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, 2007
                For the quarterly period ended September 30, 2007

                                       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                                  33-616348
    (State or other jurisdiction of                     (I.R.S. Employer
     incorporation or organization)                     Identification No.)

                     17782 Sky Park Circle, Irvine, CA 92614
                   ( Address of principle executive offices )

                                 (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 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):

<TABLE>
<CAPTION>
<S>                                                                           <C>
Large accelerated filer      Accelerated filer     Non-accelerated filer  X  Smaller reporting company
                        ---                    ---                       ---                           ---
</TABLE>

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

Yes     No  X
    ---    ---

<PAGE>

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

                               INDEX TO FORM 10-Q

                  FOR THE QUARTERLY PERIODS ENDED JUNE 30, 2007
                             AND SEPTEMBER 30, 2007

PART I. FINANCIAL INFORMATION

  Item 1. Financial Statements

  Balance Sheets
         As of June 30, 2007, September 30, 2007 and March 31, 2007............3

  Statements of Operations
         For the Three Months Ended June 30, 2007 and 2006.....................4
         For the Three and Six Months Ended September 30, 2007 and 2006........5

  Statement of Partners' Equity (Deficit)
         For the Three Months Ended June 30, 2007 .............................6
         For the Six Months Ended September 30, 2007 ..........................6

  Statements of Cash Flows
         For the Three Months Ended June 30, 2007 and 2006.....................7
         For the Six Months Ended September 30, 2007 and 2006..................8

  Notes to Financial Statements................................................9

  Item 2. Management's Discussion and Analysis of Financial
         Condition and Results of Operations..................................19

  Item 3. Quantitative and Qualitative Disclosures About Market Risk..........21

  Item 4T. Controls and Procedures  ..........................................21


PART II. OTHER INFORMATION

  Item 1. Legal Proceedings...................................................22

  Item 1A. Risk Factors.......................................................22

  Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.........22

  Item 3. Defaults Upon Senior Securities.....................................22

  Item 4. Submission of Matters to a Vote of Security Holders.................22

  Item 5. Other Information...................................................22

  Item 6. Exhibits............................................................22

  Signatures..................................................................23

                                       2

<PAGE>
<TABLE>
<CAPTION>

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

                                                        BALANCE SHEETS
                                                          (UNAUDITED)


                                                                                         SEPTEMBER 30,
                                                                  JUNE 30, 2007              2007            MARCH 31, 2007
                                                               -------------------   -------------------   ------------------
<S>                                                            <C>                   <C>                   <C>
ASSETS
Cash                                                           $            47,039   $            71,794   $           46,994
Investments in Local Limited Partnerships, net (Note 2)                  1,339,560             1,296,245            1,912,366
Due from affiliates (Note 4)                                                     -                20,000                    -
                                                               -------------------   -------------------   ------------------

    Total Assets                                               $         1,386,599   $         1,388,039   $        1,959,360
                                                               ===================   ===================   ==================

LIABILITIES AND PARTNERS' EQUITY (DEFICIT)

Liabilities:
  Accrued expenses                                             $             4,000   $             4,000   $            4,000
  Accrued fees and expenses due to
    General Partner and affiliates (Note 3)                              1,752,294             1,771,852            1,738,278

                                                               -------------------   -------------------   ------------------
Total Liabilities                                                        1,756,294             1,775,852            1,742,278
                                                               -------------------   -------------------   ------------------

Partners' equity (deficit):
  General Partner                                                          964,982               964,801             970,850
  Limited Partners (25,000 Partnership Units authorized;
    18,000 Partnership Units issued and outstanding)                    (1,334,677)           (1,352,614)            (753,768)
                                                               -------------------   -------------------   ------------------

         Total Partners' Equity (Deficit)                                 (369,695)             (387,813)             217,082
                                                               -------------------   -------------------   ------------------
            Total Liabilities and Partners' Equity             $         1,386,599   $         1,388,039   $        1,959,360
                                                               ===================   ===================   ==================



                                            See accompanying notes to financial statements

                                                              3
<PAGE>

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

                                   STATEMENTS OF OPERATIONS
                       FOR THE THREE MONTHS ENDED JUNE 30, 2007 AND 2006
                                          (UNAUDITED)


                                                      2007                      2006
                                                ------------------        ------------------
                                                   THREE MONTHS              THREE MONTHS
                                                ------------------        ------------------
Reporting fees                                  $                -        $            1,500
                                                ------------------        ------------------

Operating expenses:
  Amortization (Note 2)                                      3,478                     4,050
  Asset management fees (Note 3)                            12,375                    12,375
  Impairment loss (Note 2)                                 535,600                 1,197,931
  Legal and accounting fees                                    112                       675
  Write off of advances to Local
    Limited Partnerships (Note 4)                                -                   422,731
  Other                                                      1,528                     3,072
                                                ------------------        ------------------

    Total operating expenses                               553,093                 1,640,834
                                                ------------------        ------------------

Loss from operations                                      (553,093)               (1,639,334)

Equity in income (losses) of Local
  Limited Partnerships (Note 2)                            (33,728)                  540,637

Interest income                                                 44                        28
                                                ------------------        ------------------

Net loss                                        $         (586,777)       $       (1,098,669)
                                                ==================        ==================

Net loss allocated to:
  General Partner                               $           (5,868)       $          (10,987)
                                                ==================        ==================

  Limited Partners                              $         (580,909)       $       (1,087,682)
                                                ==================        ==================

Net loss per Partnership Unit                   $              (32)       $              (60)
                                                ==================        ==================

Outstanding weighted
  Partnership Units                                         18,000                    18,000
                                                ==================        ==================


                        See accompanying notes to financial statements

                                              4
<PAGE>

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

                                                STATEMENTS OF OPERATIONS
                                       FOR THE THREE MONTHS AND SIX MONTHS ENDED
                                              SEPTEMBER 30, 2007 AND 2006
                                                      (UNAUDITED)


                                                        2007                                    2006
                                        -------------------------------------    ------------------------------------
                                             THREE                 SIX                THREE                SIX
                                             MONTHS               MONTHS              MONTHS              MONTHS
                                        -----------------   -----------------    ----------------   -----------------

Reporting fees                          $          31,608   $          31,608    $         19,850   $          21,350
Distribution income                                 1,153               1,153                   -                   -
                                        -----------------   -----------------    ----------------   -----------------
    Total operating income                         32,761              32,761              19,850              21,350
                                        -----------------   -----------------    ----------------   -----------------

Operating expenses:
  Amortization (Note 2)                             3,358               6,836               4,050               8,100
  Asset management fees (Note 3)                   12,375              24,750              12,375              24,750
  Impairment loss (Note 2)                          1,867             537,467             569,462           1,767,393
  Legal and accounting fees                         6,755               6,867              18,625              19,300
  Write off of advances to Local
    Limited Partnerships (Note 4)                       -                   -             174,684             597,415
  Other                                               428               1,956               3,559               6,631
                                        -----------------   -----------------    ----------------   -----------------

    Total operating expenses                       24,783             577,876             782,755           2,423,589
                                        -----------------   -----------------    ----------------   -----------------

Income (loss) from operations                       7,978            (545,115)           (762,905)         (2,402,239)

Equity in income (losses) of Local
  Limited Partnerships (Note 2)                   (26,141)            (59,869)            540,637           1,081,274

Interest income                                        45                  89                  34                  62
                                        -----------------   -----------------    ----------------   -----------------
Net loss                                $         (18,118)  $        (604,895)   $       (222,234)  $      (1,320,903)
                                        =================   =================    ================   =================

Net loss allocated to:

  General Partner                       $            (181)  $          (6,049)   $         (2,222)  $         (13,209)
                                        =================   =================    ================   =================

  Limited Partners                      $         (17,937)  $        (598,846)   $       (220,012)  $      (1,307,694)
                                        =================   =================    ================   =================

Net loss per

  Partnership Unit                      $              (1)  $             (33)   $            (12)  $             (73)
                                        =================   =================    ================   =================

Outstanding weighted
  Partnership Units                                18,000              18,000              18,000              18,000
                                        =================   =================    ================   =================


                                     See accompanying notes to financial statements

                                                           5
<PAGE>

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

                                 STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
                               FOR THE THREE MONTHS ENDED JUNE 30, 2007, AND
                                  THE SIX MONTHS ENDED SEPTEMBER 30, 2007
                                                (UNAUDITED)


                                 FOR THE THREE MONTHS ENDED JUNE 30, 2007
                                                        GENERAL           LIMITED
                                                        PARTNER           PARTNERS            TOTAL
                                                    ---------------   ----------------   ---------------

Partners' equity (deficit) at March 31, 2007        $       970,850   $       (753,768)  $       217,082

Net loss                                                     (5,868)          (580,909)         (586,777)
                                                    ---------------   ----------------   ---------------

Partners' equity (deficit) at June 30, 2007         $       964,982   $     (1,334,677)  $      (369,695)
                                                    ===============   ================   ===============


                                FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2007
                                                        GENERAL           LIMITED
                                                        PARTNER           PARTNERS            TOTAL
                                                    ---------------   ----------------   ---------------

Partners' equity (deficit) at March 31, 2007        $       970,850   $       (753,768)  $       217,082

Net loss                                                     (6,049)          (598,846)         (604,895)
                                                    ---------------   ----------------   ---------------

Partners' equity (deficit) at September 30, 2007    $       964,801   $     (1,352,614)  $      (387,813)
                                                    ===============   ================   ===============




                              See accompanying notes to financial statements

                                                    6
<PAGE>

                                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, 2007 AND 2006
                                                 (UNAUDITED)


                                                                             2007               2006
                                                                       ----------------   ----------------
Cash flows from operating activities:
  Net loss                                                             $       (586,777)  $     (1,098,669)
    Adjustments to reconcile net loss to net
      cash provided by (used in) operating activities:
        Amortization                                                              3,478              4,050
        Impairment loss                                                         535,600          1,197,931
        Equity in losses (income) of Local Limited Partnerships                  33,728           (540,637)
        Advances made to Local Limited Partnerships                                   -           (422,731)
        Write off of advances made to Local Limited Partnerships                      -            422,731
        Change in accrued  fees and expenses due to
           General Partner and affiliates                                        14,016            417,853
                                                                       ----------------   ----------------
        Net cash provided by (used in) operating activities                          45            (19,472)
                                                                       ----------------   ----------------

Net increase (decrease) in cash                                                      45            (19,472)

Cash, beginning of period                                                        46,994             23,160
                                                                       ----------------   ----------------

Cash, end of period                                                    $         47,039   $          3,688
                                                                       ================   ================

SUPPLEMENTAL DISCLOSURE OF CASH FLOW
    INFORMATION:

    Taxes paid                                                         $              -   $              -
                                                                       ================   ================



                               See accompanying notes to financial statements

                                                     7
<PAGE>

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

                                          STATEMENTS OF CASH FLOWS
                            FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2007 AND 2006
                                                 (UNAUDITED)


                                                                             2007               2006
                                                                       ----------------   ----------------
Cash flows from operating activities:
  Net loss                                                             $       (604,895)  $     (1,320,903)
    Adjustments to reconcile net loss to net
      cash provided by (used in) operating activities:
        Amortization                                                              6,836              8,100
        Impairment loss                                                         537,467          1,767,393
        Equity in losses (income) of Local Limited Partnerships                  59,869         (1,081,274)
        Advances made to Local Limited Partnerships                             (20,000)          (597,415)
        Write off of advances made to Local Limited Partnerships                      -            597,415
        Change in accrued fees and expenses due to
           General Partner and affiliates                                        33,574            620,312
                                                                       ----------------   ----------------
        Net cash provided by (used in) operating activities                      12,851             (6,372)
                                                                       ----------------   ----------------

Cash flow provided by investing activities:
      Distributions received from Local Limited Partnerships                     11,949             15,549
                                                                       ----------------   ----------------
Net cash provided by investing activities                                        11,949             15,549
                                                                       ----------------   ----------------

Net increase in cash                                                             24,800              9,177

Cash, beginning of period                                                        46,994             23,160
                                                                       ----------------   ----------------

Cash, end of period                                                    $         71,794   $         32,337
                                                                       ================   ================

SUPPLEMENTAL DISCLOSURE OF CASH FLOW
    INFORMATION:

    Taxes paid                                                         $              -   $              -
                                                                       ================   ================


                               See accompanying notes to financial statements

                                                     8
</TABLE>
<PAGE>

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

                          NOTES TO FINANCIAL STATEMENTS
      FOR THE QUARTERLY PERIODS ENDED JUNE 30, 2007 AND SEPTEMBER 30, 2006
                                   (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, 2007 and six months ended September 30, 2007 are not necessarily
indicative of the results that may be expected for the fiscal year ending March
31, 2008. 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, 2007.

ORGANIZATION
------------

WNC Housing Tax Credit Fund V, L.P., Series 3, a California Limited Partnership
(the "Partnership"), was formed on March 28, 1995, under the laws of the state
of California. The Partnership was formed to invest primarily in other limited
partnerships or limited liability companies ("Local Limited Partnerships") which
own and operate 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. ("Associates"
or the "General Partner"). The chairman and president of Associates own
substantially all of the outstanding stock of Associates. The business of the
Partnership is conducted primarily through the General Partner, as the
Partnership has no employees of its own.

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.

Pursuant to a registration statement filed with the Securities and Exchange
Commission on July 26, 1995, the Partnership commenced a public offering of
25,000 Units of Limited Partnership Interest ("Partnership Units") at a price of
$1,000 per Partnership Unit. As of the close of the public offering on January
21, 1996 a total of 18,000 Partnership Units representing $17,558,985 had been
sold. Holders of Partnership Units are referred to herein as "Limited Partners".
The General Partner has a 1% interest in operating profits and losses, taxable
income and losses, each available for distribution from the Partnership and tax
credits of the Partnership. 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, has 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, 2007 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. 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, 2007 10-K.

                                       9
<PAGE>

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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED
      FOR THE QUARTERLY PERIODS ENDED JUNE 30, 2007 AND SEPTEMBER 30, 2007
                                   (UNAUDITED)

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
--------------------------------------------------------------

The proceeds from the disposition of any of the Housing Complexes will be used
first to pay debts and other obligations per the respective Local Limited
Partnership Agreement. Any remaining proceeds will then be paid to the
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). The General Partner would then be entitles 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 properties, and neighborhood conditions, among others.

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

                                       10
<PAGE>

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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED
      FOR THE QUARTERLY PERIODS ENDED JUNE 30, 2007 AND SEPTEMBER 30, 2007
                                   (UNAUDITED)

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
--------------------------------------------------------------

allocable to the limited partners could be reduced if the IRS were successful in
such a challenge. The alternative minimum tax could reduce tax benefits from an
investment in the Partnership. Changes in tax laws could also impact the tax
benefits from an investment in the Partnership and/or the value of the Housing
Complexes.

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 September 30, 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 IRS compliance period for Low-Income Housing Tax Credit properties is
generally 15 years from occupancy 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. As of September 30, 2007, none of the Local
Limited Partnerships had completed their 15 year compliance period.

With that in mind, the Partnership is continuing its review of the Partnership's
holdings, with special emphasis on the more mature properties including those
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. While liquidation of the Housing
Complexes continues to be evaluated, the dissolution of the Partnership was not
imminent as of September 30, 2007. As of September 30, 2007, one Housing Complex
has been sold, Cascade Pines, L.P. II. Subsequent to September 30, 2007 on
additional Housing Complex, Patten Towers, L.P. II, has been identified for
disposition. See note 5 for more information.

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

                                       11
<PAGE>

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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED
      FOR THE QUARTERLY PERIODS ENDED JUNE 30, 2007 AND SEPTEMBER 30, 2007
                                   (UNAUDITED)

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
--------------------------------------------------------------

derived by management, generally consisting of the sum of the remaining future
Low Income Housing Tax Credits estimated to be allocated 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 and are being amortized over 30 years.
(See Note 2)

"Equity in losses of Local Limited Partnerships" for the periods ended June 30,
2007 and 2006 and September 30, 2007 and 2006, respectively, have been recorded
by the Partnership. Management's estimate for the three and six-month periods 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. As soon as the investment balance reaches zero,
the related costs of acquiring the investment are impaired. 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 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
Credit recapture.

Distributions received from the Local Limited Partnerships are accounted for as
a reduction of the investment balance. Distributions received after the
investment has reached zero are recognized as distribution income. As of June 30
and September 30, 2007, thirteen investment accounts in Local Limited
Partnerships had reached a zero balance.

USE OF ESTIMATES
----------------

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

CASH AND CASH EQUIVALENTS
-------------------------

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


                                       12
<PAGE>

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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED
      FOR THE QUARTERLY PERIODS ENDED JUNE 30, 2007 AND SEPTEMBER 30, 2007
                                   (UNAUDITED)

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
--------------------------------------------------------------

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 financial statements as
any liability and or benefits for income taxes flows to the partners of the
Partnership and is their obligation and/or benefit. For income tax purposes the
Partnership reports on a calendar year basis.

In June 2006, the 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.

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.

AMORTIZATION
------------

Acquisition fees and costs are being amortized over 30 years using the
straight-line method. Amortization expense for the three months ended June 30,
2007 and 2006 was $3,478 and $4,050, respectively. For the six months ended
September 30, 2007 and 2006 amortization expense was $6,836 and $8,100,
respectively.

                                       13
<PAGE>

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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED
      FOR THE QUARTERLY PERIODS ENDED JUNE 30, 2007 AND SEPTEMBER 30, 2007
                                   (UNAUDITED)

NOTE 2 - INVESTMENTS IN LOCAL LIMITED PARTNERSHIPS
--------------------------------------------------

As of June 30 and September 30, 2007, the Partnership had acquired limited
partnership interests in 17 Local Limited Partnerships one of which had been
sold. Each Local Limited Partnership owns or owned one Housing Complex
consisting of an aggregate of 1,120 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, as defined, require approval from the Partnership. The Partnership,
as a Limited Partner, is generally entitled to 99%, as specified in the Local
Limited Partnership agreements, of the operating profits and losses, taxable
income and losses, and Low Income Housing Tax Credits of the Local Limited
Partnerships, except for one for 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 the remaining Low
Income Housing Tax Credits allocated to the Partnership and the estimated
residual value to the Partnership. Accordingly, the Partnership recorded an
impairment loss of $535,600 and $1,197,931, during the three months ended June
30, 2007 and 2006, respectively. During nine months ended September 30, 2007 and
2006, impairment loss was $537,467 and $1,767,393, respectively.

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

<TABLE>
<CAPTION>
                                                                  FOR THE THREE            FOR THE YEAR
                                                                   MONTHS ENDED               ENDED
                                                                  JUNE 30, 2007           MARCH 31, 2007
                                                              ---------------------   ---------------------
<S>                                                           <C>                     <C>
     Investments per balance sheet, beginning of period       $           1,912,366   $           2,735,652
     Impairment loss                                                       (535,600)             (2,336,855)
     Distributions received from Local Limited Partnerships                       -                 (16,134)
     Equity in income (losses) of Local Limited
     Partnerships                                                           (33,728)              1,545,903
     Amortization of capitalized acquisition fees and
     costs                                                                   (3,478)                (16,200)
                                                              ---------------------   ---------------------
     Investments per balance sheet, end of period             $           1,339,560   $           1,912,366
                                                              =====================   =====================


                                                                   FOR THE SIX             FOR THE YEAR
                                                                   MONTHS ENDED               ENDED
                                                                SEPTEMBER 30, 2007        MARCH 31, 2007
                                                              ---------------------   ---------------------
     Investments per balance sheet, beginning of period       $           1,912,366   $           2,735,652
     Impairment loss                                                       (537,467)             (2,336,855)
     Distributions received from Local Limited Partnerships                 (11,949)                (16,134)
     Equity in income (losses) of Local Limited
     Partnerships                                                           (59,869)              1,545,903
     Amortization of capitalized acquisition fees and
     costs                                                                   (6,836)                (16,200)
                                                              ---------------------   ---------------------
     Investments per balance sheet, end of period             $           1,296,245   $           1,912,366
                                                              =====================   =====================
</TABLE>

                                       14
<PAGE>

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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED
      FOR THE QUARTERLY PERIODS ENDED JUNE 30, 2007 AND SEPTEMBER 30, 2007
                                   (UNAUDITED)

NOTE 2 - INVESTMENTS IN LOCAL LIMITED PARTNERSHIPS, CONTINUED

<TABLE>
<CAPTION>
                                                                  FOR THE THREE            FOR THE YEAR
                                                                   MONTHS ENDED               ENDED
                                                                  JUNE 30, 2007           MARCH 31, 2007
                                                              ---------------------   ---------------------
<S>                                                           <C>                     <C>
Investments in Local Limited Partnerships, net                $           1,060,883   $           1,622,624
Acquisition fees and costs, net of accumulated
amortization of $1,042,618 and $1,031,553                                   278,677                 289,742
                                                              ---------------------   ---------------------
Investments per balance sheet, end of period                  $           1,339,560   $           1,912,366
                                                              =====================   =====================


                                                                   FOR THE SIX             FOR THE YEAR
                                                                   MONTHS ENDED               ENDED
                                                                SEPTEMBER 30, 2007        MARCH 31, 2007
                                                              ---------------------   ---------------------
Investments in Local Limited Partnerships, net                $           1,020,926   $           1,622,624
Acquisition fees and costs, net of accumulated
amortization of $1,045,976 and $1,031,553                                   275,319                 289,742
                                                              ---------------------   ---------------------
Investments per balance sheet, end of period                  $           1,296,245   $           1,912,366
                                                              =====================   =====================

Selected financial information for the three months ended June 30, 2007 and 2006
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 OPERATIONS

                                                                2007                  2006
                                                         -------------------   -------------------
    Revenues                                             $         1,354,000   $         2,062,000
                                                         -------------------   -------------------
    Expenses:
      Interest expense                                               199,000               191,000
      Depreciation and amortization                                  316,000               429,000
      Operating expenses                                             956,000             1,104,000
                                                         -------------------   -------------------
        Total expenses                                             1,471,000             1,724,000
                                                         -------------------   -------------------

    Net income (loss)                                    $          (117,000)  $           338,000
                                                         ===================   ===================
    Net income (loss) allocable to the Partnership       $          (120,000)  $           333,000
                                                         ===================   ===================
    Net income (loss) recorded by the Partnership        $           (34,000)  $           541,000
                                                         ===================   ===================
</TABLE>

                                       15
<PAGE>

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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED
      FOR THE QUARTERLY PERIODS ENDED JUNE 30, 2007 AND SEPTEMBER 30, 2007
                                   (UNAUDITED)

NOTE 2 - INVESTMENTS IN LOCAL LIMITED PARTNERSHIPS, CONTINUED
-------------------------------------------------------------

Selected financial information for the six months ended September 30, 2007 and
2006 from the unaudited combined condensed financial statements of the Local
Limited Partnerships in which the Partnership has invested is as follows:

<TABLE>
<CAPTION>
                            COMBINED CONDENSED STATEMENTS OF OPERATIONS

                                                                2007                  2006
                                                         -------------------   -------------------
<S>                                                      <C>                   <C>
    Revenues                                             $         2,709,000   $         4,124,000
                                                         -------------------   -------------------
    Expenses:
      Interest expense                                               398,000               384,000
      Depreciation and amortization                                  631,000               857,000
      Operating expenses                                           1,913,000             2,207,000
                                                         -------------------   -------------------
    Total expenses                                                 2,943,000             3,448,000
                                                         -------------------   -------------------

    Net income (loss)                                    $          (234,000)              676,000
                                                         ===================   ===================
    Net income (loss) allocable to the Partnership       $          (241,000)  $           660,000
                                                         ===================   ===================
    Net income (loss) recorded by the Partnership        $           (60,000)  $         1,081,000
                                                         ===================   ===================
</TABLE>

Certain Local Limited Partnerships have incurred significant operating losses
and/or have working capital deficiencies. In the event these Local Limited
Partnerships continue to incur significant operating losses, additional capital
contributions by the Partnership and/or the Local General Partners may be
required to sustain the operations of such Local Limited Partnerships. If
additional capital contributions are not made when they are required, the
Partnership's investment in certain of such Local Limited Partnerships could be
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 has requested and received approval from HUD
to participate in a follow-up inspection.  As of January 2009, HUD re-inspected
the property and Pattern  Towers  received an acceptable  score from HUD thereby
allowing  the  property  to continue to  participate  in the housing  assistance
program.  Pattern Towers is currently listed for sale with a national  brokerage
firm. 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.

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 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 approximated $31,240 and $46,860 at September 30, 2007 and June
30, 2007, respectively. 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.

                                       16
<PAGE>

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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED
      FOR THE QUARTERLY PERIODS ENDED JUNE 30, 2007 AND SEPTEMBER 30, 2007
                                   (UNAUDITED)

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. Accumulated amortization of these
            capitalized costs was $925,466, $922,108, and $911,043 as of
            September 30, 2007, June 30, 2007 and March 31, 2007, respectively.

      (b)   Reimbursement of costs incurred by the General Partner or an
            affiliate of Associates 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
            acquisitions 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, 2007 and 2006. For each of
            the six months ended September 30, 2007 and 2006, the Partnership
            incurred asset management fees of $24,750. The Partnership paid the
            General Partner or its affiliates $0 of those fees during the three
            months ended June 30, 2007 and 2006 and the six months ended
            September 30, 2006 and 2005.

      (d)   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 any of the periods presented.

      (e)   The Partnership reimburses the General Partner or its affiliates for
            operating expenses incurred on behalf of the Partnership. Operating
            expense reimbursements were $0 during the three months ended June
            30, 2007 and 2006, and the six months ended September 30, 2007 and
            2006.


                                       17
<PAGE>

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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED
      FOR THE QUARTERLY PERIODS ENDED JUNE 30, 2007 AND SEPTEMBER 30, 2007
                                   (UNAUDITED)

NOTE 3 - RELATED PARTY TRANSACTIONS, CONTINUED
----------------------------------------------

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

<TABLE>
<CAPTION>
                                                             SEPTEMBER 30,
                                          JUNE 30, 2007          2007           MARCH 31, 2007
                                        -----------------  -----------------  -----------------
<S>                                     <C>                <C>                <C>
   Asset management fee payable         $         336,500  $         348,875  $         324,125
   Expenses paid by the General
     Partners or an affiliate on
     behalf of the Partnership                    164,144            171,327            162,503
   Advances made to the Partnership
     from the General Partner or
     affiliates                                 1,251,650          1,251,650          1,251,650
                                        -----------------  -----------------  -----------------
          Total                         $       1,752,294  $       1,771,852  $       1,738,278
                                        =================  =================  =================
</TABLE>

The General Partner and/or its affiliates do not anticipate that these accrued
fees will be paid in full 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 six months ended September 30, 2007, the Partnership advanced
approximately $20,000 to one of the Local Limited Partnerships in which the
Partnership is a limited partner. The Local Limited Partnership have experienced
operational issues. As of September 30, 2007, total advances made to Local
Limited Partnerships were $1,469,417, of which $1,449,417 was reserved. The
Partnership determined the recoverability of these advances to be improbable
and, accordingly, a reserve had been recorded. For the quarterly periods ended
June 30 and September 30, 2007, the Partnership advanced to Local Limited
Partnerships $0 and $20,000, respectively.

NOTE 5-SUBSEQUENT EVENTS
------------------------

Subsequent to September 30, 2007, in December 2008, the Partnership was relieved
of debt owed to the General Partner totaling $1,432,427. The Partnership had
received cash advances from the General Partner, which were in turn advanced by
the Partnership to certain Local Limited Partnerships to help aid the properties
with their operational issues. The advances were deemed to be uncollectible by
the General Partner, and as such, the debt was forgiven. The cancellation of
debt was recorded by the Partnership as a capital contribution from the General
Partner.

The Partnership has also identified one Local Limited Partnership Patten Towers
II, L.P. for disposition.


                                       18
<PAGE>

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's 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 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, 2007 and 2006 and the three and six months ended
September 30, 2007 and 2006, and should be read in conjunction with the combined
condensed financial statements and accompanying notes included within this
report.

FINANCIAL CONDITION

The Partnership's assets at June 30, 2007 consisted of $47,000 in cash and
aggregate investments in the sixteen Local Limited Partnerships of $1,340,000.
Liabilities at June 30, 2007 consisted of $1,752,000 of accrued fees and
expenses due to the General Partner and affiliates and accrued expenses of
$4,000.

The Partnership's assets at September 30, 2007 consisted of $72,000 in cash and
aggregate investments in the sixteen Local Limited Partnerships of $1,296,000
and due from affiliates of $20,000. Liabilities at September 30, 2007 consisted
of $1,772,000 of accrued fees and expenses due to the General Partner and
affiliates and accrued expenses of $4,000.

RESULTS OF OPERATIONS

THREE MONTHS ENDED JUNE 30, 2007 COMPARED TO THREE MONTHS ENDED JUNE 30, 2006.
The Partnership's net loss for the three months ended June 30, 2007 was
$(587,000), reflecting a decrease of approximately $512,000 from the net loss of
$(1,099,000) for the three months ended June 30, 2006. There was a decrease in
loss from operations of $1,086,000 to $(553,000) for the three months ended June
30, 2007 from $(1,639,000) for the three months ended June 30, 2006. That
decrease is primarily due to the decrease in impairment loss of $662,000. The
impairment loss can vary each year depending on the annual decrease in tax
credits allocated to the fund and the current estimated residual value of the
investments compared to the current carrying value of each of the investments.
In addition, the write off of advances to Local Limited Partnerships decreased
by $423,000 from $423,000 for the three months ended June 30, 2007. No advances
to Local Limited Partnerships were written off during the three months ended
June 30, 2007. A few Local Limited Partnerships were experiencing some
operational issues and the Partnership advanced the funds that were necessary
but fully reserved for them in the same quarter. The legal and accounting fees
decreased by $1,000 for the three months ended June 30, 2007 compared to the
fees for the three month ended June 30, 2006 due to the timing of when the
accounting work is performed. There was a decrease in equity in income (losses)
of Local Limited Partnerships of $(575,000) to $(34,000) for the three months
ended June 30, 2007 from $541,000 for the three months ended June 30, 2006 due
to forgiveness of debt income recognized by a Local Limited Partnership, Patten
Towers II, L.P., during the three months ended June 30, 2006.

                                       19
<PAGE>

THREE MONTHS ENDED SEPTEMBER 30, 2007 COMPARED TO THE THREE MONTHS ENDED
SEPTEMBER 30, 2006 The Partnership's net loss for the three months ended
September 30, 2007 was $(18,000), reflecting a decrease of approximately
$204,000 from the net loss of $(222,000) for the three months ended September
30, 2006. There is a change in income (loss) from operations of $771,000 to
$8,000 for the three months ended September 30, 2007 from $(763,000) for the
three months ended September 30, 2006. That decrease is primarily due to the
decrease in impairment loss of $568,000. The impairment loss can vary each year
depending on the annual decrease in tax credits allocated to the fund and the
current estimated residual value of the investments compared to the current
carrying value of each of the investments. In addition, the write off of
advances to Local Limited Partnerships decreased by $175,000 for the three
months ended September 30, 2007. No advances to Local Limited Partnerships were
written of during the three months ended September 30, 2007. A Local Limited
Partnership was experiencing some operational issues and the Partnership
advanced the funds that were necessary but fully reserved for them in the same
quarter. The legal and accounting fees decreased by $12,000 for the three months
ended September 30, 2007 compared to the fees for the three month ended
September 30, 2006 due to the timing of when the accounting work is performed.
There was a decrease in equity in income (losses) of Local Limited Partnerships
of $(567,000) to $(26,000) for the three months ended September 30, 2007 from
$541,000 for the three months ended September 30, 2006 due to the forgiveness of
debt income recognized by a Local Limited Partnership, Patten Towers II, L.P.,
during the three months ended September 30, 2006. The reporting fees and
distribution income increased by $12,000 and $1,000, respectively due to the
fact that Local Limited Partnerships pay reporting fees and distribution income
to the Partnership when the Local Limited Partnership's cash flow allows for the
payment.

SIX MONTHS ENDED SEPTEMBER 30, 2007 COMPARED TO THE SIX MONTHS ENDED SEPTEMBER
30, 2006 The Partnership's net loss for the six months ended September 30, 2007
was $(605,000), reflecting a decrease of approximately $716,000 from the net
loss of $(1,321,000) for the six months ended September 30, 2006. There was a
decrease in loss from operations of $1,857,000 to $(545,000) for the six months
ended September 30, 2007 from $(2,402,000) for the six months ended September
30, 2006. That decrease is primarily due to the decrease in impairment loss of
$1,230,000. The impairment loss can vary each year depending on the annual
decrease in tax credits allocated to the fund and the current estimated residual
value of the investments compared to the current carrying value of each of the
investments. In addition, the write off of advances to Local Limited
Partnerships decreased by $597,000 for the six months ended September 30, 2007.
No advances to Local Limited Partnerships were written off during the six months
ended September 30, 2007. A few Local Limited Partnerships were experiencing
some operational issues and the Partnership advanced the funds that were
necessary but fully reserved for them in the same quarter. The legal and
accounting fees decreased by $12,000 for the six months ended September 30, 2007
compared to the fees for the six month ended September30, 2006 due to the timing
of when the work is performed. There was a decrease in equity in income (losses)
of Local Limited Partnerships of $(1,141,000) to $(60,000) for the six months
ended September 30, 2007 from $1,081,000 for the six months ended September 30,
2006 due to the forgiveness of debt income recognized b a Local Limited
Partnership Patten Towers II, L.P., during the six months ended September 30,
2006. The reporting fees and distribution income increased by $10,000 and
$1,000, respectively due to the fact that Local Limited Partnerships pay
reporting fees and distribution income to the Partnership when the Local Limited
Partnership's cash flow allows for the payment.

CAPITAL RESOURCES AND LIQUIDITY

THREE MONTHS ENDED JUNE 30, 2007 COMPARED TO THREE MONTHS ENDED JUNE 30, 2006
Net cash provided during the three months ended June 30, 2007 was $0, compared
to net cash used during the three months ended June 30, 2006 of $(20,000),
reflecting a change of $(20,000). The net effect of the advances from the
General Partner and advances made to the Local Limited Partnership was $2,000
for the three months ended June 30, 2007 compared to $(18,000) for the three
months ended June 30, 2006. The advances were due to several Local Limited
Partnerships experiencing cash flow issues.

SIX MONTHS ENDED SEPTEMBER 30, 2007 COMPARED TO SIX MONTHS ENDED SEPTEMBER 30,
2006 Net cash provided during the six months ended September 30, 2007 was
$25,000, compared to net cash provided during the six months ended September 30,
2006 of $9,000, reflecting a change of $16,000. The net effect of the advances
from the General Partner and advances made to the Local Limited Partnership was
$(13,000) for the six months ended September 30, 2007 compared to $(1,000) for
the six months ended September 30, 2006. The advances were due to several Local
Limited Partnerships experiencing cash flow issues. The Partnership collected
$12,000 in distributions for the six months ended September 30, 2007 compared to
$16,000 for the six months ended September 30, 2006 which contributed to the
increase in net cash provided by investing activities.

                                       20
<PAGE>

Advances to one Local Limited Partnership, Cascade Pines, L.P., II ("Cascade
Pines") totaled $1,155,728. In prior years, the Partnership had received cash
advances from the General Partner or affiliates, which were in turn advanced to
Cascade Pines to aid the property with its operational issues. When Cascade
Pines was sold there were no net cash proceeds and therefore the advances that
were previously made by the General Partner to the Partnership were forgiven.
The cancellation of that debt is considered a capital contribution by the
General Partner and as such it was reflected in the statement of partners'
equity (deficit) in the Form 10-K for the year ended March 31, 2007.

During the three and six months ended June 30, 2006 and September 30, 2006,
accrued payables, which consist primarily of related party management fees and
advances due to the General Partner, increased by $14,000 and $34,000,
respectively. 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 September 30, 2007, to be insufficient to meet all currently
foreseeable future cash requirements. Associates have agreed to continue
providing advances sufficient enough to fund the operations and working capital
requirements of the Partnership through September 30, 2010.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

      NOT APPLICABLE

ITEM 4T. CONTROLS AND PROCEDURES

(a)   DISCLOSURE CONTROLS AND PROCEDURES
      ----------------------------------

      As of the end of the periods covered by this report, the Partnership's
      General Partner, under the supervision and with the participation of the
      Chief Executive Officer and Chief Financial Officer of Associates, carried
      out an evaluation of the effectiveness of the Partnership's "disclosure
      controls and procedures" as defined in Securities Exchange Act of 1934
      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.

      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 quarters ended June 30, 2007 and
      September 30, 2007 that materially affected, or are reasonably likely to
      materially affect, the Partnership's internal control over financial
      reporting.

                                       21
<PAGE>

PART II. OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

         NONE

ITEM 1A. RISK FACTORS

         No material changes in risk factors as previously disclosed in the
         Partnership's Form 10-K.

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)


                                       22
<PAGE>

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 & Associates, Inc.,
        General Partner




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

Date: October 5, 2009




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

Date: October 5, 2009



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