FORM 10-Q

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                   (Mark One)

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

                For the quarterly period ended September 30, 2001

                                       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

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

                              California 33-6163848

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

              3158 Redhill Avenue, Suite 120, Costa Mesa, CA 92626
                                 (714) 662-5565


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
    ---------    ----------



<PAGE>


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

                               INDEX TO FORM 10-Q

              FOR THE THREE AND SIX MONTHS ENDED SEPTEMBER 30, 2001




PART I. FINANCIAL INFORMATION

         Item 1.  Financial Statements

                  Balance Sheets
                    September 30, 2001 and March 31, 2001                      3

                  Statements of Operations
                    For the Three and Six Months
                       Ended September 30, 2001 and 2000                       4

                  Statement of Partners' Equity (Deficit)
                    For the Six Months Ended September 30, 2001                5

                  Statements of Cash Flows
                    For the Six Months Ended September 30, 2001 and 2000       6

                  Notes to Financial Statements                                7

         Item 2.  Management's Discussion and Analysis of Financial
                    Condition and Results of Operations                       15

         Item 3.  Quantitative and Qualitative Disclosures about Market Risks 17


PART II. OTHER INFORMATION

         Item 1.  Legal Proceedings                                           17

         Item 6.  Exhibits and Reports on Form 8-K                            17

         Signatures                                                           18


                                       2
<PAGE>


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

                                 BALANCE SHEETS


<TABLE>
<CAPTION>

                                                                  September 30, 2001           March 31, 2001
                                                                -----------------------     ---------------------
                                                                     (unaudited)
ASSETS

<S>                                                           <C>                         <C>
Cash and cash equivalents                                     $              133,436      $              20,126
Investments in limited partnerships, net
  (Notes 2 and 3)                                                          9,934,917                 10,245,015
                                                                -----------------------     ---------------------

                                                              $           10,068,353      $          10,265,141
                                                                =======================     =====================


LIABILITIES AND PARTNERS' EQUITY (DEFICIT)

Liabilities:
    Accrued expenses                                                          41,577                     82,699
    Accrued fees and expenses due to
      General Partner and affiliates (Note 4)                                 74,817                     39,531
                                                                -----------------------     ---------------------

Total liabilities                                                            116,394                    122,230
                                                                -----------------------     ---------------------

Commitments and Contingencies (Note 6)

Partners' equity (deficit):

    General Partner                                                          (75,972)                   (74,062)

    Limited Partners (25,000 units authorized and
       18,000 units issued and outstanding)                               10,027,931                 10,216,973
                                                                -----------------------     ---------------------

Total partners' equity                                                     9,951,959                 10,142,911
                                                                -----------------------     ---------------------

                                                              $           10,068,353      $          10,265,141
                                                                =======================     =====================

</TABLE>

                 See accompanying notes to financial statements

                                        3
<PAGE>


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

                            STATEMENTS OF OPERATIONS
                       For the Three and Six Months Ended
                           September 30, 2001 and 2000
                                   (unaudited)
<TABLE>
<CAPTION>

                                                       2001                                         2000
                                       --------------------------------------      ---------------------------------------
                                            Three                  Six                  Three                  Six
                                            Months               Months                 Months                Months
                                       -----------------     ----------------      -----------------     -----------------

<S>                                  <C>                   <C>                   <C>                   <C>
Interest income                      $             853     $            986      $           2,663     $           7,132
Miscellaneous income                                 -                    -                      -                 5,032
                                       -----------------     ----------------      -----------------     -----------------
                                                   853                  986                  2,663                12,164
                                       -----------------     ----------------      -----------------     -----------------

Operating expenses:
Amortization (Note 2)                            9,645               19,290                 10,925                22,023
Asset management fees (Note 3)                  15,854               24,750                 12,375                24,750
Legal and accounting fees                       15,395               29,811                 15,091                18,065
Other                                             (685)               7,605                 32,344                34,601
                                       -----------------     ----------------      -----------------     -----------------

Total operating expenses                        40,209               81,456                 70,735                99,439
                                       -----------------     ----------------      -----------------     -----------------

Loss from operations                           (39,356)             (80,470)               (68,072)              (87,275)

Equity in losses of limited
  partnerships (Note 2)                       (139,215)            (278,435)              (178,795)             (357,590)
Gain on sale of investment in
  limited partnership interest
  (Note 2)                                     167,953              167,953                       -                     -
                                       -----------------     ----------------      -----------------     -----------------

Net loss                             $         (10,618)    $       (190,952)     $        (246,867)    $        (444,865)
                                       =================     ================      =================     =================

Net loss allocated to:
  General partner                    $            (106)    $         (1,910)     $          (2,469)    $          (4,449)
                                       =================     ================      =================     =================

  Limited partners                   $         (10,512)    $       (189,042)     $        (244,398)    $        (440,416)
                                       =================     ================      =================     =================

Net loss per limited partner unit    $              (1)    $            (11)     $             (14)    $             (24)
                                       =================     ================      =================     =================

Outstanding weighted limited
  partner  units                                 18,000               18,000                 18,000                18,000
                                       =================     ================      =================     =================
</TABLE>

                 See accompanying notes to financial statements

                                        4

<PAGE>

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

                     STATEMENT OF PARTNERS' EQUITY (DEFICIT)

                            For the Six Months Ended
                               September 30, 2001
                                   (unaudited)

<TABLE>
<CAPTION>
                                                           General                 Limited
                                                           Partner                 Partners                  Total
                                                      -------------------     -------------------      -------------------

<S>                                                 <C>                     <C>                      <C>
Partners' equity (deficit) at March 31, 2001        $           (74,062)    $         10,216,973     $         10,142,911

    Net loss                                                     (1,910)                (189,042)                (190,952)
                                                      -------------------     -------------------      -------------------

Partners' equity (deficit) at September 30, 2001    $           (75,972)    $         10,027,931     $         9,951,959
                                                      ===================     ===================      ===================

</TABLE>

                 See accompanying notes to financial statements

                                        5


<PAGE>


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

                            STATEMENTS OF CASH FLOWS
                            For the Six Months Ended
                           September 30, 2001 and 2000
                                   (unaudited)

<TABLE>
<CAPTION>

                                                                          2001                   2000
                                                                    ----------------      -----------------
Cash flows from operating activities:
<S>                                                               <C>                   <C>
    Net loss                                                      $       (190,952)     $        (444,865)
    Adjustments to reconcile net loss to net
      cash used in operating activities:
         Amortization                                                       19,290                 22,023

         Equity in losses of limited partnerships                          278,435                357,590
         Gain on sale of investment in Limited Partnership                (167,953)                     -
         Change in accrued expenses                                        (41,122)                (2,575)
         Change in accrued fees and expenses due to

               General Partner and affiliates                               35,286                (90,707)
                                                                    ----------------      -----------------

           Net cash used in operating activities                           (67,016)              (158,534)
                                                                    ----------------      -----------------

Cash flows from investing activities:
    Investments to limited partnerships                                          -                (72,939)
    Acquisition costs and fees                                                   -                 10,452
    Distributions from limited partnerships                                 12,373                  2,067
    Proceeds on sale of investment in Limited Partnership, net             167,953                      -
                                                                    ----------------      -----------------


            Net cash provided by (used in) investing activities            180,326                (60,420)
                                                                    ----------------      -----------------

Net increase (decrease) in cash and cash equivalents                       113,310               (218,954)


Cash and cash equivalents, beginning of period                              20,126                365,942
                                                                    ----------------      -----------------


Cash and cash equivalents, end of period                          $        133,436      $         146,988
                                                                    ================      =================

SUPPLEMENTAL DISCLOSURE OF
CASH FLOW INFORMATION

Taxes paid                                                        $            800      $             800
                                                                    ================      =================
</TABLE>

                 See accompanying notes to financial statements

                                        6


<PAGE>


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

                          NOTES TO FINANCIAL STATEMENTS
                       For the Three and Six Months Ended
                               September 30, 2001
                                   (unaudited)


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

General
-------

The accompanying  condensed unaudited financial statements have been prepared in
accordance with generally accepted  accounting  principles 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 generally accepted
accounting  principles  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 and six months ended September 30, 2001 is not  necessarily  indicative of
the results that may be expected for the fiscal year ending March 31, 2002.  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, 2001.

Organization
------------

WNC  Housing  Tax  Credit  Fund  V,  L.P.,  Series  3 ("the  Partnership")  is a
California Limited  Partnership formed under the laws of the State of California
on March 28, 1995, and commenced operations on October 24, 1995. The Partnership
was  formed  to  acquire   limited   partnership   interests  in  other  limited
partnerships or limited liability companies ("Local Limited Partnerships") which
own  multifamily  apartment  complexes that are eligible for low-income  housing
federal  and, in some  cases,  California  income tax  credits  (the "Low Income
Housing Credit").

The  general  partner of the  Partnership  is WNC &  Associates,  Inc.  ("WNC").
Wilfred N. Cooper,  Sr., through the Cooper  Revocable Trust,  owns 66.8% of the
outstanding  stock of WNC. John B. Lester,  Jr. was the original limited partner
of the  Partnership  and owns,  through the Lester  Family  Trust,  28.6% of the
outstanding stock of WNC. Wilfred N. Cooper, Jr., President of WNC, owns 2.1% of
the  outstanding  stock of WNC.  The  business of the  Partnership  is conducted
primarily through WNC 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 activities relating to the business of the
Partnership,  and do not give  effect to the assets that the  partners  may have
outside of their interests in the Partnerships, or to any obligations, including
income taxes, of the partners.

The  partnership  agreement  authorized the sale of up to 25,000 units at $1,000
per Unit  ("Units").  The offering of Units  concluded in January 1996, at which
time 18,000 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 1%  interest in  operating  profits and losses,  taxable  income and
losses,  cash available for  distribution  from the Partnership and tax credits.
The limited  partners  will be  allocated  the  remaining  99% of these items in
proportion to their respective investments.

After the limited  partners  have received  proceeds from a sale or  refinancing
equal to their capital  contributions and their return on investment (as defined
in the  Partnership  Agreement)  and the General  Partner has received  proceeds
equal  to its  capital  contribution  and a  subordinated  disposition  fee  (as
described in Note 3) 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.


                                       7
<PAGE>


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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED
                       For the Three and Six Months Ended
                               September 30, 2001
                                   (unaudited)


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

Risks and Uncertainties
-----------------------

The Partnership's  investments in Local Limited  Partnerships are subject to the
risks incident to the management and ownership of low-income  housing and to the
management and ownership of multi-unit  residential  real estate.  Some of these
risks  are that the low  income  housing  credit  could be  recaptured  and that
neither the  Partnership's  investments  nor the Housing  Complexes owned by the
Local Limited Partnerships will be 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 Local Limited Partnership Interests;  limitations on
removal of Local General Partners limitations on subsidy programs;  and possible
changes in applicable regulations.  The Housing Complexes are or will be subject
to  mortgage  indebtedness.  If a Local  Limited  Partnership  does not make its
mortgage payments, the lender could foreclose resulting in a loss of the Housing
Complex  and low  income  housing  credits.  As a limited  partner  of the Local
Limited Partnerships, the Partnership will have very limited rights with respect
to management of the Local  Limited  Partnerships,  and will rely totally on the
Local General  Partners of the Local Limited  Partnerships for management of the
Local Limited Partnerships.  The value of the Partnership's  investments will be
subject  to  changes  in  national  and  local  economic  conditions,  including
unemployment  conditions,  which could adversely  impact vacancy levels,  rental
payment  defaults and operating  expenses.  This, in turn,  could  substantially
increase  the  risk of  operating  losses  for  the  Housing  Complexes  and the
Partnership.  In addition,  each Local Limited  Partnership  is subject to risks
relating  to  environmental  hazards  and  natural  disasters,  which  might  be
uninsurable. Because the Partnership's operations will depend on these and other
factors  beyond  the  control  of the  General  Partner  and the  Local  General
Partners,  there can be no assurance  that the  anticipated  low income  housing
credits will be available to Limited Partners.

In addition,  Limited  Partners are subject to risks in that the rules governing
the low income  housing  credit are  complicated,  and the use of credits can be
limited.  The only  material  benefit from an investment in Units may be the low
income housing credits. There are limits on the transferability of Units, and it
is unlikely that a market for Units will develop.  All management decisions will
be made by the General Partner.

Method of Accounting For Investments in Limited Partnerships
------------------------------------------------------------

The Partnership  accounts for its investments in limited  partnerships using the
equity method of  accounting,  whereby the  Partnership  adjusts its  investment
balance for its share of the Local Limited  Partnership's  results of operations
and for any distributions received. The accounting policies of the Local Limited
Partnerships are 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 (Note 3).

Offering Expenses
-----------------

Offering  expenses consist of underwriting  commissions,  legal fees,  printing,
filing and recordation fees, and other costs incurred in connection with selling
limited  partnership  interests  in the  Partnership.  The  General  Partner  is
obligated to pay all offering and organization costs in excess of 15% (including
sales  commissions)  of the  total  offering  proceeds.  Offering  expenses  are
reflected as a reduction of limited partners' capital and amounted to $2,132,000
at the end of all periods presented.

                                       8
<PAGE>


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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED
                       For the Three and Six Months Ended
                               September 30, 2001
                                   (unaudited)

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

Use of Estimates
----------------

The preparation of financial  statements in conformity  with generally  accepted
accounting principles 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 highly liquid  investments with remaining maturity of
three months or less when purchased to be cash  equivalents.  As of September 30
and March 31, 2001, the Partnership had cash equivalents of $0.

Net Loss Per Limited Partner Unit
---------------------------------

Net loss per  limited  partner  unit is  calculated  pursuant  to  Statement  of
Financial  Accounting  Standards No. 128,  Earnings Per Share. Net loss per unit
includes no dilution  and is computed  by  dividing  loss  available  to limited
partners by the weighted average number of units outstanding  during the period.
Calculation of diluted net income per unit is not required.

Concentration of Credit Risk
----------------------------

At various times during the periods presented,  the Partnership  maintained cash
balances at certain  financial  institutions in excess of the federally  insured
maximum.

Reporting Comprehensive Income
------------------------------

In June 1997,  the FASB  issued  Statement  of  Financial  Accounting  Standards
("SFAS") No. 130, Reporting  Comprehensive  Income.  This statement  establishes
standards for reporting the components of comprehensive income and requires that
all items that are  required to be  recognized  under  accounting  standards  as
components of comprehensive  income be included in a financial statement that is
displayed with the same prominence as other financial statements.  Comprehensive
income  includes net income as well as certain items that are reported  directly
within a separate  component  of  partners'  equity and bypass net  income.  The
Partnership  adopted the  provisions of this  statement in 1998. For the periods
presented,  the Partnership has no elements of other  comprehensive  income,  as
defined by SFAS No. 130.

Reclassifications
-----------------

Certain  prior  period  balances  have  been  reclassified  to  conform  to  the
presentation for the three and six months ended September 30, 2001.

NOTE 2 - UNCERTAINTY WITH RESPECT TO INVESTMENTS IN ALLIANCE, EVERGREEN AND
         HASTINGS:  IMPAIRMENT OF INVESTMENTS
---------------------------------------------------------------------------

The Partnership has three investments accounted for under the equity method,
consisting of 99% limited partnership interests in each of Alliance Apartments
I, Limited Partnership ("Alliance"), Evergreen Apartments I, Limited Partnership
("Evergreen"), and Hastings Apartments I, Limited Partnership ("Hastings").


                                       9
<PAGE>

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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED
                       For the Three and Six Months Ended
                               September 30, 2001
                                   (unaudited)

NOTE 2 - UNCERTAINTY WITH RESPECT TO INVESTMENTS IN ALLIANCE, EVERGREEN AND
         HASTINGS:  IMPAIRMENT OF INVESTMENTS, continued
---------------------------------------------------------

The independent auditors engaged to perform an audit of Alliance, Evergreen, and
Hastings'  financial  statements as of and for the year ended December 31, 1999,
were unable to form an opinion on those  financial  statements.  This was due to
the inability to obtain from the former local general  partner  certain  general
ledger  information  for a period  of  approximately  six  months  and  reliable
confirmations  of advances  to/notes  receivable  from the former local  general
partner.  Further,  the  independent  auditors were unable to obtain  management
representation  letters from the former property management company, which is an
affiliate of the former local general partner.  As a result, the Partnership has
not included the financial  information  of Alliance,  Evergreen and Hastings in
the combined condensed financial statements presented in Note 3 to the financial
statements. The combined condensed financial information presented in Note 3 for
prior periods has been  restated to exclude the accounts of Alliance,  Evergreen
and  Hastings.  The  Partnership  has  reflected  equity  in the net  losses  of
Alliance,  Evergreen and Hastings totaling $167,793 ($(9.32) per limited partner
unit)  for the year  ended  March 31,  2000,  based on nine  months of  reported
results  provided by  Alliance,  Evergreen  and  Hastings and on three months of
results estimated by WNC. Such estimates may be materially  misstated due to the
lack of  corroborative  financial  information.  During the year ended March 31,
2000,  the  Partnership  advanced  $205,080 in cash to Alliance,  Evergreen  and
Hastings  for  operating  expenses,  including  legal fees  relating  to certain
litigation involving these and other properties as outlined in Note 6.

As a result of the foregoing, in 2000, management performed an evaluation of the
Partnership's remaining investment balances in Alliance, Evergreen and Hastings,
including  the cash  advances  noted  above  and  other  anticipated  costs  and
determined  that an impairment  adjustment was necessary.  An impairment loss of
$995,804  was  recognized  at March 31,  2000.  This  impairment  loss  included
$644,589 in remaining book value of the  Partnership's  investments in Alliance,
Evergreen and Hastings, $205,080 and $74,631 of cash advances, pre and post year
end,  $50,000 accrual for anticipated  legal costs, and $21,504 of estimated and
other related costs.

During 2001,  Alliance,  Evergreen and Hastings continued to experience negative
cash  flows  from  operations.  All  mortgages  were  suspended  under a written
agreement  with the lender,  which expired in May 2001 and no payments have been
made since August  2000.  The  Partnership  incurred an  additional  $160,000 of
expenses in connection  with the  operations of Evergreen,  which is included in
other operating expenses for the year ended March 31, 2001.

On July 19,  2001,  the  Evergreen  property was sold for a gross sales price of
$1.3M which after payment of its outstanding loans and closing costs yielded net
proceeds to the Partnership of approximately $168,000 in the form of a return of
advances.  As the  investment in Evergreen  together with cash advances had been
previously  impaired,  the entire  proceeds were  reflected as a gain on sale of
investments in Limited  Partnerships  of $167,953,  for the three and six months
ended  September  30,  2001.  Due to the  sale  of the  property,  approximately
$428,000 (unaudited) of tax credits are no longer available to the Partnership's
investors  ($23.80 per  Limited  Partner  Unit).  In  addition,  there can be no
assurance  that tax credits  and loss  deductions  previously  taken will not be
subject to recapture in the future.

WNC is currently  attempting to sell the Alliance and Hastings  properties.  WNC
may not be successful in its efforts to sell and the lender may foreclose on the
properties as the loans are now in default.

As a result of the aforementioned  operating difficulties,  there is uncertainty
as to whether the Partnership  will ultimately  retain its interests in Alliance
and  Hastings.  If the  investments  are sold or  otherwise  not  retained,  the
Partnership  could be subject to recapture of tax credits and certain  prior tax
deductions.  There is further  uncertainty as to costs that the  Partnership may
ultimately  incur in connection  with its  investments in Alliance and Hastings.
The Partnership's financial statements do not include any adjustments that might
result from the outcome of these uncertainties.

                                       10
<PAGE>

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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED
                       For the Three and Six Months Ended
                               September 30, 2001
                                   (unaudited)

NOTE 3 - INVESTMENTS IN LIMITED PARTNERSHIPS
--------------------------------------------

As of  September  30,  2001 and March 31,  2001,  the  Partnership  has  limited
partnership  interests in 17 and 18 Local  Limited  Partnerships,  each of which
owns one Housing Complex consisting of an aggregate of 1,164 and 1,196 apartment
units,  respectively.  The  respective  general  partners  of the Local  Limited
Partnerships manage the day to day operations of the entities. Significant Local
Limited  Partnership  business  decisions require approval from the Partnership.
The  Partnership,  as a  limited  partner,  is  generally  entitled  to 99%,  as
specified in the Local Limited Partnership agreements,  of the operating profits
and  losses,  taxable  income and losses  and tax  credits of the Local  Limited
Partnerships,  except  for one of the  investments  in which it is  entitled  to
49.49% of such amounts.

Equity in losses of Local  Limited  Partnerships  is recognized in the financial
statements  until the related  investment  account is reduced to a zero balance.
Losses  incurred  after  the  investment  account  is  reduced  to zero  are not
recognized. If the Local Limited Partnerships report net income in future years,
the  Partnership  will resume applying the equity method only after its share of
such net  income  equals  the share of net  losses  not  recognized  during  the
period(s) the equity method was suspended.

Distributions  received by limited  partners are accounted for as a reduction of
the investment balance.  Distributions received after the investment has reached
zero are  recognized  as income.  At March 31,  2000 and  through the six months
ended  September  30,  2001,  the net  investments  in the three  Local  Limited
Partnerships discussed in Note 2 had reached a zero balance.

Following is a summary of the equity method activity of the investments in Local
Limited  Partnerships  for  the  periods  presented  below  (Combined  condensed
financial  information  for Alliance,  Evergreen and Hastings have been excluded
from the presentation below. See Note 2 for further discussion):
<TABLE>
<CAPTION>

                                                                      September 30, 2001          March 31, 2001
                                                                   -------------------------   ---------------------

<S>                                                              <C>                         <C>
Investments in limited partnerships - beginning of period        $             10,245,015    $         10,968,078
Capitalized acquisition fees and costs                                                  -                 (10,452)
Equity in gain (losses) of limited partnerships                                  (278,435)               (656,711)
Distributions received from limited partnerships                                  (12,373)                (11,856)
Amortization of paid capitalized acquisition fees and costs                       (19,290)                (44,044)
                                                                   -------------------------   ---------------------

Investments in limited partnerships - end of period              $              9,934,917    $         10,245,015
                                                                   =========================   =====================

</TABLE>

                                       11
<PAGE>

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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED
                       For the Three and Six Months Ended
                               September 30, 2001
                                   (unaudited)

NOTE 3 - INVESTMENTS IN LIMITED PARTNERSHIPS, continued
-------------------------------------------------------

Selected  information  for the six months ended September 30, 2001 and 2000 from
the  unaudited   combined   condensed   financial   statements  of  the  limited
partnerships  in  which  the  Partnership  has  invested  as  follows  (Combined
condensed financial  information for Alliance,  Evergreen and Hastings have been
excluded from the presentation below. See Note 2 for further discussion):
<TABLE>
<CAPTION>

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

<S>                                                              <C>                    <C>
Revenue                                                          $      2,858,000       $       2,729,000
                                                                   ----------------       ------------------
Expenses:
  Interest expense                                                        770,000                 760,000
  Depreciation                                                            725,000                 713,000
  Operating expenses                                                    1,684,000               1,639,000
                                                                   ----------------       ------------------
Total expenses                                                          3,179,000               3,112,000
                                                                   ----------------       ------------------
Net loss                                                         $       (321,000)      $        (383,000)
                                                                   ================       ==================

Net loss allocable to the Partnership, before equity in
  losses of Alliance, Evergreen, and Hastings                    $       (278,000)      $        (358,000)
                                                                   ================       ==================

Net loss recorded by the Partnership, before equity
  in losses of Alliance, Evergreen, and Hastings                 $       (278,000)      $        (358,000)
Net loss of Alliance allocable to the Partnership                               -                 (25,000)
Net gain (loss) of Evergreen allocable to the Partnership                 168,000                 (37,000)
Net loss of Hastings allocable to the Partnership                               -                 (23,000)
Below zero adjustments of the net allocable losses
  of Alliance, Evergreen, and Hastings                                          -                  85,000
                                                                   ----------------       ------------------
Net gain (loss) recorded by the Partnership                      $        110,000       $        (358,000)
                                                                   ================       ==================
</TABLE>

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

NOTE 4 - RELATED PARTY TRANSACTIONS
-----------------------------------

The Partnership has no officers,  employees,  or directors.  However,  under the
terms of the  Partnership  Agreement the Partnership is obligated to the General
Partner or Associates for the following fees:

(a)  Annual Asset  Management Fee. An annual asset management fee of the greater
     of (i)  $2,000 per  multi-family  housing  complex or (ii)  0.275% of Gross
     Proceeds. The base fee amount will be adjusted annually based on changes in
     the  Consumer  Price  Index.  However,  in no event will the  annual  asset
     management fee exceed 0.2% of Invested Assets.  "Invested Assets" means the
     sum of the Partnership's  Investments in Local Limited Partnerships and the
     Partnership's  allocable  share of the  amount  of  mortgages  on and other
     indebtedness  related to the Housing  Complexes.  Asset  management fees of
     $24,750 were  incurred  during each of the six months ended  September  30,
     2001 and 2000. The  Partnership  paid the General Partner or its affiliates
     $0 of these fees during the six months ended  September  30, 2001 and 2000.

                                       12

<PAGE>

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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED
                       For the Three and Six Months Ended
                               September 30, 2001
                                   (unaudited)

NOTE 4 - RELATED PARTY TRANSACTIONS, continued
----------------------------------------------

(b)  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.

The  accrued  fees  and  expenses  due to the  General  Partner  and  affiliates
consisted of the following as of:
<TABLE>
<CAPTION>

                                                                 September 30, 2001               March 31, 2001
                                                              -------------------------        ----------------------

Reimbursements for expenses paid by the
<S>                                                        <C>                              <C>
  General Partner or an affiliate                          $                    12,942      $                  2,406

Asset management fee payable                                                    61,875                        37,125
                                                              -------------------------        ----------------------

  Total                                                    $                    74,817      $                 39,531
                                                              =========================        ======================
</TABLE>


                                       13

<PAGE>

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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED
                       For the Three and Six Months Ended
                               September 30, 2001
                                   (unaudited)

NOTE 5 - INCOME TAXES
---------------------

No provision  for income taxes has been recorded in the  accompanying  financial
statements,  as any liability for income taxes is the obligation of the partners
of the Partnership.

NOTE 6 - COMMITMENTS AND CONTINGENCIES
--------------------------------------

During 2000,  WNC  identified a potential  problem with a developer  who, at the
time,  was the local  general  partner in six Local  Limited  Partnerships.  The
Partnership has 99% limited partnership  investments in three of those six Local
Limited  Partnerships.  Those  investments are Alliance  Apartments I, Evergreen
Apartments  I  and  Hastings  Apartments  I.  All  the  properties  continue  to
experience  operating  deficits.  The local general  partner  ceased funding the
operating deficits,  which placed the Local Limited  Partnerships in jeopardy of
foreclosure. Consequently, WNC voted to remove the local general partner and the
management company from the Local Limited Partnerships.  After the local general
partner contested its removal, WNC commenced legal action on behalf of the Local
Limited  Partnerships  and was  successful  in getting a receiver  appointed  to
manage the Local Limited  Partnerships  and an unaffiliated  entity appointed as
property  manager.  WNC was  subsequently  successful  in  attaining  a  summary
judgment to confirm the removal of the local general  partner,  the receiver was
discharged and WNC now controls all six of the Local Limited Partnerships.

The six Local Limited  Partnerships  (hereinafter  referred to as  "Defendants")
were  defendants  in a separate  lawsuit.  The  lawsuit was filed by eight other
partnerships   in  which  the  local  general   partner  of  the  Local  Limited
Partnerships is or was involved (the  "Plaintiffs").  The Plaintiffs allege that
the local general  partner  accepted  funds from the  Plaintiffs  and improperly
loaned these funds to the  Defendants.  In July 2001 this lawsuit was settled in
the aggregate amount of $35,000. The Partnerships allocated share of $17,500 has
been accrued in full at March 31, and September 30, 2001.

The Partnership has a 99% limited partnership  investment in Cascade Pines, L.P.
II  ("Cascade").  Cascade is a defendant in a wrongful death lawsuit and related
injury  lawsuits.  Cascade  carries  general  liability  and extended  liability
insurance. The wrongful death claim has been subsequently, compromised, released
and dismissed. Liability insurance covered the settlement. The insurers for both
the general liability,  limited to $2 million, and extended liability insurance,
limited to a further $15 million,  have acknowledged  coverage for the potential
loss,  should the  outcome be  unfavorable.  Discovery  for the  related  injury
lawsuits  is  ongoing,  but the  management  of  Cascade  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 Cascade be unsuccessful in its
defense and the insurance coverage proves to be inadequate,  the Partnership may
be required to sell its  investment  or may  otherwise  lose its  investment  in
Cascade. Loss of the Cascade investment could result in recapture of tax credits
and certain prior tax deductions.


                                       14
<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,
"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,  our  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 us or
persons  acting on our behalf  are  expressly  qualified  in their  entirety  by
cautionary  statements  in this Form 10-Q and in other reports we filed with the
Securities and Exchange  Commission.  The following discussion should be read in
conjunction  with the  condensed  Financial  Statements  and the  Notes  thereto
included elsewhere in this filing.

The following discussion and analysis compares the results of operations for the
three and six months ended  September  30, 2001 and 2000,  and should be read in
conjunction  with the condensed  financial  statements  and  accompanying  notes
included within this report.

Financial Condition
-------------------

The Partnership's  assets at September 30, 2001 consisted  primarily of $133,000
in cash and aggregate investments in the seventeen Local Limited Partnerships of
$9,935,000.  Liabilities at September 30, 2001 primarily consisted of $42,000 of
accrued expenses and $75,000 of accrued asset management fees and reimbursements
due to the General Partner and affiliates.

Results of Operations
---------------------

Three months ended  September 30, 2001 Compared to Three months Ended  September
30, 2000. The  Partnership's  net loss for the three months ended  September 30,
2001 was  $(11,000),  reflecting  a  decrease  of  $(236,000)  from the net loss
experienced  for the three months ended  September 30, 2000 of  $(247,000).  The
$(236,000)  decrease in net loss is primarily  due to the gain on disposal of an
investment of $168,000  along with a decrease of (40,000) in equity in losses of
limited  partnerships,  which decreased to $(139,000) for the three month period
ended  September  30,  2001 from  $(179,000)  for the three month  period  ended
September 30, 2000. In addition,  a decrease in operating loss of  approximately
$(29,000),  to approximately  $(39,000) for the three months ended September 30,
2001 from approximately $(68,000) for the three months ended September 30, 2000,
due primarily to the decreases of other operating expenses.

Six months ended  September 30, 2001 Compared to Six months Ended  September 30,
2000. The Partnership's net loss for the six months ended September 30, 2001 was
$(191,000),  reflecting a decrease of $(254,000)  from the net loss  experienced
for the six months  ended  September  30,  2000 of  $(445,000).  The  $(254,000)
decrease in net loss is primarily  due to the gain on disposal of an  investment
of $168,000  along with a decrease to equity in losses of limited  partnerships,
which  decreased  by  $(80,000)  to  $(278,000)  for the six month  period ended
September 30, 2001 from  $(358,000) for the six month period ended September 30,
2000. In addition,  an decrease in operating  loss of $(7,000) to  approximately
$(80,000),  for the six  months  ended  September  30,  2001 from  approximately
$(87,000)  for the six months  ended  September  30,  2000,  due to decreases of
comparable legal, accounting and other operating expenses.


                                       15
<PAGE>

Cash Flows
----------

Six months ended  September 30, 2001 Compared to Six months Ended  September 30,
2000. Net increase  during the six months ended  September 30, 2001 was $113,000
compared  to a net  decrease  for the six months  ended  September  30,  2000 of
$(219,000).  The $332,000  increase was due primarily to the gain on disposal of
Evergreen of approximately  $168,000 and distributions from limited partnerships
of $12,000  offset by a decrease  in net cash used by  operating  activities  of
$(92,000) to $(67,000)  for the six month period ended  September  30, 2001 from
$(159,000) for the six month period ended September 30, 2000.

The Partnership  expects its future cash flows,  together with its net available
assets at September 30, 2001, to be sufficient to meet all currently foreseeable
future cash requirements.

During the six months ended September 30, 2001, accrued payables,  which consist
of related party management fees and  reimbursements due to the General Partner,
increased by $35,000.  The General  Partner does not anticipate that the accrued
fees and reimbursements  will be paid until such time as capital reserves are in
excess of foreseeable working capital requirements of the partnership.

                                       16
<PAGE>


Item 3. Quantitative and Qualitative Disclosures Above Market Risks

         NONE

Part II.  Other Information

Item 1.  Legal Proceedings

         NONE


Item 6.  Exhibits and Reports on Form 8-K

         NONE





                                       17

<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 - Chief Operating Officer of WNC & Associates, Inc.

Date: November 12, 2001



By:  /s/ Thomas J. Riha

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

Date: November 12, 2001


                                       18