UNITED
STATES


SECURITIES
AND EXCHANGE COMMISSION





Washington,
D.C. 20549





FORM  10-Q





(Mark
One)





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





For the
quarterly period ended June 30, 2009





OR





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





For the
transition period from ________ to ___________





Commission
file number: 0-21895





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





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





(714)
662-5565


(Telephone
number)





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





Yes  No X





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





Yes  No X





Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or a smaller reporting company. See
the definitions of "large accelerated filer," "accelerated filer" and "smaller
reporting company" in Rule 12b-2 of the Exchange Act. (Check one):




Large
accelerated filer___ Accelerated filer___  Non-accelerated filer___X__Smaller
reporting company___





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


Yes ___No
_X__


WNC
HOUSING TAX CREDIT FUND V, L.P., SERIES 3
 (A
California Limited Partnership)
 
 INDEX
TO FORM 10 – Q
 
 For
the Quarterly Period Ended June 30, 2009





PART
      I. FINANCIAL INFORMATIONItem
      1.
            Financial
      StatementsBalance
      SheetsAs
      of June 30, 2009 and March 31, 2009
            3Statements
      of OperationsFor
      the Three Months Ended June 30, 2009 and 2008
            4Statement
      of Partners' Equity (Deficit)For
      the Three Months Ended June 30, 2009
            5Statements
      of Cash FlowsFor
      the Three Months Ended June 30, 2009 and 2008
            6Notes
      to Financial Statements
            
            7Item
      2.
            Management's
      Discussion and Analysis of FinancialCondition
      and Results of Operations
            16Item
      3.
            Quantitative
      and Qualitative Disclosures about Market Risks
            
            17Item
      4T.
            Controls
      and Procedures
            
            17PART
      II. OTHER INFORMATIONItem
      1.
            Legal
      Proceedings
            
            18Item
      2.
            Unregistered
      Sales of Equity Securities and Use of Proceeds
            
            18Item
      3.
            Defaults
      Upon Senior Securities
            
            18Item
      4.
            Submission
      of Matters to a Vote of Security Holders
            
            18Item
      5.
            Other
      Information
            
            18Item
      6.
            Exhibits
            
            18Signatures
            
            19





2
 WNC
HOUSING TAX CREDIT FUND V, L.P., SERIES 3
 (A
California Limited Partnership)
 
 BALANCE
SHEETS
 (Unaudited)





June
      30, 2009
            
            
            March
      31, 2009ASSETSCash
            
            $
            26,252
            
            
            $
            9,498Investments
      in Local Limited Partnerships, net
              (Notes
      2 and 3)
            
            
            -
            
            
            
            -Total
      Assets
            
            $
            26,252
            
            
            $
            9,498LIABILITIES
      AND PARTNERS' EQUITY (DEFICIT)Liabilities:Accrued
      expenses
            
            $
            4,000
            
            
            $
            4,000Accrued
      fees and expenses due toGeneral
      Partner and affiliates (Note 3)
            
            
            671,548
            
            
            
            648,548Total
      Liabilities
            
            
            675,548
            
            
            
            652,548Partners’
      Equity ( Deficit):General
      Partner
            
            
            2,419,322
            
            
            
            2,419,384Limited
      Partners (25,000 Partnership Units authorized;18,000
      Partnership Units issued and outstanding)
            
            
            (3,068,618
            )
            
            
            (3,062,434
            )Total
      Partners’ Equity (Deficit)
            
            
            (649,296
            )
            
            
            (643,050
            )Total
      Liabilities and Partners’ Equity (Deficit)
            
            $
            26,252
            
            
            $
            9,498


See
accompanying notes to financial statements
 3
 WNC
HOUSING TAX CREDIT FUND V, L.P., SERIES 3
 (A
California Limited Partnership)
 
 STATEMENTS
OF OPERATIONS
 
 For
the Three Months Ended June 30, 2009 and 2008
 (Unaudited)


2009
            
            
            2008Three
      Months
            
            
            Three
      MonthsDistribution
      income
            
            $
            34,031
            
            
            $
            1,617Operating
      expenses:Amortization
      (Note 2)
            
            
            -
            
            
            
            3,461Asset
      management fees (Note 3)
            
            
            12,375
            
            
            
            12,375Legal
      and accounting fees
            
            
            1,700
            
            
            
            65Impairment
      loss (Note 2)
            
            
            -
            
            
            
            1,115,739Appraisal
      expenses
            
            
            4,000
            
            
            
            -Write
      off of advances to Local Limited Partnerships
            
            
            17,280
            
            
            
            -Other
            
            
            4,925
            
            
            
            2,030Total
      operating expenses
            
            
            40,280
            
            
            
            1,133,670Loss
      from operations
            
            
            (6,249
            )
            
            
            (1,132,053
            )Equity
      in losses of LocalLimited
      Partnerships (Note 2)
            
            
            -
            
            
            
            (903
            )Interest
      income
            
            
            3
            
            
            
            10Net
      loss
            
            $
            (6,246
            )
            
            $
            (1,132,946
            )Net
      loss allocated to:General
      Partner
            
            $
            (62
            )
            
            $
            (11,329
            )Limited
      Partners
            
            $
            (6,184
            )
            
            $
            (1,121,617
            )Net
      loss per Partnership Unit
            
            $
            (.34
            )
            
            $
            (62.31
            )Outstanding
      weighted Partnership Units
            
            
            18,000
            
            
            
            18,000








See
accompanying notes to financial statements
 4
 WNC
HOUSING TAX CREDIT FUND V, L.P., SERIES 3
 (A
California Limited Partnership)
 
 STATEMENT
OF PARTNERS’ EQUITY (DEFICIT)
 
 For
the Three Months Ended June 30, 2009
 (Unaudited)





General
            
            
            LimitedPartner
            
            
            Partners
            
            
            TotalPartners’
      equity (deficit) at March 31, 2009
            
            $
            2,419,384
            
            
            $
            (3,062,434
            )
            
            $
            (643,050
            )Net
      loss
            
            
            (62
            )
            
            
            (6,184
            )
            
            
            (6,246
            )Partners’
      equity (deficit) at June 30, 2009
            
            $
            2,419,322
            
            
            $
            (3,068,618
            )
            
            $
            (649,296
            )


See
accompanying notes to financial statements
 5
 WNC
HOUSING TAX CREDIT FUND V, L.P., SERIES 3
 
 (A
California Limited Partnership)
 
 STATEMENTS
OF CASH FLOWS
 
 For
the Three Months Ended June 30, 2009 and 2008
 (Unaudited)


2009
            
            
            2008Cash
      flows from operating activities:Net
      loss
            
            $
            (6,246
            )
            
            $
            (1,132,946
            )Adjustments
      to reconcile net loss to netcash
      provided by operating activities:Amortization
            
            
            -
            
            
            
            3,461Equity
      in losses of Local Limited Partnerships
            
            
            -
            
            
            
            903Impairment
      loss
            
            
            -
            
            
            
            1,115,739Advances
      to Local Limited Partnerships
            
            
            (17,280
            )Write
      off of advances to Local Limited
              Partnerships
            
            
            17,280Change
      in accrued fees and expenses due toGeneral
      Partner and affiliates
            
            
            23,000
            
            
            
            14,471Net
      cash provided by operating activities
            
            
            16,754
            
            
            
            1,628Net
      increase in cash
            
            
            16,754
            
            
            
            1,628Cash,
      beginning of period
            
            
            9,498
            
            
            
            83,448Cash,
      end of period
            
            $
            26,252
            
            
            $
            85,076SUPPLEMENTAL
      DISCLOSURE OF
              CASH
      FLOW INFORMATIONTaxes
      paid
            
            $
            -
            
            
            $
            -








See
accompanying notes to financial statements
 6
 WNC
HOUSING TAX CREDIT FUND V, L.P., SERIES 3
 (A
California Limited Partnership)
 
 NOTES
TO FINANCIAL STATEMENTS
 
 For
the Quarterly Period Ended June 30, 2009
 (Unaudited)


NOTE 1 - SUMMARY OF
SIGNIFICANT ACCOUNTING POLICIES





General





The
accompanying condensed unaudited financial statements have been prepared in
accordance with accounting principles generally accepted in the United States of
America for interim financial information and with the instructions to Form 10-Q
for quarterly reports under Section 13 or 15(d) of the Securities Exchange Act
of 1934.  Accordingly, they do not include all of the information and
footnotes required by accounting principles generally accepted in the United
States of America for complete financial statements.  In the opinion
of management, all adjustments (consisting of normal recurring accruals)
considered necessary for a fair presentation have been
included.  Operating results for the three months ended June 30, 2009
are not necessarily indicative of the results that may be expected for the
fiscal year ending March 31, 2010.  For further information, refer to
the financial statements and footnotes thereto included in the Partnership's
annual report on Form 10-K for the fiscal year ended March 31,
2009.





Organization





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





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





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





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





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





Sempra
Energy Financial, a California corporation, which is not an affiliate of the
Partnership or General Partner, had purchased 4,560 Units, which represents
25.3% of the Partnership Units outstanding for the
Partnership.  Sempra Energy Financial invested
$4,282,600.  A discount of $277,400 was allowed due to a volume
discount.  On July 1, 2006 Sempra Energy Financial transferred their
4,560 Partnership Units to Sempra Section 42, LLC.  See Item 12(b) in
the year ended March 31, 2009 10-K.  Western Financial Savings Bank,
which is not an affiliate of the Partnership or General Partner, has purchased
1,068 Partnership Units, which represent 5.9% of the Units outstanding for the
Partnership.


7
 WNC
HOUSING TAX CREDIT FUND V, L.P., SERIES 3
 (A
California Limited Partnership)
 
 NOTES
TO FINANCIAL STATEMENTS --CONTINUED
 
 For
the Quarterly Period Ended June 30, 2009
 (Unaudited)


NOTE 1 - SUMMARY OF
SIGNIFICANT ACCOUNTING POLICIES, continued





Western
Financial Savings Bank invested $1,000,000. A discount of $68,000 was allowed
due to a volume discount.  See Item 12(b) in the year ended March 31,
2009 10-K.





The
proceeds from the disposition of any of the Local Limited Partnership’s Housing
Complexes will be used first to pay debts and other obligations per the
respective Local Limited Partnership Agreement.  Any remaining
proceeds will then be paid to the Partnership.  The sale of a Housing
Complex may be subject to other restrictions and
obligations.  Accordingly, there can be no assurance that a Local
Limited Partnership will be able to sell its Housing Complex.  Even if
it does so, there can be no assurance that any significant amounts of cash will
be distributed to the Partnership.  Should such distributions occur,
the Limited Partners will be entitled to receive distributions from the proceeds
remaining after payment of Partnership obligations and funding reserves, equal
to their capital contributions and their return on investment (as defined in the
Partnership Agreement) and the General Partners would then be entitled to
receive proceeds equal to their capital contributions from the
remainder.  Any additional sale or refinancing proceeds will be
distributed 90% to the Limited Partners (in proportion to their respective
investments) and 10% to the General Partner.





Risks and
Uncertainties





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





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





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


8
 WNC
HOUSING TAX CREDIT FUND V, L.P., SERIES 3
 (A
California Limited Partnership)
 
 NOTES
TO FINANCIAL STATEMENTS --CONTINUED
 
 For
the Quarterly Period Ended June 30, 2009
 (Unaudited)


NOTE 1 - SUMMARY OF
SIGNIFICANT ACCOUNTING POLICIES, continued





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





All of
the Low Income Housing Tax Credits anticipated to be realized from the Local
Limited Partnerships have been realized. The Partnership does not anticipate
being allocated any Low Income Housing Tax Credits from the Local Limited
Partnerships in the future.  Until the Local Limited Partnerships have
completed the 15 year Low Income Housing Tax Credit compliance period, risks
exist for potential recapture of prior Low Income Housing Tax Credits
received.





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





The
Partnership currently has insufficient working capital to fund its operations.
Associates has agreed to continue providing advances sufficient enough to fund
the operations and working capital requirements of the Partnership through
December 31, 2010.





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





Exit
Strategy





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





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





Upon
identifying those Housing Complexes with the highest potential for a successful
sale, refinancing or syndication, the Partnership expects to proceed with
efforts to liquidate them. The objective is to maximize the Limited Partners’
return wherever possible and, ultimately, to wind down the Partnership. Local
Limited Partnership interests may be disposed of any time by the General Partner
in its discretion.


9
 WNC
HOUSING TAX CREDIT FUND V, L.P., SERIES 3
 (A
California Limited Partnership)
 
 NOTES
TO FINANCIAL STATEMENTS --CONTINUED
 
 For
the Quarterly Period Ended June 30, 2009
 (Unaudited)


NOTE 1 - SUMMARY OF
SIGNIFICANT ACCOUNTING POLICIES, continued





While
liquidation of the Housing Complexes continues to be evaluated, the dissolution
of the Partnership was not imminent as of June 30, 2009. Two Local Limited
Partnerships, Patten Towers II, L.P. and Raymond S. King Apartments, L.P. have
been identified for disposition.  See footnote 5 for disclosure
relating to the disposition of Raymond S. King Apartments,
L.P.





Method of Accounting for
Investments in Local Limited Partnerships





The
Partnership accounts for its investments in Local Limited Partnerships using the
equity method of accounting, whereby the Partnership adjusts its investment
balance for its share of the Local Limited Partnerships’ results of operations
and for any contributions made and distributions received. The Partnership
reviews the carrying amount of an individual investment in a Local Limited
Partnership for possible impairment whenever events or changes in circumstances
indicate that the carrying amount of such investment may not be
recoverable.  Recoverability of such investment is measured by the
estimated value derived by management, generally consisting of the sum of the
remaining future Low Income Housing Tax Credits estimated to be allocable to the
Partnership and the estimated residual value to the
Partnership.   If an investment is considered to be impaired, the
Partnership reduces the carrying value of its investment in any such Local
Limited Partnership.  The accounting policies of the Local Limited
Partnerships, generally, are expected to be consistent with those of the
Partnership. Costs incurred by the Partnership in acquiring the investments are
capitalized as part of the investment account and are being amortized over 30
years (see Note 2).





“Equity
in losses of Local Limited Partnerships” for the periods ended June 30, 2009 and
2008 have been recorded by the Partnership. Management’s estimate for the
three-month period is based on either actual unaudited results reported by the
Local Limited Partnerships or historical trends in the operations of the Local
Limited Partnerships. In subsequent annual financial statements, upon receiving
the actual annual results reported by the Local Limited Partnerships, management
reverses its prior estimate and records the actual results reported by the Local
Limited Partnerships.  Equity in losses of Local Limited Partnerships
allocated to the Partnership are not recognized to the extent that the
investment balance would be adjusted below zero. If the Local Limited
Partnerships reported net income in future years, the Partnership will resume
applying the equity method only after its share of such net income equals the
share of net losses not recognized during the period(s) the equity method was
suspended (see Note 2).





The
Partnership does not consolidate the accounts and activities of the Local
Limited Partnerships, which are considered Variable Interest Entities under
Financial Accounting Standards Board (“FASB”) Interpretation No. 46-Revised,
“Consolidation of Variable Interest Entities”, because the Partnership is not
considered the primary beneficiary.  The Partnership’s balance in
investments in Local Limited Partnerships, plus the risk of recapture of Low
Income Housing Tax Credits previously recognized on such investments, represents
the maximum exposure to loss in connection with such investments.  The
Partnership’s exposure to loss on the Local Limited Partnerships is mitigated by
the condition and financial performance of the underlying Housing Complexes as
well as the strength of the Local General Partners and their guarantees against
Low Income Housing Tax Credits recapture.





Distributions
received by the Partnership are accounted for as a reduction of the investment
balance.  Distributions received after the investment has reached zero
are recognized as income.  As of all periods presented all of the
investment balances had reached zero.





Use of
Estimates





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


10
 WNC
HOUSING TAX CREDIT FUND V, L.P., SERIES 3
 (A
California Limited Partnership)
 
 NOTES
TO FINANCIAL STATEMENTS --CONTINUED
 
 For
the Quarterly Period Ended June 30, 2009
 (Unaudited)


NOTE 1 - SUMMARY OF
SIGNIFICANT ACCOUNTING POLICIES, continued





Cash and Cash
Equivalents





The
Partnership considers all highly liquid investments with original maturities of
three months or less when purchased to be cash equivalents.  As of
June 30, 2009 and March 31, 2009, the Partnership had no cash
equivalents.





Reporting Comprehensive
Income





The Statement of Financial Accounting
Standards (“SFAS”) No. 130, Reporting Comprehensive Income established
standards for the reporting and display of comprehensive income (loss) and its
components in a full set of general-purpose financial statements.  The
Partnership had no items of other comprehensive income for all periods
presented, as defined by SFAS No. 130.





Income
Taxes





No
provision for income taxes has been recorded in the accompanying financial
statements as any liabilities and/or benefits for income taxes flow to the
partners of the Partnership and are their obligations and/or
benefits.  For income tax purposes, the Partnership reports on a
calendar year basis.





In June
2006, FASB issued Interpretation No. 48 "Accounting for Uncertainty in Income
Taxes" (FIN 48), an interpretation of FASB Statement No. 109. FIN 48 provides
guidance for how uncertain tax positions should be recognized, measured,
presented and disclosed in the financial statements.  FIN 48 requires
the evaluation of tax positions taken or expected to be taken in the course of
preparing the Partnership's tax returns to determine whether the tax positions
are more-likely-than-not of being sustained upon examination by the applicable
tax authority, based on the technical merits of the tax position, and then
recognizing the tax benefit that is more-likely-than-not to be
realized.  Tax positions not deemed to meet the more-likely-than-not
threshold would be recorded as a tax expense in the current reporting
period.  As required, the Partnership adopted FIN 48 effective April
1, 2007 and concluded that the effect is not material to its financial
statements.  Accordingly, no cumulative effect adjustment related to
the adoption of FIN 48 was recorded.





Net Loss Per Partnership
Unit





Net loss
per Partnership Unit is calculated pursuant to Statement of Financial Accounting
Standards No. 128,
Earnings per Share.Net loss per Partnership Unit includes no dilution
and is computed by dividing loss allocated to Limited Partners by the weighted
average number of Partnership Units outstanding during the
period.  Calculation of diluted net loss per Partnership Unit is not
required.





Revenue
Recognition





The
Partnership is entitled to receive reporting fees from the Local Limited
Partnerships.  The intent of the reporting fees is to offset (in part)
administrative costs incurred by the Partnership in corresponding with the Local
Limited Partnerships.  Due to the uncertainty of the collection of
these fees, the Partnership recognizes reporting fees as collections are
made.





Amortization





Acquisition
fees and costs were being amortized over 30 years using the straight-line
method. Amortization expense for each of the three months ended June 30, 2009
and 2008 was $0 and $3,461, respectively. During the three months
ended  June 30, 2009 and 2008, an impairment loss of $0 and $169,938,
respectively, was recorded  against these fees and
costs.


11
 WNC
HOUSING TAX CREDIT FUND V, L.P., SERIES 3
 (A
California Limited Partnership)
 
 NOTES
TO FINANCIAL STATEMENTS --CONTINUED
 
 For
the Quarterly Period Ended June 30, 2009
 (Unaudited)


NOTE 1 - SUMMARY OF
SIGNIFICANT ACCOUNTING POLICIES, continued





Impairment





A loss in
value from a Local Limited Partnership other than a temporary decline is
recorded as an impairment loss.  Impairment is measured by comparing the
investment carrying amount to the sum of the total of the remaining Low Income
Housing Tax Credits allocated to the Partnership and the estimated residual
value to the Partnership.  For the three months ended June 30, 2009
and 2008 impairment loss related to investments in Local Limited Partnerships
was $0 and $945,801, respectively. The Partnership also evaluates its
intangibles for impairment in connection with its investments in Local Limited
Partnerships. Impairment on the intangibles is measured by comparing the
investment’s carrying amount after impairment and the related intangible assets
to the sum of the total of the remaining Low Income Housing Tax Credits
allocated to the Partnership and the estimated residual value of the investment.
During the three months ended June 30, 2009 and 2008, an impairment loss of $0
and $169,938, respectively, was recorded on the related
intangibles.





NOTE 2 - INVESTMENTS IN
LOCAL LIMITED PARTNERSHIPS





As of the
periods presented, the Partnership owns Local Limited Partnership interests in
16 Local Limited Partnerships.  All of these Local Limited
Partnership’s own one Housing Complex consisting of an aggregate of 744
apartment units. The respective Local General Partners of the Local Limited
Partnerships manage the day to day operations of the entities. Significant Local
Limited Partnership business decisions require approval from the
Partnership.  The Partnership, as a Limited Partner, is generally
entitled to 99%, as specified in the Local Limited Partnership governing
agreements, of the operating profits and losses, taxable income and losses, and
Low Income Housing Tax Credits of the Local Limited Partnerships, except for one
of the investments in which it is entitled to 49.49% of such
amount.





A loss in
value from a Local Limited Partnership other than a temporary decline is
recorded as an impairment loss.  Impairment is measured by comparing
the investment carrying amount to the sum of the total amount of remaining Low
Income Housing Tax Credits allocated to the Partnership and the estimated
residual value to the Partnership.  Due to current economic conditions
all Local Limited Partnerships were not considered to have any residual
value.  Accordingly, the Partnership recorded an impairment loss of $0
and $945,801 during the three months ended June 30, 2009 and 2008,
respectively.  Beginning in the quarter ended June 30, 2008, the
Partnership started evaluating its intangibles for impairment in connection with
its investment in Local Limited Partnerships.  During the three months
ended June 30, 2009 and 2008, an impairment loss of $0 and $169,938,
respectively, was recorded on the related intangibles.





The
following is a summary of the equity method activity of the investments in Local
Limited Partnerships for the periods presented below:


For
      the Three Months Ended
              June
      30, 2009
            
            
            For
      the Year
              Ended
              March
      31, 2009Investments
      per balance sheet, beginning of period
            
            $
            -
            
            
            $
            1,120,103Equity
      in losses of Local Limited Partnerships
            
            
            -
            
            
            
            (903
            )Impairment
      loss
            
            
            -
            
            
            
            (1,115,739
            )Distributions
      received from Local Limited Partnerships
            
            
            -
            
            
            
            -Amortization
      of capitalized acquisition fees and costs
            
            
            -
            
            
            
            (3,461
            )Investments
      per balance sheet, end of period
            
            $
            -
            
            
            $
            -


12
 WNC
HOUSING TAX CREDIT FUND V, L.P., SERIES 3
 (A
California Limited Partnership)
 
 NOTES
TO FINANCIAL STATEMENTS --CONTINUED
 
 For
the Quarterly Period Ended June 30, 2009
 (Unaudited)


NOTE 2 - INVESTMENTS IN
LOCAL LIMITED PARTNERSHIPS, continued





Selected
financial information for the three months ended June 30, 2009 and 2008 from the
unaudited combined condensed financial statements of the Local Limited
Partnerships in which the partnership has invested is as follows:





COMBINED
      CONDENSED STATEMENTS OF OPERATIONS2009
            
            
            2008Revenues
            
            $
            1,124,000
            
            
            $
            1,124,000ExpensesInterest
      expense
            
            
            196,000
            
            
            
            196,000Depreciation
      and amortization
            
            
            326,000
            
            
            
            326,000Operating
      expenses
            
            
            1,006,000
            
            
            
            1,006,000Total
      expenses
            
            
            1,528,000
            
            
            
            1,528,000Net
      loss
            
            $
            (404,000
            )
            
            $
            (404,000
            )Net
      loss allocable to the Partnership
            
            $
            (396,000
            )
            
            $
            (396,000
            )Net
      loss recorded by the Partnership
            
            $
            -
            
            
            $
            (1,000
            )





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





Troubled Housing
Complexes





One Local
Limited Partnership, Patten Towers L.P. II (“Patten Towers”), had a
less-than-satisfactory score from HUD on the 2006 and 2007 property
inspection.  HUD currently has the authority to revoke their housing
assistance program (“HAP”) with Patten Towers and thereby suspend all rental
assistance for the tenants of Patten Towers.  If HUD were to revoke
the HAP contract then most of the current tenants would be unable to make their
rental payments thereby denying Patten Towers with the necessary monthly revenue
it needs to pay all costs and expenses.  Patten Towers requested and
received approval from HUD to participate in a follow-up
inspection.  As of January 2009, HUD re-inspected the property and
Patten Towers received an acceptable score from HUD thereby allowing the
property to continue to participate in the housing assistance
program.  Patten Towers is currently listed for sale with a national
brokerage firm. The Partnership does not anticipate proceeds from the
sale.  Any sale transaction contemplated will require that the
property maintain compliance with the Section 42 tax credit provisions, thereby
avoiding recapture of any previously claimed tax credits.  As of March
31, 2009 the investment balance of Patten Towers was $0.





The
Partnership has a 99% limited partnership investment in Heritage Apartments,
L.P. (“Heritage”).  Heritage is a defendant in several wrongful death
lawsuits and related injury lawsuits.  Heritage carries general
liability and extended liability insurance.  Discovery for these
lawsuits is ongoing, but the management of Heritage and WNC are unable to
determine the outcome of these lawsuits at this time or their impact, if any, on
the Partnership’s financial





13
 WNC
HOUSING TAX CREDIT FUND V, L.P., SERIES 3
 (A
California Limited Partnership)
 
 NOTES
TO FINANCIAL STATEMENTS --CONTINUED
 
 For
the Quarterly Period Ended June 30, 2009
 (Unaudited)





NOTE 2 - INVESTMENTS IN
LOCAL LIMITED PARTNERSHIPS, continued





statements.  Should
Heritage be unsuccessful in its defense and the insurer denies coverage or the
insurance coverage proves to be  inadequate, the Partnership may be
required to sell its investment or may otherwise lose its investment in
Heritage, which was $0 at June 30, 2009.  Loss of the Heritage
investment could result in the cessation and recapture of tax credits and
certain prior tax deductions. As of the date of this report no losses have been
recognized and management does not expect losses to occur.





NOTE 3 - RELATED PARTY
TRANSACTIONS





Under the
terms of the Partnership Agreement, the Partnership has paid or is obligated to
the General Partner or its affiliates the following fees:





(a)
            Acquisition
      fees of up to 7.5% of the gross proceeds from the sale of Partnership
      Units as compensation for services rendered in connection with the
      acquisition of Local Limited Partnerships.  At the end of all
      periods presented, the Partnership incurred acquisition fees of
      $1,200,785.  The acquisition fees were impaired to zero as of
      all periods presented.





(b)
            Reimbursement
      of costs incurred by the General Partner or an affiliate in connection
      with the acquisition of Local Limited Partnerships.  These
      reimbursements have not exceeded 1% of the gross proceeds.  As
      of the end of all periods presented, the Partnership incurred acquisition
      costs of $120,510, which have been included in investments in Local
      Limited Partnerships.  The acquisition costs were fully
      amortized for all periods
presented.





(c)
            An
      annual asset management fee equal to the greater amount of (i) $2,000 for
      each Housing complex, or (ii) 0.275% of gross proceeds.  In
      either case, the fee will be decreased or increased annually based on
      changes to the Consumer Price Index.  However, in no event will
      the maximum amount exceed 0.2% of the invested assets of the limited
      Partnerships, as defined.   “Invested Assets” means the sum
      of the Partnership’s investment in Local Limited Partnership interests and
      the Partnership’s Allocable share of mortgage loans on and other debts
      related to the Housing Complexes owned by such Local Limited
      Partnerships.  Asset management fees of $12,375 were incurred
      during each of the three months ended June 30, 2009 and
      2008.  The Partnership paid the General Partner and or its
      affiliates $0 of those fees during each of the three months ended June 30,
      2009 and 2008.





(d)
            The
      Partnership reimburses the General Partner or its affiliates for operating
      expenses incurred by the Partnership and paid for by the General Partner
      or its affiliates on behalf of the Partnership. Operating expense
      reimbursements were $0 during each of the three months ended June 30, 2009
      and 2008.





(e)
            A
      subordinated disposition fee in an amount equal to 1% of the sales price
      of real estate sold.  Payment of this fee is subordinated to the
      limited partners receiving a preferred return of 14% through December 31,
      2006 and 6% thereafter (as defined in the Partnership Agreement) and is
      payable only if the General Partner or its affiliates render services in
      the sales effort.  No such fees were incurred for all periods
      presented.





14
 WNC
HOUSING TAX CREDIT FUND V, L.P., SERIES 3
 (A
California Limited Partnership)
 
 NOTES
TO FINANCIAL STATEMENTS --CONTINUED
 
 For
the Quarterly Period Ended June 30, 2009
 (Unaudited)


NOTE 3 - RELATED PARTY
TRANSACTIONS, continued





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





June
      30, 2009
            
            
            March
      31, 2009Expenses
      paid by the General Partner or an affiliate
              on
      behalf of the Partnership
            
            $
            113,656
            
            
            $
            103,031Advances
      made to the Partnership from the General Partner or
    affiliates
            
            
            122,392
            
            
            
            122,392Asset
      management fee payable
            
            
            435,500
            
            
            
            423,125Total
            
            $
            671,548
            
            
            $
            648,548





The
General Partner and/or its affiliates does not anticipate that these accrued
fees will be paid until such time as capital reserves are in excess of future
foreseeable working capital requirements of the Partnership.





NOTE 4 –ADVANCES TO LOCAL
LIMITED PARTNERSHIPS





During
the three months ended June 30, 2009, the Partnership voluntarily advanced
$17,280 to one Local Limited Partnership in which the Partnership is a limited
partner.  The Local Limited Partnership has been experiencing operational
issues. As of June 30, 2009 total advances made to Local Limited Partnerships
were $1,835,522 of which $1,835,522 was reserved.  The Partnership
determined the recoverability of these advances to be improbable and,
accordingly, a reserve had been recorded.





NOTE
5-SUBSEQUENT EVENTS





As of December 23, 2009, the
Partnership has identified one Local Limited Partnership, Raymond S. King
Apartments L.P. (“Raymond S. King”) for disposition.   Raymond S.
King was sold on December 31, 2009 to one of the Local General Partners who
purchased the Limited Partnership interests for $1.  Raymond S. King
was appraised with a value of $28,000 and the outstanding mortgage debt was
$781,939 at December 31, 2008.  In selling this Limited Partnership
interests, the Partnership received $1 for its Limited Partnership interests in
this Local Limited Partnership. The Partnerships net investment balance in this
Local Limited Partnership was zero at the time of the
sale.  Accordingly, no material gain or loss will be recorded by the
Partnership upon this disposition.  In order for the Local General
Partner to agree to buy this Limited Partnership interest, the Partnership has
agreed to pay $32,478 to Raymond S. King to bring all of its payables current,
pay for the preparation of the 2009 annual audit and tax return, bring the
property taxes current and fund a reserve account for the estimated cash short
fall for the coming year.  The Partnership currently has approximately
$15,000 cash on hand, therefore the Partnership’s General Partner and/or its
affiliate has advanced the necessary cash to the Partnership in order to fulfill
its commitment to pay the $32,478 to Raymond S. King.





The Local Limited Partnership
will complete its 15-year compliance period in 2011; therefore there is a risk
of tax credit recapture.  The last year in which Low Income Housing
Tax Credits were generated by this Local Limited Partnership was
2007.  The maximum exposure of recapture along with the interest and
penalties related to the recapture is $177,700 which equates to $9.87 per
Limited Partnership Unit.  The executed Purchase Agreement states that
Raymond S. King must remain in compliance with Section 42 of the IRS code. Until
the completion of the 15-year compliance period is completed, the Purchaser must
furnish the Partnership with certain reports proving that the property is still
in compliance with the IRS code.


15


Item
2.  Management's Discussion and Analysis of Financial Condition and
Results of Operations





Forward-Looking
Statements





With the
exception of the discussion regarding historical information, this “Management’s
Discussion and Analysis of Financial Condition and Results of Operations” and
other discussions elsewhere in this Form 10-Q contain forward looking
statements.  Such statements are based on current expectations subject
to uncertainties and other factors which may involve known and unknown risks
that could cause actual results of operations to differ materially from those
projected or implied.  Further, certain forward-looking statements are
based upon assumptions about future events which may not prove to be
accurate.





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





Subsequent
written and oral forward looking statements attributable to the Partnership or
persons acting on its behalf are expressly qualified in their entirety by
cautionary statements in this Form 10-Q and in other reports filed with the
Securities and Exchange Commission.  The following discussion should
be read in conjunction with the condensed unaudited financial statements and the
notes thereto included elsewhere in this filing.





The
following discussion and analysis compares the results of operations for the
three months ended June 30, 2009 and 2008, and should be read in conjunction
with the condensed unaudited financial statements and accompanying notes
included within this report.





Financial
Condition





The
Partnership’s assets at June 30, 2009 consisted of $26,000 in cash. Liabilities
at June 30, 2009 consisted of $672,000 accrued fees and expenses due to the
General Partner and/or its affiliates and $4,000 in accrued
expenses.





Results
of Operations





Three Months Ended June 30, 2009
Compared to Three Months Ended June 30, 2008.The
Partnership’s net loss for the three months ended June 30, 2009 was $(6,000),
reflecting a decrease of $1,127,000 from the $1,133,000 net loss experienced for
the three months ended June 30, 2008.  The decrease was primarily due
to a decrease of $1,116,000 in impairment loss.  For the quarter ended
June 30, 2008 all Local Limited Partnerships were considered to not have any
residual value in consideration of the current economic
circumstances.  Since all the Low Income Housing Tax Credits had
already been allocated to the Partnership all remaining net investment balances
in the Local Limited Partnerships were written down to zero.  The
equity in losses of Local Limited Partnerships decreased by $1,000 for the three
months ended June 30, 2009 compared to the three months ended June 30,
2008.  There was an increase of $(17,000) in write off of advances to
Local Limited Partnerships for the three months ended June 30, 2009 due to an
advance being made during the three months ended June 30, 2009 and reserved for
in the same quarter compared to no advances made and reserved for in the three
months ended June 30, 2008. A Local Limited Partnership was experiencing some
operational issues and the Partnership advanced the funds that were
necessary.  The appraisal expenses for the three months ended June 30,
2009 increased by $(4,000) due to the Partnership considering the potential
dispositions of two Local Limited Partnerships.  Additionally, there
was a $(2,000) increase for legal and accounting expenses due to the timing of
the work being performed.  The amortization expense decreased by
$3,000 due to the fact that all the acquisition costs and fees were fully
amortized as of  March 31, 2009.  There was also a $32,000
increase in distribution income.  Distribution income fluctuates from
year to year due to the fact that Local Limited Partnerships pay those fees to
the Partnership when the Local Limited Partnership’s cash flow will allow for
the payment.


16





Liquidity
and Capital Resources





Three Months Ended June 30, 2009
Compared to Three Months Ended June 30, 2008.The net increase
in cash during the three months ended June 30, 2009 was $17,000 compared to a
$2,000 increase in cash for the three months ended June 30, 2008.  The
change of $15,000 is due primarily to the fact that during the three months
ended June 30, 2009 the Partnership received distribution income of $34,000,
compared to $2,000 received for the three months ended June 30,
2008.  That increase was partially offset by the $(17,000) the
Partnership advanced to one Local Limited Partnership that was experiencing
operational issues.





Item
2.  Management's Discussion and Analysis of Financial Condition and
Results of Operations (continued)





During
the three months ended June 30, 2009, accrued payables, which consist primarily
of related party asset management fees and advances due to the General Partner,
increased by $23,000. The General Partner does not anticipate that these accrued
fees and advances will be paid until such time as capital reserves are in excess
of foreseeable working capital requirements of the Partnership.





The
Partnership expects its future cash flows, together with its net available
assets as of June 30, 2009, to be insufficient to meet all currently foreseeable
future cash requirements. Associates has agreed to continue providing advances
sufficient enough to fund the operations and working capital requirements of the
Partnership through December 31, 2010.





Item
3. Quantitative and Qualitative Disclosures About Market Risks





NOT
APPLICABLE





Item
4T. Controls and Procedures





(a)           Disclosure controls and
procedures





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





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


17





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





(b)           Changes in internal
controls





There
were no changes in the Partnership’s internal control over financial reporting
that occurred during the quarter ended June 30, 2009 that materially affected,
or are reasonably likely to materially affect, the Partnership’s internal
control over financial reporting.





Part
II.                      Other
Information





Item
1.                      Legal
Proceedings





NONE





Item
2.                      Unregistered
Sales of Equity Securities and Use of Proceeds





NONE





Item
3.                      Defaults
Upon Senior Securities





NONE





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





NONE





Item
5.                      Other
Information





NONE





Item
6.  Exhibits





31.1
            Certification
      of the Principal Executive Officer pursuant to Rule 13a-14 and 15d-14, as
      adopted pursuant to section 302 of the Sarbanes-Oxley Act of
      2002.  (filed herewith)





31.2
            Certification
      of the Principal Financial Officer pursuant to Rule 13a-14 and 15d-14, as
      adopted pursuant to section 302 of the Sarbanes-Oxley Act of
      2002.  (filed herewith)





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





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


18


Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.





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





By:  WNC
Tax Credit Partners,
L.P.                                                                General
Partner








By:  WNC
& ASSOCIATES,
INC.                                                                   General
Partner

















By: /s/  Wilfred N.
Cooper, Jr.





Wilfred
N. Cooper, Jr.


President and Chief Executive Officer
of WNC & Associates, Inc.





Date:           January
08, 2010




















By:  /s/ Melanie R.
Wenk





Melanie
R. Wenk


Vice-President
- Chief Financial Officer of WNC & Associates, Inc.





Date:           January
08, 2010























19