(112,000) for operating expenses paid on its behalf compared to $(35,000) reimbursed during the year ended March 31, 2011. Lastly, the Partnership had received $29,000 in cash for reporting fees and distribution income for the year ended March 31, 2012 compared to $50,000 received during the year ended March 31, 2011. As explained above the reporting fees and distribution income will vary year to year depending on the operations of the underlying Housing Complexes.

~~Year Ended~~BALANCE March 31, 2011 Compared to Year Ended March 31, 2010 The net increase in cash during the year ended March 31, 2011 was $15,000 compared to a net increase in cash for the year ended March 31, 2010 of $3,000. During the year ended March 31, 2011, the Partnership made $(240,000) of advances to Local Limited Partnerships compared to $(98,000) advanced during the year ended March 31, 2010. At the time the advances were needed the Partnership did not have sufficient cash to make the advances to the Local Limited Partnerships. Therefore, $240,000 and $51,000 of those advances were first advanced from the General Partner or an affiliate to the Partnership then the Partnership advanced the funds to the Local Limited Partnerships for the years ended March 31, 2011 and 2010, respectively. The Partnership paid $(9,000) of outstanding payables during the year ended March 31, 2010 while no such payments were made during the year ended March 31, 2011. During the year ended March 31, 2011 the Partnership did reimburse the General Partner or an affiliate $(35,000). During the year ended March 31, 2010 due to low cash balances throughout the year the Partnership was not able to reimburse the General Partner or an affiliate for operating expenses paid on its behalf. Lastly, the Partnership had received $50,000 in cash for reporting fees and distribution income for the year ended March 31, 2011 compared to $59,000 received during the year ended March 31, 2010. As explained above the reporting fees and distribution income will vary year to year depending on the operations of the underlying Housing Complexes. The non-cash financing activities increased by $277,000 during the year ended March 31, 2011 and by $153,000 during the year ended March 31, 2010, due to advances made in prior years that were forgiven by the General Partner or an affiliate and converted to contributions by the General Partner.SHEETS

Accrued payables, which consist primarily of related party management fees due to the General Partner, increased (decreased) by approximately $(170,000), $24,000, and $59,000 for the years ended March 31, 2012, 2011 and 2010, respectively. The General Partner does not anticipate that these accrued fees will be paid until such time as capital reserves are in excess of future foreseeable working capital requirements of the Partnership.

	March 31,
	2013			2012
ASSETS
Cash	$	359,455		$	11,489
Investments in Local Limited Partnerships, net (Notes 2 and 3)		-			-
Other assets		7,520			2,100

Total Assets	$	366,975		$	13,589

LIABILITIES AND PARTNERS’ EQUITY (DEFICIT)

Liabilities:
Accrued fees and expenses due to General Partner and affiliates (Note 3)	$	495,501		$	560,653
Accrued expenses		665			-
Prepaid disposition proceeds		280,000			-

Total Liabilities		776,166			560,653

Partners’ equity (deficit)
General Partner		3,091,734			3,090,355
Limited Partners (25,000 Partnership Units authorized;17,946 and 18,000, respectively, Partnership Units issued and outstanding)		(3,500,925	)		(3,637,419	)

Total Partners’ Equity (Deficit)		(409,191	)		(547,064	)

Total Liabilities and Partners’ Equity (Deficit)	$	366,975		$	13,589

~~The~~See ~~Partnership~~accompanying ~~currently has~~notes ~~insufficient working capital~~ to ~~fund~~financial ~~its operations. Associates has agreed to continue providing advances sufficient enough to fund the operations and working capital requirements of the Partnership through June 30, 2013.~~statements

24F-3

~~Other~~WNC HOUSING TAX ~~Matters~~CREDIT FUND V, L.P., SERIES 3

~~The Partnership has a 99% limited partnership investment in Heritage Apartments, L.P.~~ (~~“Heritage”).~~A ~~Heritage~~California isLimited a defendant in several wrongful death lawsuits and related injury lawsuits. Heritage carries general liability and extended liability insurance. Discovery for these lawsuits is ongoing, but the management of Heritage and Associates is unable to determine the outcome of these lawsuits at this time or their impact, if any, on the Partnership’s financial statements. If for any reason Heritage is unsuccessful in its defense and the insurer denies coverage or the insurance coverage proves to be inadequate, the Partnership may be required to sell its investment or may otherwise lose its investment in Heritage, which was $0 at March 31, 2012. Loss of the Heritage investment could result in the recapture of tax credits and certain prior tax deductions. As of March 31, 2012, no losses have been recognized and management does not expect losses to be incurred.)

~~Partnership’s Future~~STATEMENTS ~~Contractual~~OF ~~Cash Obligations~~OPERATIONS

The following table summarizes the Partnership’s future contractual cash obligations as of March 31, 2011:

	For the Years Ended March 31,
	2013			2012			2011

Reporting fees	$	20,984		$	24,991		$	24,179
Distribution income		16,596			4,189			25,347

Total income		37,580			29,180			49,526

Operating expenses:
Asset management fees (Note 3)		25,743			38,880			49,500
Accounting and legal fees		28,937			32,028			31,923
Write off of advances to Local Limited Partnerships (Note 5)		-			115,247			240,254
Other		14,616			12,089			9,057

Total operating expenses		69,296			198,244			330,734

Loss from operations		(31,716	)		(169,064	)		(281,208	)

Gain on sale of Local Limited Partnerships		169,552			73,997			-

Interest income		37			7			4

Net income (loss)	$	137,873		$	(95,060	)	$	(281,204	)

Net income (loss) allocated to:
General Partner	$	1,379		$	(950	)	$	(2,812	)
Limited Partners	$	136,494		$	(94,110	)	$	(278,392	)

Net income(loss) per Partnership Unit	$	7.61		$	(5.23	)	$	(15.47	)

Outstanding weighted Partnership Units		17,946			18,000			18,000

	2013		2014		2015		2016		2017		Thereafter		Total
Asset management fees(1)	$	599,601	$	38,948	$	38,948	$	38,948	$	38,948	$	1,285,284	$	2,040,677
Total contractual cash obligations	$	599,601	$	38,948	$	38,948	$	38,948	$	38,948	$	1,285,284	$	2,040,677

See accompanying notes to financial statements

(1) Asset management fees are payable annually until termination of the Partnership, which is to occur no later than December 31, 2050. The estimate of the fees payable included herein assumes the retention of the Partnership’s interest in all Housing Complexes until December 31, 2050. Amounts due to the General Partner as of March 31, 2012 have been included in the 2013 column. The General Partner does not anticipate that these fees will be paid until such time as capital reserves are in excess of the aggregate of the existing contractual obligations and the anticipated future foreseeable obligations of the Partnership.F-4

~~For~~WNC HOUSING ~~additional~~TAX ~~information~~CREDIT ~~regarding~~FUND ~~our~~V, ~~asset management fees~~L.P., ~~see~~SERIES ~~Note~~ 3 ~~to the financial statements included elsewhere herein.~~

~~Off-Balance~~(A ~~Sheet~~California ~~Arrangements~~Limited Partnership)

~~The~~STATEMENTS ~~Partnership~~OF ~~has~~PARTNERS’ EQUITY ~~no off-balance sheet arrangements.~~(DEFICIT)

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

See Item 1 for information in this regard.

	General Partner			Limited Partners			Total

Partners’ equity (deficit) at March 31, 2010	$	2,570,423		$	(3,264,917	)	$	(694,494	)

Contributions (Note 6)		276,655			-			276,655

Net loss		(2,812	)		(278,392	)		(281,204	)

Partners’ equity (deficit) at March 31, 2011		2,844,266			(3,543,309	)		(699,043	)

Contributions (Note 6)		247,039			-			247,039

Net loss		(950	)		(94,110	)		(95,060	)

Partners’ equity (deficit) at March 31, 2012		3,090,355			(3,637,419	)		(547,064	)

Net income		1,379			136,494			137,873

Partners’ equity (deficit) at March 31, 2013	$	3,091,734		$	(3,500,925	)	$	(409,191	)

~~Impact~~See ofaccompanying ~~Recent~~notes ~~Accounting~~to ~~Pronouncements~~financial statements

~~See footnote 1 to the audited financial statements.~~F-5

~~Item~~WNC HOUSING ~~7A.~~TAX ~~Quantitative~~CREDIT ~~and~~FUND ~~Qualitative~~V, ~~Disclosures~~L.P., ~~Above~~SERIES ~~Market Risk~~3

~~NOT~~(A ~~APPLICABLE~~California Limited Partnership)

~~Item~~STATEMENTS 8.OF ~~Financial Statements and Supplementary Data~~CASH FLOWS

	For The Years Ended March 31,
	2013			2012			2011

Cash flows from operating activities:
Net income (loss)	$	137,873		$	(95,060	)	$	(281,204	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Decrease in other assets		(59,598	)		(20,237	)		(4,857	)
Increase in accrued expenses		665			-			-
Increase(decrease) in accrued fees and expenses due to General Partner and affiliates		(45,702	)		76,500			300,591
Gain on sale of Local Limited Partnerships		(169,552	)		(73,997	)		-

Net cash provided by (used in) operating activities		(136,314	)		(112,794	)		14,530

Cash flows from investing activities:
Advances to Local Limited Partnerships		-			(115,247	)		(240,254	)
Write off of advances to Local Limited Partnerships		-			115,247			240,254
Prepaid disposition proceeds		280,000			-			-
Proceeds from sale of Local Limited Partnerships		204,280			96,991			-

Net cash provided by investing activities		484,280			96,991			-

Net increase (decrease) in cash		347,966			(15,803	)		14,530

Cash, beginning of year		11,489			27,292			12,762

Cash, end of year	$	359,455		$	11,489		$	27,292

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

Taxes paid	$	800		$	800		$	800

SIGNIFICANT NON-CASH INVESTING AND FINANCING ACTIVITIES
Advances made to the Partnership by the General Partner in prior years were converted to General Partner equity	$	-		$	247,039		$	276,655

Gain on sale of Local Limited Partnerships was increased and accrued fees and expenses due to the General Partner and affiliates was decreased for sales proceeds paid directly to Associates.	$	19,450		$	-		$	-

~~REPORT~~See OFaccompanying ~~INDEPENDENT~~notes ~~REGISTERED PUBLIC~~to ~~ACCOUNTING~~financial ~~FIRM~~statements

~~To the Partners~~F-6

WNC HOUSING ~~Housing~~TAX ~~Tax~~CREDIT ~~Credit~~FUND ~~Fund~~ V, L.P., ~~Series~~ SERIES 3

~~We have audited the accompanying balance sheets of WNC Housing Tax Credit Fund V, L.P., Series 3~~ (~~the~~A ~~Partnership)~~California ~~as of March 31, 2012 and 2011, and the related~~Limited ~~statements of operations, partners’ equity (deficit) and cash flows for each of the years in the three-year period ended March 31, 2012. The~~ Partnership~~’s management is responsible for these financial statements. Our responsibility is to express an opinion on these financial statements based on our audits.~~)

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

InFor ~~our opinion,~~ the ~~financial statements~~Years ~~referred to above present fairly, in all material respects, the financial position of WNC Housing Tax Credit Fund V,~~Ended ~~L.P., Series 3 as of~~ March 31, ~~2012 and 2011~~2013, ~~and~~2012 ~~the results of its operations~~ and ~~its cash flows for each of the years in the three-year period ended March 31, 2012, in conformity with accounting principles generally accepted in the United States of America.~~2011

~~Our~~NOTE ~~audits~~1 ~~were~~– ~~conducted for~~ORGANIZATION ~~the~~AND ~~purpose of forming an opinion on the basic financial statements taken as a whole. The schedules listed under Item 15(a)(2)~~SUMMARY inOF ~~the~~SIGNIFICANT ~~index~~ACCOUNTING related to years above are presented for the purpose of complying with the Securities and Exchange Commission’s rules and are not part of the basic financial statements. These schedules have been subjected to the auditing procedures applied to the audits of the basic financial statements and, in our opinion, fairly state in all material respects the financial statement data required to be set forth therein in relation to the basic financial statements taken as a whole.POLICIES

~~/s/ Reznick Group, P.C.~~Organization

~~Bethesda~~WNC Housing Tax Credit Fund V, ~~Maryland~~L.P., Series 3 (the “Partnership”) is a California limited partnership formed under the laws of the State of California on March 28, 1995, and commenced operations on October 24, 1995. The Partnership was formed to acquire limited partnership interests in other limited partnerships (“Local Limited Partnerships”) which own multi-family or senior housing complexes (“Housing Complexes”) that are eligible for Federal low income housing tax credits (“Low Income Housing Tax Credits”). The local general partners (the “Local General Partners”) of each Local Limited Partnership retain responsibility for maintaining, operating and managing the Housing Complex. Each Local Limited Partnership is governed by its agreement of limited partnership (the “Local Limited Partnership Agreement”).

~~June~~The 14general partner of the Partnership is WNC & Associates, ~~2012~~Inc. (the “General Partner” or “Associates”). The chairman and the president of Associates own all of the outstanding stock of Associates. The business of the Partnership is conducted primarily through the General Partner, as the Partnership has no employees of its own.

~~F-1~~The Partnership shall continue in full force and effect until December 31, 2050 unless terminated prior to that date pursuant to the partnership agreement or law.

~~WNC~~The ~~HOUSING~~financial statements ~~TAX~~include ~~CREDIT~~only ~~FUND~~activity V,relating ~~L.P.~~to the business of the Partnership, ~~SERIES~~and do not give effect to any assets that the partners 3may 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 of limited partnership interest (A“Partnership ~~California~~Units”) ~~Limited~~at $1,000 per Partnership Unit. The offering of Partnership Units had concluded in January 1996, at which time 18,000 Partnership Units representing subscriptions in the amount of $17,558,985, net of $441,015 of discounts for volume purchases, had been accepted. The General Partner has a 1% interest in operating profits and losses, taxable income and losses, cash available for distribution from the Partnership and Low Income Housing Tax Credits of the Partnership. The investors (the “Limited Partners”) in the Partnership will be allocated the remaining 99% of these items in proportion to their respective investments.

~~BALANCE~~The ~~SHEETS~~proceeds from the disposition of any of the Housing Complexes will be used first to pay debts and other obligations per the respective Local Limited Partnership Agreement. Any remaining proceeds will then be paid to the partners of the Local Limited Partnership, including the Partnership, in accordance with the terms of the particular Local Limited Partnership Agreement. The sale of a Housing Complex may be subject to other restrictions and obligations. Accordingly, there can be no assurance that a Local Limited Partnership will be able to sell its Housing Complex. Even if it does so, there can be no assurance that any significant amounts of cash will be distributed to the Partnership. Should such distributions occur, the Limited Partners will be entitled to receive distributions from the proceeds remaining after payment of Partnership obligations and funding reserves, equal to their capital contributions and their return on investment (~~Audited~~as defined in the Partnership Agreement). The General Partner would then be entitled to receive proceeds equal to their capital contributions 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.

	March 31,
	2012			2011
ASSETS
Cash	$	11,489		$	27,292
Investments in Local Limited Partnerships, net (Notes 2 and 3)		0			0
Other assets		2,100			4,857
Total Assets	$	13,589		$	32,149
LIABILITIES AND PARTNERS’ EQUITY (DEFICIT)
Liabilities:
Accrued fees and expenses due to General Partner and affiliates (Note 3)	$	560,653		$	731,192
Total Liabilities		560,653			731,192
Partners’ equity (deficit)
General Partner		3,090,355			2,844,266
Limited Partners (25,000 Partnership Units authorized;18,000 Partnership Units issued and outstanding)		(3,637,419	)		(3,543,309	)
Total Partners’ Equity (Deficit)		(547,064	)		(699,043	)
Total Liabilities and Partners’ Equity (Deficit)	$	13,589		$	32,149

F-7

~~See~~WNC ~~accompanying~~HOUSING ~~notes~~TAX toCREDIT FUND ~~financial~~V, ~~statements~~L.P., SERIES 3

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

~~WNC~~NOTES ~~HOUSING~~TO ~~TAX~~FINANCIAL STATEMENTS ~~CREDIT~~- ~~FUND V, L.P., SERIES 3~~CONTINUED

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

~~STATEMENTS~~NOTE OF1 – ORGANIZATION AND SUMMARY ~~OPERATIONS~~OF ~~(Audited)~~SIGNIFICANT ACCOUNTING POLICIES, continued

	For the Years Ended March 31,
	2012			2011			2010
Reporting fees	$	24,991		$	24,179		$	53,230
Distribution income		4,189			25,347			5,389
Total income		29,180			49,526			58,619
Operating expenses:
Asset management fees (Note 3)		38,880			49,500			49,500
Accounting and legal fees		32,028			31,923			101,767
Write off of advances to Local Limited Partnerships (Note 5)		115,247			240,254			97,553
Other		12,089			9,057			8,607
Total operating expenses		198,244			330,734			257,427
Loss from operations		(169,064	)		(281,208	)		(198,808	)
Gain (loss) on sale of Local Limited Partnerships		73,997			0			(5,724	)
Interest income		7			4			4
Net loss	$	(95,060	)	$	(281,204	)	$	(204,528	)
Net loss allocated to:
General Partner	$	(950	)	$	(2,812	)	$	(2,045	)
Limited Partners	$	(94,110	)	$	(278,392	)	$	(202,483	)
Net income (loss) per Partnership Unit	$	(5.23	)	$	(15.47	)	$	(11.25	)
Outstanding weighted Partnership Units		18,000			18,000			18,000

Risks and Uncertainties

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

~~F-3~~The Low Income Housing Tax Credits rules are extremely complicated. Noncompliance with these rules results in the loss of future Low Income Housing Tax Credits and the fractional recapture of Low Income Housing Tax Credits already taken. In most cases the annual amount of Low Income Housing Tax Credits that an individual can use is limited to the tax liability due on the person’s last $25,000 of taxable income. The Local Limited Partnerships may be unable to sell the Housing Complexes at a price which would result in the Partnership realizing cash distributions or proceeds from the transaction. Accordingly, the Partnership may be unable to distribute any cash to its Limited Partners. Low Income Housing Tax Credits may be the only benefit from an investment in the Partnership.

~~WNC~~The ~~HOUSING~~Partnership ~~TAX~~has ~~CREDIT~~invested ~~FUND~~in Va limited number of Local Limited Partnerships. Such limited diversity means that the results of operation of each single Housing Complex will have a greater impact on the Partnership. With limited diversity, Lpoor performance of one Housing Complex could impair the Partnership’s ability to satisfy its investment objectives.P Each Housing Complex is subject to mortgage indebtedness. If a Local Limited Partnership failed to pay its mortgage, ~~SERIES~~it could lose its Housing Complex in foreclosure. If foreclosure were 3to occur during the first 15 years, the loss of any remaining future Low Income Housing Tax Credits, a fractional recapture of prior Low Income Housing Tax Credits, and a loss of the Partnership’s investment in the Housing Complex would occur. The Partnership is a limited partner or non-managing member of each Local Limited Partnership. Accordingly, the Partnership will have very limited rights with respect to management of the Local Limited Partnerships. The Partnership will rely totally on the Local General Partners. Neither the Partnership’s investments in Local Limited Partnerships, nor the Local Limited Partnerships’ investments in Housing Complexes, are readily marketable. To the extent the Housing Complexes receive government financing or operating subsidies, they may be subject to one or more of the following risks: difficulties in obtaining tenants for the Housing Complexes; difficulties in obtaining rent increases; limitations on cash distributions; limitations on sales or refinancing of Housing Complexes; limitations on transfers of interests in Local Limited Partnerships; limitations on removal of Local General Partners; limitations on subsidy programs; and possible changes in applicable regulations. Uninsured casualties could result in loss of property and Low Income Housing Tax Credits and recapture of Low Income Housing Tax Credits previously taken. The value of real estate is subject to risks from fluctuating economic conditions, including employment rates, inflation, tax, environmental, land use and zoning policies, supply and demand of similar properties, and neighborhood conditions, among others.

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

~~STATEMENTS~~All OFof ~~PARTNERS’~~the ~~EQUITY~~Low Income Housing Tax Credits ~~(DEFICIT)~~anticipated to be realized from the Local Limited Partnerships have been realized. The Partnership does not anticipate being allocated any Low Income Housing Tax Credits from the Local Limited Partnerships in the future. Until all Local Limited Partnerships have completed the 15 year Low Income Housing Tax Credit Compliance Period, (~~Audited~~“Compliance Period”) risks exist for potential recapture of prior Low Income Housing Tax Credits received.

~~For the Years Ended March 31, 2012, 2011 and 2010~~F-8

	General Partner			Limited Partners			Total
Partners’ equity (deficit) at March 31, 2009	$	2,419,384		$	(3,062,434	)	$	(643,050	)
Contributions (Note 6)		153,084			0			153,084
Net loss		(2,045	)		(202,483	)		(204,528	)
Partners’ equity (deficit) at March 31, 2010		2,570,423			(3,264,917	)		(694,494	)
Contributions (Note 6)		276,655			0			276,655
Net loss		(2,812	)		(278,392	)		(281,204	)
Partners’ equity (deficit) at March 31, 2011		2,844,266			(3,543,309	)		(699,043	)
Contributions (Note 6)		247,039			0			247,039
Net loss		(950	)		(94,110	)		(95,060	)
Partners’ equity (deficit) at March 31, 2012	$	3,090,355		$	(3,637,419	)	$	(547,064	)

WNC HOUSING TAX CREDIT FUND V, L.P., SERIES 3

~~See~~(A ~~accompanying~~California ~~notes to financial statements~~Limited Partnership)

FNOTES TO FINANCIAL STATEMENTS -4 CONTINUED

~~WNC~~For ~~HOUSING~~the ~~TAX~~Years ~~CREDIT~~Ended March ~~FUND V~~31, ~~L.P.~~2013, ~~SERIES 3~~2012 and 2011

(ANOTE ~~California~~1 ~~Limited~~– ~~Partnership)~~ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued

~~STATEMENTS~~The OFPartnership ~~CASH~~currently ~~FLOWS~~has ~~(Audited)~~insufficient working capital to fund its operations. Associates has agreed to continue providing advances sufficient enough to fund the operations and working capital requirements of the Partnership through May 31, 2014.

	For The Years Ended March 31,
	2012			2011			2010
Cash flows from operating activities:
Net income (loss)	$	(95,060	)	$	(281,204	)	$	(204,528	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Increase in other assets		(20,237	)		(4,857	)		0
Decrease in accrued expenses		0			0			(4,000	)
Increase in accrued fees and expenses due to General Partner and affiliates		76,500			300,591			206,068
(Gain) loss on sale of Local Limited Partnerships		(73,997	)		0			5,724
Net cash provided by (used in) operating activities		(112,794	)		14,530			3,264
Cash flows from investing activities:
Advances to Local Limited Partnerships		(115,247	)		(240,254	)		(97,553	)
Write off of advances to Local Limited Partnerships		115,247			240,254			97,553
Proceeds from sales of Local Limited Partnerships		96,991			0			0
Net cash provided by investing activities		96,991			0			0
Net increase (decrease) in cash		(15,803	)		14,530			3,264
Cash, beginning of year		27,292			12,762			9,498
Cash, end of year	$	11,489		$	27,292		$	12,762
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Taxes paid	$	800		$	800		$	800
NON-CASH FINANCING ACTIVITIES
Advances made to the Partnership by the General Partner in prior years were converted to General Partner equity	$	247,039		$	276,655		$	153,084

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

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

~~F-5~~Exit Strategy

~~WNC~~The ~~HOUSING~~Compliance ~~TAX~~Period ~~CREDIT~~for ~~FUND~~a V,Housing LComplex is generally 15 years following construction or rehabilitation completion.~~P.,~~ ~~SERIES~~Associates was one of the first in the industry to 3offer syndicated investments in Low Income Housing Tax Credits. The initial programs have completed their Compliance Periods.

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

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

~~For~~Upon identifying those Housing Complexes with the ~~Years~~highest ~~Ended~~potential for a successful sale, refinancing or re-syndication, the Partnership expects to proceed with efforts to liquidate them. The objective is to maximize the Limited Partners’ return wherever possible and, ultimately, to wind down the Partnership as Low Income Housing Tax Credits are no longer available. Local Limited Partnership Interests may be disposed of any time by the General Partner in its discretion. While liquidation of the Housing Complexes continues to be evaluated, the dissolution of the Partnership was not imminent as of March 31, ~~2012~~2013. As of March 31, ~~2011~~2013, two of the remaining Housing Complexes ~~and~~had ~~2010~~completed their Compliance Period.

~~NOTE~~As 1of –March ~~ORGANIZATION~~31, ~~AND~~2012, ~~SUMMARY~~the Partnership sold OFthe ~~SIGNIFICANT~~Housing ~~ACCOUNTING~~Complex ~~POLICIES~~of two Local Limited Partnerships, Cascade Pines II, L.P. (“Cascade Pines”), and Evergreen Apartments I L.P. (“Evergreen”). The Partnership also sold its Local Limited Partnership Interest in Raymond S. King Apartments, L.P, Patten Towers, L.P. II, Alliance Apartments I, L.P., and Hastings Apartment I, L.P.

~~Organization~~During the year ended March 31, 2013, the Partnership sold the Housing Complex of Shepherd South I, L.P. The Partnership also sold its Local Limited Partnership Interest in Escatawpa Village Associates, Hillcrest Associates, Rosedale Limited Partnership, Heritage Apartments I, L.P., Curtis Associates I, L.P., Prairieland Properties of Syracuse II, L.P., Solomon Associates I, L.P., and Talladega County Housing Ltd. No distributions will be made to the Limited Partners as a result of these dispositions. Each of the Local Limited Partnerships had completed its Compliance Period so there is no risk of recapture to the investors in the Partnership.

WNC Housing Tax Credit Fund V, L.P., Series 3 (the “Partnership”) is a California limited partnership formed under the laws of the State of California on March 28, 1995, and commenced operations on October 24, 1995. The Partnership was formed to acquire limited partnership interests in other limited partnerships (“Local Limited Partnerships”) which owns multiF-family or senior housing complexes (“Housing Complexes”) that are eligible for Federal low income housing tax credits (“Low Income Housing Tax Credits”). The local general partners (the “Local General Partners”) of each Local Limited Partnership retain responsibility for maintaining, operating and managing the Housing Complex. Each Local Limited Partnership is governed by its agreement of limited partnership (the “Local Limited Partnership Agreement”).9

~~The~~WNC ~~general~~HOUSING ~~partner~~TAX ~~of the Partnership is WNC~~CREDIT &FUND ~~Associates~~V, ~~Inc~~L. ~~(the “General Partner” or “Associates”)~~P. ~~The chairman and the president of Associates own all of the outstanding stock of Associates. The business of the Partnership is conducted primarily through the General Partner~~, as ~~the~~SERIES ~~Partnership has no employees of its own.~~3

~~The~~(A ~~Partnership shall~~California ~~continue in full force and effect until December 31, 2050 unless terminated prior to that date pursuant to the partnership~~Limited ~~agreement or law.~~Partnership)

~~The~~NOTES ~~financial~~TO ~~statements~~FINANCIAL ~~include~~STATEMENTS ~~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.CONTINUED

~~The~~For ~~partnership agreement authorized~~ the ~~sale of~~Years ~~up to 25,000 units of limited partnership interest (“Partnership Units”) at $1,000 per Partnership Unit. The offering~~Ended ofMarch ~~Partnership Units had concluded in January 1996~~31, ~~at which time 18~~2013,~~000~~ ~~Partnership~~2012 ~~Units representing subscriptions in the amount of $17,558,985, net of $441,015 of discounts for volume purchases, had been accepted. The General Partner has a 1% interest in operating profits~~ and losses, taxable income and losses, cash available for distribution from the Partnership and Low Income Housing Tax Credits of the Partnership. The investors (the “Limited Partners”) in the Partnership will be allocated the remaining 99% of these items in proportion to their respective investments.2011

~~The proceeds~~NOTE ~~from~~1 ~~the~~– ~~disposition~~ORGANIZATION ofAND ~~any of the Housing Complexes will be used first to pay debts and other obligations per the respective~~SUMMARY ~~Local~~OF ~~Limited~~SIGNIFICANT ~~Partnership~~ACCOUNTING ~~Agreement. Any remaining proceeds will then be paid to the partners of the Local Limited Partnership~~POLICIES, ~~including~~ the Partnership, in accordance with the terms of the particular Local Limited Partnership Agreement. The sale of a Housing Complex may be subject to other restrictions and obligations. Accordingly, there can be no assurance that a Local Limited Partnership will be able to sell its Housing Complex. Even if it does so, there can be no assurance that any significant amounts of cash will be distributed to the Partnership. Should such distributions occur, the Limited Partners will be entitled to receive distributions from the proceeds remaining after payment of Partnership obligations and funding reserves, equal to their capital contributions and their return on investment (as defined in the Partnership Agreement). The General Partner would then be entitled to receive proceeds equal to their capital contributions 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.continued

F-6

Local Limited Partnership	Debt at 12/31/11		Appraisal Value		Date of Sale		Sales Price		Sales Related Expenses		Gain on Sale
Shepherd South I L.P.	$	507,000	$	350,000		06/28/2012	$	89,280	$	27,709	$	61,571
Escatawpa Village Associates		849,000		655,000		06/01/2012		22,450		3,289		19,161
Hillcrest Associates		1,232,000		805,000		12/31/2012		40,000		3,895		36,105
Rosedale Limited Partnership		1,257,000		510,000		12/31/2012		30,000		4,675		25,325
Heritage Apartments I, L.P.		509,000		160,000		12/31/2012		15,000		3,295		11,705
Curtis Associates I, L.P.		401,000		235,000		03/29/2013		5,000		2,916		2,084
Prairieland Properties of Syracuse II, L.P.		280,000		80,000		03/29/2013		5,000		2,866		2,134
Solomon Associates I, L.P.		544,000		230,000		03/29/2013		12,000		2,866		9,134
Talladega County Housing Ltd.		676,000		270,000		03/29/2013		5,000		2,667		2,333

~~WNC~~The ~~HOUSING~~sales ~~TAX~~proceeds ~~CREDIT~~from ~~FUND~~the V,sale Lof Escatawpa Village Associates were paid directly to Associates.P. As shown in the table below, ~~SERIES~~$19,450 was used to reimburse the General Partner or affiliates for accrued asset management fees or operating expenses paid on behalf of the Partnership. The remaining $3,000 was returned to the Partnership’s reserves during the year ended March 31, 2013.

(AThe ~~California~~following table represents the anticipated use of the cash proceeds from the disposition of the nine Local Limited ~~Partnership)~~Partnerships.

NOTES TO FINANCIAL STATEMENTS - CONTINUED

Local Limited Partnership	Sale Proceeds		Payment of accrued asset management fees		Reimburse GP or affiliates for expenses		Remaining cash to remain in reserves for future expenses
Shepherd South I L.P.	$	89,280	$	25,000	$	12,164	$	52,116
Escatawpa Village Associates		22,450		7,286		12,164		3,000
Hillcrest Associates		40,000		17,500		17,500		5,000
Rosedale Limited Partnership		30,000		12,500		12,500		5,000
Heritage Apartments I, L.P.		15,000		5,000		5,000		5,000
Curtis Associates I, L.P.		5,000		4,000		-		1,000
Prairieland Properties of Syracuse II, L.P.		5,000		4,000		-		1,000
Solomon Associates I, L.P.		12,000		11,000		-		1,000
Talladega County Housing Ltd.		5,000		2,499		-		2,501

~~For~~As of March 31, 2013, the ~~Years~~Partnership ~~Ended~~has identified ~~March~~Blessed 31Rock of El Monte, ~~2012~~L.P. (“Blessed Rock”), ~~2011~~The Willows Apartments Limited Partnership (“The Willows”) and ~~2010~~Broadway Apartments, L.P. (“Broadway”) for disposition.

~~NOTE~~Subsequent to March 31, 2013, the 49.49% Local Limited Partnership Interest in Blessed Rock was sold for an adjusted price of $4,707,317. Blessed Rock was appraised for $6,910,000 and had a mortgage note balance of $2,054,000 as of December 31, 2012. Proceeds in the amount of $2,355,384 were received from the sale of Blessed Rock, of which $250,000 was received in advance and is included in prepaid disposition proceeds on the balance sheet as of March 31, 2013. The Partnership used the cash proceeds to pay $493,380 in accrued asset management fees, $1,448 –to reimburse ~~ORGANIZATION~~the ~~AND~~General ~~SUMMARY~~Partner or an affiliate for expense paid on its behalf, $1,760,555 to reimburse the general partner or its OFaffiliates ~~SIGNIFICANT~~for ~~ACCOUNTING~~debts ~~POLICIES~~previously written off and the remaining $100,000 ~~continued~~was placed in the Partnership’s reserves for future operating expenses. No cash distribution will be made to the Limited Partners as a result of this sale. The Compliance Period had been completed therefore there is no risk of recapture and investor approval is not required.

~~Risks and Uncertainties~~F-10

AnWNC ~~investment~~HOUSING inTAX ~~the Partnership and the Partnership’s~~CREDIT ~~investments~~FUND inV, ~~Local Limited Partnerships and their Housing Complexes are subject to risks~~L. ~~These risks may impact the tax benefits of an investment in the Partnership~~P., ~~and~~SERIES ~~the amount of proceeds available for distribution to the Limited Partners, if any, on liquidation of the Partnership’s investments. Some of those risks include the following:~~3

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

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

~~The~~For ~~ability of Limited Partners to claim tax losses from~~ the ~~Partnership~~Years ~~is limited. The IRS may audit the Partnership or a Local Limited Partnership and challenge the tax~~Ended ~~treatment~~March of31, ~~tax~~2013, ~~items.~~2012 ~~The amount of Low Income Housing Tax Credits~~ and tax losses allocable to the Limited Partners could be reduced if the IRS were successful in such a challenge. The alternative minimum tax could reduce tax benefits from an investment in the Partnership. Changes in tax laws could also impact the tax benefits from an investment in the Partnership and/or the value of the Housing Complexes.2011

~~All~~NOTE of1 ~~the~~– ~~Low~~ORGANIZATION ~~Income~~AND ~~Housing Tax Credits anticipated~~SUMMARY toOF beSIGNIFICANT ~~realized~~ACCOUNTING from the Local Limited Partnerships have been realized. The Partnership does not anticipate being allocated any Low Income Housing Tax Credits from the Local Limited Partnerships in the future. Until all Local Limited Partnerships have completed the 15 year Low Income Housing Tax Credit Compliance PeriodPOLICIES, ~~(“Compliance Period”) risks exist for potential recapture of prior Low Income Housing Tax Credits received.~~continued

~~F-7~~Subsequent to March 31, 2013, The Willows was sold for $30,000. The Willows was appraised for $720,000 and had a mortgage note balance of $937,000 as of December 31, 2012. Cash proceeds of $30,000 were received in advance for the sale the Local Limited Partnership Interest and is included in prepaid disposition proceeds on the balance sheet as of March 31, 2013. The Partnership has incurred $3,000 in appraisal expenses which will be netted against the proceeds from the sale in calculating the gain on the sale. The Partnership’s investment balance is zero; therefore a gain of $27,000 will be recorded during the respective period. No cash distribution will be made to the Limited Partners as a result of this sale. The Compliance Period has been completed therefore there is no risk of recapture and investor approval is not required.

~~WNC~~Contracts ~~HOUSING~~regarding the ~~TAX~~potential ~~CREDIT~~sale ~~FUND~~of VBroadway have been drafted and are currently under review by the potential purchaser of the Local Limited Partnership Interest. Broadway was appraised for $875,000 Land had a mortgage note balance of $1,131,000 as of December 31, 2012.P. The Partnership estimates a closing date of June 30, ~~SERIES~~2013 for the Local Limited Partnership 3Interest sale. The purchase price is estimated to be $30,000.

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

~~NOTES~~The TOPartnership ~~FINANCIAL~~accounts ~~STATEMENTS~~for -its ~~CONTINUED~~investments in Local Limited Partnerships using the equity method of accounting, whereby the Partnership adjusts its investment balance for its share of the Local Limited Partnerships’ results of operations and for any contributions made and distributions received. The Partnership reviews the carrying amount of an individual investment in a Local Limited Partnership for possible impairment at least annually or whenever events or changes in circumstances indicate that the carrying amount of such investment may not be recoverable. Recoverability of such investment is measured by the estimated value derived by management, generally consisting of the sum of the remaining future Low Income Housing Tax Credits estimated to be allocable to the Partnership and the estimated residual value to the Partnership. If an investment is considered to be impaired, the Partnership reduces the carrying value of its investment in any such Local Limited Partnership. The accounting policies of the Local Limited Partnerships, generally, are expected to be consistent with those of the Partnership. Costs incurred by the Partnership in acquiring the investments are capitalized as part of the investment account and were being amortized over 27.5 years. (See Notes 2 and 3)

~~For~~“Equity ~~the~~in ~~Years~~losses ~~Ended~~of Local Limited Partnerships” for each year ended March 31, ~~2012~~has been recorded by the Partnership based on the twelve months of reported results provided by the Local Limited Partnerships for each year ended December 31. Equity in losses from the Local Limited Partnerships allocated to the Partnership is not recognized to the extent that the investment balance would be adjusted below zero. If the Local Limited Partnerships report net income in future years, ~~2011~~the Partnership will resume applying the equity method only after its share of ~~and~~such ~~2010~~net income equals the share of net losses not recognized during the period(s) the equity method was suspended.

~~NOTE~~In accordance with the accounting guidance for the consolidation of variable interest entities, the Partnership determines when it should include the assets, liabilities, and activities of a variable interest entity (VIE) in its financial statements, and when it should disclose information about its relationship with a VIE. The analysis that must be performed to determine which entity should consolidate a VIE focuses on control and economic factors. A VIE is a legal structure used to conduct activities or hold assets, which must be consolidated by a company if it is the primary beneficiary because it has (1) –the ~~ORGANIZATION~~power ~~AND~~to ~~SUMMARY~~direct the activities of the VIE that most significantly OFimpact ~~SIGNIFICANT~~the ~~ACCOUNTING~~VIE’s ~~POLICIES~~economic performance and (2) the obligation to absorb losses or receive benefits that could potentially be significant to the VIE. If multiple unrelated parties share such power, ~~continued~~as defined, no party will be required to consolidate the VIE. Further, the guidance requires continual reconsideration of the primary beneficiary of a VIE.

~~The~~Based on this guidance, the Local Limited Partnerships in which the Partnership ~~currently~~invests ~~has~~meet ~~insufficient~~the definition of a VIE because the owners of the equity at risk in these entities ~~working~~do ~~capital~~not have the power to ~~fund~~direct ~~its~~their operations. ~~Associates~~However, ~~has~~management ~~agreed~~does not consolidate the Partnership’s interests in these VIEs, as it is not considered to ~~continue~~be ~~providing~~the ~~advances~~primary ~~sufficient~~beneficiary ~~enough~~since it does not have the power to ~~fund~~direct the ~~operations~~activities that ~~and~~are ~~working~~considered ~~capital~~most ~~requirements~~significant to the economic performance of these entities. The Partnership currently records the amount of its investment in these Local Limited Partnerships as an asset on its balance sheets, recognizes its share of partnership income or losses in the statements of operations, and discloses how it accounts for material types of these investments in its financial statements. The Partnership’s ~~through~~balance ~~June~~in 30investment in Local Limited Partnerships, ~~2013~~plus the risk of recapture of tax credits previously recognized on these investments, represents its maximum exposure to loss. The Partnership’s exposure to loss on these Local Limited Partnerships is mitigated by the condition and financial performance of the underlying Housing Complexes as well as the strength of the Local General Partners and their guarantee against credit recapture to the investors in the Partnership.

NoWNC ~~trading~~HOUSING ~~market~~TAX ~~for the Partnership Units~~CREDIT ~~exists~~FUND orV, ~~is expected to develop~~L. ~~Limited Partners may be unable to sell their Partnership Units except at a discount and should consider their Partnership Units to be a long-term investment~~P., ~~Individual~~SERIES ~~Limited Partners will have no recourse if they disagree with actions authorized by a vote of the majority of Limited Partners.~~3

~~Exit~~(A ~~Strategy~~California Limited Partnership)

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

~~Upon~~For the ~~sale~~Years ~~of a Local Limited Partnership~~Ended ~~Interest~~March or31, ~~Housing Complex after the end of the Compliance Period~~2013, ~~there~~2012 ~~would~~and ~~be no recapture of Low Income Housing Tax Credits. A sale prior to the end of the Compliance Period could result in recapture if certain conditions are not met.~~2011

~~With~~NOTE ~~that~~1 in– ~~mind,~~ORGANIZATION ~~the~~AND ~~General Partner is continuing~~SUMMARY ~~its~~OF ~~review~~SIGNIFICANT ofACCOUNTING ~~the Housing Complexes. The review considers many factors~~POLICIES, including extended use requirements (such as those due to mortgage restrictions or state compliance agreements), the condition of the Housing Complexes, and the tax consequences to the Limited Partners from the sale of the Housing Complexes.continued

~~Upon identifying those Housing Complexes with~~Distributions ~~the~~received ~~highest~~from ~~potential for a successful sale, refinancing or re-syndication,~~ the ~~Partnership~~Local ~~expects to proceed with efforts to liquidate them. The objective is to maximize the~~ Limited Partners’ ~~return~~are ~~wherever~~accounted ~~possible~~for ~~and, ultimately, to wind down the Partnership~~ as ~~Low~~a ~~Income~~reduction ~~Housing Tax Credits are no longer available. Local Limited Partnership Interests may be disposed~~ of ~~any time by~~ the ~~General~~investment ~~Partner in its discretion~~balance. ~~While~~Distributions ~~liquidation~~received of after the ~~Housing~~investment ~~Complexes~~has ~~continues~~reached tozero beare ~~evaluated,~~recognized ~~the dissolution of the Partnership was not imminent~~ as ofdistribution ~~March 31, 2011~~income. AsFor ofall ~~March~~periods ~~31,~~presented ~~2012,~~all ~~six~~investment ofaccounts ~~the~~in ~~Housing~~Local Limited ~~Complexes~~Partnerships had ~~completed their~~reached ~~Compliance Period~~zero.

AsUse of March 31, 2011, the Partnership sold the Housing Complex of two Local Limited Partnerships, Cascade Pines II, L.P. (“Cascade Pines”), and Evergreen Apartments I L.P. (“Evergreen). The Partnership also sold its Local Limited Partnership Interest in Raymond S. King Apartments, L.P.Estimates

~~Patten~~The ~~Towers~~preparation ~~L.P.~~of IIfinancial ~~(“Patten~~statements ~~Towers”)~~in ~~had~~conformity ~~its~~with ~~annual~~accounting ~~HUD~~principles ~~inspection~~generally ~~for~~accepted ~~2010~~in onthe ~~February~~United 3,States ~~2011 and received a score~~ of ~~71C.~~America ~~The~~requires ~~property~~management ~~was~~to ~~listed~~make ~~for sale with a~~estimates ~~national~~and ~~brokerage~~assumptions ~~firm~~that ~~from~~affect ~~July~~the ~~2008~~reported ~~through~~amounts ~~September~~of ~~2009.~~assets Anand ~~acceptable~~liabilities ~~offer~~and ~~was~~disclosure ~~received~~of incontingent ~~December~~assets ~~2010.~~and ~~The Local Limited~~liabilities ~~Partnership interest was sold on July 1, 2011 for $10. The Partnership’s investment balance was zero~~ at the ~~time~~date of the ~~sale and~~financial ~~the Partnership incurred expenses of $10~~statements,~~925~~ ~~related~~and to the ~~disposition.~~reported ~~Therefore,~~amounts ~~a loss on sale~~ of ~~Local~~revenues ~~Limited~~and ~~Partnership in~~expenses during the ~~amount~~reporting ~~of $(10,915) was recorded as of March 31, 2012~~period. ~~The~~Actual results ~~Compliance~~could ~~Period~~materially ~~has~~differ ~~expired~~from sothose ~~there is no risk of tax credit recapture~~estimates.

~~F-8~~Cash and Cash Equivalents

~~WNC~~The Partnership ~~HOUSING~~considers ~~TAX~~all ~~CREDIT~~highly ~~FUND~~liquid V,investments Lwith original maturities of three months or less when purchased to be cash equivalents.P. For all periods presented, ~~SERIES 3~~the Partnership had no cash equivalents.

(AReporting ~~California~~Comprehensive ~~Limited Partnership)~~Income

~~NOTES~~The TOPartnership ~~FINANCIAL~~had ~~STATEMENTS~~no -items ~~CONTINUED~~of other comprehensive income for the periods presented.

~~For~~Net ~~the~~Income ~~Years~~(Loss) ~~Ended~~Per ~~March~~Partnership ~~31, 2012, 2011 and 2010~~Unit

~~NOTE~~Net 1loss –per ~~ORGANIZATION~~Partnership ~~AND~~Unit ~~SUMMARY~~includes no OFdilution ~~SIGNIFICANT~~and ~~ACCOUNTING~~is ~~POLICIES,~~computed ~~continued~~by dividing loss allocated to Limited Partners by the weighted average Partnership Units outstanding during the period. Calculation of diluted net loss per Partnership Unit is not required.

OnIncome October 26, 2011, Alliance Apartments I L.P. (“Alliance”) was sold to an affiliate of the Local Limited Partnership for $26,108. Alliance was appraised for $230,000 and had a mortgage note balance of $308,123 as of December 31, 2010. The Partnership incurred $3,000 in appraisal expenses and $5,073 in legal fees related to the disposition which will be netted against the proceeds from the sale in calculating the gain on the sale. The Partnership’s investment balance was zero at the time of sale; therefore a gain of $18,035 was recorded. In addition, the replacement reserves held by the bank were released. In accordance with the Purchase Agreement, the Partnership received the reserve proceeds in the amount of $9,915 which was recorded as an additional gain on sale during the respective period. No cash distribution will be made to the Limited Partners as a result of this sale. The Compliance Period has expired so there is no risk of tax credit recapture.Taxes

OnThe ~~October~~Partnership ~~26,~~has ~~2011,~~elected ~~Hastings~~to ~~Apartments~~be Itreated ~~L.P.~~as ~~(“Hastings”)~~a ~~was~~pass-through ~~sold~~entity tofor anincome ~~affiliate~~tax ofpurposes ~~the~~and, ~~Local~~as ~~Limited~~such, ~~Partnership~~is ~~for~~not ~~$50,980.~~subject ~~Hastings~~to ~~was~~income ~~appraised~~taxes. ~~for $300~~Rather,~~000~~ ~~and~~all ~~had~~items aof ~~mortgage~~taxable ~~note~~income, deductions ~~balance~~and oftax ~~$115,251~~credits asare ofpassed ~~December~~through ~~31,~~to ~~2010.~~and ~~The~~are ~~Partnership~~reported ~~incurred~~by ~~$3,000~~its inowners ~~appraisal~~on ~~expenses and~~their ~~$996~~respective inincome ~~legal~~tax ~~fees~~returns. ~~related~~The toPartnership’s federal ~~the~~tax ~~disposition~~status ~~which~~as ~~will~~a bepass-through ~~netted~~entity ~~against~~is ~~the~~based ~~proceeds~~on ~~from~~its ~~the~~legal ~~sale~~status inas ~~calculating~~a ~~the~~partnership. ~~gain on~~Accordingly, the ~~sale.~~Partnership ~~The~~is ~~Partnership’s~~not required ~~investment~~to ~~balance~~take ~~was~~any ~~zero~~tax atpositions ~~the~~in ~~time~~order ofto ~~sale;~~qualify ~~therefore~~as a ~~gain~~pass-through ofentity. ~~$46,984~~The ~~was~~Partnership ~~recorded. In~~is ~~addition,~~required ~~the~~to ~~replacement~~file ~~reserves~~and ~~held~~does file bytax ~~the~~returns ~~bank~~with ~~were~~the ~~released.~~Internal InRevenue ~~accordance~~Service ~~with~~and ~~the~~other ~~Purchase~~taxing ~~Agreement~~authorities. Accordingly, ~~the~~these ~~Partnership received~~financial ~~the~~statements ~~reserve~~do ~~proceeds~~not reflect ina ~~the~~provision ~~amount~~for ofincome ~~$9,978~~taxes ~~which~~and ~~was~~the ~~recorded~~Partnership ashas anno ~~additional~~other ~~gain~~tax onpositions ~~sale~~which ~~during~~must ~~the~~be ~~respective~~considered ~~period~~for disclosure .Income Notax ~~cash~~returns ~~distribution~~filed ~~will~~by bethe ~~made~~Partnership are subject to examination by the ~~Limited~~Internal ~~Partners~~Revenue asService for a ~~result~~period of ~~this~~three ~~sale~~years. ~~The~~While no ~~Compliance~~income ~~Period~~tax ~~has~~returns ~~expired~~are socurrently ~~there is~~being noexamined ~~risk~~by ofthe Internal Revenue Service, tax ~~credit~~years ~~recapture~~since 2009 remain open.

AsRevenue of March 31, 2012, Shepherd South I Apartments, Ltd. (“Shepherd South”) has been identified for sale. Contracts have been drafted and are currently under review by the potential purchaser of the Local Limited Partnership Interest. Shepherd South was appraised for $350,000 and had a mortgage note balance of $507,000 as of December 31, 2011. The Partnership estimates a closing date of June 22, 2012 for the Local Limited Partnership Interest sale. The purchase price is still under negotiation.Recognition

~~Subsequent~~The ~~to March 31, 2012, the Local Limited~~ Partnership ~~Interest~~ inis ~~Escatawpa~~entitled ~~Village Associates (“Escatawpa Village”), Limited was identified~~ to bereceive ~~sold to an affiliate of~~reporting ~~the~~fees ~~Local~~from ~~General Partner. The buyer offered $30,000 to purchase~~ the Local Limited ~~Partnership Interest~~Partnerships. The ~~funds~~intent ~~will~~of ~~be placed into~~ the ~~Partnership’s~~reporting ~~reserves~~fees ~~and~~is ~~will be used~~ to ~~reimburse~~offset ~~the~~(in ~~General~~part) ~~Partner~~administrative orcosts ~~an affiliate for prepaid operating expenses.~~incurred ~~Escatawpa~~by ~~Village~~the ~~was appraised for $655,000 and had a mortgage note balance of $849,000 as of December 31, 2011. The~~ Partnership ~~has~~ ~~incurred $3,000~~ in ~~appraisal~~corresponding ~~expenses~~with ~~which will be netted against~~ the ~~proceeds~~Local ~~from~~Limited ~~the sale in calculating the gain on the sale~~Partnerships. ~~The~~Due ~~Partnership’s investment balance is zero; therefore a gain of $27,000 will be recorded during the respective period. No cash distribution will be made~~ to the ~~Limited~~uncertainty ~~Partners as a result~~ of ~~this~~the ~~sale.~~collection ~~The Compliance Period has been completed therefore there is no risk~~ of ~~recapture~~these ~~and investor approval is not required. The sale of~~ fees, the ~~Local Limited~~ Partnership isrecognizes ~~expected~~reporting tofees ~~close on~~as ~~June~~collections ~~15,~~are ~~2012~~made.

~~Method of Accounting For Investments in Local Limited Partnerships~~F-12

~~The~~WNC ~~Partnership~~HOUSING ~~accounts~~TAX ~~for its investments~~CREDIT inFUND ~~Local Limited Partnerships using the equity method of accounting~~V, ~~whereby the Partnership adjusts its investment balance for its share of the Local Limited Partnerships’ results of operations and for any contributions made and distributions received~~L. The Partnership reviews the carrying amount of an individual investment in a Local Limited Partnership for possible impairment whenever events or changes in circumstances indicate that the carrying amount of such investment may not be recoverableP. ~~Recoverability of such investment is measured by the estimated value derived by management~~, ~~generally~~SERIES consisting of the sum of the remaining future Low Income Housing Tax Credits estimated to be allocable to the Partnership and the estimated residual value to the Partnership. If an investment is considered to be impaired, the Partnership reduces the carrying value of its investment in any such Local Limited Partnership. The accounting policies of the Local Limited Partnerships, generally, are expected to be consistent with those of the Partnership. Costs incurred by the Partnership in acquiring the investments are capitalized as part of the investment account and were being amortized over 27.5 years. (See Notes 2 and 3)

~~“Equity~~(A inCalifornia ~~losses of Local~~ Limited ~~Partnerships”~~ ~~for each year ended March 31 has been recorded by the~~ Partnership based on the twelve months of reported results provided by the Local Limited Partnerships for each year ended December 31. Equity in losses from the Local Limited Partnerships allocated to the Partnership is not recognized to the extent that the investment balance would be adjusted below zero. If the Local Limited Partnerships report net income in future years, the Partnership will resume applying the equity method only after its share of such net income equals the share of net losses not recognized during the period(s) ~~the equity method was suspended.~~

InNOTES ~~accordance~~TO ~~with the accounting guidance~~FINANCIAL ~~for~~STATEMENTS ~~the~~- consolidation of variable interest entities, the Partnership determines when it should include the assets, liabilities, and activities of a variable interest entity (VIE) in its financial statements, and when it should disclose information about its relationship with a VIE. The analysis that must be performed to determine which entity should consolidate a VIE focuses on control and economic factors. A VIE is a legal structure used to conduct activities or hold assets, which must be consolidated by a company if it is the primary beneficiary because it has (1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (2) the obligation to absorb losses or receive benefits that could potentially be significant to the VIE. If multiple unrelated parties share such power, as defined, no party will be required to consolidate the VIE. Further, the guidance requires continual reconsideration of the primary beneficiary of a VIE.CONTINUED

~~F-9~~For the Years Ended March 31, 2013, 2012 and 2011

~~WNC~~NOTE ~~HOUSING~~1 ~~TAX~~– ~~CREDIT~~ORGANIZATION ~~FUND~~AND V,SUMMARY OF ~~L.P.~~SIGNIFICANT ACCOUNTING POLICIES, ~~SERIES 3~~continued

(AConcentration ~~California~~of ~~Limited~~Credit ~~Partnership)~~Risk

~~NOTES~~As TOof ~~FINANCIAL~~March ~~STATEMENTS~~31, -2013, ~~CONTINUED~~the Partnership maintained cash and cash equivalent balances at certain financial institutions in excess of the federally insured maximum. The Partnership believes it is not exposed to any significant financial risk on cash.

~~For~~Impact ~~the~~of ~~Years~~Recent ~~Ended~~Accounting ~~March 31, 2012, 2011 and 2010~~Pronouncements

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

~~Based~~In onMay ~~this guidance~~2011, the ~~Local~~FASB ~~Limited~~issued ~~Partnerships in~~an ~~which~~update ~~the~~to existing ~~Partnership~~guidance ~~invests~~related ~~meet~~to ~~the~~fair ~~definition~~value ofmeasurements aon ~~VIE~~how ~~because~~to ~~the~~measure ~~owners~~fair ofvalue ~~the~~and ~~equity~~what atdisclosures ~~risk~~to inprovide ~~these~~about ~~entities~~fair ~~do not~~value ~~have the power to direct their operations~~measurements. ~~However,~~For ~~management~~fair ~~does~~value ~~not~~measurements ~~consolidate~~categorized ~~the~~as ~~Partnership’s~~level ~~interests in these VIEs~~3, as ita isreporting ~~not~~entity ~~considered~~should todisclose bequantitative ~~the primary beneficiary since it does not have the power to direct the activities that are considered~~information ~~most significant to the economic performance~~ of ~~these entities. The Partnership currently records~~ the ~~amount~~unobservable ofinputs ~~its~~and ~~investment in these Local Limited Partnerships as an asset on its balance sheets~~assumptions, ~~recognizes~~a ~~its~~description ~~share~~ of ~~partnership income or losses in~~ the ~~statements~~valuation ofprocesses ~~operations,~~ and ~~discloses~~narrative ~~how~~description itof ~~accounts~~the ~~for~~sensitivity of ~~material~~the ~~types~~fair ofvalue ~~these~~to ~~investments~~changes in ~~its~~unobservable ~~financial statements~~inputs. ~~The~~ ~~Partnership’s~~This ~~balance~~update inis ~~investment~~effective infor ~~Local~~interim ~~Limited~~and ~~Partnerships,~~annual ~~plus~~periods ~~the~~beginning ~~risk~~after ~~of recapture of tax credits previously recognized~~December ~~on these investments~~15, ~~represents its maximum exposure to loss~~2011. The ~~Partnership’s~~adoption ~~exposure~~of tothis ~~loss~~update ondid ~~these~~not ~~Local~~materially ~~Limited~~affect ~~Partnerships is mitigated by~~ the ~~condition~~Partnership’s ~~and~~ financial ~~performance of the underlying Housing Complexes as well as the strength of the Local General Partners and their guarantee against credit recapture to the investors in the Partnership~~statements.

~~Distributions~~NOTE ~~received from~~2 ~~the~~– ~~Local Limited Partners are accounted for as a reduction of the investment balance. Distributions received after the investment~~INVESTMENTS ~~has~~IN ~~reached~~LOCAL ~~zero~~LIMITED ~~are recognized as distribution income. For all periods presented all investment accounts in Local Limited Partnerships had reached zero.~~PARTNERSHIPS

~~Use~~As of March 31, 2013 and March 31, 2012, the Partnership owns Local Limited Partnership interests in 3 and 12 Local Limited Partnerships, respectively. All of ~~Estimates~~these Local Limited Partnership’s own one Housing Complex consisting of an aggregate of 251 and 463 apartment units, respectively. The respective Local General Partners of the Local Limited Partnerships manage the day to day operations of the entities. Significant Local Limited Partnership business decisions require approval from the Partnership. The Partnership, as a Limited Partner, is generally entitled to 99%, as specified in the Local Limited Partnership agreements, of the operating profits and losses, taxable income and losses, and Low Income Housing Tax Credits of the Local Limited Partnerships, except for one of the investments in which it is entitled to 49.49% of such amount.

The ~~preparation~~Partnership’s ofinvestments ~~financial statements~~ in ~~conformity~~Local ~~with~~Limited ~~accounting~~Partnerships ~~principles~~as ~~generally~~shown ~~accepted~~ in the ~~United~~balance ~~States~~sheets ofat ~~America~~March ~~requires~~31, ~~management to~~2013 ~~make estimates~~ and ~~assumptions~~2012, ~~that~~are ~~affect~~approximately ~~the~~$(1,730,000), and ~~reported~~$(1,639,000), ~~amounts~~respectively, ofless ~~assets~~than ~~and~~the ~~liabilities~~Partnership’s ~~and~~equity ~~disclosure~~at ofthe ~~contingent~~preceding ~~assets~~December ~~and~~31 ~~liabilities~~as atshown in the ~~date~~Local ofLimited ~~the~~Partnerships’ combined condensed financial statements presented below. This difference is primarily due to unrecorded losses as discussed below, and ~~the~~acquisition, ~~reported~~selection ~~amounts~~and other costs related to the acquisition of ~~revenues~~the ~~and~~investments ~~expenses~~which ~~during~~have been capitalized in the ~~reporting period.~~Partnership’s ~~Actual~~investment ~~results~~account ~~could~~along ~~materially~~with ~~differ~~impairment ~~from~~losses ~~those~~recorded in ~~estimates~~the Partnership’s investment account.

~~Cash~~At March 31, 2013 and 2012, the investment accounts in all the Local Limited Partnerships have reached a zero balance. Consequently, the Partnership’s estimate of its share of losses for the years ended March 31 2013, 2012 and ~~Cash~~2011 ~~Equivalents~~amounting to approximately $269,000, $85,000, and $4,083,000 respectively, has not been recognized. As of March 31, 2013, the aggregate share of net losses not recognized by the Partnership amounted to $817,000.

The Partnership considers all highly liquid investments with original maturities of three months or less when purchased to be cash equivalents. For all periods presented, the Partnership had no cash equivalents.F-13

~~Reporting~~WNC ~~Comprehensive~~HOUSING TAX CREDIT ~~Income~~FUND V, L.P., SERIES 3

~~The~~(A ~~Partnership had~~California ~~no items of other comprehensive income for the periods presented.~~ Limited Partnership)

~~Net Loss~~NOTES ~~Per~~TO ~~Partnership~~FINANCIAL STATEMENTS ~~Unit~~- CONTINUED

~~Net~~For ~~loss per Partnership Unit includes no dilution and is computed by dividing loss allocated to Limited Partners by~~ the ~~weighted~~Years ~~average~~Ended ~~Partnership~~March ~~Units~~31, ~~outstanding~~2013, ~~during~~2012 ~~the~~and ~~period. Calculation of diluted net loss per Partnership Unit is not required.~~2011

~~Income~~NOTE ~~Taxes~~2 – INVESTMENTS IN LOCAL LIMITED PARTNERSHIPS, continued

The financial ~~Partnership~~information ~~has~~from ~~elected~~the toindividual befinancial ~~treated~~statements ~~as a~~of ~~pass-through~~the ~~entity~~Local ~~for~~Limited ~~income~~Partnerships ~~tax~~include ~~purposes~~rental and, asinterest ~~such, is not subject to income taxes~~subsidies. Rental ~~Rather,~~subsidies ~~all~~are ~~items~~included ofin ~~taxable~~total ~~income, deductions~~revenues and ~~tax~~interest ~~credits~~subsidies are ~~passed~~generally ~~through~~netted toin ~~and~~interest ~~are reported by its owners on their respective income tax returns~~expense. ~~The~~Approximate ~~Partnership’s~~combined ~~federal~~condensed ~~tax~~financial ~~status~~information asfrom athe ~~pass-through~~individual ~~entity~~financial isstatements ~~based~~of ~~on its legal status as a partnership. Accordingly,~~ the ~~Partnership~~Local isLimited ~~not required~~Partnerships ~~to take any tax positions in order to qualify~~ as aof ~~pass-through~~December ~~entity.~~31 ~~The Partnership is required to file~~ and ~~does file~~ ~~tax returns with the Internal Revenue Service and other taxing authorities. Accordingly, these financial statements do not reflect a provision~~ for ~~income taxes and~~ the ~~Partnership~~years ~~has~~then noended ~~other~~is ~~tax~~as ~~positions which must be considered for disclosure.~~follows:

~~F-10~~COMBINED CONDENSED BALANCE SHEETS

WNC HOUSING TAX CREDIT FUND V, L.P., SERIES 3

	*2012*		2011
ASSETS
Buildings and improvements (net of accumulated depreciation as of December 31, 2012 and 2011 of $7,841,000 and $10,818,000, respectively)	$	9,137,000	$	13,188,000
Land		1,564,000		1,857,000
Other assets		1,622,000		2,079,000
Total assets	$	12,323,000	$	17,124,000

LIABILITIES
Mortgage and construction loans payable	$	5,977,000	$	10,978,000
Due to affiliates		1,244,000		1,319,000
Other liabilities		1,213,000		711,000

Total liabilities		8,434,000		13,008,000

PARTNERS’ EQUITY (DEFICIT)
WNC Housing Tax Credit Fund V, L.P., Series 3		1,730,000		1,639,000
Other partners		2,159,000		2,477,000
Total partners’ equity (deficit)		3,889,000		4,116,000
Total liabilities and partners’ equity (deficit)	$	12,323,000	$	17,124,000

~~(A California Limited Partnership)~~F-14

~~NOTES~~WNC TOHOUSING ~~FINANCIAL~~TAX ~~STATEMENTS~~CREDIT FUND -V, ~~CONTINUED~~L.P., SERIES 3

~~For~~(A ~~the~~California ~~Years Ended March 31, 2012, 2011~~Limited ~~and 2010~~Partnership)

~~NOTE~~NOTES 1TO ~~– ORGANIZATION AND SUMMARY~~FINANCIAL OFSTATEMENTS ~~SIGNIFICANT~~- ~~ACCOUNTING POLICIES, continued~~CONTINUED

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

~~The~~NOTE ~~Partnership~~2 is– ~~entitled~~INVESTMENTS toIN ~~receive~~LOCAL ~~reporting fees~~LIMITED from the Local Limited Partnerships. The intent of the reporting fees is to offset (in part) administrative costs incurred by the Partnership in corresponding with the Local Limited Partnerships. Due to the uncertainty of the collection of these feesPARTNERSHIPS, ~~the Partnership recognizes reporting fees as collections are made.~~continued

~~Recent~~COMBINED ~~Accounting~~CONDENSED STATEMENTS ~~Changes~~OF OPERATIONS

In September 2006, the Financial Accounting Standards Board (the “FASB”) issued accounting guidance for Fair Value Measurements, which defines fair value, establishes a framework for measuring fair value and expands disclosure about fair value measurements. This guidance is effective for financial statements issued for fiscal years beginning after November 15, 2007 and shall be applied prospectively except for very limited transactions. In February 2008, the FASB delayed for one year implementation of the guidance as it pertains to certain non-financial assets and liabilities. The Partnership adopted U.S. generally accepted accounting principles (“GAAP”) for Fair Value Measurements effective April 1, 2008, except as it applies to those non-financial assets and liabilities, for which the effective date was April 1, 2009. The Partnership has determined that adoption of this guidance had no material impact on the Partnership’s financial statements.

	*2012*			2011			2010

Revenues	$	1,965,000			2,868,000		$	4,799,000

Expenses:
Operating expenses		1,398,000			441,000			3,728,000
Interest expense		283,000			623,000			746,000
Depreciation and amortization		517,000			1,851,000			1,296,000
Impairment		-			-			3,119,000

Total expenses		2,198,000			2,915,000			8,889,000

Net loss	$	(233,000	)		(47,000	)	$	(4,090,000	)

Net loss allocable to the Partnership	$	(269,000	)		(85,000	)	$	(4,083,000	)

Net loss recorded by the Partnership	$	-			-		$	-

InCertain ~~November~~Local ~~2008,~~Limited ~~the~~Partnerships ~~FASB~~have ~~issued accounting~~incurred ~~guidance~~significant onoperating ~~Equity~~losses ~~Method~~and/or ~~Investment~~have ~~Accounting~~working ~~Considerations~~capital ~~that~~deficiencies. ~~addresses~~In ~~how~~ the ~~initial~~event ~~carrying~~these ~~value~~Local ofLimited anPartnerships ~~equity method~~continue ~~investment~~to ~~should~~incur besignificant ~~determined~~operating losses, ~~how~~additional ancapital ~~impairment~~contributions ~~assessment~~by ofthe anPartnership ~~underlying~~and/or ~~indefinite-lived~~the ~~intangible~~Local ~~asset~~General ofPartner ~~an equity method~~may ~~investment should~~ be ~~performed,~~required ~~how an equity method investee’s issuance of shares should be accounted for, and how~~ to ~~account for~~sustain ~~a change in an investment from~~ the ~~equity~~operations ~~method~~of tosuch ~~the~~Local ~~cost~~Limited ~~method~~Partnerships. ~~This~~If ~~guidance~~additional iscapital ~~effective~~contributions inare ~~fiscal~~not ~~years~~made ~~beginning on~~when orthey ~~after~~are ~~December 15~~required, ~~2008,~~the ~~and~~Partnership’s ~~interim~~investment ~~periods~~in ~~within~~certain ~~those~~of ~~fiscal~~such ~~years.~~Local ~~The~~Limited ~~Partnership~~Partnerships ~~adopted~~could ~~the~~be ~~guidance~~impaired, ~~for~~and the ~~interim~~ ~~quarterly~~loss ~~period~~and ~~beginning~~recapture ~~April 1, 2009. The impact~~ of ~~adopting~~the itrelated ~~did~~Low ~~not~~Income ~~have~~Housing aTax ~~material~~Credits ~~impact~~could ~~on the Partnership’s financial condition or results of operations~~occur.

InNOTE ~~April~~3 ~~2009,~~– ~~the~~RELATED ~~FASB~~PARTY issued accounting guidance for Interim Disclosures about Fair Value of Financial Instruments. This requires disclosure about the method and significant assumptions used to establish the fair value of financial instruments for interim reporting periods as well as annual statements. It became effective for as of and for the interim period ended June 30, 2009 and had no impact on the Partnership’s financial condition or results of operations.TRANSACTIONS

InUnder ~~May 2009,~~ the ~~FASB~~terms ~~issued guidance regarding subsequent events, which was subsequently updated in February 2010. This guidance established general standards~~ of ~~accounting for and disclosure of events that occur after~~ the balance sheet date but before financial statements are issued or are available to be issued. In particular, this guidance sets forth the period after the balance sheet date during which management of a reporting entity should evaluate events or transactions that may occur for potential recognition or disclosure in the financial statements, the circumstances under which an entity should recognize events or transactions occurring after the balance sheet date in its financial statements, and the disclosures that an entity should make about events or transactions that occurred after the balance sheet date. This guidance was effective for financial statements issued for fiscal years and interim periods ending after June 15, 2009, and was therefore adopted by the Partnership ~~for the quarter ended June 30~~Agreement, ~~2009. The adoption did not have a significant impact on~~ the ~~subsequent events that the~~ Partnership ~~reports,~~has ~~either~~paid ~~through recognition~~ or ~~disclosure,~~is inobligated ~~the financial statements. In February 2010, the FASB amended its guidance on subsequent events~~ to ~~remove~~ the ~~requirement~~General toPartner ~~disclose~~or ~~the~~its ~~date~~affiliates ~~through~~for ~~which an entity has evaluated subsequent events, alleviating conflicts with current SEC guidance. This amendment was effective immediately and therefore~~ the ~~Partnership~~following ~~did not include the disclosure in this Form 10-K.~~fees:

~~F-11~~Acquisition fees of up to 7.5% of the gross proceeds from the sale of Partnership Units as compensation for services rendered in connection with the acquisition of Local Limited Partnerships. At the end of all periods presented the Partnership incurred total acquisition fees of $1,200,785, which have been included in investments in Local Limited Partnerships. As of all periods presented, the fees had been fully amortized or impaired. Impairment on the intangibles is measured by comparing the Partnership’s total investment balance after impairment of investments in Local Limited Partnerships to the sum of the total of the remaining Low Income Housing Tax Credits allocated to the Partnership and any estimated residual value of the investments. If an impairment loss related to the acquisition fees is recorded, the accumulated amortization is reduced to zero at that time.

~~WNC~~Reimbursement ~~HOUSING~~of ~~TAX~~costs ~~CREDIT~~incurred ~~FUND~~by V,of Lthe General Partner or by an affiliate of Associates in connection with the acquisition of Local Limited Partnerships.P These reimbursements have not exceeded 1% of the gross proceeds. At the end of all periods presented, ~~SERIES 3~~the Partnership incurred acquisition costs of $120,510, which have been included in Investments in Local Limited Partnerships. Accumulated amortization was $120,510 for all periods presented.

~~(A California Limited Partnership)~~F-15

~~NOTES~~WNC TOHOUSING ~~FINANCIAL~~TAX ~~STATEMENTS~~CREDIT FUND -V, ~~CONTINUED~~L.P., SERIES 3

~~For~~(A ~~the~~California ~~Years Ended March 31, 2012, 2011~~Limited ~~and 2010~~Partnership)

~~NOTE~~NOTES 1TO –FINANCIAL ~~ORGANIZATION~~STATEMENTS ~~AND~~- ~~SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued~~CONTINUED

InFor ~~June 2009,~~ the ~~FASB~~Years ~~issued~~Ended anMarch amendment to the accounting and disclosure requirements for the consolidation of variable interest entities (VIEs). The amended guidance modified the consolidation model to one based on control and economics31, and replaced quantitative primary beneficiary analysis with a qualitative analysis. The primary beneficiary of a VIE will be the entity that has (1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (2) the obligation to absorb losses or receive benefits that could potentially be significant to the VIE. If multiple unrelated parties share such power2013, ~~as defined, no party~~2012 ~~will be required to consolidate the VIE. Further, the amended guidance requires continual reconsideration of the primary beneficiary of a VIE~~ and adds an additional reconsideration event for determination of whether an entity is a VIE. Additionally, the amendment requires enhanced and expanded disclosures around VIEs. This amendment was effective for fiscal years beginning after November 15, 2009. The adoption of this guidance on April 1, 2010 did not have a material effect on the Partnership’s financial statements.2011

InNOTE ~~June~~3 ~~2009,~~– ~~the~~RELATED ~~FASB~~PARTY ~~issued the Accounting Standards Codification (Codification). Effective July 1~~TRANSACTIONS, ~~2009, the Codification is the single source of authoritative accounting~~ ~~principles~~continued recognized by the FASB to be applied by non-governmental entities in the preparation of financial statements in conformity with GAAP. The Codification is intended to reorganize, rather than change, existing GAAP. Accordingly, all references to currently existing GAAP have been removed and have been replaced with plain English explanations of the Partnership’s accounting policies. The adoption of the Codification did not have a material impact on the Partnership’s financial position or results of operations.

~~NOTE~~An annual asset management fee equal to the greater amount of (i) $2,000 -for ~~INVESTMENTS~~each INHousing ~~LOCAL~~complex, ~~LIMITED PARTNERSHIPS~~or (ii) 0.275% of gross proceeds. In either case, the fee will be decreased or increased annually based on changes to the Consumer Price Index. However, in no event will the maximum amount exceed 0.2% of the invested assets of the Partnership, as defined. “Invested Assets” means the sum of the Partnership’s investment in Local Limited Partnership interests and the Partnership’s allocable share of mortgage loans on and other debts related to the Housing Complexes owned by such. Management fees of $25,743, $38,880,and $49,500 were incurred during the years ended March 31,2013,2012, and 2011, respectively. The Partnership paid the General Partner and or its affiliates $81,786, $9,946, and $0 of those fees during the years ended March 31, 2013, 2012 and 2011, respectively.

AsA ofsubordinated ~~March~~disposition ~~31,~~fee ~~2012~~in ~~and~~an ~~March~~amount ~~31,~~equal ~~2011,~~to 1% of the ~~Partnership~~ ~~owns~~sale ~~Local~~price ~~Limited~~may ~~Partnership~~be ~~interests~~received in 12connection ~~and~~with 15the ~~Local~~sale ~~Limited~~or ~~Partnerships,~~disposition ~~respectively. All~~ of ~~these~~a ~~Local Limited Partnership’s own one~~ Housing Complex ~~consisting~~or ofLocal anLimited ~~aggregate~~Partnership ~~of 463 and 721 apartment units, respectively~~interest. ~~The respective~~Payment ~~Local General Partners~~ of ~~the~~this ~~Local~~fee ~~Limited~~is ~~Partnerships~~subordinated ~~manage the day~~ to ~~day operations of~~ the ~~entities. Significant Local~~ Limited ~~Partnership~~Partners ~~business~~receiving ~~decisions~~a ~~require~~preferred ~~approval~~return ~~from~~of ~~the~~14% ~~Partnership.~~through ~~The~~December ~~Partnership~~31, as2006 aand ~~Limited~~6 ~~Partner, is generally entitled to 99~~%, thereafter (as ~~specified~~defined in the ~~Local Limited~~ Partnership ~~agreements,~~Agreement) ofand ~~the~~is ~~operating~~payable ~~profits~~only ~~and~~if ~~losses,~~the ~~taxable~~General ~~income and~~Partner ~~losses,~~or ~~and~~its ~~Low~~affiliates ~~Income~~render ~~Housing~~services ~~Tax~~in ~~Credits of~~ the ~~Local~~sales ~~Limited~~effort. ~~Partnerships,~~No ~~except~~such ~~for~~fee ~~one~~was ofincurred ~~the~~during ~~investments~~all inperiods ~~which it is entitled to 49~~presented.~~49% of such amount.~~

The Partnership~~’s investments~~ inreimbursed ~~Local Limited Partnerships as shown in~~ the ~~balance~~General ~~sheets~~Partner ator ~~March~~its ~~31,~~affiliates ~~2012~~for ~~and~~operating ~~2011,~~expenses ~~are~~incurred ~~approximately~~by ~~$(1,639,000), and $1,677,000, respectively, greater than (less than)~~ the Partnership’s ~~equity~~and atpaid ~~the~~for ~~preceding December~~by ~~31 as shown in~~ the ~~Local~~General ~~Limited~~Partner ~~Partnerships’~~or ~~combined~~its ~~condensed~~affiliates ~~financial~~on ~~statements~~behalf ~~presented~~of ~~below~~the Partnership. ~~This~~ ~~difference~~Operating isexpense ~~primarily~~reimbursements ~~due~~were toapproximately ~~unrecorded~~$111,596, ~~losses as discussed below~~$112,000, and ~~acquisition~~$35,000 ~~selection~~during ~~and other costs related to~~ the ~~acquisition~~years ofended ~~the~~March ~~investments~~31, ~~which~~2013, ~~have~~2012, ~~been~~and ~~capitalized~~2011, ~~in the Partnership’s investment account along with impairment losses recorded in the Partnership’s investment account~~respectively.

AtThe ~~March~~accrued ~~31,~~fees ~~2012~~ and ~~2011,~~expenses ~~the~~due investment accounts in all the Local Limited Partnerships have reached a zero balance. Consequently, the Partnership’s estimate of its share of losses for the years ended March 31 2012, 2011 and 2010 amounting to ~~approximately $85,000,~~General ~~$4,083,000,~~Partner and ~~$554,000~~affiliates ~~respectively,~~consist ~~has not been recognized. As~~ of ~~March 31, 2012,~~ the ~~aggregate~~following ~~share of net losses not recognized by the Partnership amounted to $1,929,000.~~at:

F-12

	March 31,
	2013		2012

Asset management fee payable	$	495,016	$	551,059
Expenses paid by the General Partner or an affiliate on behalf of the Partnership		485		9,594

Total	$	495,501	$	560,653

~~WNC~~The ~~HOUSING~~General ~~TAX~~Partner ~~CREDIT~~and/or ~~FUND~~its V,affiliates do Lnot anticipate that these accrued fees will be paid until such time as capital reserves are in excess of the future foreseeable working capital requirements of the Partnership.P The Partnership currently has insufficient working capital to fund its operations., Associates ~~SERIES~~has agreed to continue providing advances sufficient enough to fund the operations and working capital requirements 3of the Partnership through May 31, 2014.

~~(A California Limited Partnership)~~F-16

~~NOTES~~WNC TOHOUSING ~~FINANCIAL~~TAX ~~STATEMENTS~~CREDIT FUND -V, ~~CONTINUED~~L.P., SERIES 3

~~For~~(A ~~the~~California ~~Years Ended March 31, 2012, 2011~~Limited ~~and 2010~~Partnership)

~~NOTE~~NOTES 2TO ~~- INVESTMENTS IN LOCAL LIMITED~~FINANCIAL ~~PARTNERSHIPS,~~STATEMENTS ~~continued~~- CONTINUED

~~The financial~~For ~~information from~~ the ~~individual~~Years ~~financial statements of the Local Limited Partnerships include rental and interest subsidies.~~Ended ~~Rental~~March ~~subsidies~~31, ~~are~~2013, ~~included~~2012 ~~in total revenues~~ and interest subsidies are generally netted in interest expense. Approximate combined condensed financial information from the individual financial statements of the Local Limited Partnerships as of December 31 and for the years then ended is as follows: 2011

~~COMBINED~~NOTE ~~CONDENSED BALANCE~~4 ~~SHEETS~~– QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

	2011		2010
ASSETS
Buildings and improvements (net of accumulated depreciation as of December 31, 2011 and 2010 of $10,818,000 and $11,380,000, respectively)	$	13,188,000	$	17,330,000
Land		1,857,000		2,090,000
Other assets		2,079,000		2,437,000
Total assets	$	17,124,000	$	21,857,000
LIABILITIES
Mortgage and construction loans payable	$	10,978,000	$	15,919,000
Due to affiliates		1,319,000		3,598,000
Other liabilities		711,000		856,000
Total liabilities		13,008,000		20,373,000
PARTNERS’ EQUITY (DEFICIT)
WNC Housing Tax Credit Fund V, L.P., Series 3		1,639,000		(1,677,000	)
Other partners		2,477,000		3,161,000
Total partners’ equity (deficit)		4,116,000		1,484,000
Total liabilities and partners’ equity (deficit)	$	17,124,000	$	21,857,000

The following is a summary of the quarterly operations for the years ended March 31 (rounded):

F-13

2013	June 30			September 30			December 31			March 31

Income	$	30,000		$	-		$	4,000		$	3,000

Operating expenses		(31,000	)		(26,000	)		(9,000	)		(3,000	)

Loss from operations		(1,000	)		(26,000	)		(5,000	)		-

Gain (loss) on sale of Local Limited Partnerships		101,000			(20,000	)		76,000			13,000

Net income (loss)		100,000			(46,000	)		71,000			13,000

Net income (loss) available to Limited Partners		99,000			(46,000	)		71,000			12,000

Net income (loss) per Partnership Unit		6			(3	)		4			1

WNC HOUSING TAX CREDIT FUND V, L.P., SERIES 3

2012	June 30			September 30			December 31			March 31

Income	$	25,000		$	-		$	-		$	4,000

Operating expenses		(39,000	)		(21,000	)		(30,000	)		(108,000	)

Loss from operations		(14,000	)		(21,000	)		(30,000	)		(104,000	)

Gain (loss) on sale of Local Limited Partnerships		-			(9,000	)		85,000			(2,000	)

Net income(loss)		(14,000	)		(30,000	)		55,000			(106,000	)

Net income(loss) available to Limited Partners		(14,000	)		(30,000	)		54,000			(104,000	)

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

~~(A California Limited Partnership)~~F-17

~~NOTES~~WNC TOHOUSING ~~FINANCIAL~~TAX ~~STATEMENTS~~CREDIT FUND -V, ~~CONTINUED~~L.P., SERIES 3

~~For~~(A ~~the~~California ~~Years Ended March 31, 2012, 2011~~Limited ~~and 2010~~Partnership)

~~NOTE~~NOTES 2TO FINANCIAL STATEMENTS - ~~INVESTMENTS IN LOCAL LIMITED PARTNERSHIPS, continued~~CONTINUED

~~COMBINED~~For the Years Ended ~~CONDENSED~~March ~~STATEMENTS~~31, OF2013, ~~OPERATIONS~~2012 and 2011

	2011			2010			2009
Revenues	$	2,868,000		$	4,799,000		$	4,578,000
Expenses:
Operating expenses		441,000			3,728,000			3,243,000
Interest expense		623,000			746,000			754,000
Depreciation and amortization		1,851,000			1,296,000			1,290,000
Impairment		-			3,119,000			-
Total expenses		2,915,000			8,889,000			5,287,000
Net loss	$	(47,000	)	$	(4,090,000	)	$	(709,000	)
Net loss allocable to the Partnership	$	(85,000	)	$	(4,083,000	)	$	(554,000	)
Net loss recorded by the Partnership	$	-		$	-		$	-

NOTE 4 – QUARTERLY RESULTS OF OPERATIONS (UNAUDITED), continued

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

2011	June 30			September 30			December 31			March 31

Income	$	1,000		$	42,000		$	-		$	7,000

Operating expenses		(15,000	)		(43,000	)		(255,000	)		(18,000	)

Loss from operations		(14,000	)		(1,000	)		(255,000	)		(11,000	)

Net loss		(14,000	)		(1,000	)		(255,000	)		(11,000	)

Net loss available to Limited Partners		(14,000	)		(1,000	)		(253,000	)		(11,000	)

Net loss per Partnership Unit		(1	)		-			(14	)		(1	)

~~Troubled~~NOTE ~~Housing~~5 ~~Complexes~~– ADVANCES TO LOCAL LIMITED PARTNERSHIPS

~~The~~As ~~Partnership~~of ~~has~~March a31, ~~99% limited partnership investment in Heritage Apartments~~2013, ~~L.P.~~2012 ~~(“Heritage”). Heritage is a defendant in several wrongful death lawsuits~~ and ~~related~~ ~~injury lawsuits. Heritage carries general liability and extended liability insurance. Discovery for these lawsuits is ongoing~~2011, ~~but~~ the ~~management~~Partnership in oftotal ~~Heritage~~had ~~and~~voluntarily ~~Associates~~advanced ~~is unable to determine the outcome of these lawsuits at this time or their impact~~$141, ~~if any~~907,$141,907, ~~on the Partnership’s financial statements. If for any reason Heritage is unsuccessful in its defense~~ and ~~the~~$1,995,678, ~~insurer denies coverage or the insurance coverage proves to be inadequate~~respectively, ~~the Partnership may be required~~ to ~~sell~~four ~~its~~Local ~~investment~~Limited orPartnerships, ~~may~~Hasting ~~otherwise~~Apartments ~~lose~~I, ~~its~~Alliance ~~investment~~Apartments ~~in Heritage~~I, ~~which~~Patten ~~was~~Towers $0L. atP. ~~March 31~~II, ~~2012. Loss of the Heritage investment could result in the recapture of tax credits~~ and ~~certain~~Broadway ~~prior~~Apartments, ~~tax deductions~~L.P. AsAll ofadvances ~~March~~were ~~31,~~reserved ~~2012,~~in ~~no losses have been recognized and management~~full ~~does~~in ~~not~~the ~~expect~~year ~~losses~~they towere ~~be incurred~~advanced.

~~F-14~~NOTE 6 – CONTRIBUTIONS BY THE GENERAL PARTNER

~~WNC~~During ~~HOUSING~~the ~~TAX~~year ~~CREDIT~~ended ~~FUND~~March V31, L2012, the Partnership was relieved of debt owed to the General Partner totaling $247,039.P The Partnership had received $187,039 in cash advances from the General Partner, which were in turn advanced by the Partnership to certain Local Limited Partnerships to help aid the Local Limited Partnerships with their operational issues. The advances were deemed to be uncollectible by the General Partner, ~~SERIES~~and as such, the debt was forgiven. The remaining $60,000 of debt that was relieved was for operating expenses that were 3paid by the General Partner or an affiliate on the Partnership’s behalf. Due to the continuous low cash balances in the Partnership, the General Partner deemed the amount to be uncollectible, therefore the debt was forgiven. The cancellation of debt was recorded by the Partnership as a capital contribution from the General Partner.

(ADuring ~~California~~the year ended March 31, 2011, the Partnership was relieved of debt owed to the General Partner totaling$276,655. The Partnership had received $168,462 in cash advances from the General Partner, which were in turn advanced by the Partnership to certain Local Limited Partnerships to help aid the Local Limited Partnerships with their operational issues. The advances were deemed to be uncollectible by the General Partner, and as such, the debt was forgiven. The remaining $108,193 of debt that was relieved was for operating expenses that were paid by the General Partner or an affiliate on the Partnership)’s behalf. Due to the continuous low cash balances in the Partnership, the General Partner deemed the amount to be uncollectible, therefore the debt was forgiven. The cancellation of debt was recorded by the Partnership as a capital contribution from the General Partner.

~~NOTES~~NOTE TO7 ~~FINANCIAL~~– ~~STATEMENTS~~SUBSEQUENT ~~- CONTINUED~~EVENTS

~~For~~Subsequent to March 31, 2013, the ~~Years~~49.49% ~~Ended~~Local Limited ~~March~~Partnership Interest in Blessed Rock was sold for an adjusted price of $4,707,317. Blessed Rock was appraised for $6,910,000 and had a mortgage note balance of $2,054,000 as of December 31, 2012. Proceeds in the amount of $2,355,384 ~~2011~~were received from the sale of Blessed Rock, of which $250,000 was received in advance and ~~2010~~is included in prepaid disposition proceeds on the balance sheet as of March 31, 2013. The Partnership used the cash proceeds to pay $493,380 in accrued asset management fees, $1,448 to reimburse the General Partner or an affiliate for expense paid on its behalf, $1,760,555 to reimburse the general partner or its affiliates for debts previously written off and the remaining $100,000 was placed in the Partnership’s reserves for future operating expenses. No cash distribution will be made to the Limited Partners as a result of this sale. The Compliance Period had been completed therefore there is no risk of recapture and investor approval is not required.

~~NOTE 3~~ F- ~~RELATED PARTY TRANSACTIONS~~18

~~Under the~~WNC ~~terms~~HOUSING ofTAX ~~the~~CREDIT FUND ~~Partnership~~V, ~~Agreement~~L.P., ~~the~~SERIES ~~Partnership has paid or is obligated to the General Partner or its affiliates for the following fees:~~3

~~Acquisition fees~~(A ofCalifornia ~~up to 7.5% of the gross proceeds from the sale of Partnership Units as compensation for services rendered in connection with the acquisition of Local~~ Limited ~~Partnerships. At the end of all periods presented the Partnership incurred total acquisition~~ fees of $1,200,785, which have been included in investments in Local Limited Partnerships. As of all periods presented, the fees had been fully amortized or impaired. Impairment on the intangibles is measured by comparing the Partnership’s total investment balance after impairment of investments in Local Limited Partnerships to the sum of the total of the remaining Low Income Housing Tax Credits allocated to the Partnership and any estimated residual value of the investments. If an impairment loss related to the acquisition fees is recorded, the accumulated amortization is reduced to zero at that time.)

~~Reimbursement of~~NOTES ~~costs~~TO ~~incurred by of the General Partner or by an affiliate of Associates in connection with the acquisition of Local Limited~~FINANCIAL ~~Partnerships.~~STATEMENTS ~~These~~- reimbursements have not exceeded 1% of the gross proceeds. At the end of all periods presented, the Partnership incurred acquisition costs of $120,510, which have been included in Investments in Local Limited Partnerships. Accumulated amortization was $120,510 for all periods presented.CONTINUED

~~An annual~~For ~~asset management fee equal to~~ the ~~greater~~Years ~~amount of (i) $2,000 for each Housing complex, or (ii) 0.275% of gross proceeds.~~Ended In either case, the fee will be decreased or increased annually based on changes to the Consumer Price Index. However, in no event will the maximum amount exceed 0.2% of the invested assets of the Partnership, as defined. “Invested Assets” means the sum of the Partnership’s investment in Local Limited Partnership interests and the Partnership’s allocable share of mortgage loans on and other debts related to the Housing Complexes owned by such. Management fees of $38,880, $49,500, and $49,500 were incurred during the years ended March 31, ~~2012~~2013, ~~2011, and 2010, respectively. The Partnership paid the General Partner and or its affiliates $9,946, $0, and $0 of those fees during the years ended March 31,~~ 2012, ~~2011~~ and ~~2010, respectively.~~2011

~~A subordinated~~NOTE ~~disposition~~7 ~~fee~~– inSUBSEQUENT an amount equal to 1% of the sale price may be received in connection with the sale or disposition of a Housing Complex or Local Limited Partnership interest. Payment of this fee is subordinated to the Limited Partners receiving a preferred return of 14% through December 31EVENTS, 2006 and 6 % thereafter (as defined in the Partnership Agreement) and is payable only if the General Partner or its affiliates render services in the sales effort. No such fee was incurred during all periods presented.continued

~~The Partnership~~Subsequent ~~reimbursed~~to ~~the~~March 31, ~~General~~2013, ~~Partner~~The orWillows ~~its~~was ~~affiliates~~sold for ~~operating~~$30,000. ~~expenses~~The ~~incurred~~Willows bywas ~~the~~appraised ~~Partnership~~for $720,000 and ~~paid~~had ~~for~~a bymortgage note balance of $937,000 as of December 31, 2012. Cash proceeds of $30,000 were received in advance for the ~~General~~sale ~~Partner~~the orLocal ~~its~~Limited ~~affiliates~~Partnership Interest and is included in prepaid disposition proceeds on ~~behalf~~the balance sheet as of ~~the~~March ~~Partnership~~31, 2013. ~~Operating~~The ~~expense~~Partnership ~~reimbursements~~has ~~were~~incurred ~~approximately~~ $~~112~~3,000, in appraisal expenses which will be netted against the proceeds from the sale in calculating the gain on the sale. The Partnership’s investment balance is zero; therefore a gain of $3527,000, ~~and~~will $0be recorded during the ~~years~~respective ~~ended~~period. ~~March~~No ~~31,~~cash ~~2012,~~distribution ~~2011,~~will be made to the Limited Partners as a result of this sale. The Compliance Period has been completed therefore there is no risk of recapture and ~~2010,~~investor ~~respectively~~approval is not required.

F-1519

~~WNC~~Item 9. Changes ~~HOUSING~~in ~~TAX~~and ~~CREDIT~~Disagreements ~~FUND~~With V,Accountants ~~L.P.,~~on ~~SERIES 3~~Accounting and Financial Disclosure

~~(A California Limited Partnership)~~NONE

NOTES TO FINANCIAL STATEMENTS - CONTINUED

For the Years Ended March 31, 2012, 2011 and 2010

NOTE 3 - RELATED PARTY TRANSACTIONS, continued

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

	March 31,
	2012		2011
Asset management fee payable.	$	551,059	$	522,125
Expenses paid by the General Partner or an affiliate on behalf of the Partnership		9,594		117,275
Advances made to the Partnership from the General Partner or affiliates		-		91,792
Total	$	560,653	$	731,192

The General Partner and/or its affiliates do not anticipate that these accrued fees will be paid until such time as capital reserves are in excess of the future foreseeable working capital requirements of the Partnership. The Partnership currently has insufficient working capital to fund its operations. Associates has agreed to continue providing advances sufficient enough to fund the operations and working capital requirements of the Partnership through June 30, 2013.

NOTE 4 – QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

The following is a summary of the quarterly operations for the years ended March 31 (rounded):

2012	June 30			September 30			December 31			March 31
Income	$	25,000		$	-		$	-		$	4,000
Operating expenses		(39,000	)		(21,000	)		(30,000	)		(108,000	)
Loss from operations		(14,000	)		(21,000	)		(30,000	)		(104,000	)
Gain (loss) on sale of Local Limited Partnerships		-			(9,000	)		85,000			(2,000	)
Net income (loss)	$	(14,000	)	$	(30,000	)	$	55,000		$	(106,000	)
Net income (loss) available to Limited Partners	$	(14,000	)	$	(30,000	)	$	54,000		$	(104,000	)
Net income (loss) per Partnership Unit	$	(1	)	$	(2	)	$	3		$	(5	)

F-16

WNC HOUSING TAX CREDIT FUND V, L.P., SERIES 3

(A California Limited Partnership)

NOTES TO FINANCIAL STATEMENTS - CONTINUED

For the Years Ended March 31, 2012, 2011 and 2010

NOTE 4 – QUARTERLY RESULTS OF OPERATIONS (UNAUDITED), continued

2011	June 30			September 30			December 31			March 31
Income	$	1,000		$	42,000		$	-		$	7,000
Operating expenses		(15,000	)		(43,000	)		(255,000	)		(18,000	)
Loss from operations		(14,000	)		(1,000	)		(255,000	)		(11,000	)
Net loss	$	(14,000	)	$	(1,000	)	$	(255,000	)	$	(11,000	)
Net loss available to Limited Partners	$	(14,000	)	$	(1,000	)	$	(253,000	)	$	(11,000	)
Net loss per Partnership Unit	$	(1	)	$	-		$	(14	)	$	(1	)

2010	June 30			September 30			December 31			March 31
Income	$	34,000		$	10,000		$	5,000		$	10,000
Operating expenses		(40,000	)		(41,000	)		(122,000	)		(54,000	)
Loss from operations		(6,000	)		(31,000	)		(117,000	)		(44,000	)
Equity in losses of Local Limited Partnerships		-			-			-			(6,000	)
Net loss	$	(6,000	)	$	(31,000	)	$	(117,000	)	$	(50,000	)
Net loss available to Limited Partners	$	(6,000	)	$	(31,000	)	$	(116,000	)	$	(9,000	)
Net loss per Partnership Unit	$	-		$	(2	)	$	(7	)	$	(3	)

F-17

WNC HOUSING TAX CREDIT FUND V, L.P., SERIES 3

(A California Limited Partnership)

NOTES TO FINANCIAL STATEMENTS - CONTINUED

For the Years Ended March 31, 2012, 2011 and 2010

NOTE 5 – ADVANCES TO LOCAL LIMITED PARTNERSHIPS

As of March 31, 2012, 2011 and 2010, the Partnership in total had voluntarily advanced $141,907, $1,995,678, and $1,755,424, respectively, to four Local Limited Partnerships, Hasting Apartments I, Alliance Apartments I, Patten Towers L. P. II, and Broadway Apartments, L.P. The total advances made during the year ended March 31, 2012 were $115,000, which were also reserved for as of March 31, 2012. All advances were reserved in full in the year they were advanced.

NOTE 6 – CONTRIBUTIONS BY THE GENERAL PARTNER

During the year ended March 31, 2012, the Partnership was relieved of debt owed to the General Partner totaling $247,039. The Partnership had received $187,039 in cash advances from the General Partner, which were in turn advanced by the Partnership to certain Local Limited Partnerships to help aid the Local Limited Partnerships with their operational issues. The advances were deemed to be uncollectible by the General Partner, and as such, the debt was forgiven. The remaining $60,000 of debt that was relieved was for operating expenses that were paid by the General Partner or an affiliate on the Partnership’s behalf. Due to the continuous low cash balances in the Partnership, the General Partner deemed the amount to be uncollectible, therefore the debt was forgiven. The cancellation of debt was recorded by the Partnership as a capital contribution from the General Partner.

During the year ended March 31, 2011, the Partnership was relieved of debt owed to the General Partner totaling $276,655. The Partnership had received $168,462 in cash advances from the General Partner, which were in turn advanced by the Partnership to certain Local Limited Partnerships to help aid the Local Limited Partnerships with their operational issues. The advances were deemed to be uncollectible by the General Partner, and as such, the debt was forgiven. The remaining $108,193 of debt that was relieved was for operating expenses that were paid by the General Partner or an affiliate on the Partnership’s behalf. Due to the continuous low cash balances in the Partnership, the General Partner deemed the amount to be uncollectible, therefore the debt was forgiven. The cancellation of debt was recorded by the Partnership as a capital contribution from the General Partner.

During the year ended March 31, 2010, the Partnership had $153,084 in expenses paid by the General Partner or affiliates on its behalf. The General Partner forgave the debt as it was deemed uncollectible. The cancellation of that debt is considered a capital contribution by the General Partner to the Partnership and as such it is reflected in the statement of partners’ equity (deficit) in the Partnership’s financial statements.

NOTE 7 - SUBSEQUENT EVENT

Subsequent to March 31, 2012, the Local Limited Partnership Interest in Escatawpa Village Associates (“Escatawpa Village”), Limited was identified to be sold to an affiliate of the Local General Partner. The buyer offered $30,000 to purchase the Local Limited Partnership Interest. The funds will be placed into the Partnerships reserves and will be used to reimburse the General Partner or an affiliate for prepaid operating expenses. Escatawpa Village was appraised for $655,000 and had a mortgage note balance of $849,000 as of December 31,2011. The Partnership has incurred $3,000 in appraisal expenses which will be netted against the proceeds from the sale in calculating the gain on the sale. The Partnership’s investment balance is zero; therefore a gain of $27,000 will be recorded during the respective period. No cash distribution will be made to the Limited Partners as a result of this sale. The Compliance Period has been completed therefore there is no risk of recapture and investor approval is not required. The sale of the Local Limited Partnership is expected to close on June 15, 2012.

F-18

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

NONE

Item 9A. Controls and Procedures

(a)

Evaluation of disclosure controls and procedures

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

The Partnership must rely on the Local Limited Partnerships to provide the Partnership with certain information necessary to the timely filing of the Partnership’s periodic reports. Factors in the accounting at the Local Limited Partnerships have caused delays in the provision of such information during past reporting periods, and resulted in the Partnership’s inability to file its periodic reports in a timely manner.

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

(b)

Management’s annual report on internal control over financial reporting

The management of Associates is ~~responsible~~ responsible for establishing and maintaining for the Partnership adequate internal control over financial reporting as that term is defined in Securities Exchange Act of 1934 Rules 13a-15(f) and 15d-15(f), and for performing an assessment of the effectiveness of internal control over financial reporting as of March 31, ~~2012~~2013. The internal control process of Associates, as it is applicable to the Partnership, was designed to provide reasonable assurance to Associates regarding the preparation and fair presentation of published financial statements, and includes those policies and procedures that:

	(1)	Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the Partnership;

	(2)	Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles in the United States, and that the Partnership’s receipts and expenditures are being made only in accordance with authorization of the management of Associates; and

(3)

Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Partnership’s assets that could have a material effect on the financial statements.

2629

All internal control processes, no matter how well designed, have inherent limitations. Therefore, even those processes determined to be effective can provide only reasonable assurance with respect to the reliability of financial statement preparation and presentation. Further, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.

Management of Associates assessed the effectiveness of its internal control over financial reporting, as it is applicable to the Partnership, as of the end of the Partnership’s most recent fiscal year. In making this assessment, it used the criteria set forth in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on its assessment, management of Associates concluded that, for the reasons set forth above under “Disclosure controls and procedures” the internal control over financial reporting, as it is applicable to the Partnership, was not effective as of March 31, ~~2012~~2013.

For purposes of the Securities Exchange Act of 1934, the term “material weakness” is a deficiency, or a combination of deficiencies, in a reporting company’s internal control over financial reporting such that there is a reasonable possibility that a material misstatement of the company’s annual or interim financial statements will not be prevented or detected on a timely basis. For the reasons discussed above in this Item 9A, sub-section (a) under the caption “Disclosure Controls and Procedures,” the Partnership’s internal control over financial reporting has not been effective in permitting timely reporting of the Partnership’s financial information. Accordingly, the management of Associates believes that this inability to generate timely reports constitutes a material weakness in its internal control over financial reporting.

(c)

Changes in internal controls

There were no changes in the Partnership’s internal control over financial reporting that occurred during the quarter ended March 31, ~~2012~~2013, that materially affected, or are reasonably likely to materially affect, the Partnership’s internal control over financial reporting.

Item 9B. Other Information

NONE

2730

PART III.

Item 10. Directors, Executive Officers and Corporate Governance

(a)

Identification of Directors, (b) Identification of Executive Officers, (c) Identification of Certain Significant Employees, (d) Family Relationships, and (e) Business Experience

Neither the General Partner nor the Partnership has directors, executives officers or employees of its own. The business of the Partnership is conducted primarily through Associates. Associates is a California corporation which was organized in 1971. The following biographical information is presented for the officers and employees of Associates with principal responsibility for the Partnership’s affairs.

Wilfred N. Cooper, Sr. Chairman Wilfred N. Cooper, Jr. President, Chief Executive Officer and Secretary Michael J. Gaber Executive Vice President and Chief Operating Officer David N. Shafer, Esq. Executive Vice President Darrick Metz Senior Vice President – Originations Christine A. Cormier Senior Vice President – Fund Management Melanie R. Wenk, CPA Vice President – Chief Financial Officer Kelly Henderson Senior Vice President – Legal Affairs ~~Anand~~AnandKannan ~~Kannan~~ Senior Vice President – Development Paula Hall Vice President – ~~Asset~~Porfolio Acquisitions & Management Gregory S. Hand Vice President – Acquisitions ~~Thomas F. Maxwell Vice President – Originations~~ Kay L. Cooper Director of WNC & Associates, Inc. Jennifer E. Cooper Director of WNC & Associates, Inc.

In addition to Wilfred N. Cooper, Sr., the directors of WNC & Associates, Inc. are Wilfred N. Cooper, Jr., Kay L. Cooper and Jennifer E. Cooper.

Wilfred N. Cooper, Sr., age 8182, is the founder and Chairman of the Board of Directors of WNC & Associates, Inc., a Director of WNC Capital Corporation, and a general partner in some of the partnerships previously sponsored by WNC & Associates, Inc. Mr. Cooper has been actively involved in the affordable housing industry since 1968. Previously, during 1970 and 1971, he was founder and a principal of Creative Equity Development Corporation, a predecessor of WNC & Associates, Inc., and of Creative Equity Corporation, a real estate investment firm. For 12 years before 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. He ~~has~~ has testified before committees of the U.S. Senate and the U.S. House of Representatives on matters pertaining to the affordable ~~housing~~ housing industry. Mr. Cooper is a Life Director of the National Association of Home Builders (“NAHB”), a National Trustee for NAHB’s Political Action Committee, and a past Chairman of NAHB’s Multifamily Council. He is a Life Trustee of the National Housing Conference, and a co-founder and Director Emeritus of the California Housing Consortium. He is the husband of Kay Cooper and the father of Wilfred N. Cooper, Jr. Mr. Cooper graduated from Pomona College in 1956 with a Bachelor of Arts degree.

Wilfred N. Cooper, Jr., age 4950, is President, Chief Executive Officer, Secretary, a Director, and a member of the Acquisition Committee, of WNC & Associates, Inc. He is President and a Director of, and a registered principal with, WNC Capital Corporation. He has been involved in real estate investment and acquisition activities since 1988 when he joined WNC & Associates, Inc. Previously, he served as a Government Affairs ~~Assistant~~ Assistant with Honda North America in Washington, D.C. Mr. Cooper serves on the Orange County Advisory Board of U.S. Bank, the Board of Trustees of NHC, the Editorial Advisory Board of Tax Credit Advisor, and the Tax Policy Council of the National Trust for Historic Preservation. He is a member of the Urban Land Institute and of Vistage International, a global network of business leaders and chief executives. He is the son of Wilfred Cooper, Sr. and Kay Cooper. Mr. Cooper graduated from The American University in 1985 with a Bachelor of Arts degree.

2831

Michael J. Gaber, age 4546, is an Executive ~~Vice~~ Vice President, Chief Operating Officer, chair of the Acquisition Committee, and oversees the Property Acquisition and Investment ~~Management~~ Management groups, of WNC & Associates, Inc. Mr. Gaber has been involved in real estate acquisition, valuation and investment ~~activities~~ activities since 1989 and has been associated with WNC & Associates, Inc. since 1997. Prior to joining WNC & Associates, Inc., he was involved in the valuation and classification of major assets, restructuring of debt and analysis of real estate taxes ~~with~~ with a large financial institution. Mr. Gaber is a member of the Housing Credit Group of NAHB and of National Housing and Rehabilitation Association (“NH&RA”). Mr. Gaber graduated from the California State University, Fullerton in 1991 with a Bachelor of Science degree in business administration – finance.

David N. Shafer, age 5960, is an Executive Vice President, a member of the Acquisition Committee, and oversees the New Markets Tax Credit group, of WNC & Associates, Inc. Mr. Shafer has been active in the real estate industry since 1984. Before joining WNC & Associates, Inc. in 1990, he was engaged as an attorney in the private practice of law with a specialty in real estate and taxation. Mr. Shafer is a Director and past ~~President~~ President of the California Council of Affordable Housing, a Director of the Council for Affordable and Rural 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~~ Diego in 1986 with a Master of Laws degree in taxation.

Darrick Metz, age 4142, is Senior Vice President – Originations of WNC & Associates, Inc. He has been involved in multifamily property underwriting, acquisition and ~~investment~~ investment activities since 1991. Prior to joining WNC in 1999, he was employed by a Minnesota development company specializing in tax credit and market rate multifamily projects. Mr. Metz also worked with the Minnesota Housing Finance Agency (“MHFA”), ~~where~~ where he held the position of Senior Housing Development Officer. While at MHFA, he was responsible for the allocation of tax credits, HOME funds and state loan products. Mr. Metz is active in the Qualified Allocation Plan Tax Credit Advisory Committee for the Wisconsin Housing and Economic Development Authority, a member of MHFA’s Multifamily Technical Assistance and a board member of NH&RA. He graduated from St. Cloud State University in 1993 with a Bachelor of Science degree in finance/economics.

Christine A. Cormier, age 5354, is Senior Vice President – Fund Management and, accordingly, oversees the fund management group, of WNC & Associates, Inc. Ms. Cormier has been active in the real estate industry since 1985. Prior to joining WNC in 2008, Ms. Cormier was with another major tax credit syndicator for over 12 years where she was the Managing Director of investor relations. Ms. Cormier graduated from Bentley University in 1982 with a Bachelor of Science degree (summa cum laude) in accounting and computer science.

Melanie R. Wenk, age 4344, is Vice President – Chief Financial Officer of WNC & Associates, Inc. She oversees WNC’s corporate and partnership accounting group, which is responsible for SEC reporting and New Markets Tax Credit compliance. Prior to joining WNC in 2003, Ms. Wenk was associated as a public accountant with BDO Seidman, LLP. She graduated from the California Polytechnic State University, Pomona in 1999 with a Bachelor of Science degree in accounting.

Kelly Henderson, age 4041, is Senior Vice President – Legal ~~Affairs~~Affairsof of WNC & Associates, Inc. She is responsible for structuring local limited partnership letters of understanding and local limited partnership agreements, coordinating closings with outside counsel and reviewing local limited partnership loan documents. Prior to joining WNC in 2006, she was Vice President – Acquisitions and Senior Counsel with a national tax credit syndicator. Ms. Henderson has been underwriting tax credit properties since 1999. She graduated from the State University of New York at Geneseo in 1993 with a Bachelor of Arts degree in political science and from the New England School of Law in 1996 with a Juris Doctor degree. She is licensed to practice law in the States of New York and Massachusetts.

Anand Kannan, age 3233, is Senior Vice President – Development of WNC & Associates, Inc. and leads the preservation and development teams for Community Preservation Partners, LLC. Prior to joining WNC in ~~2011~~2012, Mr. Kannan served as Associate Director at Vitus Group (previously Pacific Housing Advisors, Inc.), where he developed or consulted on affordable housing projects across the country. His expertise is in the acquisition ~~and~~ and rehabilitation of existing low-income housing projects that are or will be financed by tax-exempt bonds, tax credits, and ~~other~~ other government subsidies. Prior to his tenure at Vitus Group, Mr. Kannan was associated with Novogradac & Company LLP. Mr. ~~Kannan~~ Kannan graduated from the University of California at Berkeley in 2002 with a Bachelor of Arts degree in Economics with an emphasis in in Accounting.

2932

Paula Hall, age 4546, is Vice President – Asset Management, a member of the Acquisition Committee, and oversees the asset management group, of WNC & Associates, Inc. She joined WNC in 1997 and has more than 21 years of property management experience. Ms. Hall is a Certified Occupancy Specialist (CPO), Housing Credit Certified Professional (HCCP), and Certified Property Manager (CPM) candidate. Prior to joining WNC, she was a property manager for NHP Property Management (AIMCO) where she oversaw operations, training and development.

Gregory S. Hand, age 4849, is Vice President – Acquisitions, and oversees the property underwriting activities, of the Irvine office of WNC & Associates, Inc. Mr. Hand has been involved in real estate analysis, development and management since 1987. Prior to joining WNC in 1998, he was a ~~portfolio~~ portfolio asset manager with a national tax credit sponsor with responsibility for the management of $200 million in assets. Prior to that, he was a finance manager with The Koll Company and a financial analyst with The Irvine Company. Mr. Hand graduated from Iowa State University in 1987 with a Bachelor of Business Administration degree in finance.

~~Thomas~~Kay FL. ~~Maxwell~~Cooper, age 6076, is ~~Vice~~a ~~President –~~Director ~~Originations~~ of ~~the~~WNC & ~~Northeast~~Associates, ~~Region~~Inc. Heand has 17not ~~years~~otherwise ofbeen ~~experience~~engaged in ~~the~~business ~~tax~~activities ~~credit~~during ~~industry,~~the ~~and~~previous ~~more~~five ~~than~~years. 30Kay ~~years~~Cooper was ofthe ~~real~~sole ~~estate~~proprietor ~~experience,~~of ~~including~~Agate ~~originating~~108, ~~structuring~~a manufacturer and ~~closing~~retailer ~~all~~of ~~types~~home ofaccessory ~~affordable~~products ~~housing~~from ~~developments.~~1975 ~~Prior~~until ~~to joining~~its ~~WNC~~sale in ~~2009,~~1998. heShe is ~~served~~the aswife aof ~~team~~Wilfred ~~leader~~Cooper, ~~for~~Sr. aand ~~national~~the ~~tax~~mother ~~credit~~of ~~syndicator~~Wilfred ~~for~~Cooper, ~~nine years~~Jr. MrMs. ~~Maxwell~~Cooper graduated from ~~Case~~ ~~Western~~the ~~Reserve~~ University ~~in 1974 with a Bachelor~~ of ~~Arts~~Southern California ~~degree~~ in ~~English~~1958 ~~and from Boston University in 1980~~ with a ~~Master~~ Bachelor of ~~Business~~Science ~~Administration~~ degree.

~~Kay~~Jennifer LE. Cooper, age 7550, is a Director of WNC & Associates, Inc. and has not otherwise been engaged in business activities during the previous five years. ~~Kay Cooper was the sole proprietor of Agate 108, a manufacturer and retailer of home accessory products from 1975 until its sale in 1998.~~ She is the wife of Wilfred Cooper, Sr Jr. and ~~the~~attended ~~mother of Wilfred Cooper, Jr. Ms. Cooper graduated from~~ the University of ~~Southern~~Texas ~~California in~~from ~~1958~~1981 ~~with~~to ~~a Bachelor of Science degree~~1986.

Jennifer E. Cooper, age 49, is a Director of WNC & Associates, Inc. and has not otherwise been engaged in business activities during the previous five years. She is the wife of Wilfred Cooper, Jr. and attended the University of Texas from 1981 to 1986.

(f)

Involvement in Certain Legal Proceedings

None.

(g)

Promoters and Control Persons

Inapplicable.

(h)

Audit Committee Financial Expert, and (i) Identification of the audit Committee

Neither the Partnership nor Associates has an audit committee.

(j)

Changes to Nominating Procedures

Inapplicable.

(k)

Compliance With Section 16(a) of the Exchange Act

None.

(l)

Code of Ethics

Associates ~~has~~ has adopted a Code of Ethics which applies to the Chief Executive Officer and Chief Financial Officer of Associates. The Code of Ethics will be provided without charge to any person who requests it. Such requests should be directed to: Investor Relations at (714) 662-5565 extension 187.

Item 11. Executive Compensation

The General Partner and its affiliates are not permitted under Section 5.6 of the Partnership’s Agreement of Limited Partnership (the “Agreement,” incorporated as Exhibit 3.1 to this report) to receive any salary, fees, profits, distributions or allocations from the Partnership or any Local Limited Partnership in which the Partnership invests except as expressly allowed by the Agreement. The compensation and other economic benefits to the General Partner and its affiliates provided for in the Agreement are summarized below.

(a)

Compensation for Services

For services rendered by the General Partner or an Affiliate of the General Partner in connection with the administration of the affairs of the Partnership, the General Partner or any such Affiliate may receive an annual asset management fee equal to the greater of (i) $2,000 for each Housing Complex, or (ii) 0.275% of gross proceeds. In either case, the fee will be decreased or increased annually based on changes to the Consumer Price Index. However, in no event will the maximum amount exceed 0.2% of the invested assets of the Local Limited Partnerships, including the Partnership’s allocable share of the mortgages. The asset management fee is payable with respect to the previous calendar quarter on the first day of each calendar quarter during the year. Accrued but unpaid asset management fees for any year are deferred without interest and are payable in subsequent years from any funds available to the Partnership after payment of all other costs and expenses of the Partnership, including any capital reserves then determined by the General Partner to no longer be necessary to be retained by the Partnership, or from the proceeds of a sale or refinancing of Partnership assets. Asset management fees of $3825,~~880~~743, $4938,~~500~~880, and $49,500 were incurred during the years ended March 31,2013, 2012, ~~2011,~~ and ~~2010~~2011, respectively, of which $981,~~946~~786, $09,946, and $0 were paid during the years ended March 31, ~~2012~~2013, ~~2011~~2012 and ~~2010~~2011, respectively.

Subject to a number of terms and conditions set forth in the Agreement, the General Partner and its Affiliates may be entitled to compensation for services actually rendered or to be rendered in connection with (i) selecting, evaluating, structuring, negotiating and closing the Partnership’s investments in Local Limited Partnership Interests, (ii) the acquisition or development of Properties for the Local Limited Partnerships, or (iii) property management services actually rendered by the General Partner or its Affiliates respecting the Properties owned by Local Limited Partnerships. The Partnership has completed its investment stage, so no compensation for the services in (i) or (ii) has been paid during the period covered by this report and none will be paid in the future. None of the services described in (iii) were rendered and no such compensation was payable for such services during the periods covered by this report.

(b)

Operating Expenses

Reimbursement to the General Partner or any of its Affiliates of Operating Cash Expenses is subject to specific restrictions in Section 5.3.3 of the Partnership’s Agreement of Limited Partnership (the “Agreement,” incorporated as Exhibit 3.1 to this report). The Agreement defines “Operating Cash Expenses” as

“ ” . . . the amount of cash disbursed by the Partnership . . . in the ordinary course of business for the payment of its operating expenses, such as expenses for management, utilities, repair and maintenance, insurance, investor communications, legal, accounting, ~~statistical~~ statistical and bookkeeping services, use of computing or accounting equipment, travel and telephone expenses, salaries and direct ~~expenses~~ expenses of Partnership employees while engaged in Partnership business, and any other operational and administrative expenses ~~necessary~~ necessary for the prudent operation of the Partnership. Without limiting the generality of the foregoing, Operating Cash Expenses ~~shall~~ shall include fees paid by the Partnership to any General Partner or any Affiliate of a General Partner permitted by this Agreement and the actual cost of goods, materials and administrative services used for or by the Partnership, whether incurred by a General Partner, an Affiliate of a General Partner or a non-Affiliated Person in performing the foregoing functions. As used in the preceding sentence, actual cost of goods and materials means the actual cost of goods and materials used for or by the Partnership and obtained from entities not Affiliated with a General Partner, and actual cost of administrative services means the pro rata cost of personnel (as if such persons were employees of the Partnership) associated therewith, but in no event to exceed the Competitive amount.”

The Agreement provides that no such reimbursement shall be permitted for services for which a General Partner or any of its Affiliates is entitled to compensation by way of a separate fee. Furthermore, no such reimbursement is to be made for (a) rent or depreciation, utilities, capital equipment or other such administrative items, and (b) salaries, fringe benefits, travel expenses and other administrative items incurred or allocated to any “controlling person” of a General Partner or any Affiliate of a General Partner. For the purposes of Section 5.3.4, “controlling person” includes, but is not limited to, any person, however titled, who performs functions for a General Partner or any Affiliate of a General Partner similar to those of: (1) chairman or member of the board of directors; (2) executive management, such as president, vice president or senior vice president, corporate secretary or treasurer; (3) senior management, such as the vice president of an operating division who reports directly to executive management; or (4) those holding 5% or more equity interest in such General Partner or any such Affiliate of a General Partner or a person having the power to direct or cause the direction of such General Partner or any such Affiliate of a General Partner, whether through the ownership of voting securities, by contract or otherwise.

The unpaid operating expenses reimbursable to the General Partner or its affiliates were $9,594, $117,275, and $214,631 for the years ended March 31, 2012, 2011 and 2010, respectively. The Partnership reimbursed the General Partner or its affiliates for operating expenses of $112,035, $35,000, and $0 during the years ended March 31, 2012, 2011 and 2010, respectively.34

The unpaid operating expenses reimbursable to the General Partner or its affiliates were $485, $9,594, and $117,275 for the years ended March 31, 2013, 2012 and 2011, respectively. The Partnership reimbursed the General Partner or its affiliates for operating expenses of $111,596, $112,000, and $35,000 during the years ended March 31, 2013, 2012 and 2011, respectively.

(c)

Interest in Partnership

The General Partner receives 1% of the Partnership’s allocated Low Income Housing Tax Credits, which approximated $0, $0 and $0 for the years ended December 31, ~~2011~~2012, ~~2010~~2011, and ~~2009~~2010 respectively. The General Partner is also entitled to receive 1% of the Partnership’s operating income or losses, gain or loss from the sale of property and operating cash distributions. There were no distributions of operating cash to the General Partner during the years ended March 31,2013, 2012, ~~2011~~ and ~~2010~~2011. The General Partner has an interest in sale or refinancing proceeds as follows: after the Limited Partners have received a return of their capital, the General Partner may receive an amount equal to its capital contribution, less any prior distribution of such proceeds, then the General Partner may receive 1% and the Limited Partners 99% of any remaining proceeds. There were no such distributions of cash to the General Partner during the years ended March 31, ~~2012~~2013, ~~2011~~2012 and ~~2010~~2011.

(d)

Subordinated Disposition Fee

A subordinated disposition fee in an amount equal to 1% of the sale price may be received in connection with the sale or disposition of a Housing Complex or Local Limited Partnership interest. Payment of this fee is subordinated to the Limited Partners receiving a preferred return of 14% through December 31, 2006 and 6 % thereafter (as defined in the Partnership Agreement) and is payable only if the General Partner or its affiliates render services in the sales effort. No such fee was incurred for all periods presented.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

(a)

Securities Authorized for Issuance Under Equity Compensation Plans

The Partnership has no compensation plans under which interests in the Partnership are authorized for issuance.

32(b) Security Ownership of Certain Beneficial Owners

~~(b)~~The following ~~Security~~are ~~Ownership~~the only limited partners known to the General Partner to own beneficially in excess of ~~Certain~~5% ~~Beneficial~~of ~~Owners~~the outstanding Partnership Units as of March 31, 2013, and 2012.

The following are the only limited partners known to the General Partner to own beneficially in excess of 5% of the outstanding Partnership Units as of March 31, 2012, and 2011.

Title of Class	Name and Address of Beneficial Owner	Amount of Units Controlled	Percent of Class

Units of Limited Partnership Interests	Sempra Section 42, LLC P.O. Box 126943 San Diego, CA 92113-6943	4,560 units	25.3%

Units of Limited Partnership Interests	Western Financial Savings Bank 23 Pasteur Irvine, CA 92718	1,068 units	5.9%

Title of Class	Name and Address of Beneficial Owner	Amount of Units Controlled	Percent of Class
Units of Limited Partnership Interests	Sempra Section 42, LLC P.O. Box 126943 San Diego, CA 92113-6943	4,560 units	25.3%
Units of Limited Partnership Interests	Western Financial Savings Bank 23 Pasteur Irvine, CA 92718	1,068 units	5.9%

(c)

Security Ownership of Management

Neither the General Partner, Associates, its affiliates, nor any of the officers or directors of the General Partner, Associates, or its affiliates own directly or beneficially any Partnership Units.

(d)

Changes in Control

The management and control of Associates may be changed at any time in accordance with their respective organizational documents, without the consent or approval of the Limited Partners. In addition, the Partnership Agreement provides for the admission of one or more additional and successor General Partners in certain circumstances.

(a)

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, reimbursement of expenses, and the General Partner’s interest in the Partnership, as discussed in Item 11 and in the notes to the Partnership’s financial statements.

(b)

The Partnership has no directors.

Item 14. Principal Accountant Fees and Services

The following is a summary of fees paid to the Partnership’s principal independent registered public accounting firm for the years ended March 31:

	2012		2011
	2013		2012
Audit Fees	$	2820,~~670~~950	$	2428,~~260~~670
Audit-related Fees		-		-
Tax Fees		~~3,035~~-		3,035
All Other Fees		-		-
TOTAL	$	20,950	$	31,705
TOTAL	$	31,705	$	27,295

The Partnership has no Audit Committee. All audit services and ~~any~~ any permitted non-audit services performed by the Partnership’s independent auditors are ~~preapproved~~pre approved by the General Partner.

PART IV.

Item 15. Exhibits and Financial Statement Schedules

(a)(1) List of Financial statements included in Part II hereof

(a)(1)		List of Financial statements included in Part II hereof

		Reports of Independent Registered Public Accounting Firms
		Balance Sheets, March 31, 2013 and 2012
		Statements of Operations for the years ended March 31, 2013, 2012 and 2011
		Statements of Partners’ Equity (Deficit) for the years ended March 31, 2013, 2012 and 2011
		Statements of Cash Flows for the years ended March 31, 2013, 2012 and 2011
		Notes to Financial Statements

(a)(2)		List of Financial statement schedules included in Part IV hereof:

		Schedule III, Real Estate Owned by Local Limited Partnerships

(a)(3)		Exhibits.

3.1		Articles of incorporation and by-laws: The registrant is not incorporated. The Partnership Agreement is included as Exhibit B to the Prospectus, filed as Exhibit 28.1 to Form 10-K dated December 31, 1995 is hereby incorporated herein by reference as exhibit 3.1.

31.1		Certification of the Chief Executive Officer pursuant to Rule 13a-14 or 15d-14, (filed herewith)

31.2		Certification of the Chief Financial Officer pursuant to Rule 13a-14 or 15d-14, (filed herewith)

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

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

101.		Interactive data files pursuant to Rule 405 of Regulation S-T: (i) the Balance Sheets at March 31, 2013 and 2012, (ii) the Statements of Operations for the years ended March 31, 2013, 2012 and 2011, (iii) the Statements of Partners’ Equity (Deficit) for the years ended March 31, 2013, 2012 and 2011, (iv) the Statements of Cash Flows for the years ended March 31, 2013, 2012 and 2011 and (v) the Notes to Financial Statements

Balance Sheets, March 31, 2012 and 2011

Statements of Operations for the years ended March 31, 2012, 2011 and 2010

Statements of Partners’ Equity (Deficit) for the years ended March 31, 2012, 2011 and 2010

Statements of Cash Flows for the years ended March 31, 2012, 2011 and 2010

Notes to Financial Statements

(a)(2) List of Financial statement schedules included in Part IV hereof:

Schedule III, Real Estate Owned by Local Limited Partnerships

(a)(3) Exhibits.

3.1 Articles of incorporation and by-laws: The registrant is not incorporated. The Partnership Agreement is included as Exhibit B to the Prospectus, filed as Exhibit 28.1 to Form 10-K dated December 31, 1995 is hereby incorporated herein by reference as exhibit 3.1.

31.1 Certification of the Chief Executive Officer pursuant to Rule 13a-14 or 15d-14, (filed herewith)

31.2 Certification of the Chief Financial Officer pursuant to Rule 13a-14 or 15d-14, (filed herewith)

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

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

101. Interactive data files pursuant to Rule 405 of Regulation S-T: (i) the Balance Sheets at March 31, 2012 and 2011, (ii) the Statements of Operations for the years ended Mach 31, 2012, 2011 and 2010, (iii) the Statements of Cash Flows for the years ended March 31, 2012, 2011 and 2010 and (iv) the Notes to Financial Statements

Exhibits 32.1, 32.2 and 101 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that Section. Such exhibits shall not be deemed incorporated by reference into any filing under the Securities Act of 1933 or Securities Exchange Act of 1934.

WNC Housing Tax Credit Fund V, L.P., Series 3

Schedule III

Real Estate Owned by Local Limited Partnerships

March 31, 2012

		As of March 31, 2012				As of December 31, 2011
Local Limited Partnership Name	Location	Total Investment in Local Limited Partnerships		Amount of Investment Paid to Date		Mortgage Balances of Local Limited Partnerships		Land		Building and Equipment		Accumulated Depreciation		Net Book Value
Blessed Rock of El Monte	El Monte, California	$	2,511,000	$	2,511,000	$	2,604,000	$	1,334,000	$	8,388,000	$	3,060,000	$	6,662,000
Broadway Apartments, Limited Partnership	Hobbs, New Mexico	2,029,000			2,029,000		1,166,000		69,000		3,431,000		1,752,000		1,748,000
Curtis Associates I, L.P.	Curtis, Nebraska	88,000			88,000		401,000		10,000		539,000		302,000		247,000
Escatawpa Village Associates, Limited Partnership (2)	Escatawpa, Mississippi	249,000			249,000		849,000		40,000		1,377,000		751,000		666,000
Heritage Apartments I, L.P.	Berkeley, Missouri	752,000			752,000		509,000		105,000		1,600,000		852,000		853,000
Hillcrest Associates, a Limited Partnership	Ontario, Oregon	354,000			354,000		1,232,000		96,000		1,605,000		701,000		1,000,000
Prairieland Properties of Syracuse II, L.P.	Syracuse, Kansas	85,000			85,000		280,000		25,000		503,000		283,000		245,000
Rosedale Limited Partnership	Silver City, New Mexico	309,000			309,000		1,257,000		40,000		1,741,000		955,000		826,000
Shepherd South Apartments I, Ltd. (1)	Shepherd, Texas	121,000			121,000		507,000		12,000		796,000		349,000		459,000
Solomon Associates I, L.P.	Solomon, Kansas	138,000			138,000		544,000		16,000		751,000		434,000		333,000
Talladega County Housing Ltd.	Talladega, Alabama	653,000			653,000		676,000		62,000		1,446,000		634,000		874,000
The Willows Apartments Limited Partnership	Morganton, North Carolina	841,000			841,000		953,000		48,000		1,829,000		745,000		1,132,000
		$	8,130,000	$	8,130,000	$	10,978,000	$	1,857,000	$	24,006,000	$	10,818,000	$	15,045,000

(1) The Local Limited Partnership was identified for disposition as of March 31, 2012.

(2) The Local Limited Partnership was identified for disposition subsequent to March 31, 2012.

WNC Housing Tax Credit Fund V, L.P., Series 3

Schedule III

Real Estate Owned by Local Limited Partnerships

March 31, 2012

	For the year ended December 31, 2011
Local Limited Partnership Name	Rental Income		Net Income (Loss)			Estimated Useful Life (Years)
Blessed Rock of El Monte	$	974,000	$	76,000			40
Broadway Apartments, Limited Partnership		453,000		58,000			40
Curtis Associates I, L.P.		51,000		(19,000	)		27.5
Escatawpa Village Associates, Limited Partnership (2)		220,000		(9,000	)		27.5
Heritage Apartments I, L.P.		151,000		(41,000	)		27.5
Hillcrest Associates, A Limited Partnership		208,000		(20,000	)		40
Prairieland Properties of Syracuse II, L.P.		47,000		(18,000	)		27.5
Rosedale Limited Partnership		211,000		(28,000	)		30
Shepherd South Apartments I, Ltd. (1)		131,000		-			40
Solomon Associates I, L.P.		82,000		(17,000	)		27.5
Talladega County Housing Ltd.		117,000		(14,000	)		40
The Willows Apartments Limited Partnership		164,000		(15,000	)		40
	$	2,809,000	$	(47,000	)

(1) The Local Limited Partnership was identified for disposition as of March 31, 2012.

(2) The Local Limited Partnership was identified for disposition subsequent to March 31, 2012.

WNC Housing Tax Credit Fund V, L.P., Series 3

Schedule III

Real Estate Owned by Local Limited Partnerships

March 31, 2011

		As of March 31, 2011				As of December 31, 2010
Local Limited Partnership Name	Location	Total Investment in Local Limited Partnerships		Amount of Investment Paid to Date		Mortgage Balances of Local Limited Partnerships		Land		Building and Equipment		Accumulated Depreciation		Net Book Value
Alliance Apartments I Limited Partnership (*)	Alliance, Nebraska	$	604,000	$	604,000	$	308,000	$	148,000	$	1,400,000	$	590,000	$	958,000
Blessed Rock of El Monte	El Monte, California	2,511,000			2,511,000		2,843,000		1,334,000		8,338,000		2,829,000		6,843,000
Broadway Apartments, Limited Partnership	Hobbs, New Mexico	2,029,000			2,029,000		1,218,000		70,000		3,430,000		1,752,000		1,748,000
Curtis Associates I, L.P.	Curtis, Nebraska	88,000			88,000		401,000		10,000		535,000		281,000		264,000
Escatawpa Village Associates, Limited Partnership	Escatawpa, Mississippi	249,000			249,000		849,000		40,000		1,378,000		701,000		717,000
Hastings Apartments I, Limited Partnership	Hastings, Nebraska	542,000			542,000		115,000		32,000		1,303,000		577,000		758,000
Heritage Apartments I, L.P.	Berkeley, Missouri	752,000			752,000		595,000		105,000		1,597,000		793,000		909,000
Hillcrest Associates, a Limited Partnership	Ontario, Oregon	354,000			354,000		1,241,000		96,000		1,605,000		662,000		1,039,000
Patten Towers, L.P. II (*)	Chattanooga, Tennessee	2,154,000			2,154,000		4,109,000		52,000		2,093,000		-		2,145,000

WNC Housing Tax Credit Fund V, L.P., Series 3 Schedule III Real Estate Owned by Local Limited Partnerships March 31, 2013

Schedule III

		As of March 31, 2013				As of December 31, 2012
Local Limited Partnership Name	Location	Total Investment in Local Limited Partnerships		Amount of Investment Paid to Date		Mortgage Balances of Local Limited Partnerships		Land		Building and Equipment		Accumulated Depreciation		Net Book Value

Blessed Rock of El Monte (3)	El Monte, California	$	2,511,000	$	2,511,000	$	2,055,000	$	1,334,000	$	8,465,000	$	3,304,000	$	6,495,000

Broadway Apartments, Limited Partnership (2)	Hobbs, New Mexico		2,029,000		2,029,000		1,110,000		69,000		3,431,000		1,993,000		1,507,000

Curtis Associates I, L.P. (1)	Curtis, Nebraska		N/A		N/A		398,000		10,000		539,000		323,000		226,000

Prairieland Properties of Syracuse II, L.P. (1)	Syracuse, Kansas		N/A		N/A		278,000		25,000		505,000		303,000		227,000

Solomon Associates I, L.P (1)	Solomon, Kansas		N/A		N/A		541,000		16,000		764,000		463,000		317,000

Talladega County Housing Ltd. (1)	Talladega, Alabama		N/A		N/A		658,000		62,000		1,446,000		667,000		841,000

The Willows Apartments Limited Partnership (3)	Morganton, North Carolina		841,000		841,000		937,000		48,000		1,828,000		788,000		1,088,000

		$	5,381,000	$	5,381,000	$	5,977,000	$	1,564,000	$	16,978,000	$	7,841,000	$	10,701,000

Real Estate Owned by Local Limited Partnerships

(1)		The Local Limited Partnership interest was sold subsequent to December 31, 2012 but prior to March 31, 2013.

(2)		The Local Limited Partnership was identified for disposition subsequent to March 31, 2013.

(3)		The Local Limited Partnership interest was sold subsequent to March 31, 2013

March 31, 2011

		As of March 31, 2011				As of December 31, 2010
Local Limited Partnership Name	Location	Total Investment in Local Limited Partnerships		Amount of Investment Paid to Date		Mortgage Balances of Local Limited Partnerships		Land		Building and Equipment		Accumulated Depreciation		Net Book Value
Prairieland Properties of Syracuse II, L.P.	Syracuse, Kansas	85,000			85,000		280,000		25,000		504,000		263,000		266,000
Rosedale Limited Partnership	Silver City, New Mexico	309,000			309,000		1,264,000		40,000		1,736,000		896,000		880,000
Shepherd South Apartments I, Ltd.	Shepherd, Texas	121,000			121,000		507,000		12,000		788,000		329,000		471,000
Solomon Associates I, L.P.	Solomon, Kansas	138,000			138,000		544,000		16,000		728,000		406,000		338,000
Talladega County Housing Ltd.	Talladega, Alabama	653,000			653,000		676,000		62,000		1,446,000		599,000		909,000
The Willows Apartments Limited Partnership	Morganton, North Carolina	841,000			841,000		969,000		48,000		1,829,000		702,000		1,175,000
		$	11,430,000	$	11,430,000	$	15,919,000	$	2,090,000	$	28,710,000	$	11,380,000	$	19,420,000

(*) The Local Limited Partnership has been identified for disposition.

WNC Housing Tax Credit Fund V, L.P., Series 3 Schedule III Real Estate Owned by Local Limited Partnerships March 31, 2013

Schedule III

	For the year ended December 31, 2012
Local Limited Partnership Name	Rental Income		Net Income (Loss)			Estimated Useful life (Years)

Blessed Rock of El Monte (2)	$	987,000	$	77,000			40

Broadway Apartments, Limited Partnership (3)		460,000		(199,000	)		40

Curtis Associates I, L.P. (1)		45,000		(21,000	)		27.5

Prairieland Properties of Syracuse II, L.P. (1)		48,000		(16,000	)		27.5

Solomon Associates I, L.P. (1)		86,000		(22,000	)		27.5

Talladega County Housing Ltd. (1)		116,000		(15,000	)		40

The Willows Apartments Limited Partnership (2)		158,000		(37,000	)		40

	$	1,900,000	$	(233,000	)

Real Estate Owned by Local Limited Partnerships

(1)

The Local Limited Partnership interest was sold

Filing Compare · WNC HOUSING TAX CREDIT FUND V LP SERIES 3