----

----

**FORM      10-Q**

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

|   |                                                                                     ACT OF 1934 |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   |                                                                      ACT                OF 1934 |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Gateway                Tax Credit Fund II Ltd.                                       |
|--------------------------------------------------------------------------------------|
| (Exact                name of Registrant as specified in its                charter) |

| Florida                                                 | 65-0142704                                                                                                                                                                                                                                                                                        |
|---------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (State                or other jurisdiction             | (IRS                Employer No.)                                                                                                                                                                                                                                                                 |
| of                incorporation or organization)        |                                                                                                                                                                                                                                                                                              |
|                                                    |                                                                                                                                                                                                                                                                                              |
| 880                Carillon Parkway                     | St.                Petersburg,   Florida    33716                                                                                                                                                                                                              |
| (Address                of principal executive offices) |                                             (Zip                Code) |

| Registrant’s                Telephone Number, Including Area Code: | (727) 567-1000 |
|--------------------------------------------------------------------------|---------------------|

| YES    X      | NO          |
|------------------------------------------------------------|----------------------------------------------------------|

| Large                accelerated filer   [ ] | Accelerated                filer   [ ] | Non                accelerated                filer   [X] |
|-------------------------------------------------------------|-------------------------------------------------------|--------------------------------------------------------------------------|

| Yes    [                ] | No   [X] |
|-----------------------------------------------|-------------------------|

----

----

| GATEWAY                TAX CREDIT FUND II LTD.                                                         |   |
|--------------------------------------------------------------------------------------------------------|--------|
| (A                Florida Limited Partnership)                                                         |   |
| BALANCE                SHEETS                                                                          |   |
|                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                   |   | SERIES                2 |   |   | SERIES                3 |   |   | SERIES                4 |   |
|                                                                                                   |   | September                30, |   |   | March                31, |   |   | September                30, |   |   | March                31, |   |   | September                30, |   |   | March                31, |   |
|                                                                                                   |   | 2007 |   |   | 2007 |   |   | 2007 |   |   | 2007 |   |   | 2007 |   |   | 2007 |   |
| ASSETS                                                                                                 |   | (Unaudited) |   |   | (Audited) |   |   | (Unaudited) |   |   | (Audited) |   |   | (Unaudited) |   |   | (Audited) |   |
| Current                Assets:                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Cash                and Cash Equivalents                                                   |   | $ | 285,427 |   |   | $ | 129,724 |   |   | $ | 93,332 |   |   | $ | 426,791 |   |   | $ | 112,025 |   |   | $ | 206,516 |   |
|   Investments                in Securities                                                   |   |   | 126,743 |   |   |   | 127,640 |   |   |   | 126,743 |   |   |   | 127,640 |   |   |   | 177,440 |   |   |   | 178,897 |   |
|   Receivable                from General Partners                                            |   |   | 191,053 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|   Receivable                - Other                                                          |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 44,000 |   |   |   | - |   |   |   | 84,500 |   |
|       Total                Assets                                        |   | $ | 603,223 |   |   | $ | 257,364 |   |   | $ | 220,075 |   |   | $ | 598,431 |   |   | $ | 289,465 |   |   | $ | 469,913 |   |
|                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| LIABILITIES                AND PARTNERS' DEFICIT                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current                Liabilities:                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Payable                to General Partners                                                 |   | $ | 56,979 |   |   | $ | 48,705 |   |   | $ | 51,584 |   |   | $ | 55,354 |   |   | $ | 59,433 |   |   | $ | 60,680 |   |
|   Distribution                Payable                                                        |   |   | 373,882 |   |   |   | - |   |   |   | 182 |   |   |   | 313,273 |   |   |   | (4 | ) |   |   | 62,744 |   |
|   Deferred                Gain on Sale of ProjectPartnerships                                |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 43,850 |   |   |   | - |   |   |   | 84,200 |   |
|     Total                Current Liabilities                                       |   |   | 430,861 |   |   |   | 48,705 |   |   |   | 51,766 |   |   |   | 412,477 |   |   |   | 59,429 |   |   |   | 207,624 |   |
|                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Long-Term                Liabilities:                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Payable                to General Partners                                                 |   |   | 698,572 |   |   |   | 666,568 |   |   |   | 573,634 |   |   |   | 551,211 |   |   |   | 755,178 |   |   |   | 722,109 |   |
|                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Partners'                Equity (Deficit):                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Limited                Partner Assignees - 40,000 BAC's                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      authorized                of which 6,136, 5,456, and 6,915               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      for                Series 2, 3, and 4, respectively, have                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      been                issued at September 30, 2007 and                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      March                31, 2007                                            |   |   | (660,591 | ) |   |   | (399,531 | ) |   |   | (405,761 | ) |   |   | (365,257 | ) |   |   | (525,977 | ) |   |   | (459,820 | ) |
|   General                Partners                                                            |   |   | 134,381 |   |   |   | (58,378 | ) |   |   | 436 |   |   |   | - |   |   |   | 835 |   |   |   | - |   |
|     Total                Partners' Deficit                                         |   |   | (526,210 | ) |   |   | (457,909 | ) |   |   | (405,325 | ) |   |   | (365,257 | ) |   |   | (525,142 | ) |   |   | (459,820 | ) |
|                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         Total                Liabilities and Partners' Deficit |   | $ | 603,223 |   |   | $ | 257,364 |   |   | $ | 220,075 |   |   | $ | 598,431 |   |   | $ | 289,465 |   |   | $ | 469,913 |   |
|                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See                accompanying notes to financial statements.                                         |   |

----

| GATEWAY                TAX CREDIT FUND II LTD.                                                         |   |
|--------------------------------------------------------------------------------------------------------|--------|
| (A                Florida Limited Partnership)                                                         |   |
| BALANCE                SHEETS                                                                          |   |
|                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                   |   | SERIES                5 |   |   | SERIES                6 |   |   | TOTAL                SERIES 2 - 6 |   |
|                                                                                                   |   | September                30, |   |   | March                31, |   |   | September                30, |   |   | March                31, |   |   | September                30, |   |   | March                31, |   |
|                                                                                                   |   | 2007 |   |   | 2007 |   |   | 2007 |   |   | 2007 |   |   | 2007 |   |   | 2007 |   |
| ASSETS                                                                                                 |   | (Unaudited) |   |   | (Audited) |   |   | (Unaudited) |   |   | (Audited) |   |   | (Unaudited) |   |   | (Audited) |   |
| Current                Assets:                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Cash                and Cash Equivalents                                                   |   | $ | 110,400 |   |   | $ | 175,920 |   |   | $ | 187,771 |   |   | $ | 193,964 |   |   | $ | 788,955 |   |   | $ | 1,132,915 |   |
|   Investments                in Securities                                                   |   |   | 126,743 |   |   |   | 101,509 |   |   |   | 304,183 |   |   |   | 280,406 |   |   |   | 861,852 |   |   |   | 816,092 |   |
|   Receivable                from General Partners                                            |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 191,053 |   |   |   | - |   |
|   Receivable                - Other                                                          |   |   | 128,499 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 128,499 |   |   |   | 128,500 |   |
|     Total                Current Assets                                            |   |   | 365,642 |   |   |   | 277,429 |   |   |   | 491,954 |   |   |   | 474,370 |   |   |   | 1,970,359 |   |   |   | 2,077,507 |   |
|                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Investments                in Project Partnerships, net                                    |   |   | 123,830 |   |   |   | 125,403 |   |   |   | 76,615 |   |   |   | 208,779 |   |   |   | 200,445 |   |   |   | 334,182 |   |
|       Total                Assets                                        |   | $ | 489,472 |   |   | $ | 402,832 |   |   | $ | 568,569 |   |   | $ | 683,149 |   |   | $ | 2,170,804 |   |   | $ | 2,411,689 |   |
|                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| LIABILITIES                AND PARTNERS' DEFICIT                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current                Liabilities:                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Payable                to General Partners                                                 |   | $ | 79,385 |   |   | $ | 78,583 |   |   | $ | 75,134 |   |   | $ | 74,311 |   |   | $ | 322,515 |   |   | $ | 317,633 |   |
|   Distribution                Payable                                                        |   |   | - |   |   |   | - |   |   |   | 60,595 |   |   |   | 46 |   |   |   | 434,655 |   |   |   | 376,063 |   |
|   Deferred                Gain on Sale of Project Partnerships                               |   |   | 127,124 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 127,124 |   |   |   | 128,050 |   |
|     Total                Current Liabilities                                       |   |   | 206,509 |   |   |   | 78,583 |   |   |   | 135,729 |   |   |   | 74,357 |   |   |   | 884,294 |   |   |   | 821,746 |   |
|                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Long-Term                Liabilities:                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Payable                to General Partners                                                 |   |   | 649,862 |   |   |   | 603,864 |   |   |   | 990,086 |   |   |   | 939,298 |   |   |   | 3,667,332 |   |   |   | 3,483,050 |   |
|                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Partners'                Equity (Deficit):                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Limited                Partner Assignees - 40,000 BAC's                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      authorized                of which 8,616 and 10,105 for                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Series                5 and 6, respectively, have been                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      issued                at September 30, 2007 and                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      March                31, 2007                                            |   |   | (361,991 | ) |   |   | (275,580 | ) |   |   | (552,257 | ) |   |   | (327,179 | ) |   |   | (2,506,577 | ) |   |   | (1,827,367 | ) |
|   General                Partners                                                            |   |   | (4,908 | ) |   |   | (4,035 | ) |   |   | (4,989 | ) |   |   | (3,327 | ) |   |   | 125,755 |   |   |   | (65,740 | ) |
|     Total                Partners' Deficit                                         |   |   | (366,899 | ) |   |   | (279,615 | ) |   |   | (557,246 | ) |   |   | (330,506 | ) |   |   | (2,380,822 | ) |   |   | (1,893,107 | ) |
|                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         Total                Liabilities and Partners' Deficit |   | $ | 489,472 |   |   | $ | 402,832 |   |   | $ | 568,569 |   |   | $ | 683,149 |   |   | $ | 2,170,804 |   |   | $ | 2,411,689 |   |
|                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See                accompanying notes to financial statements.                                         |   |

----

| GATEWAY                TAX CREDIT FUND II LTD.                        |   |
|-----------------------------------------------------------------------|--------|
| (A                Florida Limited Partnership)                        |   |
| STATEMENTS                OF OPERATIONS                               |   |
| FOR                THE THREE MONTHS ENDED SEPTEMBER 30, 2007 AND 2006 |   |
| (Unaudited)                                                           |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                  |   | SERIES                2 |   |   | SERIES                3 |   |   | SERIES                4 |   |
|                                                                  |   | 2007 |   |   | 2006 |   |   | 2007 |   |   | 2006 |   |   | 2007 |   |   | 2006 |   |
| Revenues:                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Distribution                Income                        |   | $ | - |   |   | $ | 1,237 |   |   | $ | - |   |   | $ | 874 |   |   | $ | 2,800 |   |   | $ | 7,370 |   |
|     Total                Revenues                 |   |   | - |   |   |   | 1,237 |   |   |   | - |   |   |   | 874 |   |   |   | 2,800 |   |   |   | 7,370 |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Expenses:                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Asset                Management Fee - General Partner     |   |   | 15,222 |   |   |   | 16,845 |   |   |   | 11,211 |   |   |   | 15,614 |   |   |   | 16,535 |   |   |   | 19,232 |   |
|   General                and Administrative:                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     General                Partner                |   |   | 17,016 |   |   |   | 22,350 |   |   |   | 13,148 |   |   |   | 18,520 |   |   |   | 19,335 |   |   |   | 23,350 |   |
|     Other                                         |   |   | 11,444 |   |   |   | 10,085 |   |   |   | 7,665 |   |   |   | 9,195 |   |   |   | 10,206 |   |   |   | 10,609 |   |
|     Total                Expenses                 |   |   | 43,682 |   |   |   | 49,280 |   |   |   | 32,024 |   |   |   | 43,329 |   |   |   | 46,076 |   |   |   | 53,191 |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss                Before Gain on Sale of Project                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Partnerships                and Other Income              |   |   | (43,682 | ) |   |   | (48,043 | ) |   |   | (32,024 | ) |   |   | (42,455 | ) |   |   | (43,276 | ) |   |   | (45,821 | ) |
| Gain                on Sale of Project Partnerships                   |   |   | 182,807 |   |   |   | - |   |   |   | 185 |   |   |   | - |   |   |   | 0 |   |   |   | - |   |
| Interest                Income                                        |   |   | 4,257 |   |   |   | 4,323 |   |   |   | 2,709 |   |   |   | 3,170 |   |   |   | 3,554 |   |   |   | 4,285 |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                Income (Loss)                                      |   | $ | 143,382 |   |   | $ | (43,720 | ) |   | $ | (29,130 | ) |   | $ | (39,285 | ) |   | $ | (39,722 | ) |   | $ | (41,536 | ) |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allocation                of Net Income (Loss):                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Assignees                                                 |   | $ | 197,430 |   |   | $ | (43,283 | ) |   | $ | (29,129 | ) |   | $ | (38,892 | ) |   | $ | (39,718 | ) |   | $ | (41,121 | ) |
|   General                Partners                           |   |   | (54,048 | ) |   |   | (437 | ) |   |   | (1 | ) |   |   | (393 | ) |   |   | (4 | ) |   |   | (415 | ) |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                  |   | $ | 143,382 |   |   | $ | (43,720 | ) |   | $ | (29,130 | ) |   | $ | (39,285 | ) |   | $ | (39,722 | ) |   | $ | (41,536 | ) |
| Net                Income (Loss) Per Beneficial                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Assignee                Certificate                       |   | $ | 32.18 |   |   | $ | (7.05 | ) |   | $ | (5.34 | ) |   | $ | (7.13 | ) |   | $ | (5.74 | ) |   | $ | (5.95 | ) |
| Number                of Beneficial Assignee                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Certificates                Outstanding                   |   |   | 6,136 |   |   |   | 6,136 |   |   |   | 5,456 |   |   |   | 5,456 |   |   |   | 6,915 |   |   |   | 6,915 |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See                accompanying notes to financial statements.        |   |

----

| GATEWAY                TAX CREDIT FUND II LTD.                        |   |
|-----------------------------------------------------------------------|--------|
| (A                Florida Limited Partnership)                        |   |
| STATEMENTS                OF OPERATIONS                               |   |
| FOR                THE THREE MONTHS ENDED SEPTEMBER 30, 2007 AND 2006 |   |
| (Unaudited)                                                           |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                  |   | SERIES                5 |   |   | SERIES                6 |   |   | TOTAL                SERIES 2 - 6 |   |
|                                                                  |   | 2007 |   |   | 2006 |   |   | 2007 |   |   | 2006 |   |   | 2007 |   |   | 2006 |   |
| Revenues:                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Distribution                Income                        |   | $ | 3,216 |   |   | $ | 6,528 |   |   | $ | 7,865 |   |   | $ | 7,628 |   |   | $ | 13,881 |   |   | $ | 23,637 |   |
|     Total                Revenues                 |   |   | 3,216 |   |   |   | 6,528 |   |   |   | 7,865 |   |   |   | 7,628 |   |   |   | 13,881 |   |   |   | 23,637 |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Expenses:                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Asset                Management Fee - General Partner     |   |   | 22,999 |   |   |   | 23,096 |   |   |   | 25,394 |   |   |   | 25,278 |   |   |   | 91,361 |   |   |   | 100,065 |   |
|   General                and Administrative:                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     General                Partner                |   |   | 25,108 |   |   |   | 28,181 |   |   |   | 27,319 |   |   |   | 29,792 |   |   |   | 101,926 |   |   |   | 122,193 |   |
|     Other                                         |   |   | 11,467 |   |   |   | 11,464 |   |   |   | 11,744 |   |   |   | 13,826 |   |   |   | 52,526 |   |   |   | 55,179 |   |
|   Amortization                                              |   |   | - |   |   |   | 3,859 |   |   |   | 4,386 |   |   |   | 9,513 |   |   |   | 4,386 |   |   |   | 13,372 |   |
|     Total                Expenses                 |   |   | 59,574 |   |   |   | 66,600 |   |   |   | 68,843 |   |   |   | 78,409 |   |   |   | 250,199 |   |   |   | 290,809 |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss                Before Equity in (Losses) Income of Project       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Partnerships                and Other Income              |   |   | (56,358 | ) |   |   | (60,072 | ) |   |   | (60,978 | ) |   |   | (70,781 | ) |   |   | (236,318 | ) |   |   | (267,172 | ) |
| Equity                in (Losses) Income of Project                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Partnerships                                              |   |   | (510 | ) |   |   | 828 |   |   |   | (5,689 | ) |   |   | 13,820 |   |   |   | (6,199 | ) |   |   | 14,648 |   |
| Gain                (Loss) on Sale of Project Partnerships            |   |   | - |   |   |   | - |   |   |   | (63,800 | ) |   |   | - |   |   |   | 119,192 |   |   |   | - |   |
| Interest                Income                                        |   |   | 3,016 |   |   |   | 3,727 |   |   |   | 5,511 |   |   |   | 7,026 |   |   |   | 19,047 |   |   |   | 22,531 |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                Loss                                               |   | $ | (53,852 | ) |   | $ | (55,517 | ) |   | $ | (124,956 | ) |   | $ | (49,935 | ) |   | $ | (104,278 | ) |   | $ | (229,993 | ) |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allocation                of Net Loss:                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Assignees                                                 |   | $ | (53,313 | ) |   | $ | (54,962 | ) |   | $ | (123,706 | ) |   | $ | (49,436 | ) |   | $ | (48,436 | ) |   | $ | (227,694 | ) |
|   General                Partners                           |   |   | (539 | ) |   |   | (555 | ) |   |   | (1,250 | ) |   |   | (499 | ) |   |   | (55,842 | ) |   |   | (2,299 | ) |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                  |   | $ | (53,852 | ) |   | $ | (55,517 | ) |   | $ | (124,956 | ) |   | $ | (49,935 | ) |   | $ | (104,278 | ) |   | $ | (229,993 | ) |
| Net                Loss Per Beneficial                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Assignee                Certificate                       |   | $ | (6.19 | ) |   | $ | (6.38 | ) |   | $ | (12.24 | ) |   | $ | (4.89 | ) |   |   |   |   |   |   |   |   |
| Number                of Beneficial Assignee                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Certificates                Outstanding                   |   |   | 8,616 |   |   |   | 8,616 |   |   |   | 10,105 |   |   |   | 10,105 |   |   |   |   |   |   |   |   |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See                accompanying notes to financial statements.        |   |

----

| GATEWAY                TAX CREDIT FUND II LTD.                      |   |
|---------------------------------------------------------------------|--------|
| (A                Florida Limited Partnership)                      |   |
| STATEMENTS                OF OPERATIONS                             |   |
| FOR                THE SIX MONTHS ENDED SEPTEMBER 30, 2007 AND 2006 |   |
| (Unaudited)                                                         |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                |   | SERIES                2 |   |   | SERIES                3 |   |   | SERIES                4 |   |
|                                                                |   | 2007 |   |   | 2006 |   |   | 2007 |   |   | 2006 |   |   | 2007 |   |   | 2006 |   |
| Revenues:                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Distribution                Income                      |   | $ | 3,793 |   |   | $ | 3,793 |   |   | $ | 11,633 |   |   | $ | 11,814 |   |   | $ | 11,308 |   |   | $ | 13,347 |   |
|     Total                Revenues               |   |   | 3,793 |   |   |   | 3,793 |   |   |   | 11,633 |   |   |   | 11,814 |   |   |   | 11,308 |   |   |   | 13,347 |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Expenses:                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Asset                Management Fee - General Partner   |   |   | 32,003 |   |   |   | 33,690 |   |   |   | 22,423 |   |   |   | 31,229 |   |   |   | 33,069 |   |   |   | 38,464 |   |
|   General                and Administrative:              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     General                Partner              |   |   | 33,351 |   |   |   | 31,217 |   |   |   | 27,073 |   |   |   | 32,637 |   |   |   | 38,940 |   |   |   | 41,150 |   |
|     Other                                       |   |   | 14,331 |   |   |   | 11,431 |   |   |   | 10,336 |   |   |   | 11,323 |   |   |   | 13,049 |   |   |   | 13,347 |   |
|     Total                Expenses               |   |   | 79,685 |   |   |   | 76,338 |   |   |   | 59,832 |   |   |   | 75,189 |   |   |   | 85,058 |   |   |   | 92,961 |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss                Before Gain on Sale of Project                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Partnerships                and Other Income            |   |   | (75,892 | ) |   |   | (72,545 | ) |   |   | (48,199 | ) |   |   | (63,375 | ) |   |   | (73,750 | ) |   |   | (79,614 | ) |
| Gain                on Sale of Project Partnerships                 |   |   | 238,850 |   |   |   | - |   |   |   | 44,035 |   |   |   | - |   |   |   | 84,200 |   |   |   | - |   |
| Interest                Income                                      |   |   | 7,592 |   |   |   | 7,548 |   |   |   | 8,100 |   |   |   | 6,230 |   |   |   | 8,424 |   |   |   | 8,350 |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                Income (Loss)                                    |   | $ | 170,550 |   |   | $ | (64,997 | ) |   | $ | 3,936 |   |   | $ | (57,145 | ) |   | $ | 18,874 |   |   | $ | (71,264 | ) |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allocation                of Net Income (Loss):                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Assignees                                               |   | $ | 168,844 |   |   | $ | (64,347 | ) |   | $ | 3,500 |   |   | $ | (56,574 | ) |   | $ | 18,039 |   |   | $ | (70,551 | ) |
|   General                Partners                         |   |   | 1,706 |   |   |   | (650 | ) |   |   | 436 |   |   |   | (571 | ) |   |   | 835 |   |   |   | (713 | ) |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                |   | $ | 170,550 |   |   | $ | (64,997 | ) |   | $ | 3,936 |   |   | $ | (57,145 | ) |   | $ | 18,874 |   |   | $ | (71,264 | ) |
| Net                Income (Loss) Per Beneficial                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Assignee                Certificate                     |   | $ | 27.52 |   |   | $ | (10.49 | ) |   | $ | 0.64 |   |   | $ | (10.37 | ) |   | $ | 2.61 |   |   | $ | (10.20 | ) |
| Number                of Beneficial Assignee                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Certificates                Outstanding                 |   |   | 6,136 |   |   |   | 6,136 |   |   |   | 5,456 |   |   |   | 5,456 |   |   |   | 6,915 |   |   |   | 6,915 |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See                accompanying notes to financial statements.      |   |

----

| GATEWAY                TAX CREDIT FUND II LTD.                      |   |
|---------------------------------------------------------------------|--------|
| (A                Florida Limited Partnership)                      |   |
| STATEMENTS                OF OPERATIONS                             |   |
| FOR                THE SIX MONTHS ENDED SEPTEMBER 30, 2007 AND 2006 |   |
| (Unaudited)                                                         |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                |   | SERIES                5 |   |   | SERIES                6 |   |   | TOTAL                SERIES 2 - 6 |   |
|                                                                |   | 2007 |   |   | 2006 |   |   | 2007 |   |   | 2006 |   |   | 2007 |   |   | 2006 |   |
| Revenues:                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Distribution                Income                      |   | $ | 19,626 |   |   | $ | 19,028 |   |   | $ | 17,264 |   |   | $ | 21,001 |   |   | $ | 63,624 |   |   | $ | 68,983 |   |
|     Total                Revenues               |   |   | 19,626 |   |   |   | 19,028 |   |   |   | 17,264 |   |   |   | 21,001 |   |   |   | 63,624 |   |   |   | 68,983 |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Expenses:                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Asset                Management Fee - General Partner   |   |   | 45,998 |   |   |   | 46,192 |   |   |   | 50,788 |   |   |   | 50,565 |   |   |   | 184,281 |   |   |   | 200,140 |   |
|   General                and Administrative:              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     General                Partner              |   |   | 51,095 |   |   |   | 49,664 |   |   |   | 54,791 |   |   |   | 52,502 |   |   |   | 205,250 |   |   |   | 207,170 |   |
|     Other                                       |   |   | 14,612 |   |   |   | 13,080 |   |   |   | 17,557 |   |   |   | 15,925 |   |   |   | 69,885 |   |   |   | 65,106 |   |
|   Amortization                                            |   |   | - |   |   |   | 7,718 |   |   |   | 8,772 |   |   |   | 19,026 |   |   |   | 8,772 |   |   |   | 26,744 |   |
|     Total                Expenses               |   |   | 111,705 |   |   |   | 116,654 |   |   |   | 131,908 |   |   |   | 138,018 |   |   |   | 468,188 |   |   |   | 499,160 |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss                Before Equity in (Losses) Income of             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Project                Partnerships and Other Income          |   |   | (92,079 | ) |   |   | (97,626 | ) |   |   | (114,644 | ) |   |   | (117,017 | ) |   |   | (404,564 | ) |   |   | (430,177 | ) |
| Equity                in (Losses) Income of Project                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Partnerships                                            |   |   | (1,572 | ) |   |   | (2,537 | ) |   |   | 956 |   |   |   | 12,741 |   |   |   | (616 | ) |   |   | 10,204 |   |
| Gain                (Loss) on Sale of Project Partnerships          |   |   | - |   |   |   | - |   |   |   | (63,800 | ) |   |   | - |   |   |   | 303,285 |   |   |   | - |   |
| Interest                Income                                      |   |   | 6,367 |   |   |   | 7,397 |   |   |   | 11,297 |   |   |   | 13,370 |   |   |   | 41,780 |   |   |   | 42,895 |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                Loss                                             |   | $ | (87,284 | ) |   | $ | (92,766 | ) |   | $ | (166,191 | ) |   | $ | (90,906 | ) |   | $ | (60,115 | ) |   | $ | (377,078 | ) |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allocation                of Net Loss:                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Assignees                                               |   | $ | (86,411 | ) |   | $ | (91,838 | ) |   | $ | (164,529 | ) |   | $ | (89,997 | ) |   | $ | (60,557 | ) |   | $ | (373,307 | ) |
|   General                Partners                         |   |   | (873 | ) |   |   | (928 | ) |   |   | (1,662 | ) |   |   | (909 | ) |   |   | 442 |   |   |   | (3,771 | ) |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                |   | $ | (87,284 | ) |   | $ | (92,766 | ) |   | $ | (166,191 | ) |   | $ | (90,906 | ) |   | $ | (60,115 | ) |   | $ | (377,078 | ) |
| Net                Loss Per Beneficial                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Assignee                Certificate                     |   | $ | (10.03 | ) |   | $ | (10.66 | ) |   | $ | (16.28 | ) |   | $ | (8.91 | ) |   |   |   |   |   |   |   |   |
| Number                of Beneficial Assignee                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Certificates                Outstanding                 |   |   | 8,616 |   |   |   | 8,616 |   |   |   | 10,105 |   |   |   | 10,105 |   |   |   |   |   |   |   |   |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See                accompanying notes to financial statements.      |   |

----

| GATEWAY                TAX CREDIT FUND II LTD.                      |   |
|---------------------------------------------------------------------|--------|
| (A                Florida Limited Partnership)                      |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| STATEMENTS                OF PARTNERS' EQUITY (DEFICIT)             |   |
| FOR                THE SIX MONTHS ENDED SEPTEMBER 30, 2007 AND 2006 |   |
| (Unaudited)                                                         |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                |   | SERIES                2 |   |   | SERIES                3 |   |
|                                                                |   |   |   |   | General |   |   |   |   |   |   |   |   | General |   |   |   |   |
|                                                                |   | Assignees |   |   | Partners |   |   | Total |   |   | Assignees |   |   | Partners |   |   | Total |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                at March 31, 2006                            |   | $ | (281,595 | ) |   | $ | (57,187 | ) |   | $ | (338,782 | ) |   | $ | (207,975 | ) |   | $ | (50,399 | ) |   | $ | (258,374 | ) |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                Loss                                             |   |   | (64,347 | ) |   |   | (650 | ) |   |   | (64,997 | ) |   |   | (56,574 | ) |   |   | (571 | ) |   |   | (57,145 | ) |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                at September 30, 2006                        |   | $ | (345,942 | ) |   | $ | (57,837 | ) |   | $ | (403,779 | ) |   | $ | (264,549 | ) |   | $ | (50,970 | ) |   | $ | (315,519 | ) |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                at March 31, 2007                            |   | $ | (399,531 | ) |   | $ | (58,378 | ) |   | $ | (457,909 | ) |   | $ | (365,257 | ) |   | $ | - |   |   | $ | (365,257 | ) |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Capital                Contributions                                |   |   | - |   |   |   | 191,053 |   |   |   | 191,053 |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                Income                                           |   |   | 168,844 |   |   |   | 1,706 |   |   |   | 170,550 |   |   |   | 3,500 |   |   |   | 436 |   |   |   | 3,936 |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Distributions                                                       |   |   | (429,904 | ) |   |   | - |   |   |   | (429,904 | ) |   |   | (44,004 | ) |   |   | - |   |   |   | (44,004 | ) |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                at September 30, 2007                        |   | $ | (660,591 | ) |   | $ | 134,381 |   |   | $ | (526,210 | ) |   | $ | (405,761 | ) |   | $ | 436 |   |   | $ | (405,325 | ) |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See                accompanying notes to financial statements.      |   |

----

| GATEWAY                TAX CREDIT FUND II LTD.                      |   |
|---------------------------------------------------------------------|--------|
| (A                Florida Limited Partnership)                      |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| STATEMENTS                OF PARTNERS' EQUITY (DEFICIT)             |   |
| FOR                THE SIX MONTHS ENDED SEPTEMBER 30, 2007 AND 2006 |   |
| (Unaudited)                                                         |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                |   | SERIES                4 |   |   | SERIES                5 |   |
|                                                                |   |   |   |   | General |   |   |   |   |   |   |   |   | General |   |   |   |   |
|                                                                |   | Assignees |   |   | Partners |   |   | Total |   |   | Assignees |   |   | Partners |   |   | Total |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                at March 31, 2006                            |   | $ | (253,967 | ) |   | $ | (63,833 | ) |   | $ | (317,800 | ) |   | $ | (82,842 | ) |   | $ | (2,088 | ) |   | $ | (84,930 | ) |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                Loss                                             |   |   | (70,551 | ) |   |   | (713 | ) |   |   | (71,264 | ) |   |   | (91,838 | ) |   |   | (928 | ) |   |   | (92,766 | ) |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                at September 30, 2006                        |   | $ | (324,518 | ) |   | $ | (64,546 | ) |   | $ | (389,064 | ) |   | $ | (174,680 | ) |   | $ | (3,016 | ) |   | $ | (177,696 | ) |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                at March 31, 2007                            |   | $ | (459,820 | ) |   | $ | - |   |   | $ | (459,820 | ) |   | $ | (275,580 | ) |   | $ | (4,035 | ) |   | $ | (279,615 | ) |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                Income (Loss)                                    |   |   | 18,039 |   |   |   | 835 |   |   |   | 18,874 |   |   |   | (86,411 | ) |   |   | (873 | ) |   |   | (87,284 | ) |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Distributions                                                       |   |   | (84,196 | ) |   |   | - |   |   |   | (84,196 | ) |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                at September 30, 2007                        |   | $ | (525,977 | ) |   | $ | 835 |   |   | $ | (525,142 | ) |   | $ | (361,991 | ) |   | $ | (4,908 | ) |   | $ | (366,899 | ) |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See                accompanying notes to financial statements.      |   |

----

| GATEWAY                TAX CREDIT FUND II LTD.                      |   |
|---------------------------------------------------------------------|--------|
| (A                Florida Limited Partnership)                      |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| STATEMENTS                OF PARTNERS' EQUITY (DEFICIT)             |   |
| FOR                THE SIX MONTHS ENDED SEPTEMBER 30, 2007 AND 2006 |   |
| (Unaudited)                                                         |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                |   | SERIES                6 |   |   | TOTAL                SERIES 2 - 6 |   |
|                                                                |   |   |   |   | General |   |   |   |   |   |   |   |   | General |   |   |   |   |
|                                                                |   | Assignees |   |   | Partners |   |   | Total |   |   | Assignees |   |   | Partners |   |   | Total |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                at March 31, 2006                            |   | $ | 2,162 |   |   | $ | - |   |   | $ | 2,162 |   |   | $ | (824,217 | ) |   | $ | (173,507 | ) |   | $ | (997,724 | ) |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                Loss                                             |   |   | (89,997 | ) |   |   | (909 | ) |   |   | (90,906 | ) |   |   | (373,307 | ) |   |   | (3,771 | ) |   |   | (377,078 | ) |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                at September 30, 2006                        |   | $ | (87,835 | ) |   | $ | (909 | ) |   | $ | (88,744 | ) |   | $ | (1,197,524 | ) |   | $ | (177,278 | ) |   | $ | (1,374,802 | ) |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                at March 31, 2007                            |   | $ | (327,179 | ) |   | $ | (3,327 | ) |   | $ | (330,506 | ) |   | $ | (1,827,367 | ) |   | $ | (65,740 | ) |   | $ | (1,893,107 | ) |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Capital                Contributions                                |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 191,053 |   |   |   | 191,053 |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                Income (Loss)                                    |   |   | (164,529 | ) |   |   | (1,662 | ) |   |   | (166,191 | ) |   |   | (60,557 | ) |   |   | 442 |   |   |   | (60,115 | ) |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Distributions                                                       |   |   | (60,549 | ) |   |   | - |   |   |   | (60,549 | ) |   |   | (618,653 | ) |   |   | - |   |   |   | (618,653 | ) |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                at September 30, 2007                        |   | $ | (552,257 | ) |   | $ | (4,989 | ) |   | $ | (557,246 | ) |   | $ | (2,506,577 | ) |   | $ | 125,755 |   |   | $ | (2,380,822 | ) |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See                accompanying notes to financial statements.      |   |

----

| GATEWAY                TAX CREDIT FUND II LTD.                                                                                 |   |
|--------------------------------------------------------------------------------------------------------------------------------|--------|
| (A                Florida Limited Partnership)                                                                                 |   |
|                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| STATEMENTS                OF CASH FLOWS                                                                                        |   |
| FOR                THE SIX MONTHS ENDED SEPTEMBER 30, 2007 AND 2006                                                            |   |
| (Unaudited)                                                                                                                    |   |
|                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                           |   | SERIES                2 |   |   | SERIES                3 |   |
|                                                                                                                           |   | 2007 |   |   | 2006 |   |   | 2007 |   |   | 2006 |   |
| Cash                Flows from Operating Activities:                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
|   Net                Income (Loss)                                                                                   |   | $ | 170,550 |   |   | $ | (64,997 | ) |   | $ | 3,936 |   |   | $ | (57,145 | ) |
|   Adjustments                to Reconcile Net Income (Loss)                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     to                Net Cash Used in Operating Activities:                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       Accreted                Interest Income on Investments in Securities                       |   |   | - |   |   |   | (1,406 | ) |   |   | - |   |   |   | (1,406 | ) |
|       Accreted                Discount on Investments in Securities                              |   |   | (481 | ) |   |   | - |   |   |   | (481 | ) |   |   | - |   |
|       Gain                on Sale of Project Partnerships                                        |   |   | (238,850 | ) |   |   | - |   |   |   | (44,035 | ) |   |   | - |   |
|       Distribution                Income                                                         |   |   | (3,793 | ) |   |   | (3,793 | ) |   |   | (11,633 | ) |   |   | (11,814 | ) |
|       Changes                in Operating Assets and Liabilities:                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         Increase                in Interest Receivable                                 |   |   | (456 | ) |   |   | - |   |   |   | (456 | ) |   |   | - |   |
|         Increase                in Payable to General Partners                         |   |   | 40,278 |   |   |   | 34,540 |   |   |   | 18,653 |   |   |   | 30,281 |   |
|         Decrease                in Other Payable                                       |   |   | - |   |   |   | (8,030 | ) |   |   | - |   |   |   | (7,300 | ) |
|           Net                Cash Used in Operating Activities               |   |   | (32,752 | ) |   |   | (43,686 | ) |   |   | (34,016 | ) |   |   | (47,384 | ) |
|                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash                Flows from Investing Activities:                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Decrease                in Receivable - Other                                                                      |   |   | - |   |   |   | - |   |   |   | 44,000 |   |   |   | - |   |
|   Distributions                Received from Project Partnerships                                                    |   |   | 3,793 |   |   |   | 3,793 |   |   |   | 11,633 |   |   |   | 11,814 |   |
|   Proceeds                from Sale of Project Partnerships                                                          |   |   | 243,069 |   |   |   | - |   |   |   | - |   |   |   | - |   |
|   Redemption                of Investment Securities                                                                 |   |   | 127,000 |   |   |   | 66,276 |   |   |   | 127,000 |   |   |   | 58,952 |   |
|   Purchase                of Investment Securities                                                                   |   |   | (125,166 | ) |   |   | (125,177 | ) |   |   | (125,166 | ) |   |   | (125,177 | ) |
|           Net                Cash Provided by (Used in) Investing Activities |   |   | 248,696 |   |   |   | (55,108 | ) |   |   | 57,467 |   |   |   | (54,411 | ) |
|                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash                Flows from Financing Activities:                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Distributions                Paid to Assignees                                                                     |   |   | (56,022 | ) |   |   | - |   |   |   | (357,095 | ) |   |   | - |   |
|   Expenses                Related to Sale of Project Partnerships                                                    |   |   | (4,219 | ) |   |   | - |   |   |   | 185 |   |   |   | - |   |
|           Net                Cash Used in Financing Activities               |   |   | (60,241 | ) |   |   | - |   |   |   | (356,910 | ) |   |   | - |   |
|                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Increase                (Decrease) in Cash and Cash Equivalents                                                                |   |   | 155,703 |   |   |   | (98,794 | ) |   |   | (333,459 | ) |   |   | (101,795 | ) |
| Cash                and Cash Equivalents at Beginning of Year                                                                  |   |   | 129,724 |   |   |   | 250,529 |   |   |   | 426,791 |   |   |   | 236,035 |   |
|                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash                and Cash Equivalents at End of Period                                                                      |   | $ | 285,427 |   |   | $ | 151,735 |   |   | $ | 93,332 |   |   | $ | 134,240 |   |
|                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Supplemental                disclosure of non-cash activities:                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Increase                in Distribution Payable                                                                                |   | $ | 374,079 |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
| Distribution                to Assignees                                                                                       |   |   | (374,079 | ) |   |   | - |   |   |   | - |   |   |   | - |   |
| Increase                in Receivable from General Partners                                                                    |   |   | (191,053 | ) |   |   | - |   |   |   | - |   |   |   | - |   |
| Capital                Contributions                                                                                           |   |   | 191,053 |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                                                                           |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
|                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See                accompanying notes to financial statements.                                                                 |   |

----

| GATEWAY                TAX CREDIT FUND II LTD.                                                                                 |   |
|--------------------------------------------------------------------------------------------------------------------------------|--------|
| (A                Florida Limited Partnership)                                                                                 |   |
|                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| STATEMENTS                OF CASH FLOWS                                                                                        |   |
| FOR                THE SIX MONTHS ENDED SEPTEMBER 30, 2007 AND 2006                                                            |   |
| (Unaudited)                                                                                                                    |   |
|                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                           |   | SERIES                4 |   |   | SERIES                5 |   |
|                                                                                                                           |   | 2007 |   |   | 2006 |   |   | 2007 |   |   | 2006 |   |
| Cash                Flows from Operating Activities:                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
|   Net                Income (Loss)                                                                                   |   | $ | 18,874 |   |   | $ | (71,264 | ) |   | $ | (87,284 | ) |   | $ | (92,766 | ) |
|   Adjustments                to Reconcile Net Income (Loss)                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     to                Net Cash Used in Operating Activities:                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       Amortization                                                                               |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 7,718 |   |
|       Accreted                Interest Income on Investments in Securities                       |   |   | - |   |   |   | (1,970 | ) |   |   | - |   |   |   | (1,118 | ) |
|       Accreted                Discount on Investments in Securities                              |   |   | (674 | ) |   |   | - |   |   |   | (375 | ) |   |   | - |   |
|       Equity                in Losses of Project Partnerships                                    |   |   | - |   |   |   | - |   |   |   | 1,572 |   |   |   | 2,537 |   |
|       Gain                on Sale of Project Partnerships                                        |   |   | (84,200 | ) |   |   | - |   |   |   | - |   |   |   | - |   |
|       Distribution                Income                                                         |   |   | (11,308 | ) |   |   | (13,347 | ) |   |   | (19,626 | ) |   |   | (19,028 | ) |
|       Changes                in Operating Assets and Liabilities:                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         Increase                in Interest Receivable                                 |   |   | (637 | ) |   |   | - |   |   |   | (692 | ) |   |   | - |   |
|         Decrease                in Receivable - Other                                  |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 912 |   |
|         Increase                in Payable to General Partners                         |   |   | 31,822 |   |   |   | 37,338 |   |   |   | 46,800 |   |   |   | 44,631 |   |
|         Decrease                in Other Payable                                       |   |   | - |   |   |   | (8,030 | ) |   |   | - |   |   |   | (3,650 | ) |
|           Net                Cash Used in Operating Activities               |   |   | (46,123 | ) |   |   | (57,273 | ) |   |   | (59,605 | ) |   |   | (60,764 | ) |
|                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash                Flows from Investing Activities:                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Decrease                in Receivable - Other                                                                      |   |   | 84,500 |   |   |   | - |   |   |   | - |   |   |   | - |   |
|   Distributions                Received from Project Partnerships                                                    |   |   | 11,308 |   |   |   | 13,347 |   |   |   | 19,626 |   |   |   | 20,770 |   |
|   Redemption                of Investment Securities                                                                 |   |   | 178,000 |   |   |   | 74,685 |   |   |   | 101,000 |   |   |   | 93,086 |   |
|   Purchase                of Investment Securities                                                                   |   |   | (175,232 | ) |   |   | (175,444 | ) |   |   | (125,166 | ) |   |   | (99,551 | ) |
|           Net                Cash Provided by (Used in) Investing Activities |   |   | 98,576 |   |   |   | (87,412 | ) |   |   | (4,540 | ) |   |   | 14,305 |   |
|                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash                Flows from Financing Activities:                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Distributions                Paid to Assignees                                                                     |   |   | (146,944 | ) |   |   | - |   |   |   | - |   |   |   | - |   |
|   Expenses                Related to Sale of Project Partnerships                                                    |   |   | - |   |   |   | - |   |   |   | (1,375 | ) |   |   | - |   |
|           Net                Cash Used in Financing Activities               |   |   | (146,944 | ) |   |   | - |   |   |   | (1,375 | ) |   |   | - |   |
|                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Decrease                in Cash and Cash Equivalents                                                                           |   |   | (94,491 | ) |   |   | (144,685 | ) |   |   | (65,520 | ) |   |   | (46,459 | ) |
| Cash                and Cash Equivalents at Beginning of Year                                                                  |   |   | 206,516 |   |   |   | 322,204 |   |   |   | 175,920 |   |   |   | 262,439 |   |
| Cash                and Cash Equivalents at End of Period                                                                      |   | $ | 112,025 |   |   | $ | 177,519 |   |   | $ | 110,400 |   |   | $ | 215,980 |   |
|                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Supplemental                disclosure of non-cash activities:                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Increase                in Distribution Payable                                                                                |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
| Distribution                to Assignees                                                                                       |   |   |  - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Increase                in Receivable - Other                                                                                  |   |   | - |   |   |   | - |   |   |   | (128,499 | ) |   |   | - |   |
| Increase                in Deferred Gain on Sale of Project Partnerships                                                       |   |   | - |   |   |   | - |   |   |   | 127,124 |   |   |   | - |   |
| Increase                in Payable to General Partners                                                                         |   |   | - |   |   |   | - |   |   |   | 1,375 |   |   |   | - |   |
|                                                                                                                           |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
|                                                                                                                           |   |
| See                accompanying notes to financial statements.                                                                 |   |

----

| GATEWAY                TAX CREDIT FUND II LTD.                                                                                 |   |
|--------------------------------------------------------------------------------------------------------------------------------|--------|
| (A                Florida Limited Partnership)                                                                                 |   |
|                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| STATEMENTS                OF CASH FLOWS                                                                                        |   |
| FOR                THE SIX MONTHS ENDED SEPTEMBER 30, 2007 AND 2006                                                            |   |
| (Unaudited)                                                                                                                    |   |
|                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                           |   | SERIES                6 |   |   | TOTAL                SERIES 2 - 6 |   |
|                                                                                                                           |   | 2007 |   |   | 2006 |   |   | 2007 |   |   | 2006 |   |
| Cash                Flows from Operating Activities:                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
|   Net                Loss                                                                                            |   | $ | (166,191 | ) |   | $ | (90,906 | ) |   | $ | (60,115 | ) |   | $ | (377,078 | ) |
|   Adjustments                to Reconcile Net Loss                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     to                Net Cash Used in Operating Activities:                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       Amortization                                                                               |   |   | 8,772 |   |   |   | 19,026 |   |   |   | 8,772 |   |   |   | 26,744 |   |
|       Accreted                Interest Income on Investments in Securities                       |   |   | - |   |   |   | (6,045 | ) |   |   | - |   |   |   | (11,945 | ) |
|       Accreted                Discount on Investments in Securities                              |   |   | (1,050 | ) |   |   | - |   |   |   | (3,061 | ) |   |   | - |   |
|       Equity                in (Income) Losses of Project Partnerships                           |   |   | (956 | ) |   |   | (12,741 | ) |   |   | 616 |   |   |   | (10,204 | ) |
|       Loss                (Gain) on Sale of Project Partnerships                                 |   |   | 63,800 |   |   |   | - |   |   |   | (303,285 | ) |   |   | - |   |
|       Distribution                Income                                                         |   |   | (17,264 | ) |   |   | (21,001 | ) |   |   | (63,624 | ) |   |   | (68,983 | ) |
|       Changes                in Operating Assets and Liabilities:                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         Increase                in Interest Receivable                                 |   |   | (1,330 | ) |   |   | - |   |   |   | (3,571 | ) |   |   | - |   |
|         Decrease                in Receivable - Other                                  |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 912 |   |
|         Increase                in Payable to General Partners                         |   |   | 51,611 |   |   |   | 49,372 |   |   |   | 189,164 |   |   |   | 196,162 |   |
|         Decrease                in Other Payable                                       |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (27,010 | ) |
|           Net                Cash Used in Operating Activities               |   |   | (62,608 | ) |   |   | (62,295 | ) |   |   | (235,104 | ) |   |   | (271,402 | ) |
|                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash                Flows from Investing Activities:                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Decrease                in Receivable - Other                                                                      |   |   | - |   |   |   | - |   |   |   | 128,500 |   |   |   | - |   |
|   Distributions                Received from Project Partnerships                                                    |   |   | 17,264 |   |   |   | 23,976 |   |   |   | 63,624 |   |   |   | 73,700 |   |
|   Proceeds                from Sale of Project Partnerships                                                          |   |   | 64,000 |   |   |   | - |   |   |   | 307,069 |   |   |   | - |   |
|   Redemption                of Investment Securities                                                                 |   |   | 279,000 |   |   |   | - |   |   |   | 812,000 |   |   |   | 292,999 |   |
|   Purchase                of Investment Securities                                                                   |   |   | (300,398 | ) |   |   | (274,991 | ) |   |   | (851,128 | ) |   |   | (800,340 | ) |
|           Net                Cash Provided by (Used in) Investing Activities |   |   | 59,866 |   |   |   | (251,015 | ) |   |   | 460,065 |   |   |   | (433,641 | ) |
|                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash                Flows from Financing Activities:                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Distributions                Paid to Assignees                                                                     |   |   | - |   |   |   | - |   |   |   | (560,061 | ) |   |   | - |   |
|   Expenses                Related to Sale of Project Partnerships                                                    |   |   | (3,451 | ) |   |   | - |   |   |   | (8,860 | ) |   |   | - |   |
|           Net                Cash Used in Financing Activities               |   |   | (3,451 | ) |   |   | - |   |   |   | (568,921 | ) |   |   | - |   |
|                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Decrease                in Cash and Cash Equivalents                                                                           |   |   | (6,193 | ) |   |   | (313,310 | ) |   |   | (343,960 | ) |   |   | (705,043 | ) |
| Cash                and Cash Equivalents at Beginning of Year                                                                  |   |   | 193,964 |   |   |   | 463,580 |   |   |   | 1,132,915 |   |   |   | 1,534,787 |   |
| Cash                and Cash Equivalents at End of Period                                                                      |   | $ | 187,771 |   |   | $ | 150,270 |   |   | $ | 788,955 |   |   | $ | 829,744 |   |
|                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Supplemental                disclosure of non-cash activities:                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Increase                in Distribution Payable                                                                                |   | $ | 60,837 |   |   | $ | - |   |   | $ | 434,916 |   |   | $ | - |   |
| Distribution                to Assignees                                                                                       |   |   | (60,837 | ) |   |   | - |   |   |   | (434,916 | ) |   |   | - |   |
| Increase                in Receivable - Other                                                                                  |   |   | - |   |   |   | - |   |   |   | (128,499 | ) |   |   | - |   |
| Increase                in Deferred Gain on Sale of Project Partnerships                                                       |   |   | - |   |   |   | - |   |   |   | 127,124 |   |   |   | - |   |
| Increase                in Payable to General Partners                                                                         |   |   | - |   |   |   | - |   |   |   | 1,375 |   |   |   | - |   |
| Increase                in Receivable from General Partners                                                                    |   |   | - |   |   |   | - |   |   |   | (191,053 | ) |   |   | - |   |
| Capital                Contributions                                                                                           |   |   | - |   |   |   | - |   |   |   | 191,053 |   |   |   | - |   |
|                                                                                                                           |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
|                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See                accompanying notes to financial statements.                                                                 |   |

----

| 1)   | Gateway’s                capital contribution, |
|----------------|------------------------------------------------------|

| 2)   | Acquisition                fees paid to the General Partner for services rendered in selecting                properties for acquisition, and |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                    |  Estimated                MarketValue       |  Cost                Plus Accreted Interestand                Unamortized Premiums |  Gross                UnrealizedLosses       |
|-------------------------|--------------------------------------------------|-----------------------------------------------------------------------------------------|--------------------------------------------------------|
| Series                2 | $                125,889     | $                126,743                                            | $    (854)     |
| Series                3 | 125,889                           | 126,743                                                             | (854)                              |
| Series                4 | 176,244                      | 177,440                                                             | (1,196)                            |
| Series                5 | 125,889                      | 126,743                                                             | (854)                              |
| Series                6 | 302,133                      | 304,183                                                             | (2,050)                            |

----

|                                                                                          | Series                    2                                                           | Series                    3                                                           | Series                    4                                                           |
|-----------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------|
|                         Due within 1 year                                 | $  126,743                                                                  | $  126,743                                                                  | $  177,440                                                                  |
|                         After 1 year through 5 years                      |               0 |               0 |               0 |
|                           Total Amount Carried on Balance Sheet | $  126,743                                                                  | $  126,743                                                                  | $  177,440                                                                  |

|                                                                                          | Series                    2                                                           | Series                    3                                                           | Series                    4                                                           |
|-----------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------|
|                         Due within 1 year                                 | $  126,743                                                                  | $  126,743                                                                  | $  177,440                                                                  |
|                         After 1 year through 5 years                      |               0 |               0 |               0 |
|                           Total Amount Carried on Balance Sheet | $  126,743                                                                  | $  126,743                                                                  | $  177,440                                                                  |

|   |                    | 2007                      | 2006                      |
|--------|-------------------------|---------------------------|---------------------------|
|   | Series                2 | $   32,003 | $   33,690 |
|   | Series                3 | 22,423                    | 31,229                    |
|   | Series                4 | 33,069                    | 38,464                    |
|   | Series                5 | 45,998                    | 46,192                    |
|   | Series                6 |   50,788        |   50,565        |
|   |   Total       | $                184,281  | $                200,140  |

|   |                    | 2007                           | 2006                     |
|--------|-------------------------|--------------------------------|--------------------------|
|   | Series                2 | $   33,351      | $  31,217      |
|   | Series                3 | 27,073                         | 32,637                   |
|   | Series                4 | 38,940                         | 41,150                   |
|   | Series                5 | 51,095                         | 49,664                   |
|   | Series                6 |     54,791 |    52,502 |
|   |   Total       | $                205,250       | $                207,170 |

----

| NOTE                5 - INVESTMENTS IN PROJECT PARTNERSHIPS:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| As                of September 30, 2007, Gateway had acquired a 99% interest in the                profits,                losses, and Tax Credits as a limited partner in Project Partnerships                (Series 2 - 20, Series 3 - 17, and Series 4 - 25) which own and operate                government assisted multi-family housing complexes. Cash flows from                operations are allocated according to each Project Partnership                agreement. Upon dissolution, proceeds will be distributed according                to each Project Partnership agreement. |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| The                following is a summary of Investments in Project Partnerships as                of:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | SERIES                2 |   |   | SERIES                3 |   |   | SERIES                4 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | September                30, |   |   | March                31, |   |   | September                30, |   |   | March                31, |   |   | September                30, |   |   | March                31, |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | 2007 |   |   | 2007 |   |   | 2007 |   |   | 2007 |   |   | 2007 |   |   | 2007 |   |
| Capital                Contributions to Project Partnerships                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| and                purchase price paid for limited partner                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| interests                in Project Partnerships                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | $ | 4,104,519 |   |   | $ | 4,524,678 |   |   | $ | 2,866,874 |   |   | $ | 2,866,874 |   |   | $ | 4,273,215 |   |   | $ | 4,273,215 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cumulative                equity in losses of Project                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Partnerships                (1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | (4,284,991 | ) |   |   | (4,742,761 | ) |   |   | (3,060,820 | ) |   |   | (3,060,820 | ) |   |   | (4,545,684 | ) |   |   | (4,545,684 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cumulative                distributions received from                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Project                Partnerships                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   | (81,797 | ) |   |   | (87,605 | ) |   |   | (116,035 | ) |   |   | (116,035 | ) |   |   | (96,180 | ) |   |   | (96,180 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment                in Project Partnerships before                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Adjustment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   | (262,269 | ) |   |   | (305,688 | ) |   |   | (309,981 | ) |   |   | (309,981 | ) |   |   | (368,649 | ) |   |   | (368,649 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Excess                of investment cost over the                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| underlying                assets acquired:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Acquisition                fees and expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   | 337,998 |   |   |   | 390,838 |   |   |   | 365,375 |   |   |   | 365,375 |   |   |   | 466,220 |   |   |   | 466,220 |   |
|   Accumulated                amortization of acquisition                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   fees                and expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   | (75,729 | ) |   |   | (85,150 | ) |   |   | (55,394 | ) |   |   | (55,394 | ) |   |   | (97,571 | ) |   |   | (97,571 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investments                in Project Partnerships                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (1)                In accordance with Gateway's accounting policy to not carry investments                in                Project Partnerships below zero, cumulative suspended losses of $5,706,525                in Series 2, $5,521,872 in Series 3, and $6,133,988 in Series 4 for                the                period ended September 30, 2007; and cumulative suspended losses                of                $6,160,318 in Series 2, $5,412,602 in Series 3, and $5,924,461 in                Series 4                for the year ended March 31, 2007 are not included.                 |   |

----

| NOTE                5 - INVESTMENTS IN PROJECT PARTNERSHIPS                (continued):                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| As                of September 30, 2007, Gateway had acquired a 99% interest in the                profits,                losses, and Tax Credits as a limited partner in Project Partnerships                (Series 5 - 31 and Series 6 - 36) which own and operate government                assisted multi-family housing complexes. Cash flows from operations                are allocated according to each Project Partnership agreement. Upon                dissolution, proceeds will be distributed according to each Project                Partnership agreement. |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| The                following is a summary of Investments in Project Partnerships as                of:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | SERIES                5 |   |   | SERIES                6 |   |   | TOTAL                SERIES 2 - 6 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | September                30, |   |   | March                31, |   |   | September                30, |   |   | March                31, |   |   | September                30, |   |   | March                31, |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | 2007 |   |   | 2007 |   |   | 2007 |   |   | 2007 |   |   | 2007 |   |   | 2007 |   |
| Capital                Contributions to Project Partnerships                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| and                purchase price paid for limited partner                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| interests                in Project Partnerships                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | $ | 5,496,424 |   |   | $ | 6,010,273 |   |   | $ | 6,957,386 |   |   | $ | 7,250,034 |   |   | $ | 23,698,418 |   |   | $ | 24,925,074 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cumulative                equity in losses of Project                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Partnerships                (1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | (5,609,014 | ) |   |   | (6,132,734 | ) |   |   | (6,888,006 | ) |   |   | (6,853,010 | ) |   |   | (24,388,515 | ) |   |   | (25,335,009 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cumulative                distributions received from                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Project                Partnerships                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   | (177,384 | ) |   |   | (204,351 | ) |   |   | (225,287 | ) |   |   | (226,728 | ) |   |   | (696,683 | ) |   |   | (730,899 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment                in Project Partnerships before                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Adjustment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   | (289,974 | ) |   |   | (326,812 | ) |   |   | (155,907 | ) |   |   | 170,296 |   |   |   | (1,386,780 | ) |   |   | (1,140,834 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Excess                of investment cost over the                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| underlying                assets acquired:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Acquisition                fees and expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   | 573,701 |   |   |   | 632,419 |   |   |   | 739,147 |   |   |   | 768,912 |   |   |   | 2,482,441 |   |   |   | 2,623,764 |   |
|   Accumulated                amortization of acquisition                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   fees                and expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   | (159,897 | ) |   |   | (180,204 | ) |   |   | (263,192 | ) |   |   | (284,185 | ) |   |   | (651,783 | ) |   |   | (702,504 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Reserve                for Impairment of Investment in                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Project                Partnerships                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | - |   |   |   | - |   |   |   | (243,433 | ) |   |   | (446,244 | ) |   |   | (243,433 | ) |   |   | (446,244 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investments                in Project Partnerships                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | $ | 123,830 |   |   | $ | 125,403 |   |   | $ | 76,615 |   |   | $ | 208,779 |   |   | $ | 200,445 |   |   | $ | 334,182 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (1)                In accordance with Gateway's accounting policy to not carry investments                in                Project Partnerships below zero, cumulative suspended losses of $7,149,082                in Series 5 and $5,009,796 in Series 6 for the period ended September                30,                2007; and cumulative suspended losses of $7,065,462 in Series 5 and                $4,856,648 in Series 6 for the year ended March 31, 2007 are not                included.                                                                                 |   |

----

| NOTE                5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):                                                                                                                                                                                                                                                                                                                                                                                |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| In                accordance with Gateway's policy of presenting the financial information                of the Project Partnerships on a three month lag, below is the summarized                balance sheets for the Project Partnerships of Series 2 and Series                3 as of                June 30 and the respective summarized statements of operations for                the six                months ended June 30 of each year: |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | SERIES                2 |   |   | SERIES                3 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | 2007 |   |   | 2006 |   |   | 2007 |   |   | 2006 |   |
| SUMMARIZED                BALANCE SHEETS                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Assets:                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|     Current                assets                                                                                                                                                                                                                                                                                                                                                                                                   |   | $ | 2,169,596 |   |   | $ | 2,211,387 |   |   | $ | 2,032,502 |   |   | $ | 2,835,217 |   |
|     Investment                properties, net                                                                                                                                                                                                                                                                                                                                                                                       |   |   | 12,594,910 |   |   |   | 14,557,627 |   |   |   | 7,479,407 |   |   |   | 11,557,399 |   |
|     Other                assets                                                                                                                                                                                                                                                                                                                                                                                                     |   |   | 9,313 |   |   |   | 6,859 |   |   |   | 43,195 |   |   |   | 156,337 |   |
|         Total                assets                                                                                                                                                                                                                                                                                                                                                                             |   | $ | 14,773,819 |   |   | $ | 16,775,873 |   |   | $ | 9,555,104 |   |   | $ | 14,548,953 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities                and Partners' Deficit:                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Current                liabilities                                                                                                                                                                                                                                                                                                                                                                                              |   | $ | 495,816 |   |   | $ | 432,470 |   |   | $ | 182,182 |   |   | $ | 331,584 |   |
|     Long-term                debt                                                                                                                                                                                                                                                                                                                                                                                                   |   |   | 20,456,115 |   |   |   | 22,653,237 |   |   |   | 15,224,112 |   |   |   | 21,307,645 |   |
|         Total                liabilities                                                                                                                                                                                                                                                                                                                                                                        |   |   | 20,951,931 |   |   |   | 23,085,707 |   |   |   | 15,406,294 |   |   |   | 21,639,229 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Partners'                equity (deficit)                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Limited                Partner                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | (6,032,711 | ) |   |   | (6,165,022 | ) |   |   | (6,129,039 | ) |   |   | (7,415,672 | ) |
|     General                Partners                                                                                                                                                                                                                                                                                                                                                                                                 |   |   | (145,401 | ) |   |   | (144,812 | ) |   |   | 277,849 |   |   |   | 325,396 |   |
|         Total                partners' deficit                                                                                                                                                                                                                                                                                                                                                                  |   |   | (6,178,112 | ) |   |   | (6,309,834 | ) |   |   | (5,851,190 | ) |   |   | (7,090,276 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         Total                liabilities and partners' deficit                                                                                                                                                                                                                                                                                                                                                  |   | $ | 14,773,819 |   |   | $ | 16,775,873 |   |   | $ | 9,555,104 |   |   | $ | 14,548,953 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| SUMMARIZED                STATEMENTS OF OPERATIONS                                                                                                                                                                                                                                                                                                                                                                                                      |   |
| Rental                and other income                                                                                                                                                                                                                                                                                                                                                                                                                  |   | $ | 1,478,986 |   |   | $ | 1,518,651 |   |   | $ | 1,176,829 |   |   | $ | 1,545,386 |   |
| Expenses:                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Operating                expenses                                                                                                                                                                                                                                                                                                                                                                                               |   |   | 985,537 |   |   |   | 987,854 |   |   |   | 767,966 |   |   |   | 976,061 |   |
|     Interest                expense                                                                                                                                                                                                                                                                                                                                                                                                 |   |   | 229,352 |   |   |   | 260,325 |   |   |   | 153,959 |   |   |   | 221,844 |   |
|     Depreciation                and amortization                                                                                                                                                                                                                                                                                                                                                                                    |   |   | 401,382 |   |   |   | 437,738 |   |   |   | 365,278 |   |   |   | 479,179 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         Total                expenses                                                                                                                                                                                                                                                                                                                                                                           |   |   | 1,616,271 |   |   |   | 1,685,917 |   |   |   | 1,287,203 |   |   |   | 1,677,084 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|             Net                loss                                                                                                                                                                                                                                                                                                                                                         |   | $ | (137,285 | ) |   | $ | (167,266 | ) |   | $ | (110,374 | ) |   | $ | (131,698 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                partners' share of net loss                                                                                                                                                                                                                                                                                                                                                                                                        |   | $ | (1,373 | ) |   | $ | (1,673 | ) |   | $ | (1,104 | ) |   | $ | (2,363 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gateway's                share of net loss                                                                                                                                                                                                                                                                                                                                                                                                              |   | $ | (135,912 | ) |   | $ | (165,593 | ) |   | $ | (109,270 | ) |   | $ | (129,335 | ) |
| Suspended                losses                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   | 135,912 |   |   |   | 165,593 |   |   |   | 109,270 |   |   |   | 129,335 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity                in Losses of Project Partnerships                                                                                                                                                                                                                                                                                                                                                                                                 |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |

----

| NOTE                5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):                                                                                                                                                                                                                                                                                                                                                                                |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| In                accordance with Gateway's policy of presenting the financial information                of the Project Partnerships on a three month lag, below is the summarized                balance sheets for the Project Partnerships of Series 4 and Series                5 as of                June 30 and the respective summarized statements of operations for                the six                months ended June 30 of each year: |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | SERIES                4 |   |   | SERIES                5 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | 2007 |   |   | 2006 |   |   | 2007 |   |   | 2006 |   |
| SUMMARIZED                BALANCE SHEETS                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Assets:                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|     Current                assets                                                                                                                                                                                                                                                                                                                                                                                                   |   | $ | 2,175,938 |   |   | $ | 2,571,246 |   |   | $ | 3,348,204 |   |   | $ | 3,461,936 |   |
|     Investment                properties, net                                                                                                                                                                                                                                                                                                                                                                                       |   |   | 15,110,970 |   |   |   | 18,646,911 |   |   |   | 17,754,568 |   |   |   | 21,102,539 |   |
|     Other                assets                                                                                                                                                                                                                                                                                                                                                                                                     |   |   | 33,608 |   |   |   | 37,301 |   |   |   | 9,247 |   |   |   | 9,294 |   |
|         Total                assets                                                                                                                                                                                                                                                                                                                                                                             |   | $ | 17,320,516 |   |   | $ | 21,255,458 |   |   | $ | 21,112,019 |   |   | $ | 24,573,769 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities                and Partners' Deficit:                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Current                liabilities                                                                                                                                                                                                                                                                                                                                                                                              |   | $ | 810,320 |   |   | $ | 875,931 |   |   | $ | 489,982 |   |   | $ | 618,857 |   |
|     Long-term                debt                                                                                                                                                                                                                                                                                                                                                                                                   |   |   | 22,402,597 |   |   |   | 26,080,239 |   |   |   | 28,405,177 |   |   |   | 31,256,580 |   |
|         Total                liabilities                                                                                                                                                                                                                                                                                                                                                                        |   |   | 23,212,917 |   |   |   | 26,956,170 |   |   |   | 28,895,159 |   |   |   | 31,875,437 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Partners'                equity (deficit)                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Limited                Partner                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | (6,593,171 | ) |   |   | (6,364,568 | ) |   |   | (7,478,380 | ) |   |   | (6,938,259 | ) |
|     General                Partners                                                                                                                                                                                                                                                                                                                                                                                                 |   |   | 700,770 |   |   |   | 663,856 |   |   |   | (304,760 | ) |   |   | (363,409 | ) |
|         Total                partners' deficit                                                                                                                                                                                                                                                                                                                                                                  |   |   | (5,892,401 | ) |   |   | (5,700,712 | ) |   |   | (7,783,140 | ) |   |   | (7,301,668 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         Total                liabilities and partners' deficit                                                                                                                                                                                                                                                                                                                                                  |   | $ | 17,320,516 |   |   | $ | 21,255,458 |   |   | $ | 21,112,019 |   |   | $ | 24,573,769 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| SUMMARIZED                STATEMENTS OF OPERATIONS                                                                                                                                                                                                                                                                                                                                                                                                      |   |
| Rental                and other income                                                                                                                                                                                                                                                                                                                                                                                                                  |   | $ | 1,647,714 |   |   | $ | 1,796,635 |   |   | $ | 2,048,385 |   |   | $ | 2,190,256 |   |
| Expenses:                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Operating                expenses                                                                                                                                                                                                                                                                                                                                                                                               |   |   | 1,156,882 |   |   |   | 1,208,559 |   |   |   | 1,399,711 |   |   |   | 1,502,566 |   |
|     Interest                expense                                                                                                                                                                                                                                                                                                                                                                                                 |   |   | 241,901 |   |   |   | 293,178 |   |   |   | 308,916 |   |   |   | 345,488 |   |
|     Depreciation                and amortization                                                                                                                                                                                                                                                                                                                                                                                    |   |   | 460,626 |   |   |   | 522,094 |   |   |   | 570,094 |   |   |   | 601,764 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         Total                expenses                                                                                                                                                                                                                                                                                                                                                                           |   |   | 1,859,409 |   |   |   | 2,023,831 |   |   |   | 2,278,721 |   |   |   | 2,449,818 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|             Net                loss                                                                                                                                                                                                                                                                                                                                                         |   | $ | (211,695 | ) |   | $ | (227,196 | ) |   | $ | (230,336 | ) |   | $ | (259,562 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                partners' share of net loss                                                                                                                                                                                                                                                                                                                                                                                                        |   | $ | (2,168 | ) |   | $ | (2,740 | ) |   | $ | (2,303 | ) |   | $ | (2,595 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gateway's                share of net loss                                                                                                                                                                                                                                                                                                                                                                                                              |   | $ | (209,527 | ) |   | $ | (224,456 | ) |   | $ | (228,033 | ) |   | $ | (256,967 | ) |
| Suspended                losses                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   | 209,527 |   |   |   | 224,456 |   |   |   | 226,461 |   |   |   | 254,430 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity                in Losses of Project Partnerships                                                                                                                                                                                                                                                                                                                                                                                                 |   | $ | - |   |   | $ | - |   |   | $ | (1,572 | ) |   | $ | (2,537 | ) |

----

| NOTE                5 - INVESTMENTS IN PROJECT PARTNERSHIPS                (continued):                                                                                                                                                                                                                                                                                                                                                            |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |
| In                accordance with Gateway's policy of presenting the financial information                of the Project Partnerships on a three month lag, below is the summarized                balance sheets for the Project Partnerships of Series 6 and Total                Series 2                - 6 as of June 30 and the respective summarized statements of operations                for the six months ended June 30 of each year: |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | SERIES                6 |   |   | TOTAL                SERIES 2 - 6 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | 2007 |   |   | 2006 |   |   | 2007 |   |   | 2006 |   |
| SUMMARIZED                BALANCE SHEETS                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| Assets:                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|     Current                assets                                                                                                                                                                                                                                                                                                                                                                                              |   | $ | 4,368,963 |   |   | $ | 4,478,713 |   |   | $ | 14,095,203 |   |   | $ | 15,558,499 |   |
|     Investment                properties, net                                                                                                                                                                                                                                                                                                                                                                                  |   |   | 23,843,052 |   |   |   | 24,696,733 |   |   |   | 76,782,907 |   |   |   | 90,561,209 |   |
|     Other                assets                                                                                                                                                                                                                                                                                                                                                                                                |   |   | 127,345 |   |   |   | 44,228 |   |   |   | 222,708 |   |   |   | 254,019 |   |
|         Total                assets                                                                                                                                                                                                                                                                                                                                                                        |   | $ | 28,339,360 |   |   | $ | 29,219,674 |   |   | $ | 91,100,818 |   |   | $ | 106,373,727 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities                and Partners' Deficit:                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Current                liabilities                                                                                                                                                                                                                                                                                                                                                                                         |   | $ | 626,184 |   |   | $ | 613,117 |   |   | $ | 2,604,484 |   |   | $ | 2,871,959 |   |
|     Long-term                debt                                                                                                                                                                                                                                                                                                                                                                                              |   |   | 33,584,388 |   |   |   | 33,537,501 |   |   |   | 120,072,389 |   |   |   | 134,835,202 |   |
|         Total                liabilities                                                                                                                                                                                                                                                                                                                                                                   |   |   | 34,210,572 |   |   |   | 34,150,618 |   |   |   | 122,676,873 |   |   |   | 137,707,161 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Partners'                deficit                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Limited                Partner                                                                                                                                                                                                                                                                                                                                                                                             |   |   | (5,308,838 | ) |   |   | (4,417,609 | ) |   |   | (31,542,139 | ) |   |   | (31,301,130 | ) |
|     General                Partners                                                                                                                                                                                                                                                                                                                                                                                            |   |   | (562,374 | ) |   |   | (513,335 | ) |   |   | (33,916 | ) |   |   | (32,304 | ) |
|         Total                partners' deficit                                                                                                                                                                                                                                                                                                                                                             |   |   | (5,871,212 | ) |   |   | (4,930,944 | ) |   |   | (31,576,055 | ) |   |   | (31,333,434 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         Total                liabilities and partners' deficit                                                                                                                                                                                                                                                                                                                                             |   | $ | 28,339,360 |   |   | $ | 29,219,674 |   |   | $ | 91,100,818 |   |   | $ | 106,373,727 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| SUMMARIZED                STATEMENTS OF OPERATIONS                                                                                                                                                                                                                                                                                                                                                                                                 |   |
| Rental                and other income                                                                                                                                                                                                                                                                                                                                                                                                             |   | $ | 2,454,106 |   |   | $ | 2,362,528 |   |   | $ | 8,806,020 |   |   | $ | 9,413,456 |   |
| Expenses:                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Operating                expenses                                                                                                                                                                                                                                                                                                                                                                                          |   |   | 1,607,556 |   |   |   | 1,542,217 |   |   |   | 5,917,652 |   |   |   | 6,217,257 |   |
|     Interest                expense                                                                                                                                                                                                                                                                                                                                                                                            |   |   | 356,393 |   |   |   | 371,229 |   |   |   | 1,290,521 |   |   |   | 1,492,064 |   |
|     Depreciation                and amortization                                                                                                                                                                                                                                                                                                                                                                               |   |   | 644,901 |   |   |   | 646,609 |   |   |   | 2,442,281 |   |   |   | 2,687,384 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         Total                expenses                                                                                                                                                                                                                                                                                                                                                                      |   |   | 2,608,850 |   |   |   | 2,560,055 |   |   |   | 9,650,454 |   |   |   | 10,396,705 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|             Net                loss                                                                                                                                                                                                                                                                                                                                                    |   | $ | (154,744 | ) |   | $ | (197,527 | ) |   | $ | (844,434 | ) |   | $ | (983,249 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                partners' share of net loss                                                                                                                                                                                                                                                                                                                                                                                                   |   | $ | (2,552 | ) |   | $ | (2,436 | ) |   | $ | (9,500 | ) |   | $ | (11,807 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gateway's                share of net loss                                                                                                                                                                                                                                                                                                                                                                                                         |   | $ | (152,192 | ) |   | $ | (195,091 | ) |   | $ | (834,934 | ) |   | $ | (971,442 | ) |
| Suspended                losses                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | 153,148 |   |   |   | 207,832 |   |   |   | 834,318 |   |   |   | 981,646 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity                in Income (Losses) of Project Partnerships                                                                                                                                                                                                                                                                                                                                                                                   |   | $ | 956 |   |   | $ | 12,741 |   |   | $ | (616 | ) |   | $ | 10,204 |   |

----

|   | Rolling                Oaks II Apartments | $   42,775 |
|--------|-------------------------------------------|---------------------------|
|   | Brookhaven                Apartments      | 148,278                   |
|   |                                      |                      |
|   | Total                                     | $                191,053  |

----

----

----

----

----

----

----

|   | Rolling                Oaks II Apartments | $   42,775 |
|--------|-------------------------------------------|---------------------------|
|   | Brookhaven                Apartments      | 148,278                   |
|   |                                      |                      |
|   | Total                                     | $                191,053  |

----

----

----

**Status      Update on Unsold Project Partnerships:**

| Lakeshore                Apartments | Inverness                Club |
|-------------------------------------|-------------------------------|

| Pemberton                Village II Apartments | Magic                Circle II Apartments |
|------------------------------------------------|-------------------------------------------|

----

| Chestnut                Apartments | Ashland                Estates |
|------------------------------------|--------------------------------|

| Spruce                Apartments | Spring                Wood Apartments |
|----------------------------------|---------------------------------------|

| River                Bend Apartments | Norton                Green Apartments |
|--------------------------------------|----------------------------------------|

----

| Country                Place Apartments | Pebble                Creek Apartments |
|-----------------------------------------|----------------------------------------|

| Logansport                Seniors Apartments | Sunchase                II Apartments |
|----------------------------------------------|---------------------------------------|
| Mill                Run Apartments           |

| Oaks                Apartments            | Tarpon                Heights Apartments           |
|-------------------------------------------|----------------------------------------------------|
| Sonora                Seniors Apartments  | Fredericksburg                Seniors Apartments   |
| Ozona                Seniors Apartments   | Brackettville                Seniors Apartments    |
| Timpson                Seniors Apartments | Village                Apartments of St. Joseph II |

| Village                Apartments of Effingham | Village                Apartments of Seymour II |
|------------------------------------------------|-------------------------------------------------|

----

----

|   |  GATEWAY              TAX CREDIT FUND II, LTD.     |
|--------|---------------------------------------------------------|
|   | (A                Florida Limited Partnership)          |
|   | By:                Raymond James Tax Credit Funds, Inc. |
|   | (the                Managing General Partner)           |

| Date:                November 14, 2007 | By:/s/                Ronald M. Diner |
|----------------------------------------|---------------------------------------|
|                                   | Ronald                M. Diner        |
|                                   | President,                Director    |

| Date:                November 14, 2007 | By:/s/                Jonathan Oorlog                                    |
|----------------------------------------|--------------------------------------------------------------------------|
|                                   | Jonathan                Oorlog                                           |
|                                   | Vice                President and Chief Financial                Officer |

| Date:                November 14, 2007 | By:/s/                Sandra C. Humphreys |
|----------------------------------------|-------------------------------------------|
|                                   | Sandra                C. Humphreys        |
|                                   | Secretary                and Treasurer    |

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