----

|   | [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 |
|--------|---------------------------------------------------------------------------------------------------------|

| Florida                                                        |   | 65-0142704                                                            |
|----------------------------------------------------------------|--------|-----------------------------------------------------------------------|
| (State or other jurisdiction of incorporation or organization) |   | (IRS Employer No.)                                                    |
|                                                           |   |                                                                  |
| 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  [  ] |
|--------------------|------------------------------|

| YES  [X] | NO  [  ] |
|--------------------|------------------------------|

| Large accelerated filer [  ] | Accelerated filer [  ] |
|----------------------------------------|----------------------------------|
| Non-accelerated filer [  ]   | Smaller Reporting Company [X]    |

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

----

----

| GATEWAY TAX CREDIT FUND II LTD.                                                         |
|-----------------------------------------------------------------------------------------|
| (A Florida Limited Partnership)                                                         |
|                                                                                    |
| BALANCE SHEETS                                                                          |
| (Unaudited)                                                                             |
|                                                                                    |
|                                                                                    | SERIES 2 |   | SERIES 3 |   | SERIES 4 |
|                                                                                    | June 30, |   | March 31, |   | June 30, |   | March 31, |   | June 30, |   | March 31, |
|                                                                                    | 2010 |   | 2010 |   | 2010 |   | 2010 |   | 2010 |   | 2010 |
| ASSETS                                                                                  |   |   |   |   |   |   |   |   |   |   |   |
| Current Assets:                                                                         |   |   |   |   |   |   |   |   |   |   |   |
|   Cash and Cash Equivalents                                                   |  $    437,777  |   |  $   451,096  |   |  $     107,306  |   |  $    112,146  |   |  $     161,995  |   |  $     175,323  |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |
|         Total Assets                            |  $    437,777  |   |  $   451,096  |   |  $     107,306  |   |  $    112,146  |   |  $     161,995  |   |  $     175,323  |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |
| LIABILITIES AND PARTNERS' DEFICIT                                                       |   |   |   |   |   |   |   |   |   |   |   |
| Current Liabilities:                                                                    |   |   |   |   |   |   |   |   |   |   |   |
|   Payable to General Partners                                                 |  $        4,939  |   |  $       7,689  |   |  $       27,540  |   |  $      17,558  |   |  $         4,479  |   |  $         7,778  |
|   Distribution Payable                                                        |        347,753  |   |           347,753  |   |             3,249  |   |            3,249  |   |           3,492  |   |                3,492  |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |
|     Total Current Liabilities                                       |        352,692  |   |       355,442  |   |           30,789  |   |          20,807  |   |           7,971  |   |         11,270  |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |
| Long-Term Liabilities:                                                                  |   |   |   |   |   |   |   |   |   |   |   |
|   Payable to General Partners                                                 |        862,595  |   |       855,054  |   |         723,493  |   |        714,133  |   |       892,231  |   |       886,846  |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |
| 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 June 30, 2010 and March 31, 2010                | (920,322) |   | (902,393) |   | (646,244) |   | (622,304) |   | (742,811) |   | (727,551) |
|   General Partners                                                            | 142,812  |   | 142,993  |   | (732) |   |             (490) |   | 4,604  |   |           4,758  |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |
|     Total Partners' Deficit                                         | (777,510) |   | (759,400) |   | (646,976) |   | (622,794) |   | (738,207) |   | (722,793) |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |
|         Total Liabilities and Partners' Deficit |  $    437,777  |   |  $   451,096  |   |  $     107,306  |   |  $    112,146  |   |  $     161,995  |   |  $     175,323  |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |
| See accompanying notes to financial statements.                                         |
|                                                                                    |

----

| GATEWAY TAX CREDIT FUND II LTD.                                                         |
|-----------------------------------------------------------------------------------------|
| (A Florida Limited Partnership)                                                         |
|                                                                                    |
| BALANCE SHEETS                                                                          |
| (Unaudited)                                                                             |
|                                                                                    |
|                                                                                    | SERIES 5 |   | SERIES 6 |   | TOTAL SERIES 2 - 6 |
|                                                                                    | June 30, |   | March 31, |   | June 30, |   | March 31, |   | June 30, |   | March 31, |
|                                                                                    | 2010 |   | 2010 |   | 2010 |   | 2010 |   | 2010 |   | 2010 |
| ASSETS                                                                                  |   |   |   |   |   |   |   |   |   |   |   |
| Current Assets:                                                                         |   |   |   |   |   |   |   |   |   |   |   |
|   Cash and Cash Equivalents                                                   |  $   651,617  |   |  $   479,047  |   |  $     188,167  |   |  $   229,672  |   |  $  1,546,862  |   |  $  1,447,284  |
|   Receivable - Other                                                          |                   -  |   |       152,032  |   |           64,000  |   |                   -  |   |           64,000  |   |       152,032  |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |
|         Total Assets                            |  $   651,617  |   |  $   631,079  |   |  $     252,167  |   |  $   229,672  |   |  $  1,610,862  |   |  $  1,599,316  |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |
| LIABILITIES AND PARTNERS' DEFICIT                                                       |   |   |   |   |   |   |   |   |   |   |   |
| Current Liabilities:                                                                    |   |   |   |   |   |   |   |   |   |   |   |
|   Payable to General Partners                                                 |  $       7,337  |   |  $     53,803  |   |  $         8,911  |   |  $     31,445  |   |  $       53,206  |   |  $     118,273  |
|   Distribution Payable                                                        |       619,833  |   |       403,226  |   |             1,455  |   | 1,455  |   | 975,782  |   | 759,175  |
|   Deferred Gain on Sale of Project Partnerships                               |                   -  |   |       151,377  |   |           63,038  |   |                   -  |   |           63,038  |   |         151,377  |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |
|     Total Current Liabilities                                       | 627,170  |   | 608,406  |   | 73,404  |   | 32,900  |   | 1,092,026  |   | 1,028,825  |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |
| Long-Term Liabilities:                                                                  |   |   |   |   |   |   |   |   |   |   |   |
|   Payable to General Partners                                                 | 920,149  |   | 906,074  |   | 1,293,344  |   | 1,273,112  |   | 4,691,812  |   | 4,635,219  |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |
| 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 June 30, 2010 and March 31, 2010                | (901,729) |   | (887,385) |   | (1,114,215) |   | (1,076,356) |   | (4,325,321) |   | (4,215,989) |
|   General Partners                                                            | 6,027  |   | 3,984  |   | (366) |   |                16  |   | 152,345  |   | 151,261  |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |
|     Total Partners' Deficit                                         | (895,702) |   | (883,401) |   | (1,114,581) |   | (1,076,340) |   | (4,172,976) |   | (4,064,728) |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |
|         Total Liabilities and Partners' Deficit |  $   651,617  |   |  $   631,079  |   |  $     252,167  |   |  $   229,672  |   |  $  1,610,862  |   |  $  1,599,316  |

----

| GATEWAY TAX CREDIT FUND II LTD.                    |
|----------------------------------------------------|
| (A Florida Limited Partnership)                    |
|                                               |
| STATEMENTS OF OPERATIONS                           |
| FOR THE THREE MONTHS ENDED JUNE 30, 2010 AND 2009  |
| (Unaudited)                                        |
|                                               |
|                                               | SERIES 2 |   | SERIES 3 |   | SERIES 4 |
|                                               | 2010 |   | 2009 |   | 2010 |   | 2009 |   | 2010 |   | 2009 |
| Revenues:                                          |   |   |   |   |   |   |   |   |   |   |   |
|   Distribution Income                    |  $       1,232  |   |  $     2,737  |   |  $                -  |   |  $     7,513  |   |  $             -  |   |  $     1,737  |
|     Total Revenues             | 1,232  |   | 2,737  |   |               -  |   | 7,513  |   |                 -  |   | 1,737  |
|                                               |   |   |   |   |   |   |   |   |   |   |   |
| Expenses:                                          |   |   |   |   |   |   |   |   |   |   |   |
|   Asset Management Fee - General Partner | 7,540  |   | 11,496  |   | 9,360  |   | 9,433  |   | 5,384  |   | 6,008  |
|   General and Administrative:            |   |   |   |   |   |   |   |   |   |   |   |
|     General Partner            | 9,813  |   | 12,697  |   | 12,266  |   | 11,203  |   | 7,360  |   | 7,469  |
|     Other                      | 2,000  |   | 2,402  |   | 2,559  |   | 2,657  |   | 2,674  |   | 3,288  |
|                                               |   |   |   |   |   |   |   |   |   |   |   |
|     Total Expenses             | 19,353  |   | 26,595  |   | 24,185  |   | 23,293  |   | 15,418  |   | 16,765  |
|                                               |   |   |   |   |   |   |   |   |   |   |   |
| Loss Before Gain on Sale of Project Partnerships   |   |   |   |   |   |   |   |   |   |   |   |
|   and Other Income                       | (18,121) |   | (23,858) |   | (24,185) |   | (15,780) |   | (15,418) |   | (15,028) |
| Interest Income                                    | 11  |   | 5  |   | 3  |   | 4  |   | 4  |   | 9  |
|                                               |   |   |   |   |   |   |   |   |   |   |   |
| Net Income (Loss)                                  |  $    (18,110) |   |  $  (23,853) |   |  $     (24,182) |   |  $  (15,776) |   |  $  (15,414) |   |  $  (15,019) |
|                                               |   |   |   |   |   |   |   |   |   |   |   |
| Allocation of Net Income (Loss):                   |   |   |   |   |   |   |   |   |   |   |   |
|   Assignees                              |  $    (17,929) |   |  $  (23,614) |   |  $     (23,940) |   |  $  (15,618) |   |  $  (15,260) |   |  $  (14,869) |
|   General Partners                       | (181) |   | (239) |   | (242) |   | (158) |   | (154) |   | (150) |
|                                               |   |   |   |   |   |   |   |   |   |   |   |
|                                               |  $    (18,110) |   |  $  (23,853) |   |  $     (24,182) |   |  $  (15,776) |   |  $  (15,414) |   |  $  (15,019) |
| Net Income (Loss) Per Beneficial                   |   |   |   |   |   |   |   |   |   |   |   |
|   Assignee Certificate                   |  $        (2.92) |   |  $      (3.85) |   |  $         (4.39) |   |  $      (2.86) |   |  $      (2.21) |   |  $      (2.15) |
| Number of Beneficial Assignee                      |   |   |   |   |   |   |   |   |   |   |   |
|   Certificates Outstanding               | 6,136  |   | 6,136  |   | 5,456  |   | 5,456  |   | 6,915  |   | 6,915  |

----

| GATEWAY TAX CREDIT FUND II LTD.                    |
|----------------------------------------------------|
| (A Florida Limited Partnership)                    |
|                                               |
| STATEMENTS OF OPERATIONS                           |
| FOR THE THREE MONTHS ENDED JUNE 30, 2010 AND 2009  |
| (Unaudited)                                        |
|                                               |
|                                               | SERIES 5 |   | SERIES 6 |   | TOTAL SERIES 2 - 6 |
|                                               | 2010 |   | 2009 |   | 2010 |   | 2009 |   | 2010 |   | 2009 |
| Revenues:                                          |   |   |   |   |   |   |   |   |   |   |   |
|   Distribution Income                    |  $     3,792  |   |  $      8,084  |   |  $        8,315  |   |  $     7,087  |   |  $   13,339  |   |  $   27,158  |
|     Total Revenues             | 3,792  |   | 8,084  |   | 8,315  |   | 7,087  |   | 13,339  |   | 27,158  |
|                                               |   |   |   |   |   |   |   |   |   |   |   |
| Expenses:                                          |   |   |   |   |   |   |   |   |   |   |   |
|   Asset Management Fee - General Partner | 14,075  |   | 19,204  |   | 20,232  |   | 20,350  |   | 56,591  |   | 66,491  |
|   General and Administrative:            |   |   |   |   |   |   |   |   |   |   |   |
|     General Partner            |                 -  |   | 20,913  |   | 23,715  |   | 21,660  |   | 53,154  |   | 73,942  |
|     Other                      | 2,034  |   | 4,398  |   | 2,615  |   | 4,221  |   | 11,882  |   | 16,966  |
|                                               |   |   |   |   |   |   |   |   |   |   |   |
|     Total Expenses             | 16,109  |   | 44,515  |   | 46,562  |   | 46,231  |   | 121,627  |   | 157,399  |
|                                               |   |   |   |   |   |   |   |   |   |   |   |
| Loss Before Gain on Sale of Project Partnerships   |   |   |   |   |   |   |   |   |   |   |   |
|   and Other Income                       | (12,317) |   | (36,431) |   | (38,247) |   | (39,144) |   | (108,288) |   | (130,241) |
| Gain on Sale of Project Partnerships               |     216,607  |   |                 -  |   |                    -  |   |                 -  |   |     216,607  |   |                 -  |
| Interest Income                                    | 16  |   | 3  |   | 6  |   | 10  |   | 40  |   | 31  |
|                                               |   |   |   |   |   |   |   |   |   |   |   |
| Net Income (Loss)                                  |  $ 204,306  |   |  $  (36,428) |   |  $    (38,241) |   |  $  (39,134) |   |  $ 108,359  |   |  $(130,210) |
|                                               |   |   |   |   |   |   |   |   |   |   |   |
| Allocation of Net Income (Loss):                   |   |   |   |   |   |   |   |   |   |   |   |
|   Assignees                              |  $ 202,263  |   |  $  (36,064) |   |  $    (37,859) |   |  $  (38,743) |   |  $ 107,275  |   |  $(128,908) |
|   General Partners                       | 2,043  |   | (364) |   | (382) |   | (391) |   | 1,084  |   | (1,302) |
|                                               |   |   |   |   |   |   |   |   |   |   |   |
|                                               |  $ 204,306  |   |  $  (36,428) |   |  $    (38,241) |   |  $  (39,134) |   |  $ 108,359  |   |  $(130,210) |
| Net Income (Loss) Per Beneficial                   |   |   |   |   |   |   |   |   |   |   |   |
|   Assignee Certificate                   |  $     23.48  |   |  $      (4.19) |   |  $        (3.75) |   |  $      (3.83) |   |   |   |   |
| Number of Beneficial Assignee                      |   |   |   |   |   |   |   |   |   |   |   |
|   Certificates Outstanding               | 8,616  |   | 8,616  |   | 10,105  |   | 10,105  |   |   |   |   |
|                                               |   |   |   |   |   |   |   |   |   |   |   |
| See accompanying notes to financial statements.    |

----

| GATEWAY TAX CREDITFUND II LTD.                    |
|---------------------------------------------------|
| (A Florida Limited Partnership)                   |
|                                              |
| STATEMENTS OF PARTNERS' EQUITY (DEFICIT)          |
| FOR THE THREE MONTHS ENDED JUNE 30, 2010 AND 2009 |
| (Unaudited)                                       |
|                                              |
|                                              | SERIES 2 |   | SERIES 3 |
|                                              |   |   | General |   |   |   |   |   | General |   |   |
|                                              | Assignees |   | Partners |   | Total |   | Assignees |   | Partners |   | Total |
|                                              |   |   |   |   |   |   |   |   |   |   |   |
| Balance at March 31, 2009                         |  $   (817,096) |   |  $   140,505  |   |  $  (676,591) |   |  $   (539,371) |   |  $          348  |   |  $    (539,023) |
|                                              |   |   |   |   |   |   |   |   |   |   |   |
| Net Income (Loss)                                 | (23,614) |   | (239) |   | (23,853) |   | (15,618) |   | (158) |   | (15,776) |
|                                              |   |   |   |   |   |   |   |   |   |   |   |
| Balance at June 30, 2009                          |  $   (840,710) |   |  $   140,266  |   |  $  (700,444) |   |  $   (554,989) |   |  $          190  |   |  $    (554,799) |
|                                              |   |   |   |   |   |   |   |   |   |   |   |
|                                              |   |   |   |   |   |   |   |   |   |   |   |
| Balance at March 31, 2010                         |  $   (902,393) |   |  $   142,993  |   |  $  (759,400) |   |  $   (622,304) |   |  $         (490) |   |  $    (622,794) |
|                                              |   |   |   |   |   |   |   |   |   |   |   |
| Net Income (Loss)                                 | (17,929) |   | (181) |   | (18,110) |   | (23,940) |   | (242) |   | (24,182) |
|                                              |   |   |   |   |   |   |   |   |   |   |   |
| Balance at June 30, 2010                          |  $   (920,322) |   |  $   142,812  |   |  $  (777,510) |   |  $   (646,244) |   |  $         (732) |   |  $    (646,976) |
|                                              |   |   |   |   |   |   |   |   |   |   |   |
|                                              |   |   |   |   |   |   |   |   |   |   |   |
|                                              |   |   |   |   |   |   |   |   |   |   |   |
| See accompanying notes to financial statements.   |

----

| GATEWAY TAX CREDIT FUND II LTD.                   |
|---------------------------------------------------|
| (A Florida Limited Partnership)                   |
|                                              |
| STATEMENTS OF PARTNERS' EQUITY (DEFICIT)          |
| FOR THE THREE MONTHS ENDED JUNE 30, 2010 AND 2009 |
| (Unaudited)                                       |
|                                              |
|                                              | SERIES 4 |   | SERIES 5 |
|                                              |   |   | General |   |   |   |   |   | General |   |   |
|                                              | Assignees |   | Partners |   | Total |   | Assignees |   | Partners |   | Total |
|                                              |   |   |   |   |   |   |   |   |   |   |   |
| Balance at March 31, 2009                         |  $     (663,078) |   |  $       5,389  |   |  $ (657,689) |   |  $   (742,574) |   |  $          320  |   |  $   (742,254) |
|                                              |   |   |   |   |   |   |   |   |   |   |   |
| Net Income (Loss)                                 | (14,869) |   | (150) |   | (15,019) |   | (36,064) |   | (364) |   | (36,428) |
|                                              |   |   |   |   |   |   |   |   |   |   |   |
| Balance at June 30, 2009                          |  $     (677,947) |   |  $       5,239  |   |  $ (672,708) |   |  $   (778,638) |   |  $           (44) |   |  $   (778,682) |
|                                              |   |   |   |   |   |   |   |   |   |   |   |
|                                              |   |   |   |   |   |   |   |   |   |   |   |
| Balance at March 31, 2010                         |  $     (727,551) |   |  $       4,758  |   |  $ (722,793) |   |  $   (887,385) |   |  $       3,984  |   |  $   (883,401) |
|                                              |   |   |   |   |   |   |   |   |   |   |   |
| Net Income (Loss)                                 | (15,260) |   | (154) |   | (15,414) |   | 202,263  |   | 2,043  |   | 204,306  |
|                                              |   |   |   |   |   |   |   |   |   |   |   |
| Distributions to Assignees                        |                      -  |   |                  -  |   |                  -  |   |        (216,607) |   |                   -  |   |       (216,607) |
|                                              |   |   |   |   |   |   |   |   |   |   |   |
| Balance at June 30, 2010                          |  $     (742,811) |   |  $       4,604  |   |  $ (738,207) |   |  $   (901,729) |   |  $       6,027  |   |  $   (895,702) |
|                                              |   |   |   |   |   |   |   |   |   |   |   |
|                                              |   |   |   |   |   |   |   |   |   |   |   |
|                                              |   |   |   |   |   |   |   |   |   |   |   |
| See accompanying notes to financial statements.   |

----

| GATEWAY TAX CREDIT FUND II LTD.                   |
|---------------------------------------------------|
| (A Florida Limited Partnership)                   |
|                                              |
| STATEMENTS OF PARTNERS' EQUITY (DEFICIT)          |
| FOR THE THREE MONTHS ENDED JUNE 30, 2010 AND 2009 |
| (Unaudited)                                       |
|                                              |
|                                              | SERIES 6 |   | TOTAL SERIES 2 - 6 |
|                                              |   |   | General |   |   |   |   |   | General |   |   |
|                                              | Assignees |   | Partners |   | Total |   | Assignees |   | Partners |   | Total |
|                                              |   |   |   |   |   |   |   |   |   |   |   |
| Balance at March 31, 2009                         |  $    (912,084) |   |  $       1,223  |   |  $    (910,861) |   |  $ (3,674,203) |   |  $   147,785  |   |  $ (3,526,418) |
|                                              |   |   |   |   |   |   |   |   |   |   |   |
| Net Income (Loss)                                 | (38,743) |   | (391) |   | (39,134) |   | (128,908) |   | (1,302) |   | (130,210) |
|                                              |   |   |   |   |   |   |   |   |   |   |   |
| Balance at June 30, 2009                          |  $    (950,827) |   |  $          832  |   |  $    (949,995) |   |  $ (3,803,111) |   |  $   146,483  |   |  $ (3,656,628) |
|                                              |   |   |   |   |   |   |   |   |   |   |   |
|                                              |   |   |   |   |   |   |   |   |   |   |   |
| Balance at March 31, 2010                         |  $ (1,076,356) |   |  $            16  |   | $ (1,076,340) |   |  $ (4,215,989) |   |  $   151,261  |   |  $ (4,064,728) |
|                                              |   |   |   |   |   |   |   |   |   |   |   |
| Net Income (Loss)                                 | (37,859) |   | (382) |   | (38,241) |   | 107,275  |   | 1,084  |   | 108,359  |
|                                              |   |   |   |   |   |   |   |   |   |   |   |
| Distributions to Assignees                        |                     -  |   |                   -  |   |                   -  |   | (216,607) |   |                   -  |   |        (216,607) |
|                                              |   |   |   |   |   |   |   |   |   |   |   |
| Balance at June 30, 2010                          |  $ (1,114,215) |   |  $         (366) |   | $  (1,114,581) |   |  $ (4,325,321) |   |  $   152,345  |   |  $ (4,172,976) |
|                                              |   |   |   |   |   |   |   |   |   |   |   |
|                                              |   |   |   |   |   |   |   |   |   |   |   |
|                                              |   |   |   |   |   |   |   |   |   |   |   |
| See accompanying notes to financial statements.   |

----

| GATEWAY TAX CREDIT FUND II LTD.                                                                                           |
|---------------------------------------------------------------------------------------------------------------------------|
| (A Florida Limited Partnership)                                                                                           |
|                                                                                                                      |   |   |   |   |   |   |   |
| STATEMENTS OF CASH FLOWS                                                                                                  |
| FOR THE THREE MONTHS ENDED JUNE 30, 2010 AND 2009                                                                         |
| (Unaudited)                                                                                                               |
|                                                                                                                      |   |   |   |   |   |   |   |
|                                                                                                                      | SERIES 2 |   | SERIES 3 |
|                                                                                                                      | 2010 |   | 2009 |   | 2010 |   | 2009 |
| Cash Flows from Operating Activities:                                                                                     |   |   |   |   |   |   |   |
|     Net Income (Loss)                                                                                 |  $       (18,110) |   |  $     (23,853) |   |  $       (24,182) |   |  $          (15,776) |
|     Adjustments to Reconcile Net Income (Loss)                                                        |   |   |   |   |   |   |   |
|         to Net Cash Used in Operating Activities:                                 |   |   |   |   |   |   |   |
|           Distribution Income                                           | (1,232) |   | (2,737) |   |                      -  |   | (7,513) |
|       Changes in Operating Assets and Liabilities:                                          |   |   |   |   |   |   |   |
|           Increase in Payable to General Partners                       | 4,791  |   | 8,270  |   | 19,342  |   | 6,018  |
|               Net Cash Used in Operating Activities | (14,551) |   | (18,320) |   | (4,840) |   | (17,271) |
|                                                                                                                      |   |   |   |   |   |   |   |
| Cash Flows from Investing Activities:                                                                                     |   |   |   |   |   |   |   |
|     Distributions Received from Project Partnerships                                                  | 1,232  |   | 2,737  |   |                      -  |   | 7,513  |
|             Net Cash Provided by Investing Activities         | 1,232  |   | 2,737  |   |                      -  |   | 7,513  |
|                                                                                                                      |   |   |   |   |   |   |   |
| Decrease in Cash and Cash Equivalents                                                                                     | (13,319) |   | (15,583) |   | (4,840) |   | (9,758) |
| Cash and Cash Equivalents at Beginning of Year                                                                            | 451,096  |   | 161,708  |   | 112,146  |   | 148,892  |
|                                                                                                                      |   |   |   |   |   |   |   |
| Cash and Cash Equivalents at End of Period                                                                                |  $       437,777  |   |  $    146,125  |   |  $      107,306  |   |  $          139,134  |
|                                                                                                                      |   |   |   |   |   |   |   |
|                                                                                                                      |   |   |   |   |   |   |   |
|                                                                                                                      |   |   |   |   |   |   |   |
| See accompanying notes to financial statements.                                                                           |

----

| GATEWAY TAX CREDIT FUND II LTD.                                                                                           |
|---------------------------------------------------------------------------------------------------------------------------|
| (A Florida Limited Partnership)                                                                                           |
|                                                                                                                      |   |   |   |   |   |   |   |
| STATEMENTS OF CASH FLOWS                                                                                                  |
| FOR THE THREE MONTHS ENDED JUNE 30, 2010 AND 2009                                                                         |
| (Unaudited)                                                                                                               |
|                                                                                                                      |   |   |   |   |   |   |   |
|                                                                                                                      | SERIES 4 |   | SERIES 5 |
|                                                                                                                      | 2010 |   | 2009 |   | 2010 |   | 2009 |
| Cash Flows from Operating Activities:                                                                                     |   |   |   |   |   |   |   |
|     Net Income (Loss)                                                                                 |  $       (15,414) |   |  $     (15,019) |   |  $      204,306  |   |  $          (36,428) |
|     Adjustments to Reconcile Net Income (Loss)                                                        |   |   |   |   |   |   |   |
|         to Net Cash Used in Operating Activities:                                 |   |   |   |   |   |   |   |
|           Gain on Sale of Project Partnerships                          |                       -  |   |                    -  |   |         (216,607) |   |                         -  |
|           Distribution Income                                           |                       -  |   | (1,737) |   | (3,792) |   | (8,084) |
|     Changes in Operating Assets and Liabilities:                                                      |   |   |   |   |   |   |   |
|           Increase in Payable to General Partners                       | 2,086  |   | 2,005  |   | (32,391) |   | 15,239  |
|               Net Cash Used in Operating Activities | (13,328) |   | (14,751) |   | (48,484) |   | (29,273) |
|                                                                                                                      |   |   |   |   |   |   |   |
| Cash Flows from Investing Activities:                                                                                     |   |   |   |   |   |   |   |
|     Distributions Received from Project Partnerships                                                  |                       -  |   | 1,737  |   | 3,792  |   | 8,084  |
|     Net Proceeds from Sale of Project Partnerships                                                    |                       -  |   |                    -  |   |          217,262  |   |                         -  |
|             Net Cash Provided by Investing Activities         |                       -  |   | 1,737  |   | 221,054  |   | 8,084  |
|                                                                                                                      |   |   |   |   |   |   |   |
| Cash Flows from Financing Activities:                                                                                     |   |   |   |   |   |   |   |
|     Distributions Paid to Assignees                                                                   |                       -  |   |       (191,200) |   |                      -  |   |                         -  |
|             Net Cash Used in Financing Activities             |                       -  |   |       (191,200) |   |                      -  |   |                   -  |
|                                                                                                                      |   |   |   |   |   |   |   |
| Increase (Decrease) in Cash and Cash Equivalents                                                                          | (13,328) |   | (204,214) |   | 172,570  |   | (21,189) |
| Cash and Cash Equivalents at Beginning of Year                                                                            | 175,323  |   | 408,013  |   | 479,047  |   | 107,240  |
|                                                                                                                      |   |   |   |   |   |   |   |
| Cash and Cash Equivalents at End of Period                                                                                |  $       161,995  |   |  $    203,799  |   |  $      651,617  |   |  $            86,051  |
|                                                                                                                      |   |   |   |   |   |   |   |
| Supplemental disclosure of non-cash activities:                                                                           |   |   |   |   |   |   |   |
|     Increase in Distribution Payable                                                                  |  $                   -  |   |  $                -  |   |  $      216,607  |   |  $                     -  |
|     Distribution to Assignees                                                                         |                       -  |   |                    -  |   |         (216,607) |   |                         -  |
|                                                                                                                      |  $                   -  |   |  $                -  |   |  $                  -  |   |  $                     -  |
|                                                                                                                      |   |   |   |   |   |   |   |
|                                                                                                                      |   |   |   |   |   |   |   |
|                                                                                                                      |   |   |   |   |   |   |   |
| See accompanying notes to financial statements.                                                                           |

----

| GATEWAY TAX CREDIT FUND II LTD.                                                                                           |
|---------------------------------------------------------------------------------------------------------------------------|
| (A Florida Limited Partnership)                                                                                           |
|                                                                                                                      |
| STATEMENTS OF CASH FLOWS                                                                                                  |
| FOR THE THREE MONTHS ENDED JUNE 30, 2010 AND 2009                                                                         |
| (Unaudited)                                                                                                               |
|                                                                                                                      |
|                                                                                                                      | SERIES 6 |   | TOTAL SERIES 2 - 6 |
|                                                                                                                      | 2010 |   | 2009 |   | 2010 |   | 2009 |
| Cash Flows from Operating Activities:                                                                                     |   |   |   |   |   |   |   |
|     Net Income (Loss)                                                                                 |  $       (38,241) |   |  $     (39,134) |   |  $        108,359  |   |  $      (130,210) |
|     Adjustments to Reconcile Net Income (Loss)                                                        |   |   |   |   |   |   |   |
|         to Net Cash Used in Operating Activities:                                 |   |   |   |   |   |   |   |
|           Gain on Sale of Project Partnerships                          |                      -  |   |                    -  |   |          (216,607) |   |                       -  |
|           Distribution Income                                           | (8,315) |   | (7,087) |   | (13,339) |   | (27,158) |
|     Changes in Operating Assets and Liabilities:                                                      |   |   |   |   |   |   |   |
|           Decrease in Interest Receivable                               |                       -  |   |                    -  |   |                       -  |   |                       -  |
|           Increase in Payable to General Partners                       | (3,264) |   | 15,585  |   | (9,436) |   | 47,117  |
|               Net Cash Used in Operating Activities | (49,820) |   | (30,636) |   | (131,023) |   | (110,251) |
|                                                                                                                      |   |   |   |   |   |   |   |
| Cash Flows from Investing Activities:                                                                                     |   |   |   |   |   |   |   |
|     Distributions Received from Project Partnerships                                                  | 8,315  |   | 7,087  |   | 13,339  |   | 27,158  |
|     Net Proceeds from Sale of Project Partnerships                                                    |                       -  |   |                    -  |   |            217,262  |   |                       -  |
|             Net Cash Provided by Investing Activities         | 8,315  |   | 7,087  |   | 230,601  |   | 27,158  |
|                                                                                                                      |   |   |   |   |   |   |   |
| Cash Flows from Financing Activities:                                                                                     |   |   |   |   |   |   |   |
|     Distributions Paid to Assignees                                                                   |                       -  |   |       (131,062) |   |                       -  |   |          (322,262) |
|             Net Cash Used in Financing Activities             |                       -  |   |       (131,062) |   |                       -  |   |          (322,262) |
|                                                                                                                      |   |   |   |   |   |   |   |
| Increase (Decrease) in Cash and Cash Equivalents                                                                          | (41,505) |   | (154,611) |   | 99,578  |   | (405,355) |
| Cash and Cash Equivalents at Beginning of Year                                                                            | 229,672  |   | 427,375  |   | 1,447,284  |   | 1,253,228  |
|                                                                                                                      |   |   |   |   |   |   |   |
| Cash and Cash Equivalents at End of Period                                                                                |  $       188,167  |   |  $    272,764  |   |  $     1,546,862  |   |  $        847,873  |
|                                                                                                                      |   |   |   |   |   |   |   |
| Supplemental disclosure of non-cash activities:                                                                           |   |   |   |   |   |   |   |
|     Increase (Decrease) in Distribution Payable                                                       |  $                   -  |   |  $          (545) |   |  $        216,607  |   |  $             (545) |
|     Increase in Payable to General Partners                                                           |                       -  |   |               545  |   |                       -  |   |                   545  |
|     Distribution to Assignees                                                                         |                       -  |   |                    -  |   |          (216,607) |   |                       -  |
|     Increase in Receivable - Other                                                                    |              64,000  |   |                    -  |   |              64,000  |   |                       -  |
|     Increase in Deferred Gain on Sale of Project Partnerships                                         |             (63,037) |   |                    -  |   |            (63,037) |   |                       -  |
|     Decrease in Payable to General Partners                                                           |                  (963) |   |                    -  |   |                 (963) |   |                       -  |
|                                                                                                                      |  $                   -  |   |  $                -  |   |  $                   -  |   |  $                   -  |
|                                                                                                                      |   |   |   |   |   |   |   |
|                                                                                                                      |   |   |   |   |   |   |   |
|                                                                                                                      |   |   |   |   |   |   |   |
| 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, |
|----------------|-------------------------------------------------------------------------------------------------------------|

| 3)   | Acquisition expenses including legal fees, travel and other miscellaneous costs relating to acquiring properties. |
|----------------|-------------------------------------------------------------------------------------------------------------------|

----

| 1)   | Increased for equity in income or decreased for equity in loss of the Project Partnerships, |
|----------------|---------------------------------------------------------------------------------------------|

| 2)   | Decreased for cash distributions received from the Project Partnerships, |
|----------------|--------------------------------------------------------------------------|

| 3)   | Decreased for the amortization of the acquisition fees and expenses, |
|----------------|----------------------------------------------------------------------|

| 4)   | Decreased, where appropriate, for impairment. |
|----------------|-----------------------------------------------|

----

----

|     | 2010                                       |   | 2009                            |
|----------|--------------------------------------------|--------|---------------------------------|
| Series 2 | $      7,540 |   | $    11,496 |
| Series 3 | 9,360                                      |   | 9,433                           |
| Series 4 | 5,384                                      |   | 6,008                           |
| Series 5 | 14,075                                     |   | 19,204                          |
| Series 6 | 20,232                                     |   | 20,350                          |
| Total    | $    56,591            |   | $    66,491 |

|     | 2010                                       |   | 2009                            |
|----------|--------------------------------------------|--------|---------------------------------|
| Series 2 | $      9,813 |   | $    12,697 |
| Series 3 | 12,266                                     |   | 11,203                          |
| Series 4 | 7,360                                      |   | 7,469                           |
| Series 5 | -                                          |   | 20,913                          |
| Series 6 | 23,715                                     |   | 21,660                          |
| Total    | $    53,154            |   | $    73,942 |

----

| NOTE 4 - INVESTMENTS IN PROJECT PARTNERSHIPS:                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |
|      As of June 30, 2010, Gateway had acquired a 99% interest in the profits, losses, and Tax Credits as a limited partner in Project Partnerships (Series 2 - 12, Series 3 - 15, and Series 4 - 9) 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 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | June 30, |   | March 31, |   | June 30, |   | March 31, |   | June 30, |   | March 31, |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 2010 |   | 2010 |   | 2010 |   | 2010 |   | 2010 |   | 2010 |
| Capital Contributions to Project Partnerships                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |
| and purchase price paid for limited partner                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |
| interests in Project Partnerships                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  $    2,073,022  |   |  $  2,073,022  |   |  $  2,494,974  |   |  $  2,494,974  |   |  $   1,402,420  |   |  $  1,402,420  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |
| Cumulative equity in losses of Project                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Partnerships (1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | (2,162,502) |   | (2,162,502) |   | (2,675,808) |   | (2,675,808) |   | (1,479,274) |   | (1,479,274) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |
| Cumulative distributions received from                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Project Partnerships                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | (34,090) |   | (34,090) |   | (93,673) |   | (93,673) |   | (42,900) |   | (42,900) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |
| Investment in Project Partnerships before                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |
| Adjustment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | (123,570) |   | (123,570) |   | (274,507) |   | (274,507) |   | (119,754) |   | (119,754) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |
| Excess of investment cost over the underlying                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |
| assets acquired:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |
|   Acquisition fees and expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 161,803  |   | 161,803  |   | 318,739  |   | 318,739  |   | 147,412  |   | 147,412  |
|   Accumulated amortization of acquisition                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |
|   fees and expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | (38,233) |   | (38,233) |   | (44,232) |   | (44,232) |   | (27,658) |   | (27,658) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |
| 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 $3,449,351 in Series 2, $6,356,920 in Series 3, and $2,737,746 in Series 4 for the period ended June 30, 2010; and cumulative suspended losses of $3,381,882 in Series 2, $6,220,928 in Series 3, and $2,694,245 in Series 4 for the year ended March 31, 2010 are not included.                                                                                        |

----

| NOTE 4 - INVESTMENTS IN PROJECT PARTNERSHIPS (Continued):                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |
|      As of June, 2010, Gateway had acquired a 99% interest in the profits, losses, and Tax Credits as a limited partner in Project Partnerships (Series 5 - 20 and Series 6 - 28) 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 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | June 30, |   | March 31, |   | June 30, |   | March 31, |   | June 30, |   | March 31, |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | 2010 |   | 2010 |   | 2010 |   | 2010 |   | 2010 |   | 2010 |
| Capital Contributions to Project Partnerships                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |
| and purchase price paid for limited partner                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |
| interests in Project Partnerships                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  $    3,584,842  |   |  $  3,729,876  |   |  $  5,184,059  |   |  $  5,424,795  |   |  $ 14,739,317  |   |  $ 15,125,087  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Cumulative equity in losses of Project                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |
| Partnerships (1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | (3,731,650) |   | (3,886,172) |   | (5,342,371) |   | (5,590,369) |   | (15,391,605) |   | (15,794,125) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Cumulative distributions received from                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |
| Project Partnerships                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | (117,671) |   | (121,537) |   | (179,503) |   | (191,505) |   | (467,837) |   | (483,705) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Investment in Project Partnerships before                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |
| Adjustment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | (264,479) |   | (277,833) |   | (337,815) |   | (357,079) |   | (1,120,125) |   | (1,152,743) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Excess of investment cost over the underlying                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |
| assets acquired:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |
|   Acquisition fees and expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                            | 369,940  |   | 385,181  |   | 531,510  |   | 557,032  |   | 1,529,404  |   | 1,570,167  |
|   Accumulated amortization of acquisition                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |
|   fees and expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | (105,461) |   | (107,348) |   | (170,856) |   | (177,114) |   | (386,440) |   | (394,585) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |
|   Reserve for Impairment of Investment in                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |
|   Project Partnerships                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                       -  |   |                     -  |   |         (22,839) |   |         (22,839) |   |           (22,839) |   |           (22,839) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| 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 $6,149,108 in Series 5 and $5,521,235 in Series 6 for the period ended June 30, 2010; and cumulative suspended losses of $6,427,740 in Series 5 and $5,680,549 in Series 6 for the year ended March 31, 2010 are not included.                                                                                                                        |

----

| NOTE 4 - 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 are the summarized balance sheets for the Project Partnerships of Series 2 and Series 3 as of March 31 and the respective summarized statements of operations for the three months ended March 31 of each year: |
|                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                              | SERIES 2 |   | SERIES 3 |
|                                                                                                                                                                                                                                                                                                                                                                              | 2010 |   | 2009 |   | 2010 |   | 2009 |
| SUMMARIZED BALANCE SHEETS                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |
| Assets:                                                                                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |
|     Current assets                                                                                                                                                                                                                                                                                                                                            |  $        1,065,906  |   |  $      1,633,820  |   |  $        1,646,042  |   |  $        1,723,591  |
|     Investment properties, net                                                                                                                                                                                                                                                                                                                                | 5,469,859  |   | 8,529,407  |   | 4,268,254  |   | 4,826,275  |
|     Other assets                                                                                                                                                                                                                                                                                                                                              | 18,210  |   | 38,150  |   | 53,646  |   | 25,437  |
|         Total assets                                                                                                                                                                                                                                                                                                                      |  $        6,553,975  |   |  $    10,201,377  |   |  $        5,967,942  |   |  $        6,575,303  |
|                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |
| Liabilities and Partners' Deficit:                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |
|     Current liabilities                                                                                                                                                                                                                                                                                                                                       |  $           433,005  |   |  $         559,645  |   |  $           305,695  |   |  $           337,738  |
|     Long-term debt                                                                                                                                                                                                                                                                                                                                            | 10,024,081  |   | 15,302,625  |   | 12,502,110  |   | 12,628,696  |
|         Total liabilities                                                                                                                                                                                                                                                                                                                 | 10,457,086  |   | 15,862,270  |   | 12,807,805  |   | 12,966,434  |
|                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |
| Partners' equity (deficit)                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |
|     Limited Partner                                                                                                                                                                                                                                                                                                                                           | (3,615,386) |   | (5,496,215) |   | (7,019,443) |   | (6,591,057) |
|     General Partners                                                                                                                                                                                                                                                                                                                                          | (287,725) |   | (164,678) |   | 179,580  |   | 199,926  |
|         Total partners' deficit                                                                                                                                                                                                                                                                                                           | (3,903,111) |   | (5,660,893) |   | (6,839,863) |   | (6,391,131) |
|                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |
|         Total liabilities and partners' deficit                                                                                                                                                                                                                                                                                           |  $        6,553,975  |   |  $    10,201,377  |   |  $        5,967,942  |   |  $        6,575,303  |
|                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |
| SUMMARIZED STATEMENTS OF OPERATIONS                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |
| Rental and other income                                                                                                                                                                                                                                                                                                                                                           |  $           406,856  |   |  $         571,845  |   |  $           535,533  |   |  $           531,570  |
| Expenses:                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |
|     Operating expenses                                                                                                                                                                                                                                                                                                                                        | 324,295  |   | 430,324  |   | 452,885  |   | 365,475  |
|     Interest expense                                                                                                                                                                                                                                                                                                                                          | 52,726  |   | 82,079  |   | 57,037  |   | 62,665  |
|     Depreciation and amortization                                                                                                                                                                                                                                                                                                                             | 97,985  |   | 149,432  |   | 162,977  |   | 162,165  |
|                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |
|         Total expenses                                                                                                                                                                                                                                                                                                                    | 475,006  |   | 661,835  |   | 672,899  |   | 590,305  |
|                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |
|             Net loss                                                                                                                                                                                                                                                                                                  |  $           (68,150) |   |  $          (89,990) |   |  $         (137,366) |   |  $           (58,735) |
|                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |
| Other partners' share of net loss                                                                                                                                                                                                                                                                                                                                                 |  $                (681) |   |  $               (900) |   |  $             (1,374) |   |  $                (587) |
|                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |
| Gateway's share of net loss                                                                                                                                                                                                                                                                                                                                                       |  $           (67,469) |   |  $          (89,090) |   |  $         (135,992) |   |  $           (58,148) |
| Suspended losses                                                                                                                                                                                                                                                                                                                                                                  | 67,469  |   | 89,090  |   | 135,992  |   | 58,148  |
|                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |
| Equity in Loss of Project Partnerships                                                                                                                                                                                                                                                                                                                                            |  $                      -  |   |  $                     -  |   |  $                      -  |   |  $                      -  |
|                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |

----

| NOTE 4 - 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 are the summarized balance sheets for the Project Partnerships of Series 4 and Series 5 as of March 31 and the respective summarized statements of operations for the three months ended March 31 of each year: |
|                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                              | SERIES 4 |   | SERIES 5 |
|                                                                                                                                                                                                                                                                                                                                                                              | 2010 |   | 2009 |   | 2010 |   | 2009 |
| SUMMARIZED BALANCE SHEETS                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |
| Assets:                                                                                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |
|     Current assets                                                                                                                                                                                                                                                                                                                                            |  $        1,086,196  |   |  $      1,050,476  |   |  $        2,431,164  |   |  $        3,033,745  |
|     Investment properties, net                                                                                                                                                                                                                                                                                                                                | 3,583,735  |   | 4,226,580  |   | 9,903,582  |   | 14,517,775  |
|     Other assets                                                                                                                                                                                                                                                                                                                                              | 19,133  |   | 18,868  |   | 29,614  |   | 25,608  |
|         Total assets                                                                                                                                                                                                                                                                                                                      |  $        4,689,064  |   |  $      5,295,924  |   |  $      12,364,360  |   |  $      17,577,128  |
|                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |
| Liabilities and Partners' Deficit:                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |
|     Current liabilities                                                                                                                                                                                                                                                                                                                                       |  $           222,299  |   |  $         220,106  |   |  $           580,589  |   |  $           721,172  |
|     Long-term debt                                                                                                                                                                                                                                                                                                                                            | 7,246,783  |   | 8,089,802  |   | 18,858,682  |   | 25,741,575  |
|         Total liabilities                                                                                                                                                                                                                                                                                                                 | 7,469,082  |   | 8,309,908  |   | 19,439,271  |   | 26,462,747  |
|                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |
| Partners' equity (deficit)                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |
|     Limited Partner                                                                                                                                                                                                                                                                                                                                           | (2,903,037) |   | (3,141,206) |   | (6,913,300) |   | (8,594,870) |
|     General Partners                                                                                                                                                                                                                                                                                                                                          | 123,019  |   | 127,222  |   | (161,611) |   | (290,749) |
|         Total partners' deficit                                                                                                                                                                                                                                                                                                           | (2,780,018) |   | (3,013,984) |   | (7,074,911) |   | (8,885,619) |
|                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |
|         Total liabilities and partners' deficit                                                                                                                                                                                                                                                                                           |  $        4,689,064  |   |  $      5,295,924  |   |  $      12,364,360  |   |  $      17,577,128  |
|                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |
| SUMMARIZED STATEMENTS OF OPERATIONS                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |
| Rental and other income                                                                                                                                                                                                                                                                                                                                                           |  $           311,623  |   |  $         329,865  |   |  $           797,779  |   |  $        1,044,737  |
| Expenses:                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |
|     Operating expenses                                                                                                                                                                                                                                                                                                                                        | 236,642  |   | 233,635  |   | 620,734  |   | 749,333  |
|     Interest expense                                                                                                                                                                                                                                                                                                                                          | 39,123  |   | 44,157  |   | 99,497  |   | 136,005  |
|     Depreciation and amortization                                                                                                                                                                                                                                                                                                                             | 80,042  |   | 89,514  |   | 200,811  |   | 266,784  |
|                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |
|         Total expenses                                                                                                                                                                                                                                                                                                                    | 355,807  |   | 367,306  |   | 921,042  |   | 1,152,122  |
|                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |
|             Net loss                                                                                                                                                                                                                                                                                                  |  $           (44,184) |   |  $          (37,441) |   |  $         (123,263) |   |  $         (107,385) |
|                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |
| Other partners' share of net loss                                                                                                                                                                                                                                                                                                                                                 |  $                (683) |   |  $               (799) |   |  $             (1,232) |   |  $             (1,074) |
|                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |
| Gateway's share of net loss                                                                                                                                                                                                                                                                                                                                                       |  $           (43,501) |   |  $          (36,642) |   |  $         (122,031) |   |  $         (106,311) |
| Suspended losses                                                                                                                                                                                                                                                                                                                                                                  | 43,501  |   | 36,642  |   | 122,031  |   | 106,311  |
|                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |
| Equity in Loss of Project Partnerships                                                                                                                                                                                                                                                                                                                                            |  $                      -  |   |  $                     -  |   |  $                      -  |   |  $                      -  |
|                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |

----

| NOTE 4 - 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 are the summarized balance sheets for the Project Partnerships of Series 6 and Total Series 2 - 6 as of March 31 and the respective summarized statements of operations for the three months ended March 31 of each year: |
|                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                        | SERIES 6 |   | TOTAL SERIES 2 - 6 |
|                                                                                                                                                                                                                                                                                                                                                                                        | 2010 |   | 2009 |   | 2010 |   | 2009 |
| SUMMARIZED BALANCE SHEETS                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |
| Assets:                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   |   |   |   |   |
|     Current assets                                                                                                                                                                                                                                                                                                                                                      |  $        3,786,506  |   |  $      3,726,622  |   |  $      10,015,814  |   |  $      11,168,254  |
|     Investment properties, net                                                                                                                                                                                                                                                                                                                                          | 17,015,007  |   | 17,880,020  |   | 40,240,437  |   | 49,980,057  |
|     Other assets                                                                                                                                                                                                                                                                                                                                                        | 28,098  |   | 7,724  |   | 148,701  |   | 115,787  |
|         Total assets                                                                                                                                                                                                                                                                                                                                |  $      20,829,611  |   |  $    21,614,366  |   |  $      50,404,952  |   |  $      61,264,098  |
|                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |
| Liabilities and Partners' Deficit:                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |
|     Current liabilities                                                                                                                                                                                                                                                                                                                                                 |  $           724,062  |   |  $         709,805  |   |  $        2,265,650  |   |  $        2,548,466  |
|     Long-term debt                                                                                                                                                                                                                                                                                                                                                      | 27,019,788  |   | 27,229,395  |   | 75,651,444  |   | 88,992,093  |
|         Total liabilities                                                                                                                                                                                                                                                                                                                           | 27,743,850  |   | 27,939,200  |   | 77,917,094  |   | 91,540,559  |
|                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |
| Partners' deficit                                                                                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |
|     Limited Partner                                                                                                                                                                                                                                                                                                                                                     | (6,299,588) |   | (5,755,151) |   | (26,750,754) |   | (29,578,499) |
|     General Partners                                                                                                                                                                                                                                                                                                                                                    | (614,651) |   | (569,683) |   | (761,388) |   | (697,962) |
|         Total partners' deficit                                                                                                                                                                                                                                                                                                                     | (6,914,239) |   | (6,324,834) |   | (27,512,142) |   | (30,276,461) |
|                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |
|         Total liabilities and partners' deficit                                                                                                                                                                                                                                                                                                     |  $      20,829,611  |   |  $    21,614,366  |   |  $      50,404,952  |   |  $      61,264,098  |
|                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |
| SUMMARIZED STATEMENTS OF OPERATIONS                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |
| Rental and other income                                                                                                                                                                                                                                                                                                                                                                     |  $        1,077,254  |   |  $      1,024,852  |   |  $        3,129,045  |   |  $        3,502,869  |
| Expenses:                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |
|     Operating expenses                                                                                                                                                                                                                                                                                                                                                  | 771,511  |   | 791,927  |   | 2,406,067  |   | 2,570,694  |
|     Interest expense                                                                                                                                                                                                                                                                                                                                                    | 132,234  |   | 135,068  |   | 380,617  |   | 459,974  |
|     Depreciation and amortization                                                                                                                                                                                                                                                                                                                                       | 266,497  |   | 269,344  |   | 808,312  |   | 937,239  |
|                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |
|         Total expenses                                                                                                                                                                                                                                                                                                                              | 1,170,242  |   | 1,196,339  |   | 3,594,996  |   | 3,967,907  |
|                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |
|             Net loss                                                                                                                                                                                                                                                                                                            |  $           (92,988) |   |  $        (171,487) |   |  $         (465,951) |   |  $         (465,038) |
|                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |
| Other partners' share of net loss                                                                                                                                                                                                                                                                                                                                                           |  $             (1,261) |   |  $            (2,089) |   |  $             (5,231) |   |  $             (5,449) |
|                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |
| Gateway's share of net loss                                                                                                                                                                                                                                                                                                                                                                 |  $           (91,727) |   |  $        (169,398) |   |  $         (460,720) |   |  $         (459,589) |
| Suspended losses                                                                                                                                                                                                                                                                                                                                                                            | 91,727  |   | 169,398  |   | 460,720  |   | 459,589  |
|                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |
| Equity in Loss of Project Partnerships                                                                                                                                                                                                                                                                                                                                                      |  $                      -  |   |  $                     -  |   |  $                      -  |   |  $                      -  |
|                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |

----

| Transaction  |                |                                  | Net Proceeds                                                | Gain (Loss)                           |
|--------------|---------------------|---------------------------------------|-------------------------------------------------------------|---------------------------------------|
| Month / Year | Project Partnership | Net Proceeds                          | Per BAC                                                     | on Disposal                           |
| April 2010   | Alma Properties     | $    65,230  | $        7.54  | $    65,230  |
|         |                |                                  |                                                        | $    65,230  |

| Transaction  |                |                            | Net Proceeds                                                | Gain (Loss)                                                          | Deferred Gain                   |
|--------------|---------------------|---------------------------------|-------------------------------------------------------------|----------------------------------------------------------------------|---------------------------------|
| Month / Year | Project Partnership | Net Proceeds                    | Per BAC                                                     | on Disposal                                                          | on Disposal                     |
| April 2010   | Logan Place L.P.    | $    63,038 | $         6.24 | $           - | $    63,038 |
|         |                |                            |                                                        | $           - | $   63,038       |

| Transaction   |                                |                      | Net Proceeds             | Gain (Loss)                           |
|---------------|-------------------------------------|---------------------------|--------------------------|---------------------------------------|
| Month / Year  | Project Partnership                 | Net Proceeds              | Per BAC                  | on Disposal                           |
| December 2009 | Charleston Properties               | $  87,503  | $  14.26  | $    87,503  |
| December 2009 | Pocola Properties                   | 98,566               | 16.06               | 98,566                           |
| December 2009 | Sallisaw Properties II              | 128,995              | 21.02               | 128,995                          |
| October 2009  | Sylacauga Heritage Apartments, Ltd. | -                    | -                   | -                                |
| August 2009   | Lewiston Limited Partnership        | 16,568               | 2.70                | 16,568                           |
|          |                                |                      |                     | $  331,632             |

----

| Transaction  |                                |                                                                       | Net Proceeds                                                   | Gain (Loss)                                                          |
|--------------|-------------------------------------|----------------------------------------------------------------------------|----------------------------------------------------------------|----------------------------------------------------------------------|
| Month / Year | Project Partnership                 | Net Proceeds                                                               | Per BAC                                                        | on Disposal                                                          |
| October 2009 | Village Apartments of St. Joseph II | $           -  | $         -  | $          -  |
|         | Other, net (see below)              | -                                                                     | -                                                         | 2,000                                                           |
|         |                                |                                                                       |                                                           | $  2,000                                              |

| Transaction   |                                  |                       | Net Proceeds             | Gain (Loss)                                                                            | Deferred Gain              |
|---------------|---------------------------------------|----------------------------|--------------------------|----------------------------------------------------------------------------------------|----------------------------|
| Month / Year  | Project Partnership                   | Net Proceeds               | Per BAC                  | on Disposal                                                                            | on Disposal                |
| March 2010    | Blackshear Apartments, L.P., Phase II | $  151,377  | $  17.57  | $             -  | $  151,377  |
| March 2010    | Woodcrest Associates of South Boston  | 132,434               | 15.37               | 132,434                                                                           | -                     |
| December 2009 | Pine Terrace Apartments, L.P.         | 122,273               | 14.19               | 122,273                                                                           | -                     |
| December 2009 | Shellman Housing, L.P.                | 12,181                | 1.41                | 12,181                                                                            | -                     |
| December 2009 | Crisp Properties, L.P.                | 131,990               | 15.32               | 131,574                                                                           | -                     |
| October 2009  | Village Apartments of Effingham       | 756                   | 0.09                | 756                                                                               | -                     |
| October 2009  | Village Apartments of Seymour II      | 304                   | 0.03                | 304                                                                               | -                     |
|          |                                  |                       |                     | $  399,522                                                              | $  151,377  |

| Transaction  |                   |                                                                 | Net Proceeds                                             | Gain (Loss)              |
|--------------|------------------------|----------------------------------------------------------------------|----------------------------------------------------------|--------------------------|
| Month / Year | Project Partnership    | Net Proceeds                                                         | Per BAC                                                  | on Disposal              |
|         | Other, net (see below) | $          -  | $        -  | $  2,000  |
|         |                   |                                                                 |                                                     | $  2,000  |

----

----

----

----

----

| Transaction  |                |                                  | Net Proceeds                                                | Gain (Loss)                           |
|--------------|---------------------|---------------------------------------|-------------------------------------------------------------|---------------------------------------|
| Month / Year | Project Partnership | Net Proceeds                          | Per BAC                                                     | on Disposal                           |
| April 2010   | Alma Properties     | $    65,230  | $        7.54  | $    65,230  |
|         |                |                                  |                                                        | $    65,230  |

| Transaction  |                |                            | Net Proceeds                                                | Gain (Loss)                                                          | Deferred Gain                   |
|--------------|---------------------|---------------------------------|-------------------------------------------------------------|----------------------------------------------------------------------|---------------------------------|
| Month / Year | Project Partnership | Net Proceeds                    | Per BAC                                                     | on Disposal                                                          | on Disposal                     |
| April 2010   | Logan Place L.P.    | $    63,038 | $         6.24 | $           - | $    63,038 |
|         |                |                            |                                                        | $           - | $   63,038       |

| Transaction   |                                |                      | Net Proceeds             | Gain (Loss)                           |
|---------------|-------------------------------------|---------------------------|--------------------------|---------------------------------------|
| Month / Year  | Project Partnership                 | Net Proceeds              | Per BAC                  | on Disposal                           |
| December 2009 | Charleston Properties               | $  87,503  | $  14.26  | $    87,503  |
| December 2009 | Pocola Properties                   | 98,566               | 16.06               | 98,566                           |
| December 2009 | Sallisaw Properties II              | 128,995              | 21.02               | 128,995                          |
| October 2009  | Sylacauga Heritage Apartments, Ltd. | -                    | -                   | -                                |
| August 2009   | Lewiston Limited Partnership        | 16,568               | 2.70                | 16,568                           |
|          |                                |                      |                     | $  331,632             |

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| Transaction  |                                |                                                                       | Net Proceeds                                                   | Gain (Loss)                                                          |
|--------------|-------------------------------------|----------------------------------------------------------------------------|----------------------------------------------------------------|----------------------------------------------------------------------|
| Month / Year | Project Partnership                 | Net Proceeds                                                               | Per BAC                                                        | on Disposal                                                          |
| October 2009 | Village Apartments of St. Joseph II | $           -  | $         -  | $          -  |
|         | Other, net (see below)              | -                                                                     | -                                                         | 2,000                                                           |
|         |                                |                                                                       |                                                           | $  2,000                                              |

| Transaction   |                                  |                       | Net Proceeds             | Gain (Loss)                                                                            | Deferred Gain              |
|---------------|---------------------------------------|----------------------------|--------------------------|----------------------------------------------------------------------------------------|----------------------------|
| Month / Year  | Project Partnership                   | Net Proceeds               | Per BAC                  | on Disposal                                                                            | on Disposal                |
| March 2010    | Blackshear Apartments, L.P., Phase II | $  151,377  | $  17.57  | $             -  | $  151,377  |
| March 2010    | Woodcrest Associates of South Boston  | 132,434               | 15.37               | 132,434                                                                           | -                     |
| December 2009 | Pine Terrace Apartments, L.P.         | 122,273               | 14.19               | 122,273                                                                           | -                     |
| December 2009 | Shellman Housing, L.P.                | 12,181                | 1.41                | 12,181                                                                            | -                     |
| December 2009 | Crisp Properties, L.P.                | 131,990               | 15.32               | 131,574                                                                           | -                     |
| October 2009  | Village Apartments of Effingham       | 756                   | 0.09                | 756                                                                               | -                     |
| October 2009  | Village Apartments of Seymour II      | 304                   | 0.03                | 304                                                                               | -                     |
|          |                                  |                       |                     | $  399,522                                                              | $  151,377  |

| Transaction  |                   |                                                                 | Net Proceeds                                             | Gain (Loss)              |
|--------------|------------------------|----------------------------------------------------------------------|----------------------------------------------------------|--------------------------|
| Month / Year | Project Partnership    | Net Proceeds                                                         | Per BAC                                                  | on Disposal              |
|         | Other, net (see below) | $          -  | $        -  | $  2,000  |
|         |                   |                                                                 |                                                     | $  2,000  |

----

| Richland Elderly Housing, Ltd., L.P.   | Pearson Elderly Housing, Ltd., L.P.     |
|----------------------------------------|-----------------------------------------|
| Mt. Vernon Elderly Housing, Ltd., L.P. | Lakeland Elderly Apartments, Ltd., L.P. |
| Deerfield II Ltd., L.P.                | Hartwell Family, Ltd., L.P.             |

| Heritage Villas, L.P. | Nowata Properties    |
|-----------------------|----------------------|
| Poteau Properties II  | Roland Properties II |
| Sallisaw Properties   | Stilwell Properties  |
| Waldron Properties    |                 |

| Stilwell Properties II           | Westville Properties |
|----------------------------------|----------------------|
| Spring Hill Senior Housing, L.P. |                 |

| Carrollton Club, Ltd., L.P.       | Crawford Rental Housing, L.P.         |
|-----------------------------------|---------------------------------------|
| Greensboro Properties, Ltd., L.P. | Greensboro Properties, L.P., Phase II |
| Clayton Properties                | Mill Creek Properties V               |
| Spring Hill Housing, L.P.         |                                  |

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| Dawson Elderly, L.P. | Parsons Properties, L.P. |
|----------------------|--------------------------|

| Wallis Housing, Ltd. |   |
|----------------------|--------|

| Lancaster House |   |
|-----------------|--------|

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----

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

| Date: August 13, 2010 |   | By:/s/ Ronald M. Diner |
|-----------------------|--------|------------------------|
|                  |   | Ronald M. Diner        |
|                  |   | President              |

| Date: August 13, 2010 |                           | By:/s/ Toni S. Matthews                    |
|-----------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------|
|                  |                                                                                                                                                   | Toni S. Matthews                           |
|                  |                                                                                                                                                   | Vice President and Chief Financial Officer |

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