CONTENTS





                                                                            Page

INDEPENDENT AUDITOR'S REPORT                                                   1
FINANCIAL STATEMENTS:
      Balance Sheets                                                         2-3
      Statements of Operations and Changes in Partners' Equity                 4
      Statements of Cash Flows                                               5-6
      Notes to Financial Statements                                         7-11
SUPPLEMENTARY INFORMATION:
      Supplemental Schedule of Expenses                                       12
      Supplemental Schedule of Changes in Partners' Equity                    13


<PAGE>






Partners
Blessed Rock of El Monte
Costa Mesa, California



                          INDEPENDENT AUDITOR'S REPORT

     I have audited the accompanying balance sheet of Blessed Rock of El Monte,
a  California  Limited  Partnership  as of December  31, 2000 and 2001,  and the
related  statements of operations and changes in partners' equity, and operating
cash  flows  for the  years  then  ended.  These  financial  statements  are the
responsibility of the partnership's  management. My responsibility is to express
an opinion on these financial statements based on my audits.

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

     In my opinion, the financial statements referred to above present fairly,
in all material respects,  the financial position of Blessed Rock of El Monte as
of  December  31,  2000 and  2001  and the  results  of its  operations  and its
operating  cash  flows for the years then ended in  conformity  with  accounting
principles generally accepted in the United States.

     My audit was conducted for the purpose of forming an opinion on the
financial   statements  taken  as  a  whole.   The  accompanying   supplementary
information  shown on page 12 and 13 is presented  for the purpose of additional
analysis and is not a required part of the basic financial statements of Blessed
Rock of El Monte. Such information has been subjected to the auditing procedures
applied in the audit of the basic financial  statements  and, in my opinion,  is
fairly stated in all material  respects in relation to the financial  statements
taken as a whole.



/s/ Jack Gilk
-------------


March 4, 2002                                              33-0724657


<PAGE>



                            BLESSED ROCK OF EL MONTE
                       (A California Limited Partnership)
--------------------------------------------------------------------------------
                   BALANCE SHEETS, DECEMBER 31, 2000 AND 2001
--------------------------------------------------------------------------------




                                   A S S E T S
<TABLE>
<CAPTION>

                                                                           2001                    2000
                                                                       -------------           -------------
<S>                                                                    <C>                     <C>
Current Assets:
     Operating cash and equivalents                                    $      27,108           $      60,905
     Security deposit cash                                                    24,620                  25,804
     Tenant accounts receivable                                                1,609                   2,866
     Prepaid expenses                                                         11,344                  12,131
                                                                       ------------            -------------
              Total current assets                                            64,681                 101,706
                                                                       -------------           -------------

Property, Building, and Equipment, At Cost:
     Land                                                                  1,271,162               1,271,162
     Building and improvements                                             7,982,536               7,982,536
     Equipment                                                                46,190                  46,190
                                                                       -------------           -------------
                                                                           9,299,888               9,299,888
     Accumulated depreciation                                               (900,818)               (695,115)
                                                                       -------------           -------------
              Property, building, and equipment - net                      8,399,070               8,604,773
                                                                       -------------           -------------

Other Assets:
     Replacement reserve                                                      72,260                  63,311
     Tax and insurance restricted accounts                                    28,524                  20,630
     Unamortized deferred costs                                               58,164                  91,755
                                                                       -------------           -------------
              Total other assets                                             158,948                 175,696
                                                                       -------------           -------------

                                                                          $8,622,699              $8,882,175
                                                                          ==========              ==========
</TABLE>
               See the accompanying notes to financial statements.
               ---------------------------------------------------
                                       2
<PAGE>

Blessed Rock of El Monte
Balance Sheets, December 31, 2000 and 2001
Page 2
--------------------------------------------------------------------------------



                        LIABILITIES AND PARTNERS' EQUITY

<TABLE>
<CAPTION>
                                                                           2001                    2000
                                                                       -------------           -------------
<S>                                                                    <C>                     <C>
Current Liabilities:
     Current portion of long-term debt                                 $      34,998           $      32,622
     Accounts payable                                                          6,703                   7,670
     Security trust liability                                                 24,560                  24,585
     Accrued interest                                                         15,364                  15,555
     Other accruals                                                            8,608                     756
     Unearned rental income                                                    1,536                       -
                                                                       -------------           -------------
              Total current liabilities                                       91,769                  81,188
                                                                       -------------           -------------

Long-term Debt:
     Mortgage payable, less current portion
         included above                                                    2,580,186               2,615,184
     Notes payable                                                           706,213                 706,213
     Accrued interest payable                                                172,619                 141,307
     Grant loan payable                                                      400,000                 400,000
     Advance payable to general partner                                        1,000                   1,000
     Developer fee payable                                                   182,719                 346,456
                                                                       -------------           -------------
              Total long-term debt                                         4,042,737               4,210,160
                                                                       -------------           -------------

Partners' equity                                                           4,488,193               4,590,827
                                                                       -------------           -------------

                                                                          $8,622,699              $8,882,175
                                                                          ==========              ==========
</TABLE>
               See the accompanying notes to financial statements.
               --------------------------------------------------
                                       3

<PAGE>

                            BLESSED ROCK OF EL MONTE
                       (A California Limited Partnership)
--------------------------------------------------------------------------------
                      STATEMENTS OF OPERATIONS AND CHANGES
       IN PARTNERS' EQUITY FOR THE YEARS ENDED DECEMBER 31, 2001 AND 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>


                                                                           2001                    2000
                                                                       -------------           -------------
<S>                                                                     <C>                    <C>
Revenue:
     Gross potential rents                                              $    744,964           $     696,391
     Less vacancies                                                           (2,702)                 (3,269)
                                                                        ------------           -------------
     Net rental income                                                       742,262                 693,122
     Laundry and vending                                                      11,122                   9,075
     Tenant charges                                                              961                   1,426
     Interest income                                                           2,731                   5,164
                                                                        ------------           -------------
              Total revenues                                                 757,076                 708,787
                                                                        ------------           -------------

Expenses:
     Administrative                                                          179,102                 126,226
     Utilities                                                                56,044                  44,814
     Operating and maintenance                                                49,233                  45,913
     Taxes and insurance                                                     119,286                 193,320
     Interest                                                                216,750                 218,977
     Depreciation                                                            239,295                 239,295
                                                                       -------------           -------------
              Total expenses                                                 859,710                 868,545
                                                                       -------------           -------------

Net loss                                                                    (102,634)               (159,758)

Partners' equity - beginning                                               4,590,827               4,750,585
                                                                       -------------           -------------

Partners' equity - ending                                              $   4,488,193           $   4,590,827
                                                                       =============           =============
</TABLE>

               See the accompanying notes to financial statements.
               --------------------------------------------------
                                       4

<PAGE>



                            BLESSED ROCK OF EL MONTE
                       (A California Limited Partnership)
--------------------------------------------------------------------------------
                            STATEMENTS OF CASH FLOWS
                 FOR THE YEARS ENDED DECEMBER 31, 2000 AND 2001
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>



                                                                            2001                    2000
                                                                        ------------             -----------
<S>                                                                     <C>                      <C>
Cash flows from operating activities:
     Rental receipts                                                    $    733,529             $   683,941
     Operating interest receipts                                               1,300                   3,399
     Other operating receipts                                                 12,083                  10,501
     Payments to suppliers and employees:
         Administrative expenses                                             (15,247)                (30,791)
         Management fees                                                     (89,358)                (34,527)
         Utilities                                                           (54,877)                (39,204)
         Salaries and wages                                                  (53,116)                (52,068)
         Operating and maintenance                                           (35,799)                (41,702)
         Real estate taxes                                                   (99,496)               (289,779)
         Payroll taxes                                                        (5,069)                 (5,059)
         Property insurance                                                  (16,901)                (13,126)
         Miscellaneous taxes and insurance                                   (14,604)                (11,349)
         Interest on mortgage                                               (185,629)               (187,089)
         Interest on other notes                                                   -                  (8,478)
         Funding security deposit account                                      1,158                    (545)
                                                                       -------------            ------------
              Net cash provided by (used in)
                  operating activities                                       177,974                 (15,876)
                                                                       -------------             ------------

Cash flows from investing activities:
     Net tax and insurance impounds                                           (7,631)                 (2,398)
     Net reserve deposits,including interest                                  (8,949)                (21,475)
     Reserve interest                                                          1,168                   1,051
     Capital expenditures                                                          -                  (8,481)
                                                                       -------------            ------------
         Net cash used in investing activities                               (15,412)                (31,303)
                                                                       -------------            ------------

Cash flows from financing activities:
     Mortgage principal payments                                             (32,622)                (30,408)
     Developer fee payments                                                 (163,737)                (43,000)
                                                                       -------------            ------------
         Net cash used in financing activities                              (196,359)                (73,408)
                                                                       -------------            ------------

Net increase (decrease) in cash                                              (33,797)               (120,587)
Cash at beginning of year                                                     60,905                 181,492
                                                                       -------------            ------------

Cash at end of year                                                    $      27,108            $     60,905
                                                                       =============            ============
</TABLE>
               See the accompanying notes to financial statements.
               --------------------------------------------------
                                       5
<PAGE>

Blessed Rock of El Monte
Statements of Cash Flows, December 31, 2000 and 2001
Page 2
--------------------------------------------------------------------------------



                           Reconciliation of Net Loss
             to Net Cash Provided by (Used in) Operating Activities

<TABLE>
<CAPTION>


                                                                            2001                   2000
                                                                       -------------           -------------


<S>                                                                    <C>                       <C>
Net Loss                                                               $    (102,634)            $  (159,758)
Adjustments to reconcile net loss to net cash
     Provided by (used in) operating activities:
         Depreciation and amortization                                       239,294                 239,295
         Decrease (increase) in:
              Security deposit cash                                            1,184                    (490)
              Receivables                                                      1,257                   2,795
              Prepaids                                                           787                  (7,120)
         Increase (decrease) in:
              Payables                                                          (967)                 (2,544)
              Security deposit liability                                         (25)                    (55)
              Accrued expenses                                                38,973                 (86,234)
              Unearned rental income                                           1,536                       -
         Reserve interest earned                                              (1,431)                 (1,765)
                                                                       -------------             -----------

Net cash provided by (used in) operating activities                    $     177,974             $   (15,876)
                                                                       =============             ===========
</TABLE>
               See the accompanying notes to financial statements.
--------------------------------------------------------------------------------
                                        6
<PAGE>

                            BLESSED ROCK OF EL MONTE
                       (A California Limited Partnership)
--------------------------------------------------------------------------------
                          NOTES TO FINANCIAL STATEMENTS
                                DECEMBER 31, 2001
--------------------------------------------------------------------------------


1.   ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

     Organization:  Blessed Rock of El Monte, a California limited  partnership,
     was formed on November 22, 1995 by and between Everland, Inc., a California
     Corporation,  as the general partner and Tom Y. Lee as the limited partner.
     The Partnership Agreement was amended and restated on September 17, 1996 to
     replace Tom Y. Lee with WNC Housing Tax Credit Fund V, L.P.  Series 3 and 4
     as limited partners and WNC Housing, L.P. as a special limited partner.

     The  Partnership  was  formed  to  acquire,  construct,  own and  operate a
     137-unit elderly facility  apartment complex for low income residents in El
     Monte,  California.  The  Partnership  also  generates  tax  credits to the
     partners  in  accordance  with the  provisions  of the code and  applicable
     Treasury regulations.  The Partnership has qualified for low income housing
     tax credits as currently allowable under Section 42 of the Internal Revenue
     Code.

     The  Partnership  received  HOME  funds  from  the  City  of El  Monte  and
     redevelopment  funds from the El Monte  Community  Redevelopment  Agency as
     part of a public  program to ensure  affordable  housing for senior citizen
     tenants.  In addition,  the El Monte  Community  Redevelopment  Agency paid
     various  project  impact fees to the City of El Monte  associated  with the
     construction and development of the Project on behalf of the Partnership.

     Capitalization   and   Depreciation:   Assets  are  recorded  at  cost  and
     depreciated  for  financial  accounting  purposes  using the  straight-line
     method over their estimated  useful lives.  The principal  estimated useful
     lives used in computing the depreciation  provisions are 10 to 40 years for
     building and  improvements,  and 3 to 10 years for  equipment The policy of
     the project is to charge amounts  expended for  maintenance,  repairs,  and
     minor  replacements to expense,  and to capitalize  expenditures  for major
     replacements and betterments.

     Cash and Cash  Equivalents:  For  purposes of  reporting  cash flows,  cash
     includes unrestricted cash in bank, cash on hand, savings accounts, and all
     certificates of deposit with original maturities of three months or less.

     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.  The Partnership believes it is not exposed to
     any significant credit risk on cash and cash equivalents.

     Deferred  Costs:   Deferred  costs,   comprised  of  tax  credit  fees  and
     organization costs are being amortized over five years.

                                       7
<PAGE>


Blessed Rock of El Monte
Notes to Financial Statements, December 31, 2001
Page 2
--------------------------------------------------------------------------------


     Estimates:  The  preparation  of financial  statements in  conformity  with
     generally  accepted  accounting  principles  requires  management  to  make
     estimates and assumptions  that affect:  (1) the reported amounts of assets
     and  liabilities  and  disclosure  of  contingencies  at  the  date  of the
     financial statements, and (2) the reported amounts of revenues and expenses
     during  the  reporting  period.  Actual  results  could  differ  from those
     estimates.

     Rental Income and Unearned Rents: The Partnership  rents apartment units on
     a month to  month  basis  and  recognizes  revenues  when  earned.  Advance
     receipts of rents are classified as liabilities until earned.

     Income  Taxes:  No provision is made for income taxes since such taxes,  if
     any, are the liability of the individual partners.

     Reclassifications:  Certain  reclassifications  have  been made to the 2000
     financial statements to conform with the 2001 presentation.

2.   RESTRICTED FUNDS

     The  Partnership  is required  to make  monthly  impound  deposits to cover
     insurance   premiums,   property  taxes  and  to  maintain  a  reserve  for
     replacements.  These  restricted  funds are held by, and  expenditures  are
     subject to supervision and approval by, GMAC Commercial Mortgage.

3.   MORTGAGE PAYABLE

     Mortgage payable consists of a 7.05% real estate mortgage,
     payable to GMACCommercial  Mortgage,  collateralized  by
     a  deed  of  trust  on  the  realproperty.  The  obligation
     is payable in aggregate  monthly  principal and interest
     installments  of  $18,188  beginning  July 1, 1998 with
     a balloon payment in the amount of $2,017,000 payable
     June 1, 2013.                                                $   2,615,184

     Less current portion                                               (34,998)
                                                                   -------------
                                                                  $   2,580,186

     The amounts maturing for the next five years are:

2002    $34,998
2003     37,547
2004     40,281
2005     43,214
2006     46,361

--------------------------------------------------------------------------------
                                       8
<PAGE>


Blessed Rock of El Monte
Notes to Financial Statements, December 31, 2001
Page 3
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S>                                                                                           <C>
4.   NOTES PAYABLE

     Notes payable at December 31, 2001 consist of the following:

     4% note  payable  with a term of 15 years,  payable  to El Monte  Community
     Redevelopment  Agency  (RDA),  secured  by deed of  trust  and  rents  from
     Project.  Note  subject to  prepayment  in whole or in part based on events
     constituting default under terms of promissory note agreement. No events of
     default have occurred through  December 31, 2001.  Payments of interest and
     principal made annually beginning on April 1, 2003, and thereafter on April
     1 until outstanding principal balance of note and all accrued interest paid
     in full.  Payments paid from 50% of the residual rental income,  as defined
     in the  promissory  note  agreement.  Payments,  if any,  applied  first to
     accrued  interest and second to principal of note. No payments made on note
     through 2001. At December 31, 2001, accrued interest on note was $63,303.                $    275,000

     1% note payable with a term of 30 years beginning April 3, 1996, payable to
     RDA for various development fees, secured by a deed of trust and rents from
     the Project. Commencing April 3, 1997, and thereafter on April 3 for the
     following 6 succeeding years, payment of $4,239 due each year. Payment
     increases to $8,478 April 3, 2004 and continues the next 7 succeeding
     years. April 3, 2012, payment increases to $32,534 and continues the next
     14 succeeding years, or until paid in full. Payments to be paid from 50% of
     residual rental income, as defined in promissory note agreement. Payments
     first applied to interest. $8,478 paid in 1999 for 1997 and 1998. $8,478
     paid in 2000 for 1999 and 2000. No payments made in 2001. At December 31,
     2001 accrued interest
     on note was $16,316.                                                                          431,213
                                                                                               ------------
                                                                                              $    706,213
                                                                                               ============
</TABLE>
    ----------------------------------------------------------------------------

                                      9
<PAGE>


Blessed Rock of El Monte
Notes to Financial Statements, December 31, 2001
Page 4
--------------------------------------------------------------------------------


6.   GRANT LOAN PAYABLE

     The Partnership  received a loan of $400,000 on April 3, 1996 from the City
     of El Monte as part of a public  program to ensure  affordable  housing for
     senior citizen  tenants.  Interest  accrues on the principal  amount at 4%,
     with a term of 55 years.  Loan is secured by a deed of trust and rents from
     the Project. At maturity,  the principal amount of the loan and all accrued
     interest shall be deemed  discharged and waived by the City unless there is
     an  occurrence  of an  event  of  default,  as  specified  under  the  loan
     agreement.  If default occurs, the City of El Monte is entitled to exercise
     its rights and the entire  principal  amount  outstanding  and any  accrued
     interest  could  become  due and  payable  at the  option of the City of El
     Monte. Accrued interest at December 31, 2001 was $92,000.

7.   RELATED PARTY TRANSACTIONS

     Capital Contributions: The limited partners, WNC Housing Tax Credit Fund V,
     L.P.  Series III and IV, 49.495% limited  partners,  are required to make a
     capital  contribution  of $5,162,171,  which shall be made equally  between
     them,  in  amounts  and at  times  as  stated  in the  Limited  Partnership
     Agreement.  The  limited  partners'  cash  contributions  may be reduced to
     account for reduced tax benefits, if any. At December 31, 2001, the limited
     partners have contributed $5,021,578.

     Project or Loss  Allocations:  All items  included  in the  calculation  of
     income or loss not arising from a sale or refinancing, and all tax credits,
     shall be  allocated  98.99% to the  limited  partners,  .01% to the special
     limited partner and 1% to the general partner.

     Developer  Fee Payable and Advance  Payable to General  Partner:  Under the
     terms of the Partnership Agreement,  Everland,  Inc., the developer,  is to
     receive a developer fee totaling  $1,050,416.  This  developer fee bears no
     interest  and is  payable  upon  additional  capital  contributions  by the
     limited  partners.  During the periods  ended  December  31, 2001 and 2000,
     $163,737  and  $43,000  of  payments  of  the  developer  fees  were  made,
     respectively.

     Management Fee: A monthly property  management fee in an amount computed at
     5% of the  collected  gross  revenue is payable  to the  management  agent.
     Property  management  services  to  the  Partnership  are  provided  by  an
     affiliate of the limited  partners.  Property  management fees were $37,113
     and $34,582 for the years 2001 and 2000, respectively.

     ---------------------------------------------------------------------------
                                       10
<PAGE>


Blessed Rock of El Monte
Notes to Financial Statements, December 31, 2001
Page 5
--------------------------------------------------------------------------------


     Incentive  Management  and  Other  Fees:  Under  the  terms of the  Limited
     Partnership  Agreement,  incentive  management  fees  shall  be paid to the
     general  partner  for  services  incidental  to the  administration  of the
     business  and  affairs of the  Partnership,  reporting  fees to the limited
     partners  for  services  performed  in  monitoring  the  operations  of the
     Partnership,  services  in  connection  with the  Partnership's  accounting
     matters and assisting with the preparation of tax returns.  $60,442 of fees
     for the years 1998, 1999 and 2000 were recorded for year ended December 31,
     2001.  $55,013 of the fees were paid in year 2001.  None were paid in prior
     years.

8.   CURRENT VULNERABILITY DUE TO CERTAIN CONCENTRATIONS

     The  Partnership's  sole  asset  is  a  137-unit  apartment  complex.   The
     Partnership's  operations are  concentrated in the multifamily  real estate
     market  In  addition,  the  Partnership  operates  in a  heavily  regulated
     environment.   The   operations   of  the   project   are  subject  to  the
     administrative  directives,  rules  and  regulations  of  local  regulatory
     agencies. Such administrative directives, rules and regulations are subject
     to change.  Such changes may occur with little notice or inadequate funding
     to pay for related costs,  including the additional  administrative burden,
     to comply with a change.

     ---------------------------------------------------------------------------
                                       11

<PAGE>