FINANCIAL
STATEMENTS AND

INDEPENDENT
AUDITOR’S REPORT



BOLIVAR
PLAZA APTS, L.P.



DECEMBER
31, 2007















BOLIVAR
PLAZA APTS, L.P.



TABLE
OF CONTENTS



|                                                        |  | PAGE
|------------------------------------------------------- |  | ----
|                                                        |  |     
|REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM |  | F-1 
|                                                        |  |     
|FINANCIAL STATEMENTS:                                   |  |     
|                                                        |  |     
|BALANCE SHEET                                           |  | F-2 
|                                                        |  |     
|STATEMENT OF OPERATIONS                                 |  | F-4 
|                                                        |  |     
|STATEMENT OF CHANGES IN PARTNERS’ CAPITAL               |  | F-7 
|                                                        |  |     
|STATEMENT OF CASH FLOWS                                 |  | F-8 
|                                                        |  |     
|NOTES TO FINANCIAL STATEMENTS                           |  | F-9 















REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM



To
the Partners

Bolivar
Plaza Apts, L.P.



We
have audited the accompanying balance sheet of Bolivar Plaza Apts, L.P., a Missouri LimitedPartnership,
as of December 31, 2007 and the related statements of operations, changes in partners’ capital and cash flows for the year
then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to
express an opinion on these financial statements based on our audit.



We
conducted our audit in accordance with the Standards of the Public 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 has determined that it 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. An
audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.



In
our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Bolivar
Plaza Apts, L.P. as of December 31, 2007 and the results of its operations, changes in partners’ capital and cash flows
for the year then ended in conformity with accounting principles generally accepted in the United States of America.







Metairie,
Louisiana

February
26, 2008







F-1







BOLIVAR
PLAZA APTS, L.P.



BALANCE
SHEET



DECEMBER
31, 2007



|                                        |                                                 |  | 2007 |          
|--------------------------------------- | ----------------------------------------------- |  | ---- | ---------
|                                        | ASSETS                                          |  |      |          
|                                        |                                                 |  |      |          
|CURRENT ASSETS                          |                                                 |  |      |          
|1120                                    | Cash - Operating                                |  | $    | 11,681   
|1200                                    | Miscellaneous Prepaid Expenses                  |  |      | 929      
|                                        | 1100T Total Current Assets                      |  |      | 12,610   
|                                        |                                                 |  |      |          
|DEPOSITS HELD IN TRUST - FUNDED         |                                                 |  |      |          
|1191                                    | Tenant Deposits Held in Trust                   |  |      | 7,195    
|                                        |                                                 |  |      |          
|RESTRICTED DEPOSITS AND FUNDED RESERVES |                                                 |  |      |          
|1310                                    | Escrow Deposits                                 |  |      | 5,807    
|1320                                    | Replacement Reserve                             |  |      | 61,215   
|                                        | 1300T Total Restricted Deposits/Funded Reserves |  |      | 74,217   
|                                        |                                                 |  |      |          
|FIXED ASSETS                            |                                                 |  |      |          
|1410                                    | Land                                            |  |      | 119,000  
|1420                                    | Buildings                                       |  |      | 2,021,764
|1450                                    | Furniture for Project/Tenant Use                |  |      | 2,787    
|1490                                    | Miscellaneous Fixed Assets                      |  |      | 6,149    
|                                        | 1400T Total Fixed Assets                        |  |      | 2,149,700
|                                        | 1495 Less: Accumulated Depreciation             |  |      | (402,352 
|                                        | 1400N Fixed Assets, Net                         |  |      | 1,747,348
|                                        |                                                 |  |      |          
|                                        | 1000T TOTAL ASSETS                              |  | $    | 1,834,175



See
auditor’s report and accompanying notes to the financial statements.



F-2







BOLIVAR
PLAZA APTS, L.P.



BALANCE
SHEET



DECEMBER
31, 2007



|                                   |                                                |  | 2007 |          
|---------------------------------- | ---------------------------------------------- |  | ---- | ---------
|                                   | LIABILITIES AND EQUITY                         |  |      |          
|                                   |                                                |  |      |          
|CURRENT LIABILITIES                |                                                |  |      |          
|2123                               | Accrued Management Fees Payable                |  | $    | 942      
|2170                               | Mortgage Payable - First Mortgage (Short Term) |  |      | 16,456   
|                                   | 2122T Total Current Liabilities                |  |      | 17,398   
|                                   |                                                |  |      |          
|DEPOSIT AND PREPAYMENT LIABILITIES |                                                |  |      |          
|2191                               | Tenant Deposits Held in Trust                  |  |      | 7,195    
|                                   |                                                |  |      |          
|LONG-TERM LIABILITIES              |                                                |  |      |          
|2320                               | Mortgage Payable                               |  |      | 434,420  
|                                   | 2300T Total Long-Term Liabilities              |  |      | 434,420  
|                                   |                                                |  |      |          
|                                   | 2000T Total Liabilities                        |  |      | 459,013  
|                                   |                                                |  |      |          
|PARTNERS’ EQUITY                   |                                                |  |      |          
|3130                               | Partners’ Equity                               |  |      | 1,375,162
|                                   |                                                |  |      |          
|                                   | 2033T TOTAL LIABILITIES AND EQUITY             |  | $    | 1,834,175



See
auditor’s report and accompanying notes to the financial statements.



F-3







BOLIVAR
PLAZA APTS, L.P.



STATEMENT
OF OPERATIONS



DECEMBER
31, 2007



|                  |                                                |  | 2007 |        
|----------------- | ---------------------------------------------- |  | ---- | -------
|RENTAL INCOME     |                                                |  |      |        
|5120              | Rent Revenue - Gross Potential                 |  | $    | 108,608
|5121              | Tenant Assistance Payments                     |  |      | 5,281  
|                  | 5100T Total Rent Revenue                       |  |      | 113,889
|                  |                                                |  |      |        
|VACANCIES         |                                                |  |      |        
|5220              | Apartments                                     |  |      | (608   
|                  | 5200T Total Vacancies                          |  |      | (608   
|                  |                                                |  |      |        
|                  | 5152N Net Rental Revenue                       |  |      | 113,281
|                  |                                                |  |      |        
|FINANCIAL REVENUE |                                                |  |      |        
|5440              | Revenue from Investments - Replacement Reserve |  |      | 1,368  
|5490              | Revenue from Investments - Miscellaneous       |  |      | 134    
|                  | 5400T Total Financial Revenue                  |  |      | 1,502  
|                  |                                                |  |      |        
|OTHER REVENUE     |                                                |  |      |        
|5920              | Tenant Charges (NSF, Late Charges, etc.)       |  |      | (50    
|                  | 5900T Total Other Revenue                      |  |      | (50    
|                  |                                                |  |      |        
|                  | 5000T Total Revenue                            |  | $    | 114,733



See
auditor’s report and accompanying notes to the financial statements.



F-4







BOLIVAR
PLAZA APTS, L.P.



STATEMENT
OF OPERATIONS



DECEMBER
31, 2007



|                                  |                                                |  | 2007 |       
|--------------------------------- | ---------------------------------------------- |  | ---- | ------
|ADMINISTRATIVE EXPENSES           |                                                |  |      |       
|6210                              | Advertising and Marketing                      |  | $    | 86    
|6311                              | Office Expenses                                |  |      | 1,724 
|6320                              | Management Fee                                 |  |      | 11,519
|6330                              | Manager or Superintendent Salaries             |  |      | 5,441 
|6350                              | Audit Expense                                  |  |      | 3,745 
|6360                              | Telephone                                      |  |      | 994   
|6390                              | Miscellaneous Administrative Expenses          |  |      | 105   
|                                  | 6263T Total Administrative Expenses            |  |      | 23,614
|                                  |                                                |  |      |       
|UTILITIES EXPENSE                 |                                                |  |      |       
|6450                              | Electricity                                    |  |      | 2,615 
|6451                              | Water                                          |  |      | 550   
|6452                              | Gas                                            |  |      | 973   
|6453                              | Sewer                                          |  |      | 779   
|6454                              | Cable TV / Internet Access                     |  |      | 330   
|                                  | 6400T Total Utilities Expense                  |  |      | 5,247 
|                                  |                                                |  |      |       
|OPERATING AND MAINTENANCE EXPENSE |                                                |  |      |       
|6510                              | Operating & Maintenance - Payroll              |  |      | 5,603 
|6515                              | Operating & Maintenance - Supplies             |  |      | 2,448 
|6520                              | Operating & Maintenance - Contracts            |  |      | 10,236
|6525                              | Garbage and Trash Removal                      |  |      | 1,792 
|6546                              | Heating/Cooling Repairs and Maintenance        |  |      | 629   
|6548                              | Snow Removal                                   |  |      | 981   
|6573                              | Exterminating                                  |  |      | 1,088 
|6580                              | Vacant Unit Preparation                        |  |      | 11,366
|                                  | 6500T Total Operating and Maintenance Expenses |  |      | 34,143



See
auditor’s report and accompanying notes to the financial statements.



F-5







BOLIVAR
PLAZA APTS, L.P.



STATEMENT
OF OPERATIONS



DECEMBER
31, 2007



|                    |                                                    |  | 2007 |        
|------------------- | -------------------------------------------------- |  | ---- | -------
|TAXES AND INSURANCE |                                                    |  |      |        
|6710                | Real Estate Taxes                                  |  | $    | 2,895  
|6711                | Payroll Taxes                                      |  |      | 1,234  
|6720                | Property and Liability Insurance                   |  |      | 5,912  
|6721                | Fidelity Bond Insurance                            |  |      | 20     
|6722                | Workmen’s Compensation                             |  |      | 215    
|6723                | Health Insurance & Other Employee Benefits         |  |      | 53     
|                    | 6700T Total Taxes and Insurance                    |  |      | 10,329 
|                    |                                                    |  |      |        
|FINANCIAL EXPENSES  |                                                    |  |      |        
|6820                | Interest on Mortgage Payable                       |  |      | 4,605  
|                    | 6800T Total Financial Expenses                     |  |      | 4,605  
|                    |                                                    |  |      |        
|                    | 6000T Total Cost of Operations Before Depreciation |  |      | 77,938 
|                    |                                                    |  |      |        
|                    | 5060T Profit (Loss) Before Depreciation            |  |      | 36,795 
|                    |                                                    |  |      |        
|6600                | Depreciation                                       |  |      | (50,544
|                    |                                                    |  |      |        
|                    | 5060N Operating Profit (Loss)                      |  |      | (13,749
|                    |                                                    |  |      |        
|                    | 3250 Net Income (Loss)                             |  | $    | (13,749



See
auditor’s report and accompanying notes to the financial statements.



F-6







BOLIVAR
PLAZA APTS, L.P.



STATEMENT
OF CHANGES IN PARTNERS’ CAPITAL



DECEMBER
31, 2007



|          |                             |  |          |        |   |          |   |           | Total     | 
|--------- | --------------------------- |  | -------- | ------ | - | -------- | - | --------- | --------- | 
|          |                             |  | General  |        |   | Limited  |   |           | Partners’ | 
|          |                             |  | Partners |        |   | Partners |   |           | Capital   | 
|          |                             |  | 0.01%    |        |   | 99.99%   |   |           | 100%      | 
|          |                             |  |          |        |   |          |   |           |           | 
|S1100-010 | Balance - January 1, 2007   |  | $        | (9,674 | ) |          | $ | 1,398,585 |           | 
|          |                             |  |          |        |   |          |   |           |           | 
|S3250     | Net Income (Loss)           |  |          | (137   | ) |          |   | (13,611   | )         | 
|          |                             |  |          |        |   |          |   |           |           | 
|3130      | Balance - December 31, 2007 |  | $        | (9,811 | ) |          | $ | 1,384,974 |           | 



See
auditor’s report and accompanying notes to the financial statements.



F-7







BOLIVAR
PLAZA APTS, L.P.



STATEMENT
OF CASH FLOWS



DECEMBER
31, 2007



|Cash flows from operating activities:                                                        |  |   |         |  
|-------------------------------------------------------------------------------------------- |  | - | ------- | -
|Net Income (Loss)                                                                            |  | $ | (13,749 | )
|Adjustments to reconcile net income (loss) to net cash provided by
    operating activities: |  |   |         |  
|Depreciation and amortization                                                                |  |   | 50,544  |  
|(Increase) decrease in accounts receivable                                                   |  |   | 332     |  
|(Increase) decrease in prepaid expenses                                                      |  |   | 1,947   |  
|Increase (decrease) in security deposits payable                                             |  |   | 1       |  
|Increase (decrease) in accrued expenses                                                      |  |   | (440    | )
|Total adjustments                                                                            |  |   | 52,384  |  
|Net cash provided (used) by operating activities                                             |  |   | 38,635  |  
|                                                                                             |  |   |         |  
|Cash flows from investing activities:                                                        |  |   |         |  
|Purchase of Fixed Assets                                                                     |  |   | (2,456  | )
|(Deposit) withdrawal to escrows and guarantees                                               |  |   | 171     |  
|(Deposit) withdrawal to replacement reserve                                                  |  |   | (12,032 | )
|Net cash provided (used) by investing activities                                             |  |   | (14,317 | )
|                                                                                             |  |   |         |  
|Cash flows from financing activities:                                                        |  |   |         |  
|Principal payments on long-term debt                                                         |  |   | (19,255 | )
|Net cash provided (used) by financing activities                                             |  |   | (19,255 | )
|                                                                                             |  |   |         |  
|Net increase (decrease) in cash and equivalents                                              |  |   | 5,063   |  
|Cash and equivalents, beginning of year                                                      |  |   | 6,618   |  
|                                                                                             |  |   |         |  
|Cash and equivalents, end of year                                                            |  | $ | 11,681  |  
|                                                                                             |  |   |         |  
|Supplemental disclosures of cash flow information:                                           |  |   |         |  
|Cash paid during the year for:                                                               |  |   |         |  
|Interest Expense                                                                             |  | $ | 4,605   |  



See
auditor’s report and accompanying notes to the financial statements.



F-8







BOLIVAR
PLAZA APTS, L.P.



NOTES
TO FINANCIAL STATEMENTS



DECEMBER
31, 2007



NOTE
A - NATURE OF OPERATIONS



Bolivar
Plaza Apts, L.P. (the “Partnership”) was formed in Missouri on March 2, 1999 as a Limited Partnership. Under the terms
of the Limited Partnership Agreement, the General Partner is MBL Development Co. and the Limited Partners are WNC Housing Tax
Credit Fund V Series 4, WNC Housing, LP, and Credit Investors Ptn #7, LLC.



The
Partnership was organized to develop, construct, own, maintain and operate thereon 32 multi-family residential units for rental
to low-income tenants (the “Project”).



The
Project received an allocation of low income housing tax credits from the Missouri Housing Development Commission under Section
42 of the Internal Revenue Code of 1986, as amended. An Extended Low-Income Housing agreement has been executed which requires
the utilization of the project pursuant to Section 42 for a minimum of 30 years, even after the disposition of the project by
the Partnership.



NOTE
B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES



A
summary of significant accounting policies consistently applied in the presentation of the accompanying financial statements follows.



Basis
of Accounting



The
financial statements are prepared on the accrual basis of accounting and in accordance with generally accepted accounting principles.



Cash
and Cash Equivalents



For
purposes of the statement of cash flows, cash and cash equivalents include all cash balances and highly liquid investments with
a maturity of three months or less at the acquisition date. The Partnership does not include cash restricted for special purposes.



Restricted
Deposits



These
reserves have been established pursuant to the Regulatory Agreement with MHDC. Funding of these
reserves is made on a monthly basis and disbursements from the reserves can be made only withthe approval of MHDG.



Concentration
of Credit Risk



The
Partnership maintains its cash in bank deposit accounts, which, at times, may exceed federally insured limits. The Partnership
has not experienced any losses in such accounts. Management believes the Partnership is not exposed to any significant credit
risk on cash and cash equivalents.



F-9







BOLIVAR
PLAZA APTS, L.P.



NOTES
TO FINANCIAL STATEMENTS



DECEMBER
31, 2007



NOTE
B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)



Real
Estate Capitalization and Depreciation



Real
Estate is stated at cost. Major additions and improvements will be capitalized, while items which do not extend the useful lives
of the assets will be expended currently. Depreciation will be provided for in amounts sufficient
to relate the cost of depreciable assets to operations over their estimated service livesusing the straight-line method
and modified accelerated cost recovery system. Upon disposal of depreciable property, the appropriate property accounts are reduced
by the related costs and accumulated depreciation. The resulting gains and losses are reflected in the statement of operations.
The estimated service lives are 27.5, 15, and 5 years for buildings, improvements, and furniture and fixtures, respectively.



Impairment
of long-lived assets



The
Partnership reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying
value may not be recoverable. Recoverability is measured by a comparison of the carrying amount to the future net undiscounted
cash flow expected to be generated and any estimated proceeds from the eventual disposition. If the long-lived asset is considered
to be impaired, the impairment to be recognized is measured at the amount by which the carrying amount exceeds the fair value
as determined from an appraisal, discounted cash flows analysis, or other valuation technique. There were no impairment losses
recognized during 2007.



Rental
Income



Rental
income is recognized as rentals become due. Rental payments received in advance are deferreduntil
earned. All leases between the partnership and the residents of the property are operating leases.



Income
Taxes



No
provision or benefit for income taxes has been included in these financial statements. Taxable income or loss passes through to
and is reportable by the partners individually.



Use
of Estimates



The
preparation of financial statements in conformity with accounting principles generally accepted in theUnited
States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements
and accompanying notes. Actual results may differ from those estimates.



F-10







BOLIVAR
PLAZA APTS, L.P.



NOTES
TO FINANCIAL STATEMENTS



DECEMBER
31, 2007



NOTE
C - SCHEDULE OF FUNDS IN FINANCIAL INSTITUTIONS



Funds
in Financial Institutions as of December 31, 2007:



|A. Funds Held by Bank, Regular Accounts:                  |  |   |        |  |  |   |        | 
|--------------------------------------------------------- |  | - | ------ |  |  | - | ------ | 
|Mid-Missouri Bank, Operating Account                      |  | $ | 11,681 |  |  |   |        | 
|                                                          |  |   |        |  |  |   |        | 
|B. Funds Held by Bank, in Trust, Tenant Security Deposit: |  |   |        |  |  |   |        | 
|Independent Farmers Bank, Tenant Security Deposit         |  |   | 7,195  |  |  |   |        | 
|                                                          |  |   |        |  |  |   |        | 
|Funds Held by Bank, Total                                 |  |   |        |  |  | $ | 18,876 | 
|                                                          |  |   |        |  |  |   |        | 
|C. Funds Held by Mortgagee, in Trust:                     |  |   |        |  |  |   |        | 
|1. Tax and Insurance Escrow, MHDC                         |  |   | 5,807  |  |  |   |        | 
|2. Reserve for Replacements, MHDC                         |  |   | 61,215 |  |  |   |        | 
|                                                          |  |   |        |  |  |   |        | 
|Funds Held by Mortgagee, Total                            |  |   |        |  |  |   | 67,022 | 
|                                                          |  |   |        |  |  |   |        | 
|Total Funds in Financial Institutions                     |  |   |        |  |  | $ | 85,898 | 



NOTE
D - RESTRICTED CASH



Tenant
Security Deposits



As
required by the MHDC, the Partnership maintains a separate account for tenant security deposits. As deposits are received they
are deposited into a separate bank account and held in trust for the tenants until they vacate the property. Any amounts not returned
to the tenant due to lease violations are transferred to the Partnership’s general operating account. The balance of the
account totaled $7,195 at December 31, 2007.



Tax
and Insurance Escrow



This
account is required by and held by MHDC and is funded monthly by the Partnership for payment of annual insurance and property
taxes. The balance of the account totaled $5,807 at December 31, 2007.



Reserve
for Replacements



|Balance - January 1, 2007     |  | $ | 51,156 | 
|----------------------------- |  | - | ------ | 
|Monthly payments to mortgagee |  |   | 9,333  | 
|Interest                      |  |   | 726    | 
|Balance - December 31, 2007   |  | $ | 61,215 | 



This
account is required by and held by MHDC and is funded monthly by the Partnership for replacementof
capital assets and major repairs.



F-11







BOLIVAR
PLAZA APTS, L.P.



NOTES
TO FINANCIAL STATEMENTS



DECEMBER
31, 2007



NOTE
E - SCHEDULE OF CHANGES IN FIXED ASSET ACCOUNTS



|                             |  | Balance 
Jan. 1, 2007 |           |  | Additions |   |       | Balance
 Dec. 31, 2007 | 
|---------------------------- |  | --------------------- | --------- |  | --------- | - | ----- | ---------------------- | 
|                             |  |                       |           |  |           |   |       |                        | 
|Land                         |  | $                     | 119,000   |  |           | $ | -     |                        | 
|Building                     |  |                       | 2,021,764 |  |           |   | -     |                        | 
|Office Furniture & Equipment |  |                       | 331       |  |           |   | 2,456 |                        | 
|Miscellaneous                |  |                       | 4,175     |  |           |   | 1,974 |                        | 
|                             |  | $                     | 2,145,270 |  |           | $ | 4,430 |                        | 



NOTE
F - MORTGAGE PAYABLE



The
Mortgage payable represents the amount outstanding on the mortgage commitment to MHDC. Interest on the unpaid balance is payable
at the rate of 1% per annum up to and including the date of final endorsement. The note is dated June 1, 2000, and is payable
in 360 monthly installments of $1,865.49 including interest and principal. All real property of the Partnership serves as collateral
for this loan.



As
of December 31, 2007, the mortgage payable balance was $450,876 and accrued interest was $0.



Aggregate
maturities of long term debt for the next five years are as follows:



|December 31, 2008 |  |  | $ | 16,456  | 
|----------------- |  |  | - | ------- | 
|2009              |  |  |   | 18,125  | 
|2010              |  |  |   | 18,307  | 
|2011              |  |  |   | 18,491  | 
|2012              |  |  |   | 18,677  | 
|and Thereafter    |  |  |   | 360,820 | 
|Totals            |  |  | $ | 450,876 | 



NOTE
G - RELATED PARTY TRANSACTIONS



Management
fee



During
2007, management fees of $11,519 were expensed to operations. Management Fees payable to the General Partner totaled $3,830. Management
fees payable as of December 31, 2007 totaled $942.





F-12









BOLIVAR
PLAZA APTS, L.P.



NOTES
TO FINANCIAL STATEMENTS



DECEMBER
31, 2007



NOTE
H – PARTNERS



For
the current reporting period, the Partnership has one General Partner, MBL Development CO. and the
following limited partners: WNC Housing Tax Credit Fund V Series 4, WNC Housing, LP, and CreditInvestors Ptn #7, LLC.



Total
investor contributions in accordance with the partnership agreement are $1,161,000.



NOTE
I - PROFITS AND LOSSES AND DISTRIBUTIONS



All
profits, losses, non-deductible expenditures incurred or accrued on or after the commencement date, other than those arising from
a capital transaction, shall be allocated 99.98% to the Investment Limited Partner, .01% to the Missouri Limited Partner, .0051%
to the Managing General Partner, and .0049% to the Co-General Partner.



Cash
flow is defined as profits or losses of the Partnership from and after the commencement date subject to any non-cash adjustments.



In
accordance with the regulatory agreement, the annual distribution is limited; unpaid distributions may accumulate for payment
the following year.



Distributable
cash flow is payable annually as follows:



| | 1) | for
                                                                                                                                                         any
                                                                                                                                                         amounts
                                                                                                                                                         owed,
                                                                                                                                                         but
                                                                                                                                                         not
                                                                                                                                                         paid,
                                                                                                                                                         to
                                                                                                                                                         the
                                                                                                                                                         Investment
                                                                                                                                                         Limited
                                                                                                                                                         Partner
                                                                                                                                                         and/or
                                                                                                                                                         Missouri
                                                                                                                                                         Limited
                                                                                                                                                         Partner;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | 2) | for
                                                                                                                                                         any
                                                                                                                                                         and
                                                                                                                                                         all
                                                                                                                                                         accrued
                                                                                                                                                         interest
                                                                                                                                                         and
                                                                                                                                                         unpaid
                                                                                                                                                         principal
                                                                                                                                                         of
                                                                                                                                                         any
                                                                                                                                                         outstanding
                                                                                                                                                         Limited
                                                                                                                                                         Partner
                                                                                                                                                         operating
                                                                                                                                                         deficit
                                                                                                                                                         loans;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | 3) | for
                                                                                                                                                         the
                                                                                                                                                         payment
                                                                                                                                                         of
                                                                                                                                                         any
                                                                                                                                                         accrued
                                                                                                                                                         and
                                                                                                                                                         unpaid
                                                                                                                                                         interest
                                                                                                                                                         due
                                                                                                                                                         on
                                                                                                                                                         the
                                                                                                                                                         Developer
                                                                                                                                                         Loan
                                                                                                                                                         and
                                                                                                                                                         then
                                                                                                                                                         to
                                                                                                                                                         the
                                                                                                                                                         principal
                                                                                                                                                         amount
                                                                                                                                                         of
                                                                                                                                                         the
                                                                                                                                                         Developer
                                                                                                                                                         Loan;                                                                                                                                                                                     
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | 4) | for
                                                                                                                                                         the
                                                                                                                                                         repayment
                                                                                                                                                         of
                                                                                                                                                         the
                                                                                                                                                         principal
                                                                                                                                                         amount
                                                                                                                                                         of
                                                                                                                                                         any
                                                                                                                                                         General
                                                                                                                                                         Partner
                                                                                                                                                         operating
                                                                                                                                                         deficit
                                                                                                                                                         loans;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | 5) | to
                                                                                                                                                         pay
                                                                                                                                                         the
                                                                                                                                                         Annual
                                                                                                                                                         Partnership
                                                                                                                                                         Management
                                                                                                                                                         Fee
                                                                                                                                                         for
                                                                                                                                                         such
                                                                                                                                                         year
                                                                                                                                                         and
                                                                                                                                                         then
                                                                                                                                                         to
                                                                                                                                                         the
                                                                                                                                                         payment
                                                                                                                                                         of
                                                                                                                                                         any
                                                                                                                                                         deferred
                                                                                                                                                         management
                                                                                                                                                         fees;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | 6) | to
                                                                                                                                                         the
                                                                                                                                                         payment
                                                                                                                                                         of
                                                                                                                                                         the
                                                                                                                                                         Management
                                                                                                                                                         Incentive
                                                                                                                                                         Fee
                                                                                                                                                         for
                                                                                                                                                         such
                                                                                                                                                         year;
                                                                                                                                                         and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | 7) | the
                                                                                                                                                         balance
                                                                                                                                                         thereof
                                                                                                                                                         shall
                                                                                                                                                         be
                                                                                                                                                         distributed
                                                                                                                                                         annually
                                                                                                                                                         30%
                                                                                                                                                         to
                                                                                                                                                         the
                                                                                                                                                         Investment
                                                                                                                                                         Limited
                                                                                                                                                         Partner,
                                                                                                                                                         35%
                                                                                                                                                         to
                                                                                                                                                         the
                                                                                                                                                         Managing
                                                                                                                                                         General
                                                                                                                                                         Partner,
                                                                                                                                                         and
                                                                                                                                                         35%
                                                                                                                                                         to
                                                                                                                                                         the
                                                                                                                                                         Co-General
                                                                                                                                                         Partner.



F-13







BOLIVAR
PLAZA APTS, L.P.



NOTES
TO FINANCIAL STATEMENTS



DECEMBER
31, 2007



NOTE
J – ADVERTISING



The
partnership incurred advertising costs of $86 in 2007.



NOTE
K - CONCENTRATION OF RISK



The
Partnership’s sole asset is the apartment complex and is exposed to various risks of loss due to torts; thefts of, damage
to, and destruction of assets; errors and omissions; and natural disasters for which the Partnership maintains commercial insurance.



The
Partnership’s operations are concentrated in the affordable housing real estate market. In addition, the Partnership operates
in a heavily regulated environment. The operations of the Partnership are subject to the administrative directives, rules and
regulations of federal, state and local regulatory agencies, including, but not limited to, MHDC and the State Housing Agency.
Such administrative directives, rules and regulations are subject to change by an act of Congress or an administrative change
mandated by MHDC or the State Housing Agency. Such changes may occur with little notice or inadequate funding to pay for the related
cost, including the additional administrative burden, to comply with a change.



F-14







FINANCIAL
STATEMENTS AND

INDEPENDENT
AUDITOR’S REPORT



BOLIVAR
PLAZA APTS, L.P.



DECEMBER
31, 2008











BOLIVAR
PLAZA APTS, L.P.



TABLE
OF CONTENTS





|                                          |  | PAGE
|----------------------------------------- |  | ----
|                                          |  |     
|INDEPENDENT AUDITOR’S REPORT              |  | F-1 
|                                          |  |     
|FINANCIAL STATEMENTS:                     |  |     
|                                          |  |     
|BALANCE SHEET                             |  | F-2 
|                                          |  |     
|STATEMENT OF OPERATIONS                   |  | F-4 
|                                          |  |     
|STATEMENT OF CHANGES IN PARTNERS’ CAPITAL |  | F-7 
|                                          |  |     
|STATEMENT OF CASH FLOWS                   |  | F-8 
|                                          |  |     
|NOTES TO FINANCIAL STATEMENTS             |  | F-9 















INDEPENDENT
AUDITOR’S REPORT



To the Partners

Bolivar
Plaza Apts, L.P.



We
have audited the accompanying balance sheet of Bolivar Plaza Apts, L.P., as of December 31, 2008 and the related statements of
operations, changes in partners’ capital and cash flows for the year then ended. These financial statements are the responsibility
of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audit.



We
conducted our audit in accordance with the Standards of the Public 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 has determined that it 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. An audit also includes
assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis for our opinion.



In
our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Bolivar
Plaza Apts, L.P. as of December 31, 2008 and the results of its operations, changes in partners’ capital and cash flows for
the year then ended in conformity with accounting principles generally accepted in the United States of America.







Metairie,
Louisiana

March
15, 2009







F-1







BOLIVAR
PLAZA APTS, L.P.



BALANCE
SHEET



DECEMBER
31, 2008



|                                                |  | 2008 |          
|----------------------------------------------- |  | ---- | ---------
|ASSETS                                          |  |      |          
|                                                |  |      |          
|CURRENT ASSETS                                  |  |      |          
|1120  Cash – Operating                          |  | $    | 3,125    
|1200  Miscellaneous Prepaid Expenses            |  |      | 2,621    
|1100T Total Current Assets                      |  |      | 5,746    
|                                                |  |      |          
|DEPOSITS HELD IN TRUST - FUNDED                 |  |      |          
|1191  Tenant Deposits Held in Trust             |  |      | 8,358    
|                                                |  |      |          
|RESTRICTED DEPOSITS AND FUNDED RESERVES         |  |      |          
|1310  Escrow Deposits                           |  |      | 5,187    
|1320  Replacement Reserve                       |  |      | 63,548   
|1300T Total Restricted Deposits/Funded Reserves |  |      | 77,093   
|                                                |  |      |          
|FIXED ASSETS                                    |  |      |          
|1410  Land                                      |  |      | 119,000  
|1420  Buildings                                 |  |      | 2,024,114
|1450  Furniture for Project/Tenant Use          |  |      | 4,590    
|1490  Miscellaneous Fixed Assets                |  |      | 6,148    
|1400T Total Fixed Assets                        |  |      | 2,153,852
|1495 Less: Accumulated Depreciation             |  |      | (758,576 
|1400N Fixed Assets, Net                         |  |      | 1,395,276
|                                                |  |      |          
|1000T TOTAL ASSETS                              |  | $    | 1,478,115



See
auditor’s report and accompanying notes



F-2







BOLIVAR
PLAZA APTS, L.P.



BALANCE
SHEET



DECEMBER
31, 2008



|                                                     |  | 2008 |          
|---------------------------------------------------- |  | ---- | ---------
|LIABILITIES AND EQUITY                               |  |      |          
|CURRENT LIABILITIES                                  |  |      |          
|2123  Accrued Management Fees Payable                |  | $    | 942      
|2170  Mortgage Payable - First Mortgage (Short Term) |  |      | 18,125   
|2122T Total Current Liabilities                      |  |      | 19,067   
|                                                     |  |      |          
|DEPOSIT AND PREPAYMENT LIABILITIES                   |  |      |          
|2191  Tenant Deposits Held in Trust                  |  |      | 8,358    
|                                                     |  |      |          
|LONG-TERM LIABILITIES                                |  |      |          
|2320  Mortgage Payable                               |  |      | 416,295  
|2300T Total Long-Term Liabilities                    |  |      | 416,295  
|                                                     |  |      |          
|2000T Total Liabilities                              |  |      | 443,720  
|                                                     |  |      |          
|PARTNERS’ EQUITY                                     |  |      |          
|3130  Partners’ Equity                               |  |      | 1,034,395
|                                                     |  |      |          
|2033T TOTAL LIABILITIES AND EQUITY                   |  | $    | 1,478,115



See
auditor’s report and accompanying notes



F-3







BOLIVAR
PLAZA APTS, L.P.



STATEMENT
OF OPERATIONS



DECEMBER
31, 2008



|                                                     |  | 2008 |        
|---------------------------------------------------- |  | ---- | -------
|RENTAL INCOME                                        |  |      |        
|5120  Rent Revenue - Gross Potential                 |  | $    | 110,018
|5121  Tenant Assistance Payments                     |  |      | 4,868  
|5100T Total Rent Revenue                             |  |      | 114,886
|                                                     |  |      |        
|5152N Net Rental Revenue                             |  |      | 114,886
|                                                     |  |      |        
|FINANCIAL REVENUE                                    |  |      |        
|5440  Revenue from Investments - Replacement Reserve |  |      | 1,288  
|5490  Revenue from Investments - Miscellaneous       |  |      | 99     
|5400T Total Financial Revenue                        |  |      | 1,387  
|                                                     |  |      |        
|OTHER REVENUE                                        |  |      |        
|5920  Tenant Charges (NSF, Late Charges, etc.)       |  |      | 92     
|5900T Total Other Revenue                            |  |      | 92     
|                                                     |  |      |        
|5000T Total Revenue                                  |  | $    | 116,365



See
auditor’s report and accompanying notes



F-4







BOLIVAR
PLAZA APTS, L.P.



STATEMENT
OF OPERATIONS



DECEMBER
31, 2008



|                                               |  | 2008 |       
|---------------------------------------------- |  | ---- | ------
|ADMINISTRATIVE EXPENSES                        |  |      |       
|6203  Conventions, Meetings & Training         |  | $    | 605   
|6210  Advertising and Marketing                |  |      | 1,182 
|6311  Office Expenses                          |  |      | 1,167 
|6320  Management Fee                           |  |      | 12,378
|6330  Manager or Superintendent Salaries       |  |      | 6,912 
|6350  Audit Expense                            |  |      | 3,420 
|6360  Telephone                                |  |      | 1,012 
|6263T Total Administrative Expenses            |  |      | 26,676
|                                               |  |      |       
|UTILITIES EXPENSE                              |  |      |       
|6450  Electricity                              |  |      | 3,451 
|6451  Water                                    |  |      | 268   
|6452  Gas                                      |  |      | (8    
|6453  Sewer                                    |  |      | 275   
|6454  Cable TV / Internet Access               |  |      | 330   
|6400T Total Utilities Expense                  |  |      | 4,316 
|                                               |  |      |       
|OPERATING AND MAINTENANCE EXPENSE              |  |      |       
|6510  Operating & Maintenance - Payroll        |  |      | 6,740 
|6515  Operating & Maintenance - Supplies       |  |      | 3,726 
|6520  Operating & Maintenance - Contracts      |  |      | 11,613
|6525  Garbage and Trash Removal                |  |      | 1,330 
|6546  Heating/Cooling Repairs and Maintenance  |  |      | 567   
|6548  Snow Removal                             |  |      | 1,458 
|6573  Exterminating                            |  |      | 1,138 
|6580  Vacant Unit Preparation                  |  |      | 16,510
|6500T Total Operating and Maintenance Expenses |  |      | 43,082



See
auditor’s report and accompanying notes



F-5







BOLIVAR
PLAZA APTS, L.P.



STATEMENT
OF OPERATIONS



DECEMBER 31, 2008



|                                                   |  | 2008 |        
|-------------------------------------------------- |  | ---- | -------
|TAXES AND INSURANCE                                |  |      |        
|6710  Real Estate Taxes                            |  | $    | 3,049  
|6711  Payroll Taxes                                |  |      | 1,520  
|6720  Property and Liability Insurance             |  |      | 4,704  
|6721  Fidelity Bond Insurance                      |  |      | 21     
|6722  Workmen’s Compensation                       |  |      | 345    
|6723  Health Insurance & Other Employee Benefits   |  |      | 75     
|6700T Total Taxes and Insurance                    |  |      | 9,714  
|                                                   |  |      |        
|FINANCIAL EXPENSES                                 |  |      |        
|6820  Interest on Mortgage Payable                 |  |      | 4,065  
|6800T Total Financial Expenses                     |  |      | 4,065  
|                                                   |  |      |        
|6000T Total Cost of Operations Before Depreciation |  |      | 87,853 
|                                                   |  |      |        
|5060T Profit (Loss) Before Depreciation            |  |      | 28,512 
|                                                   |  |      |        
|6600  Depreciation                                 |  |      | (75,752
|                                                   |  |      |        
|5060N Operating Profit (Loss)                      |  |      | (47,240
|                                                   |  |      |        
|NON-OPERATING EXPENSES                             |  |      |        
|7115  Annual Local Administrative Fee              |  |      | (13,054
|7100 Net Entity Expenses                           |  |      | (13,054
|                                                   |  |      |        
|3250 Net Income (Loss)                             |  | $    | (60,294



See
auditor’s report and accompanying notes



F-6







BOLIVAR
PLAZA APTS, L.P.



STATEMENT
OF CHANGES IN PARTNERS’ CAPITAL



DECEMBER
31, 2008



| |            |  |  |                             |          |   |         |          |  |   | Total     |  
| | ---------- |  |  | --------------------------- | -------- | - | ------- | -------- |  | - | --------- | -
| |            |  |  |                             | General  |   |         | Limited  |  |   | Partners’ |  
| |            |  |  |                             | Partners |   |         | Partners |  |   | Capital   |  
| |            |  |  |                             |          |   | 0.01%   |          |  |   | 99.99%    |  
| | S 1100-010 |  |  | Balance - January 1, 2008   |          | $ | (9,811  | )        |  | $ | 1,384,973 |  
| |            |  |  |                             |          |   |         |          |  |   |           |  
| |            |  |  | Prior Period Adjustment     |          |   | (2,805  | )        |  |   | (277,668  | )
| |            |  |  |                             |          |   |         |          |  |   |           |  
| | S 3250     |  |  | Net Income (Loss)           |          |   | (603    | )        |  |   | (59,691   | )
| |            |  |  |                             |          |   |         |          |  |   |           |  
| | 3130       |  |  | Balance - December 31, 2008 |          | $ | (13,219 | )        |  | $ | 1,047,614 |  



See
auditor’s report and accompanying notes



F-7







BOLIVAR
PLAZA APTS, L.P.



STATEMENT
OF CASH FLOWS



DECEMBER
31, 2008



|Cash flows from operating activities:                  |  |   |         |  
|------------------------------------------------------ |  | - | ------- | -
|Net Income                                             |  | $ | (60,294 | )
|Adjustments to reconcile net income (loss) to net cash |  |   |         |  
|provided by operating activities:                      |  |   |         |  
|Depreciation and amortization                          |  |   | 75,752  |  
|(Increase) decrease in prepaid expenses                |  |   | 1,692   |  
|Total adjustments                                      |  |   | 74,060  |  
|Net cash provided (used) by operating activities       |  |   | 13,766  |  
|                                                       |  |   |         |  
|Cash flows from investing activities:                  |  |   |         |  
|Purchase of Fixed Assets                               |  |   | (4,153  | )
|(Deposit) withdrawal to escrows and guarantees         |  |   | 620     |  
|(Deposit) withdrawal to replacement reserve            |  |   | (2,333  | )
|Net cash provided (used) by investing activities       |  |   | (5,866  | )
|                                                       |  |   |         |  
|Cash flows from financing activities:                  |  |   |         |  
|Principal payments on long-term debt                   |  |   | (16,456 | )
|Net cash provided (used) by financing activities       |  |   | (16,456 | )
|                                                       |  |   |         |  
|Net increase (decrease) in cash and equivalents        |  |   | (8,556  | )
|Cash and equivalents, beginning of year                |  |   | 11,681  |  
|                                                       |  |   |         |  
|Cash and equivalents, end of year                      |  | $ | 3,125   |  



See
auditor’s report and accompanying notes



F-8







BOLIVAR PLAZA APTS,
L.P.



NOTES
TO FINANCIAL STATEMENTS



DECEMBER
31, 2008



NOTE
A - NATURE OF OPERATIONS



Bolivar Plaza Apts,
L.P. (the “Partnership”) was formed in Missouri on March 2, 1999 as a Limited Partnership. Under the terms of the Limited
Partnership Agreement, the General Partner is MBL Development Co. and the Limited Partners are WNC Housing Tax Credit Fund V Series
4, WNC Housing, LP, and Credit Investors Ptn #7, LLC



The Partnership was
organized to develop, construct, own, maintain and operate thereon 32 multi-family residential units for rental to low-income tenants
(the “Project”).



The Project received
an allocation of low income housing tax credits from the Missouri Housing Development Commission under Section 42 of the Internal
Revenue Code of 1986, as amended. An Extended Low-Income Housing agreement has been executed which requires the utilization of
the project pursuant to Section 42 for a minimum of 30 years, even after the disposition of the project by the Partnership.



NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES



A summary of significant
accounting policies consistently applied in the presentation of the accompanying financial statements follows.



Basis of Accounting



The financial statements
are prepared on the accrual basis of accounting and in accordance with accounting principles generally accepted in the United States
of America.



Cash and Cash Equivalents



For purposes of the
statement of cash flows, cash and cash equivalents include all cash balances and highly liquid investments with a maturity of three
months or less at the acquisition date. The Partnership does not include cash restricted for special purposes.



Restricted Deposits



These reserves have
been established pursuant to the Regulatory Agreement with MHDC. Funding of these reserves
is made on a monthly basis and disbursements from the reserves can be made only withthe approval of MHDG.



Concentration of Credit Risk



The Partnership maintains
its cash in bank deposit accounts, which, at times, may exceed federally insured limits. The Partnership has not experienced any
losses in such accounts. Management believes the Partnership is not exposed to any significant credit risk on cash and cash equivalents.



F-9







BOLIVAR
PLAZA APTS, L.P.



NOTES
TO FINANCIAL STATEMENTS



DECEMBER
31, 2008



NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (CONTINUED)



Real Estate Capitalization and Depreciation



Real Estate is stated
at cost. Major additions and improvements will be capitalized, while items which do not extend the useful lives of the assets will
be expended currently. Depreciation will be provided for in amounts sufficient to relate
the cost of depreciable assets to operations over their estimated service livesusing the straight-line method and modified
accelerated cost recovery system. Upon disposal of depreciable property, the appropriate property accounts are reduced by the related
costs and accumulated depreciation. The resulting gains and losses are reflected in the statement of operations. The estimated
service lives are 27.5, 15, and 5 years for buildings, improvements, and furniture and fixtures, respectively.



Impairment of long-lived assets



The Partnership reviews
its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable.
Recoverability is measured by a comparison of the carrying amount to the future net undiscounted cash flow expected to be generated
and any estimated proceeds from the eventual disposition. If the long-lived asset is considered to be impaired, the impairment
to be recognized is measured at the amount by which the carrying amount exceeds the fair value as determined from an appraisal,
discounted cash flows analysis, or other valuation technique. There were no impairment losses recognized during 2008.



Rental Income



Rental
income is recognized as rentals become due. Rental payments received in advance are deferreduntil earned. All leases between
the partnership and the residents of the property are operating leases.



Income Taxes



No provision or benefit
for income taxes has been included in these financial statements. Taxable income or loss passes through to and is reportable by
the partners individually.



Use of Estimates



The
preparation of financial statements in conformity with accounting principles generally accepted in theUnited States of
America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and
accompanying notes. Actual results may differ from those estimates.



F-10







BOLIVAR
PLAZA APTS, L.P.



NOTES
TO FINANCIAL STATEMENTS



DECEMBER
31, 2008



NOTE C - SCHEDULE OF FUNDS IN FINANCIAL
INSTITUTIONS



Funds in Financial Institutions as of December
31, 2008:



|A. Funds Held by Bank, Regular Accounts:                  |  |   |        |  |  |   |        | 
|--------------------------------------------------------- |  | - | ------ |  |  | - | ------ | 
|Mid-Missouri Bank, Operating Account                      |  | $ | 3,125  |  |  |   |        | 
|                                                          |  |   |        |  |  |   |        | 
|B. Funds Held by Bank, in Trust, Tenant Security Deposit: |  |   |        |  |  |   |        | 
|Independent Farmers Bank, Tenant Security Deposit         |  |   | 8,358  |  |  |   |        | 
|                                                          |  |   |        |  |  |   |        | 
|Funds Held by Bank, Total                                 |  |   |        |  |  | $ | 11,483 | 
|                                                          |  |   |        |  |  |   |        | 
|C. Funds Held by Mortgagee, in Trust:                     |  |   |        |  |  |   |        | 
|1. Tax and Insurance Escrow, MHDC                         |  |   | 5,187  |  |  |   |        | 
|2. Reserve for Replacements, MHDC                         |  |   | 63,548 |  |  |   |        | 
|                                                          |  |   |        |  |  |   |        | 
|Funds Held by Mortgagee, Total                            |  |   |        |  |  |   | 68,735 | 
|                                                          |  |   |        |  |  |   |        | 
|Total Funds in Financial Institutions                     |  |   |        |  |  | $ | 80,218 | 



NOTE D - RESTRICTED CASH



Tenant Security Deposits



As required by the
MHDC, the Partnership maintains a separate account for tenant security deposits. As deposits are received they are deposited into
a separate bank account and held in trust for the tenants until they vacate the property. Any amounts not returned to the tenant
due to lease violations are transferred to the Partnership’s general operating account. The balance of the account totaled
$8,358 at December 31, 2008.



Tax and Insurance Escrow



This
account is required by and held by MHDC and is funded monthly by the Partnership for payment of annual insurance and property taxes.
The balance of the account totaled $5,187 at December 31, 2008.



Reserve for Replacements



|Balance - January 1, 2008             |  | $ | 61,215 | 
|------------------------------------- |  | - | ------ | 
|Monthly payments to mortgagee         |  |   | 10,185 | 
|Interest                              |  |   | 1,288  | 
|Authorized disbursements by mortgagee |  |   | 9,140  | 
|Balance - December 31, 2008           |  | $ | 63,548 | 



This
account is required by and held by MHDC and is funded monthly by the Partnership for replacementof capital assets and major
repairs.



F-11







BOLIVAR
PLAZA APTS, L.P.



NOTES
TO FINANCIAL STATEMENTS



DECEMBER
31, 2008



NOTE E - SCHEDULE OF CHANGES IN FIXED
ASSET ACCOUNTS





|                     |  | Balance      |           |  |           |   |       | Balance       | 
|-------------------- |  | ------------ | --------- |  | --------- | - | ----- | ------------- | 
|                     |  | Jan. 1, 2008 |           |  | Additions |   |       | Dec. 31, 2008 | 
|                     |  |              |           |  |           |   |       |               | 
|Land                 |  | $            | 119,000   |  |           | $ | -     |               | 
|Building             |  |              | 2,021,764 |  |           |   | 2,350 |               | 
|Furniture & Fixtures |  |              | 8,936     |  |           |   | 1,803 |               | 
|                     |  | $            | 2,149,700 |  |           | $ | 4,153 |               | 





Accumulated Depreciation





|                     |  |              |         |  |           |   |        |               |  |   | Net Book      | 
|-------------------- |  | ------------ | ------- |  | --------- | - | ------ | ------------- |  | - | ------------- | 
|                     |  | Balance      |         |  |           |   |        | Balance       |  |   | Value         | 
|                     |  | Jan. 1, 2008 |         |  | Additions |   |        | Dec. 31, 2008 |  |   | Dec. 31, 2008 | 
|                     |  |              |         |  |           |   |        |               |  |   |               | 
|Land                 |  | $            | -       |  |           | $ | -      |               |  | $ | -             | 
|Buildings            |  |              | 682,824 |  |           |   | 73,518 |               |  |   | 756,342       | 
|Furniture & Fixtures |  |              | -       |  |           | $ | 2,234  |               |  | $ | 2,234         | 
|                     |  | $            | 682,824 |  |           |   | 75,752 |               |  |   | 758,576       | 



NOTE F - MORTGAGE PAYABLE



The Mortgage payable
represents the amount outstanding on the mortgage commitment to MHDC. Interest on the unpaid balance is payable at the rate of
1% per annum up to and including the date of final endorsement. The note is dated June 1, 2000, and is payable in 360 monthly installments
of $1,865.49 including interest and principal. All real property of the Partnership serves as collateral for this loan.



As of December 31, 2008, the mortgage payable
balance was $434,420 and accrued interest was $0.



Aggregate maturities of long term debt
for the next five years are as follows:



| | December 31, 2009 |  | $ | 18,125 
| | ----------------- |  | - | -------
| | 2010              |  |   | 18,307 
| | 2011              |  |   | 18,491 
| | 2012              |  |   | 18,677 
| | 2013              |  |   | 18,864 
| | and Thereafter    |  |   | 341,956
| |                   |  |   |        
| | Totals            |  | $ | 434,420



F-12







BOLIVAR PLAZA APTS, L.P.



NOTES TO FINANCIAL
STATEMENTS



DECEMBER 31, 2008



NOTE G - RELATED PARTY TRANSACTIONS



Management fee



Action Management
& Consulting Services, LLC, an affiliate of the General Partner, manages the Property
pursuant to the current management agreement. The management agreement provides for amanagement fee of $33 per occupied
unit per month. During 2008, a management fee of $12,378 was expensed to operations. Management fees payable as of December 31,
2008 totaled $942.



NOTE
H - PARTNERS



For the current reporting
period, the Partnership has one General Partner, MBL Development CO. and the following limited partners, WNC Housing Tax Credit
Fund V Series 4, WNC Housing, LP, Credit Investors Ptn #7, LLC.



Total investor contributions in accordance
with the partnership agreement are $1,161,000.



NOTE I - PROFITS AND LOSSES AND DISTRIBUTIONS



All profits, losses,
non-deductible expenditures incurred or accrued on or after the commencement date, other than those arising from a capital transaction,
shall be allocated 99.98% to the Investment Limited Partner, .01% to the Missouri Limited Partner, .0051% to the Managing General
Partner, and .0049% to the Co-General Partner.



Cash flow is defined
as profits or losses of the Partnership from and after the commencement date subject to any non-cash adjustments.



In accordance with
the regulatory agreement, the annual distribution is limited; unpaid distributions may accumulate for payment the following year.



Distributable cash flow is payable annually
as follows:



| | 1) | for any amounts owed, but not paid, to the Investment Limited Partner and/or Missouri Limited Partner;                                                          
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                 
| | 2) | for any and all accrued interest and unpaid principal of any outstanding Limited Partner operating deficit loans;                                               
| |    |                                                                                                                                                                 
| | 3) | for the payment of any accrued and unpaid interest due on the Developer Loan and then to the principal amount of the Developer Loan;                            
| |    |                                                                                                                                                                 
| | 4) | for the repayment of the principal amount of any General Partner operating deficit loans;                                                                       
| |    |                                                                                                                                                                 
| | 5) | to pay the Annual Partnership Management Fee for such year and then to the payment of any deferred management fees;                                             
| |    |                                                                                                                                                                 
| | 6) | to the payment of the Management Incentive Fee for such year; and                                                                                               
| |    |                                                                                                                                                                 
| | 7) | the balance thereof shall be distributed annually 30% to the Investment Limited Partner, 35% to the Managing General Partner, and 35% to the Co-General Partner.



F-13







BOLIVAR
PLAZA APTS, L.P.



NOTES
TO FINANCIAL STATEMENTS



DECEMBER
31, 2008



NOTE J - ADVERTISING



The partnership incurred advertising costs
of $1,182 in 2008.



NOTE K - CONCENTRATION OF RISK



The Partnership’s
sole asset is the apartment complex and is exposed to various risks of loss due to torts; thefts of, damage to, and destruction
of assets; errors and omissions; and natural disasters for which the Partnership maintains commercial insurance.



The Partnership’s
operations are concentrated in the affordable housing real estate market. In addition, the Partnership operates in a heavily regulated
environment. The operations of the Partnership are subject to the administrative directives, rules and regulations of federal,
state and local regulatory agencies, including, but not limited to, MHDC and the State Housing Agency. Such administrative directives,
rules and regulations are subject to change by an act of Congress or an administrative change mandated by MHDC or the State Housing
Agency. Such changes may occur with little notice or inadequate funding to pay for the related cost, including the additional administrative
burden, to comply with a change.



F-14