UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): March 16, 2018

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company x

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. x

On March 16, 2018, the District Court, 17^th Judicial District, Tarrant County, Texas entered an order (the “Preliminary Approval Order”): (i) preliminarily approving a proposed settlement of the shareholder derivative action captioned The Lawrence C. Headley Living Trust by Lawrence C. Headley, Trustee, derivatively on behalf of United Development Funding Income Fund V v. Hollis M. Greenlaw, William M. Kahane, Phillip K. Marshall, Eustace W. Mita, Steven J. Finkle, Cara D. Obert, UDFH General Services, L.P., UDFH Land Development, L.P., UDF Holdings, L.P., and United Development Funding Income Fund V (Case No. 017-289273-16) in accordance with a Stipulation of Settlement dated as of February 27, 2018 (the “Stipulation”) and (ii) approving for publication the form and content of the proposed Notice of Pendency and Proposed Settlement of Derivative Action and Hearing (the “Notice”), prepared in both long-form and short-form formats. The proposed settlement is subject to final approval at a hearing which is currently scheduled to take place on May 1, 2018 at 4:00 p.m. before the Honorable Melody Wilkinson in the District Court, 17^th Judicial District, Tarrant County, Texas.

Pursuant to the Stipulation and the Preliminary Approval Order, the Stipulation and the long-form Notice are attached as Exhibits 99.1 and 99.2, respectively, to this Current Report on Form 8-K. The Stipulation and Notice also are accessible via a link on the “Investors” page of the United Development Funding Income Fund V (the “Trust”) website, www.udfincomefundv.com. Other information contained in or accessible through the Trust’s website does not constitute part of, and is not incorporated into, this Current Report on Form 8-K.

Use of Forward-Looking Statements

Except for the historical information contained herein, this Form 8-K contains forward-looking statements made pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that statements in this Form 8-K regarding (i) the proposed settlement and Stipulation, (ii) the impact of such settlement, including related activities, approvals and payments, and (iii) other statements that are not historical facts, constitute forward-looking statements. These statements involve risks and uncertainties that can cause actual results to differ materially from those in such forward-looking statements. These risks and uncertainties include, without limitation, risks and uncertainties related to the proposed settlement not receiving the requisite final approval. Additional information on the above risks and uncertainties and additional risks, uncertainties and factors that could cause actual results to differ materially from those in the forward-looking statements are contained in the Trust’s periodic reports filed with the Securities and Exchange Commission. Undue reliance should not be placed on forward-looking statements, which speak only as of the date they are made, and the facts and assumptions underlying the forward-looking statements may change. Except as required by law, the Trust disclaims any obligation to update these forward-looking statements to reflect future information, events or circumstances.

SIGNATURE

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 hereunto duly authorized.