----

----

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

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

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

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

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

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

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

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

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

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

----

----

| GATEWAY                TAX CREDIT FUND II                LTD.                                          |   |
|--------------------------------------------------------------------------------------------------------|--------|
| (A                Florida Limited Partnership)                                                         |   |
| BALANCE                SHEETS                                                                          |   |
|                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                   |   | SERIES                2 |   |   | SERIES                3 |   |   | SERIES                4 |   |
|                                                                                                   |   | December                31, |   |   | March                31, |   |   | December                31, |   |   | March                31, |   |   | December                31, |   |   | March                31, |   |
|                                                                                                   |   | 2007 |   |   | 2007 |   |   | 2007 |   |   | 2007 |   |   | 2007 |   |   | 2007 |   |
| ASSETS                                                                                                 |   | (Unaudited) |   |   | (Audited) |   |   | (Unaudited) |   |   | (Audited) |   |   | (Unaudited) |   |   | (Audited) |   |
| Current                Assets:                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Cash                and Cash Equivalents                                                   |   | $ | 504,169 |   |   | $ | 129,724 |   |   | $ | 90,560 |   |   | $ | 426,791 |   |   | $ | 318,722 |   |   | $ | 206,516 |   |
|   Investments                in Securities                                                   |   |   | 125,106 |   |   |   | 127,640 |   |   |   | 125,106 |   |   |   | 127,640 |   |   |   | 175,148 |   |   |   | 178,897 |   |
|   Receivable                - Other                                                          |   |   | - |   |   |   | - |   |   |   | 75,000 |   |   |   | 44,000 |   |   |   | - |   |   |   | 84,500 |   |
|       Total                Assets                                        |   | $ | 629,275 |   |   | $ | 257,364 |   |   | $ | 290,666 |   |   | $ | 598,431 |   |   | $ | 493,870 |   |   | $ | 469,913 |   |
|                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| LIABILITIES                AND PARTNERS' DEFICIT                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current                Liabilities:                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Payable                to General Partners                                                 |   | $ | 51,785 |   |   | $ | 48,705 |   |   | $ | 53,000 |   |   | $ | 55,354 |   |   | $ | 69,245 |   |   | $ | 60,680 |   |
|   Distribution                Payable                                                        |   |   | 414,419 |   |   |   | - |   |   |   | 6,044 |   |   |   | 313,273 |   |   |   | 209,914 |   |   |   | 62,744 |   |
|   Deferred                Gain on Sale of Project Partnerships                               |   |   | - |   |   |   | - |   |   |   | 73,000 |   |   |   | 43,850 |   |   |   | - |   |   |   | 84,200 |   |
|     Total                Current Liabilities                                       |   |   | 466,204 |   |   |   | 48,705 |   |   |   | 132,044 |   |   |   | 412,477 |   |   |   | 279,159 |   |   |   | 207,624 |   |
|                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Long-Term                Liabilities:                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Payable                to General Partners                                                 |   |   | 713,794 |   |   |   | 666,568 |   |   |   | 584,847 |   |   |   | 551,211 |   |   |   | 771,712 |   |   |   | 722,109 |   |
|                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Partners'                Equity (Deficit):                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Limited                Partner Assignees - 40,000 BAC's                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      authorized                of which 6,136, 5,456, and 6,915               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      for                Series 2, 3, and 4, respectively, have                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      been                issued at December 31, 2007 and                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      March                31, 2007                                            |   |   | (689,002 | ) |   |   | (399,531 | ) |   |   | (426,718 | ) |   |   | (365,257 | ) |   |   | (559,932 | ) |   |   | (459,820 | ) |
|   General                Partners                                                            |   |   | 138,279 |   |   |   | (58,378 | ) |   |   | 493 |   |   |   | - |   |   |   | 2,931 |   |   |   | - |   |
|                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Total                Partners' Deficit                                         |   |   | (550,723 | ) |   |   | (457,909 | ) |   |   | (426,225 | ) |   |   | (365,257 | ) |   |   | (557,001 | ) |   |   | (459,820 | ) |
|                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         Total                Liabilities and Partners' Deficit |   | $ | 629,275 |   |   | $ | 257,364 |   |   | $ | 290,666 |   |   | $ | 598,431 |   |   | $ | 493,870 |   |   | $ | 469,913 |   |
|                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See                accompanying notes to financial statements.                                         |   |

----

| GATEWAY                TAX CREDIT FUND                II LTD.                                          |   |
|--------------------------------------------------------------------------------------------------------|--------|
| (A                Florida Limited Partnership)                                                         |   |
| BALANCE                SHEETS                                                                          |   |
|                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                   |   | SERIES                5 |   |   | SERIES                6 |   |   | TOTAL                SERIES 2 - 6 |   |
|                                                                                                   |   | December                31, |   |   | March                31, |   |   | December                31, |   |   | March                31, |   |   | December                31, |   |   | March                31, |   |
|                                                                                                   |   | 2007 |   |   | 2007 |   |   | 2007 |   |   | 2007 |   |   | 2007 |   |   | 2007 |   |
| ASSETS                                                                                                 |   | (Unaudited) |   |   | (Audited) |   |   | (Unaudited) |   |   | (Audited) |   |   | (Unaudited) |   |   | (Audited) |   |
| Current                Assets:                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Cash                and Cash Equivalents                                                   |   | $ | 272,405 |   |   | $ | 175,920 |   |   | $ | 148,848 |   |   | $ | 193,964 |   |   | $ | 1,334,704 |   |   | $ | 1,132,915 |   |
|   Investments                in Securities                                                   |   |   | 125,106 |   |   |   | 101,509 |   |   |   | 300,253 |   |   |   | 280,406 |   |   |   | 850,719 |   |   |   | 816,092 |   |
|   Receivable                - Other                                                          |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 75,000 |   |   |   | 128,500 |   |
|     Total                Current Assets                                            |   |   | 397,511 |   |   |   | 277,429 |   |   |   | 449,101 |   |   |   | 474,370 |   |   |   | 2,260,423 |   |   |   | 2,077,507 |   |
|                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Investments                in Project Partnerships, net                                    |   |   | 27,746 |   |   |   | 125,403 |   |   |   | 32,253 |   |   |   | 208,779 |   |   |   | 59,999 |   |   |   | 334,182 |   |
|       Total                Assets                                        |   | $ | 425,257 |   |   | $ | 402,832 |   |   | $ | 481,354 |   |   | $ | 683,149 |   |   | $ | 2,320,422 |   |   | $ | 2,411,689 |   |
|                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| LIABILITIES                AND PARTNERS' DEFICIT                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current                Liabilities:                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Payable                to General Partners                                                 |   | $ | 77,279 |   |   | $ | 78,583 |   |   | $ | 74,576 |   |   | $ | 74,311 |   |   | $ | 325,885 |   |   | $ | 317,633 |   |
|   Distribution                Payable                                                        |   |   | 179,992 |   |   |   | - |   |   |   | 38,551 |   |   |   | 46 |   |   |   | 848,920 |   |   |   | 376,063 |   |
|   Deferred                Gain on Sale of Project Partnerships                               |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 73,000 |   |   |   | 128,050 |   |
|     Total                Current Liabilities                                       |   |   | 257,271 |   |   |   | 78,583 |   |   |   | 113,127 |   |   |   | 74,357 |   |   |   | 1,247,805 |   |   |   | 821,746 |   |
|                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Long-Term                Liabilities:                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Payable                to General Partners                                                 |   |   | 670,873 |   |   |   | 603,864 |   |   |   | 1,015,227 |   |   |   | 939,298 |   |   |   | 3,756,453 |   |   |   | 3,483,050 |   |
|                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Partners'                Equity (Deficit):                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Limited                Partner Assignees - 40,000 BAC's                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      authorized                of which 8,616 and 10,105 for                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Series                5 and 6, respectively, have been                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      issued                at December 31, 2007 and                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      March                31, 2007                                            |   |   | (505,118 | ) |   |   | (275,580 | ) |   |   | (641,498 | ) |   |   | (327,179 | ) |   |   | (2,822,268 | ) |   |   | (1,827,367 | ) |
|   General                Partners                                                            |   |   | 2,231 |   |   |   | (4,035 | ) |   |   | (5,502 | ) |   |   | (3,327 | ) |   |   | 138,432 |   |   |   | (65,740 | ) |
|     Total                Partners' Deficit                                         |   |   | (502,887 | ) |   |   | (279,615 | ) |   |   | (647,000 | ) |   |   | (330,506 | ) |   |   | (2,683,836 | ) |   |   | (1,893,107 | ) |
|                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         Total                Liabilities and Partners' Deficit |   | $ | 425,257 |   |   | $ | 402,832 |   |   | $ | 481,354 |   |   | $ | 683,149 |   |   | $ | 2,320,422 |   |   | $ | 2,411,689 |   |
|                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See                accompanying notes to financial statements.                                         |   |

----

| GATEWAY                TAX CREDIT FUND II                LTD.                       |   |
|-------------------------------------------------------------------------------------|--------|
| (A                Florida Limited Partnership)                                      |   |
| STATEMENTS                OF OPERATIONS                                             |   |
| FOR                THE THREE MONTHS ENDED DECEMBER 31, 2007 AND                2006 |   |
| (Unaudited)                                                                         |   |
|                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                |   | SERIES                2 |   |   | SERIES                3 |   |   | SERIES                4 |   |
|                                                                                |   | 2007 |   |   | 2006 |   |   | 2007 |   |   | 2006 |   |   | 2007 |   |   | 2006 |   |
| Revenues:                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Distribution                Income                                      |   | $ | 1,569 |   |   | $ | 1,600 |   |   | $ | 4,134 |   |   | $ | - |   |   | $ | 884 |   |   | $ | - |   |
|     Total                Revenues                               |   |   | 1,569 |   |   |   | 1,600 |   |   |   | 4,134 |   |   |   | - |   |   |   | 884 |   |   |   | - |   |
|                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Expenses:                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Asset                Management Fee - General Partner                   |   |   | 15,223 |   |   |   | 16,844 |   |   |   | 11,212 |   |   |   | 15,614 |   |   |   | 16,534 |   |   |   | 19,233 |   |
|   General                and Administrative:                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     General                Partner                              |   |   | 14,164 |   |   |   | 15,477 |   |   |   | 12,467 |   |   |   | 16,180 |   |   |   | 15,858 |   |   |   | 20,402 |   |
|     Other                                                       |   |   | 3,389 |   |   |   | 3,843 |   |   |   | 3,830 |   |   |   | 4,837 |   |   |   | 4,259 |   |   |   | 5,048 |   |
|     Total                Expenses                               |   |   | 32,776 |   |   |   | 36,164 |   |   |   | 27,509 |   |   |   | 36,631 |   |   |   | 36,651 |   |   |   | 44,683 |   |
|                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss                Before Gain on Sale of Project                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Partnerships                and Other Income                            |   |   | (31,207 | ) |   |   | (34,564 | ) |   |   | (23,375 | ) |   |   | (36,631 | ) |   |   | (35,767 | ) |   |   | (44,683 | ) |
| Gain                on Sale of Project Partnerships                                 |   |   | 414,404 |   |   |   | - |   |   |   | 5,863 |   |   |   | 99,410 |   |   |   | 209,918 |   |   |   | - |   |
| Interest                Income                                                      |   |   | 6,693 |   |   |   | 3,278 |   |   |   | 2,475 |   |   |   | 3,591 |   |   |   | 3,908 |   |   |   | 4,199 |   |
|                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                Income (Loss)                                                    |   | $ | 389,890 |   |   | $ | (31,286 | ) |   | $ | (15,037 | ) |   | $ | 66,370 |   |   | $ | 178,059 |   |   | $ | (40,484 | ) |
|                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allocation                of Net Income (Loss):                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Assignees                                                               |   | $ | 385,991 |   |   | $ | (30,973 | ) |   | $ | (15,094 | ) |   | $ | 65,707 |   |   | $ | 175,963 |   |   | $ | (40,080 | ) |
|   General                Partners                                         |   |   | 3,899 |   |   |   | (313 | ) |   |   | 57 |   |   |   | 663 |   |   |   | 2,096 |   |   |   | (404 | ) |
|                                                                                |   | $ | 389,890 |   |   | $ | (31,286 | ) |   | $ | (15,037 | ) |   | $ | 66,370 |   |   | $ | 178,059 |   |   | $ | (40,484 | ) |
| Net                Income (Loss) Per Beneficial                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Assignee                Certificate                                     |   | $ | 62.91 |   |   | $ | (5.05 | ) |   | $ | (2.77 | ) |   | $ | 12.04 |   |   | $ | 25.45 |   |   | $ | (5.80 | ) |
| Number                of Beneficial Assignee                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Certificates                Outstanding                                 |   |   | 6,136 |   |   |   | 6,136 |   |   |   | 5,456 |   |   |   | 5,456 |   |   |   | 6,915 |   |   |   | 6,915 |   |
|                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See                accompanying notes to financial statements.                      |   |

----

| GATEWAY                TAX CREDIT FUND II                LTD.                       |   |
|-------------------------------------------------------------------------------------|--------|
| (A                Florida Limited Partnership)                                      |   |
| STATEMENTS                OF OPERATIONS                                             |   |
| FOR                THE THREE MONTHS ENDED DECEMBER 31, 2007 AND                2006 |   |
| (Unaudited)                                                                         |   |
|                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                |   | SERIES                5 |   |   | SERIES                6 |   |   | TOTAL                SERIES 2 - 6 |   |
|                                                                                |   | 2007 |   |   | 2006 |   |   | 2007 |   |   | 2006 |   |   | 2007 |   |   | 2006 |   |
| Revenues:                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Distribution                Income                                      |   | $ | 1,554 |   |   | $ | 1,654 |   |   | $ | 3,702 |   |   | $ | 3,740 |   |   | $ | 11,843 |   |   | $ | 6,994 |   |
|     Total                Revenues                               |   |   | 1,554 |   |   |   | 1,654 |   |   |   | 3,702 |   |   |   | 3,740 |   |   |   | 11,843 |   |   |   | 6,994 |   |
|                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Expenses:                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Asset                Management Fee - General Partner                   |   |   | 21,011 |   |   |   | 23,096 |   |   |   | 25,141 |   |   |   | 25,283 |   |   |   | 89,121 |   |   |   | 100,070 |   |
|   General                and Administrative:                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     General                Partner                              |   |   | 19,725 |   |   |   | 24,623 |   |   |   | 26,399 |   |   |   | 26,030 |   |   |   | 88,613 |   |   |   | 102,712 |   |
|     Other                                                       |   |   | 4,993 |   |   |   | 5,494 |   |   |   | 2,805 |   |   |   | 5,836 |   |   |   | 19,276 |   |   |   | 25,058 |   |
|   Amortization                                                            |   |   | - |   |   |   | 3,859 |   |   |   | 4,385 |   |   |   | 9,513 |   |   |   | 4,385 |   |   |   | 13,372 |   |
|     Total                Expenses                               |   |   | 45,729 |   |   |   | 57,072 |   |   |   | 58,730 |   |   |   | 66,662 |   |   |   | 201,395 |   |   |   | 241,212 |   |
|                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss                Before Equity in (Losses) Income of Project                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                  Partnerships and Other Income                                 |   |   | (44,175 | ) |   |   | (55,418 | ) |   |   | (55,028 | ) |   |   | (62,922 | ) |   |   | (189,552 | ) |   |   | (234,218 | ) |
| Equity                in (Losses) Income of Project                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Partnerships                                                            |   |   | (17,596 | ) |   |   | 6,501 |   |   |   | 10,780 |   |   |   | (180 | ) |   |   | (6,816 | ) |   |   | 6,321 |   |
| Gain                (Loss) on Sale of Project Partnerships                          |   |   | 228,591 |   |   |   | - |   |   |   | (12,271 | ) |   |   | - |   |   |   | 846,505 |   |   |   | 99,410 |   |
| Interest                Income                                                      |   |   | 4,271 |   |   |   | 3,661 |   |   |   | 5,250 |   |   |   | 6,713 |   |   |   | 22,597 |   |   |   | 21,442 |   |
|                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                Income (Loss)                                                    |   | $ | 171,091 |   |   | $ | (45,256 | ) |   | $ | (51,269 | ) |   | $ | (56,389 | ) |   | $ | 672,734 |   |   | $ | (107,045 | ) |
|                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allocation                of Net Income (Loss):                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Assignees                                                               |   | $ | 163,952 |   |   | $ | (44,804 | ) |   | $ | (50,756 | ) |   | $ | (55,825 | ) |   | $ | 660,056 |   |   | $ | (105,975 | ) |
|   General                Partners                                         |   |   | 7,139 |   |   |   | (452 | ) |   |   | (513 | ) |   |   | (564 | ) |   |   | 12,678 |   |   |   | (1,070 | ) |
|                                                                                |   | $ | 171,091 |   |   | $ | (45,256 | ) |   | $ | (51,269 | ) |   | $ | (56,389 | ) |   | $ | 672,734 |   |   | $ | (107,045 | ) |
| Net                Income (Loss) Per Beneficial                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Assignee                Certificate                                     |   | $ | 19.03 |   |   | $ | (5.20 | ) |   | $ | (5.02 | ) |   | $ | (5.52 | ) |   |   |   |   |   |   |   |   |
| Number                of Beneficial Assignee                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Certificates                Outstanding                                 |   |   | 8,616 |   |   |   | 8,616 |   |   |   | 10,105 |   |   |   | 10,105 |   |   |   |   |   |   |   |   |   |
|                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See                accompanying notes to financial statements.                      |   |

----

| GATEWAY                TAX CREDIT FUND II                LTD.                      |   |
|------------------------------------------------------------------------------------|--------|
| (A                Florida Limited Partnership)                                     |   |
| STATEMENTS                OF OPERATIONS                                            |   |
| FOR                THE NINE MONTHS ENDED DECEMBER 31, 2007 AND                2006 |   |
| (Unaudited)                                                                        |   |
|                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                               |   | SERIES                2 |   |   | SERIES                3 |   |   | SERIES                4 |   |
|                                                                               |   | 2007 |   |   | 2006 |   |   | 2007 |   |   | 2006 |   |   | 2007 |   |   | 2006 |   |
| Revenues:                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Distribution                Income                                     |   | $ | 5,362 |   |   | $ | 5,393 |   |   | $ | 15,767 |   |   | $ | 11,814 |   |   | $ | 12,192 |   |   | $ | 13,347 |   |
|     Total                Revenues                              |   |   | 5,362 |   |   |   | 5,393 |   |   |   | 15,767 |   |   |   | 11,814 |   |   |   | 12,192 |   |   |   | 13,347 |   |
|                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Expenses:                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Asset                Management Fee - General Partner                  |   |   | 47,226 |   |   |   | 50,534 |   |   |   | 33,635 |   |   |   | 46,843 |   |   |   | 49,603 |   |   |   | 57,697 |   |
|   General                and Administrative:                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     General                Partner                             |   |   | 47,515 |   |   |   | 46,694 |   |   |   | 39,540 |   |   |   | 48,817 |   |   |   | 54,798 |   |   |   | 61,552 |   |
|     Other                                                      |   |   | 17,720 |   |   |   | 15,274 |   |   |   | 14,166 |   |   |   | 16,160 |   |   |   | 17,308 |   |   |   | 18,395 |   |
|     Total                Expenses                              |   |   | 112,461 |   |   |   | 112,502 |   |   |   | 87,341 |   |   |   | 111,820 |   |   |   | 121,709 |   |   |   | 137,644 |   |
|                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss                Before Gain on Sale of Project                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Partnerships                and Other Income                           |   |   | (107,099 | ) |   |   | (107,109 | ) |   |   | (71,574 | ) |   |   | (100,006 | ) |   |   | (109,517 | ) |   |   | (124,297 | ) |
| Gain                on Sale of Project Partnerships                                |   |   | 653,254 |   |   |   | - |   |   |   | 49,898 |   |   |   | 99,410 |   |   |   | 294,118 |   |   |   | - |   |
| Interest                Income                                                     |   |   | 14,285 |   |   |   | 10,826 |   |   |   | 10,575 |   |   |   | 9,821 |   |   |   | 12,332 |   |   |   | 12,549 |   |
|                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                Income (Loss)                                                   |   | $ | 560,440 |   |   | $ | (96,283 | ) |   | $ | (11,101 | ) |   | $ | 9,225 |   |   | $ | 196,933 |   |   | $ | (111,748 | ) |
|                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allocation                of Net Income (Loss):                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Assignees                                                              |   | $ | 554,836 |   |   | $ | (95,320 | ) |   | $ | (11,594 | ) |   | $ | 9,133 |   |   | $ | 194,002 |   |   | $ | (110,631 | ) |
|   General                Partners                                        |   |   | 5,604 |   |   |   | (963 | ) |   |   | 493 |   |   |   | 92 |   |   |   | 2,931 |   |   |   | (1,117 | ) |
|                                                                               |   | $ | 560,440 |   |   | $ | (96,283 | ) |   | $ | (11,101 | ) |   | $ | 9,225 |   |   | $ | 196,933 |   |   | $ | (111,748 | ) |
| Net                Income (Loss) Per Beneficial                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Assignee                Certificate                                    |   | $ | 90.42 |   |   | $ | (15.53 | ) |   | $ | (2.13 | ) |   | $ | 1.67 |   |   | $ | 28.06 |   |   | $ | (16.00 | ) |
| Number                of Beneficial Assignee                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Certificates                Outstanding                                |   |   | 6,136 |   |   |   | 6,136 |   |   |   | 5,456 |   |   |   | 5,456 |   |   |   | 6,915 |   |   |   | 6,915 |   |
|                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See                accompanying notes to financial statements.                     |   |

----

| GATEWAY                TAX CREDIT FUND                II LTD.                      |   |
|------------------------------------------------------------------------------------|--------|
| (A                Florida Limited Partnership)                                     |   |
| STATEMENTS                OF OPERATIONS                                            |   |
| FOR                THE NINE MONTHS ENDED DECEMBER 31, 2007 AND                2006 |   |
| (Unaudited)                                                                        |   |
|                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                               |   | SERIES                5 |   |   | SERIES                6 |   |   | TOTAL                SERIES 2 - 6 |   |
|                                                                               |   | 2007 |   |   | 2006 |   |   | 2007 |   |   | 2006 |   |   | 2007 |   |   | 2006 |   |
| Revenues:                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Distribution                Income                                     |   | $ | 21,180 |   |   | $ | 20,682 |   |   | $ | 20,966 |   |   | $ | 24,741 |   |   | $ | 75,467 |   |   | $ | 75,977 |   |
|     Total                Revenues                              |   |   | 21,180 |   |   |   | 20,682 |   |   |   | 20,966 |   |   |   | 24,741 |   |   |   | 75,467 |   |   |   | 75,977 |   |
|                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Expenses:                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Asset                Management Fee - General Partner                  |   |   | 67,009 |   |   |   | 69,288 |   |   |   | 75,929 |   |   |   | 75,848 |   |   |   | 273,402 |   |   |   | 300,210 |   |
|   General                and Administrative:                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     General                Partner                             |   |   | 70,820 |   |   |   | 74,287 |   |   |   | 81,190 |   |   |   | 78,532 |   |   |   | 293,863 |   |   |   | 309,882 |   |
|     Other                                                      |   |   | 19,605 |   |   |   | 18,574 |   |   |   | 20,362 |   |   |   | 21,761 |   |   |   | 89,161 |   |   |   | 90,164 |   |
|   Amortization                                                           |   |   | - |   |   |   | 11,577 |   |   |   | 13,157 |   |   |   | 28,539 |   |   |   | 13,157 |   |   |   | 40,116 |   |
|     Total                Expenses                              |   |   | 157,434 |   |   |   | 173,726 |   |   |   | 190,638 |   |   |   | 204,680 |   |   |   | 669,583 |   |   |   | 740,372 |   |
|                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss                Before Equity in (Losses) Income of Project                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                  Partnerships and Other Income                                |   |   | (136,254 | ) |   |   | (153,044 | ) |   |   | (169,672 | ) |   |   | (179,939 | ) |   |   | (594,116 | ) |   |   | (664,395 | ) |
| Equity                in (Losses) Income of Project                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Partnerships                                                           |   |   | (19,168 | ) |   |   | 3,964 |   |   |   | 11,736 |   |   |   | 12,561 |   |   |   | (7,432 | ) |   |   | 16,525 |   |
| Gain                (Loss) on Sale of Project Partnerships                         |   |   | 228,591 |   |   |   | - |   |   |   | (76,071 | ) |   |   | - |   |   |   | 1,149,790 |   |   |   | 99,410 |   |
| Interest                Income                                                     |   |   | 10,638 |   |   |   | 11,058 |   |   |   | 16,547 |   |   |   | 20,083 |   |   |   | 64,377 |   |   |   | 64,337 |   |
|                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                Income (Loss)                                                   |   | $ | 83,807 |   |   | $ | (138,022 | ) |   | $ | (217,460 | ) |   | $ | (147,295 | ) |   | $ | 612,619 |   |   | $ | (484,123 | ) |
|                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allocation                of Net Income (Loss):                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Assignees                                                              |   | $ | 77,541 |   |   | $ | (136,642 | ) |   | $ | (215,285 | ) |   | $ | (145,822 | ) |   | $ | 599,500 |   |   | $ | (479,282 | ) |
|   General                Partners                                        |   |   | 6,266 |   |   |   | (1,380 | ) |   |   | (2,175 | ) |   |   | (1,473 | ) |   |   | 13,119 |   |   |   | (4,841 | ) |
|                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                               |   | $ | 83,807 |   |   | $ | (138,022 | ) |   | $ | (217,460 | ) |   | $ | (147,295 | ) |   | $ | 612,619 |   |   | $ | (484,123 | ) |
| Net                Income (Loss) Per Beneficial                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Assignee                Certificate                                    |   | $ | 9.00 |   |   | $ | (15.86 | ) |   | $ | (21.30 | ) |   | $ | (14.43 | ) |   |   |   |   |   |   |   |   |
| Number                of Beneficial Assignee                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Certificates                Outstanding                                |   |   | 8,616 |   |   |   | 8,616 |   |   |   | 10,105 |   |   |   | 10,105 |   |   |   |   |   |   |   |   |   |
|                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See                accompanying notes to financial statements.                     |   |

----

| GATEWAY                TAX CREDIT FUND II                LTD.                      |   |
|------------------------------------------------------------------------------------|--------|
| (A                Florida Limited Partnership)                                     |   |
|                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| STATEMENTS                OF PARTNERS' EQUITY                (DEFICIT)             |   |
| FOR                THE NINE MONTHS ENDED DECEMBER 31, 2007 AND                2006 |   |
| (Unaudited)                                                                        |   |
|                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                               |   | SERIES                2 |   |   | SERIES                3 |   |
|                                                                               |   |   |   |   | General |   |   |   |   |   |   |   |   | General |   |   |   |   |
|                                                                               |   | Assignees |   |   | Partners |   |   | Total |   |   | Assignees |   |   | Partners |   |   | Total |   |
|                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                at March 31, 2006                                           |   | $ | (281,595 | ) |   | $ | (57,187 | ) |   | $ | (338,782 | ) |   | $ | (207,975 | ) |   | $ | (50,399 | ) |   | $ | (258,374 | ) |
|                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                Income (Loss)                                                   |   |   | (95,320 | ) |   |   | (963 | ) |   |   | (96,283 | ) |   |   | 9,133 |   |   |   | 92 |   |   |   | 9,225 |   |
|                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Distributions                                                                      |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (99,600 | ) |   |   | - |   |   |   | (99,600 | ) |
|                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                at December 31, 2006                                        |   | $ | (376,915 | ) |   | $ | (58,150 | ) |   | $ | (435,065 | ) |   | $ | (298,442 | ) |   | $ | (50,307 | ) |   | $ | (348,749 | ) |
|                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                at March 31, 2007                                           |   | $ | (399,531 | ) |   | $ | (58,378 | ) |   | $ | (457,909 | ) |   | $ | (365,257 | ) |   | $ | - |   |   | $ | (365,257 | ) |
|                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Capital                Contributions                                               |   |   | - |   |   |   | 191,053 |   |   |   | 191,053 |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                Income (Loss)                                                   |   |   | 554,836 |   |   |   | 5,604 |   |   |   | 560,440 |   |   |   | (11,594 | ) |   |   | 493 |   |   |   | (11,101 | ) |
|                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Distributions                                                                      |   |   | (844,307 | ) |   |   | - |   |   |   | (844,307 | ) |   |   | (49,867 | ) |   |   | - |   |   |   | (49,867 | ) |
|                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                at December 31, 2007                                        |   | $ | (689,002 | ) |   | $ | 138,279 |   |   | $ | (550,723 | ) |   | $ | (426,718 | ) |   | $ | 493 |   |   | $ | (426,225 | ) |
|                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See                accompanying notes to financial statements.                     |   |

----

| GATEWAY                TAX CREDIT FUND II                LTD.                      |   |
|------------------------------------------------------------------------------------|--------|
| (A                Florida Limited Partnership)                                     |   |
|                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| STATEMENTS                OF PARTNERS' EQUITY                (DEFICIT)             |   |
| FOR                THE NINE MONTHS ENDED DECEMBER 31, 2007 AND                2006 |   |
| (Unaudited)                                                                        |   |
|                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                               |   | SERIES                4 |   |   | SERIES                5 |   |
|                                                                               |   |   |   |   | General |   |   |   |   |   |   |   |   | General |   |   |   |   |
|                                                                               |   | Assignees |   |   | Partners |   |   | Total |   |   | Assignees |   |   | Partners |   |   | Total |   |
|                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                at March 31, 2006                                           |   | $ | (253,967 | ) |   | $ | (63,833 | ) |   | $ | (317,800 | ) |   | $ | (82,842 | ) |   | $ | (2,088 | ) |   | $ | (84,930 | ) |
|                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                Loss                                                            |   |   | (110,631 | ) |   |   | (1,117 | ) |   |   | (111,748 | ) |   |   | (136,642 | ) |   |   | (1,380 | ) |   |   | (138,022 | ) |
|                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                at December 31, 2006                                        |   | $ | (364,598 | ) |   | $ | (64,950 | ) |   | $ | (429,548 | ) |   | $ | (219,484 | ) |   | $ | (3,468 | ) |   | $ | (222,952 | ) |
|                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                at March 31, 2007                                           |   | $ | (459,820 | ) |   | $ | - |   |   | $ | (459,820 | ) |   | $ | (275,580 | ) |   | $ | (4,035 | ) |   | $ | (279,615 | ) |
|                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                Income                                                          |   |   | 194,002 |   |   |   | 2,931 |   |   |   | 196,933 |   |   |   | 77,541 |   |   |   | 6,266 |   |   |   | 83,807 |   |
|                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Distributions                                                                      |   |   | (294,114 | ) |   |   | - |   |   |   | (294,114 | ) |   |   | (307,079 | ) |   |   | - |   |   |   | (307,079 | ) |
|                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                at December 31, 2007                                        |   | $ | (559,932 | ) |   | $ | 2,931 |   |   | $ | (557,001 | ) |   | $ | (505,118 | ) |   | $ | 2,231 |   |   | $ | (502,887 | ) |
|                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See                accompanying notes to financial statements.                     |   |

----

| GATEWAY                TAX CREDIT FUND                II LTD.                      |   |
|------------------------------------------------------------------------------------|--------|
| (A                Florida Limited Partnership)                                     |   |
|                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| STATEMENTS                OF PARTNERS' EQUITY                (DEFICIT)             |   |
| FOR                THE NINE MONTHS ENDED DECEMBER 31, 2007 AND                2006 |   |
| (Unaudited)                                                                        |   |
|                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                               |   | SERIES                6 |   |   | TOTAL                SERIES 2 - 6 |   |
|                                                                               |   |   |   |   | General |   |   |   |   |   |   |   |   | General |   |   |   |   |
|                                                                               |   | Assignees |   |   | Partners |   |   | Total |   |   | Assignees |   |   | Partners |   |   | Total |   |
|                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                at March 31, 2006                                           |   | $ | 2,162 |   |   | $ | - |   |   | $ | 2,162 |   |   | $ | (824,217 | ) |   | $ | (173,507 | ) |   | $ | (997,724 | ) |
|                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                Loss                                                            |   |   | (145,822 | ) |   |   | (1,473 | ) |   |   | (147,295 | ) |   |   | (479,282 | ) |   |   | (4,841 | ) |   |   | (484,123 | ) |
|                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Distributions                                                                      |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (99,600 | ) |   |   | - |   |   |   | (99,600 | ) |
|                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                at December 31, 2006                                        |   | $ | (143,660 | ) |   | $ | (1,473 | ) |   | $ | (145,133 | ) |   | $ | (1,403,099 | ) |   | $ | (178,348 | ) |   | $ | (1,581,447 | ) |
|                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                at March 31, 2007                                           |   | $ | (327,179 | ) |   | $ | (3,327 | ) |   | $ | (330,506 | ) |   | $ | (1,827,367 | ) |   | $ | (65,740 | ) |   | $ | (1,893,107 | ) |
|                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Capital                Contributions                                               |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 191,053 |   |   |   | 191,053 |   |
|                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                Income (Loss)                                                   |   |   | (215,285 | ) |   |   | (2,175 | ) |   |   | (217,460 | ) |   |   | 599,500 |   |   |   | 13,119 |   |   |   | 612,619 |   |
|                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Distributions                                                                      |   |   | (99,034 | ) |   |   | - |   |   |   | (99,034 | ) |   |   | (1,594,401 | ) |   |   | - |   |   |   | (1,594,401 | ) |
|                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                at December 31, 2007                                        |   | $ | (641,498 | ) |   | $ | (5,502 | ) |   | $ | (647,000 | ) |   | $ | (2,822,268 | ) |   | $ | 138,432 |   |   | $ | (2,683,836 | ) |
|                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See                accompanying notes to financial statements.                     |   |

----

| GATEWAY                TAX CREDIT FUND II                LTD.                                                                  |   |
|--------------------------------------------------------------------------------------------------------------------------------|--------|
| (A                Florida Limited Partnership)                                                                                 |   |
|                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| STATEMENTS                OF CASH FLOWS                                                                                        |   |
| FOR                THE NINE MONTHS ENDED DECEMBER 31, 2007 AND                2006                                             |   |
| (Unaudited)                                                                                                                    |   |
|                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                           |   | SERIES                2 |   |   | SERIES                3 |   |
|                                                                                                                           |   | 2007 |   |   | 2006 |   |   | 2007 |   |   | 2006 |   |
| Cash                Flows from Operating Activities:                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
|   Net                Income (Loss)                                                                                   |   | $ | 560,440 |   |   | $ | (96,283 | ) |   | $ | (11,101 | ) |   | $ | 9,225 |   |
|   Adjustments                to Reconcile Net Income (Loss)                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     to                Net Cash Used in Operating Activities:                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       Accreted                Interest Income on Investments in Securities                       |   |   | - |   |   |   | (3,033 | ) |   |   | - |   |   |   | (3,033 | ) |
|       Accreted                Discount on Investments in Securities                              |   |   | (436 | ) |   |   | - |   |   |   | (436 | ) |   |   | - |   |
|       Gain                on Sale of Project Partnerships                                        |   |   | (653,254 | ) |   |   | - |   |   |   | (49,898 | ) |   |   | (99,410 | ) |
|       Distribution                Income                                                         |   |   | (5,362 | ) |   |   | (5,393 | ) |   |   | (15,767 | ) |   |   | (11,814 | ) |
|       Changes                in Operating Assets and Liabilities:                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         Decrease                in Interest Receivable                                 |   |   | 1,136 |   |   |   | - |   |   |   | 1,136 |   |   |   | - |   |
|         Increase                in Payable to General Partners                         |   |   | 50,306 |   |   |   | 48,949 |   |   |   | 31,282 |   |   |   | 45,039 |   |
|         Decrease                in Other Payable                                       |   |   | - |   |   |   | (8,030 | ) |   |   | - |   |   |   | (6,900 | ) |
|           Net                Cash Used in Operating Activities               |   |   | (47,170 | ) |   |   | (63,790 | ) |   |   | (44,784 | ) |   |   | (66,893 | ) |
|                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash                Flows from Investing Activities:                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Decrease                in Receivable - Other                                                                      |   |   | - |   |   |   | - |   |   |   | 44,000 |   |   |   | - |   |
|   Distributions                Received from Project Partnerships                                                    |   |   | 5,362 |   |   |   | 5,393 |   |   |   | 15,767 |   |   |   | 11,814 |   |
|   Net                Proceeds from Sale of Project Partnerships                                                      |   |   | 653,254 |   |   |   | - |   |   |   | 4,048 |   |   |   | 99,410 |   |
|   Redemption                of Investment Securities                                                                 |   |   | 127,000 |   |   |   | 66,276 |   |   |   | 127,000 |   |   |   | 58,952 |   |
|   Purchase                of Investment Securities                                                                   |   |   | (125,166 | ) |   |   | (125,177 | ) |   |   | (125,166 | ) |   |   | (125,177 | ) |
|           Net                Cash Provided by (Used in) Investing Activities |   |   | 660,450 |   |   |   | (53,508 | ) |   |   | 65,649 |   |   |   | 44,999 |   |
|                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash                Flows from Financing Activities:                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Capital                Contributions                                                                               |   |   | 191,053 |   |   |   | - |   |   |   | - |   |   |   | - |   |
|   Distributions                Paid to Assignees                                                                     |   |   | (429,888 | ) |   |   | - |   |   |   | (357,096 | ) |   |   | (99,572 | ) |
|           Net                Cash Used in Financing Activities               |   |   | (238,835 | ) |   |   | - |   |   |   | (357,096 | ) |   |   | (99,572 | ) |
|                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Increase                (Decrease) in Cash and Cash Equivalents                                                                |   |   | 374,445 |   |   |   | (117,298 | ) |   |   | (336,231 | ) |   |   | (121,466 | ) |
| Cash                and Cash Equivalents at Beginning of Year                                                                  |   |   | 129,724 |   |   |   | 250,529 |   |   |   | 426,791 |   |   |   | 236,035 |   |
|                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash                and Cash Equivalents at End of Period                                                                      |   | $ | 504,169 |   |   | $ | 133,231 |   |   | $ | 90,560 |   |   | $ | 114,569 |   |
|                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Supplemental                disclosure of non-cash activities:                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Increase                in Distribution Payable                                                                                |   | $ | 414,620 |   |   | $ | - |   |   | $ | 6,000 |   |   | $ | - |   |
| Distribution                to Assignees                                                                                       |   |   | (414,620 | ) |   |   | - |   |   |   | (6,000 | ) |   |   | - |   |
| Increase                in Receivable - Other                                                                                  |   |   | - |   |   |   | - |   |   |   | (75,000 | ) |   |   | - |   |
| Increase                in Deferred Gain on Sale of Project Partnerships                                                       |   |   | - |   |   |   | - |   |   |   | 73,000 |   |   |   | - |   |
| Increase                in Payable to General Partners                                                                         |   |   | - |   |   |   | - |   |   |   | 2,000 |   |   |   | - |   |
|                                                                                                                           |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
|                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See                accompanying notes to financial statements.                                                                 |   |

----

| GATEWAY                TAX CREDIT FUND                II LTD.                                                                  |   |
|--------------------------------------------------------------------------------------------------------------------------------|--------|
| (A                Florida Limited Partnership)                                                                                 |   |
|                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| STATEMENTS                OF CASH FLOWS                                                                                        |   |
| FOR                THE NINE MONTHS ENDED DECEMBER 31, 2007 AND                2006                                             |   |
| (Unaudited)                                                                                                                    |   |
|                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                           |   | SERIES                4 |   |   | SERIES                5 |   |
|                                                                                                                           |   | 2007 |   |   | 2006 |   |   | 2007 |   |   | 2006 |   |
| Cash                Flows from Operating Activities:                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
|   Net                Income (Loss)                                                                                   |   | $ | 196,933 |   |   | $ | (111,748 | ) |   | $ | 83,807 |   |   | $ | (138,022 | ) |
|   Adjustments                to Reconcile Net Income (Loss)                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     to                Net Cash Used in Operating Activities:                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       Amortization                                                                               |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 11,577 |   |
|       Accreted                Interest Income on Investments in Securities                       |   |   | - |   |   |   | (4,251 | ) |   |   | - |   |   |   | (2,412 | ) |
|       Accreted                Discount on Investments in Securities                              |   |   | (612 | ) |   |   | - |   |   |   | (330 | ) |   |   | - |   |
|       Equity                in Losses (Income) of Project Partnerships                           |   |   | - |   |   |   | - |   |   |   | 19,168 |   |   |   | (3,964 | ) |
|       Gain                on Sale of Project Partnerships                                        |   |   | (294,118 | ) |   |   | - |   |   |   | (228,591 | ) |   |   | - |   |
|       Distribution                Income                                                         |   |   | (12,192 | ) |   |   | (13,347 | ) |   |   | (21,180 | ) |   |   | (20,682 | ) |
|       Changes                in Operating Assets and Liabilities:                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         Decrease                in Interest Receivable                                 |   |   | 1,593 |   |   |   | - |   |   |   | 900 |   |   |   | - |   |
|         Decrease                in Receivable - Other                                  |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 912 |   |
|         Increase                in Payable to General Partners                         |   |   | 58,168 |   |   |   | 55,212 |   |   |   | 65,705 |   |   |   | 67,196 |   |
|         Decrease                in Other Payable                                       |   |   | - |   |   |   | (8,030 | ) |   |   | - |   |   |   | (3,650 | ) |
|           Net                Cash Used in Operating Activities               |   |   | (50,228 | ) |   |   | (82,164 | ) |   |   | (80,521 | ) |   |   | (89,045 | ) |
|                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash                Flows from Investing Activities:                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Decrease                in Receivable - Other                                                                      |   |   | 84,500 |   |   |   | - |   |   |   | - |   |   |   | - |   |
|   Distributions                Received from Project Partnerships                                                    |   |   | 12,192 |   |   |   | 13,347 |   |   |   | 21,180 |   |   |   | 24,903 |   |
|   Net                Proceeds from Sale of Project Partnerships                                                      |   |   | 209,918 |   |   |   | - |   |   |   | 307,079 |   |   |   | - |   |
|   Redemption                of Investment Securities                                                                 |   |   | 178,000 |   |   |   | 74,685 |   |   |   | 101,000 |   |   |   | 93,086 |   |
|   Purchase                of Investment Securities                                                                   |   |   | (175,232 | ) |   |   | (175,444 | ) |   |   | (125,166 | ) |   |   | (99,551 | ) |
|           Net                Cash Provided by (Used in) Investing Activities |   |   | 309,378 |   |   |   | (87,412 | ) |   |   | 304,093 |   |   |   | 18,438 |   |
|                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash                Flows from Financing Activities:                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Distributions                Paid to Assignees                                                                     |   |   | (146,944 | ) |   |   | - |   |   |   | (127,087 | ) |   |   | - |   |
|           Net                Cash Used in Financing Activities               |   |   | (146,944 | ) |   |   | - |   |   |   | (127,087 | ) |   |   | - |   |
|                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Increase                (Decrease) in Cash and Cash Equivalents                                                                |   |   | 112,206 |   |   |   | (169,576 | ) |   |   | 96,485 |   |   |   | (70,607 | ) |
| Cash                and Cash Equivalents at Beginning of Year                                                                  |   |   | 206,516 |   |   |   | 322,204 |   |   |   | 175,920 |   |   |   | 262,439 |   |
|                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash                and Cash Equivalents at End of Period                                                                      |   | $ | 318,722 |   |   | $ | 152,628 |   |   | $ | 272,405 |   |   | $ | 191,832 |   |
|                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Supplemental                disclosure of non-cash activities:                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Increase                in Distribution Payable                                                                                |   | $ | 210,079 |   |   | $ | - |   |   | $ | 180,282 |   |   | $ | - |   |
| Distribution                to Assignees                                                                                       |   |   | (210,079 | ) |   |   | - |   |   |   | (180,282 | ) |   |   | - |   |
|                                                                                                                           |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
|                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See                accompanying notes to financial statements.                                                                 |   |

----

| GATEWAY                TAX CREDIT FUND                II LTD.                                                                  |   |
|--------------------------------------------------------------------------------------------------------------------------------|--------|
| (A                Florida Limited Partnership)                                                                                 |   |
|                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| STATEMENTS                OF CASH FLOWS                                                                                        |   |
| FOR                THE NINE MONTHS ENDED DECEMBER 31, 2007 AND                2006                                             |   |
| (Unaudited)                                                                                                                    |   |
|                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                           |   | SERIES                6 |   |   | TOTAL                SERIES 2 - 6 |   |
|                                                                                                                           |   | 2007 |   |   | 2006 |   |   | 2007 |   |   | 2006 |   |
| Cash                Flows from Operating Activities:                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
|   Net                Income (Loss)                                                                                   |   | $ | (217,460 | ) |   | $ | (147,295 | ) |   | $ | 612,619 |   |   | $ | (484,123 | ) |
|   Adjustments                to Reconcile Net Income (Loss)                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     to                Net Cash Used in Operating Activities:                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       Amortization                                                                               |   |   | 13,157 |   |   |   | 28,539 |   |   |   | 13,157 |   |   |   | 40,116 |   |
|       Accreted                Interest Income on Investments in Securities                       |   |   | - |   |   |   | (11,142 | ) |   |   | - |   |   |   | (23,871 | ) |
|       Accreted                Discount on Investments in Securities                              |   |   | (943 | ) |   |   | - |   |   |   | (2,757 | ) |   |   | - |   |
|       Equity                in (Income) Losses of Project Partnerships                           |   |   | (11,736 | ) |   |   | (12,561 | ) |   |   | 7,432 |   |   |   | (16,525 | ) |
|       (Gain)                Loss on Sale of Project Partnerships                                 |   |   | 76,071 |   |   |   | - |   |   |   | (1,149,790 | ) |   |   | (99,410 | ) |
|       Distribution                Income                                                         |   |   | (20,966 | ) |   |   | (24,741 | ) |   |   | (75,467 | ) |   |   | (75,977 | ) |
|       Changes                in Operating Assets and Liabilities:                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         Decrease                in Interest Receivable                                 |   |   | 2,493 |   |   |   | - |   |   |   | 7,258 |   |   |   | - |   |
|         Decrease                in Receivable - Other                                  |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 912 |   |
|         Increase                in Payable to General Partners                         |   |   | 76,194 |   |   |   | 73,349 |   |   |   | 281,655 |   |   |   | 289,745 |   |
|         Decrease                in Other Payable                                       |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (26,610 | ) |
|           Net                Cash Used in Operating Activities               |   |   | (83,190 | ) |   |   | (93,851 | ) |   |   | (305,893 | ) |   |   | (395,743 | ) |
|                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash                Flows from Investing Activities:                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Decrease                in Receivable - Other                                                                      |   |   | - |   |   |   | - |   |   |   | 128,500 |   |   |   | - |   |
|   Distributions                Received from Project Partnerships                                                    |   |   | 20,966 |   |   |   | 27,717 |   |   |   | 75,467 |   |   |   | 83,174 |   |
|   Net                Proceeds from Sale of Project Partnerships                                                      |   |   | 99,035 |   |   |   | - |   |   |   | 1,273,334 |   |   |   | 99,410 |   |
|   Redemption                of Investment Securities                                                                 |   |   | 279,000 |   |   |   | - |   |   |   | 812,000 |   |   |   | 292,999 |   |
|   Purchase                of Investment Securities                                                                   |   |   | (300,398 | ) |   |   | (274,991 | ) |   |   | (851,128 | ) |   |   | (800,340 | ) |
|           Net                Cash Provided by (Used in) Investing Activities |   |   | 98,603 |   |   |   | (247,274 | ) |   |   | 1,438,173 |   |   |   | (324,757 | ) |
|                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash                Flows from Financing Activities:                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Capital                Contributions                                                                               |   |   | - |   |   |   | - |   |   |   | 191,053 |   |   |   | - |   |
|   Distributions                Paid to Assignees                                                                     |   |   | (60,529 | ) |   |   | - |   |   |   | (1,121,544 | ) |   |   | (99,572 | ) |
|           Net                Cash Used in Financing Activities               |   |   | (60,529 | ) |   |   | - |   |   |   | (930,491 | ) |   |   | (99,572 | ) |
|                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (Decrease)                Increase in Cash and Cash Equivalents                                                                |   |   | (45,116 | ) |   |   | (341,125 | ) |   |   | 201,789 |   |   |   | (820,072 | ) |
| Cash                and Cash Equivalents at Beginning of Year                                                                  |   |   | 193,964 |   |   |   | 463,580 |   |   |   | 1,132,915 |   |   |   | 1,534,787 |   |
|                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash                and Cash Equivalents at End of Period                                                                      |   | $ | 148,848 |   |   | $ | 122,455 |   |   | $ | 1,334,704 |   |   | $ | 714,715 |   |
|                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Supplemental                disclosure of non-cash activities:                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Increase                in Distribution Payable                                                                                |   | $ | 39,837 |   |   | $ | - |   |   | $ | 850,818 |   |   | $ | - |   |
| Distribution                to Assignees                                                                                       |   |   | (39,837 | ) |   |   | - |   |   |   | (850,818 | ) |   |   | - |   |
| Increase                in Receivable - Other                                                                                  |   |   | - |   |   |   | - |   |   |   | (75,000 | ) |   |   | - |   |
| Increase                in Deferred Gain on Sale of Project Partnerships                                                       |   |   | - |   |   |   | - |   |   |   | 73,000 |   |   |   | - |   |
| Increase                in Payable to General Partners                                                                         |   |   | - |   |   |   | - |   |   |   | 2,000 |   |   |   | - |   |
|                                                                                                                           |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
|                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See                accompanying notes to financial statements.                                                                 |   |

----

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

| 2)           | Acquisition                fees paid to the General Partner for services rendered in selecting                properties for acquisition, and |
|------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------|
| 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 losses of the Project                Partnerships, |
|----------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|
|                           2)   |  Decreased                for                cash distributions received from the Project Partnerships,                and                  |
|                           3)   |  Decreased                for                the amortization of the acquisition fees and                expenses.                          |

----

|                    | Estimated                MarketValue |   | Cost                Plus Accreted Interestand                Unamortized Premiums |   | Gross                UnrealizedLosses |
|-------------------------|--------------------------------------|--------|-----------------------------------------------------------------------------------|--------|---------------------------------------|
| Series                2 | $                 126,035       |   | $                 125,106                                                    |   | $    929          |
| Series                3 | 126,035                              |   | 125,106                                                                           |   | 929                                   |
| Series                4 | 176,449                              |   | 175,148                                                                           |   | 1,301                                 |
| Series                5 | 126,035                              |   | 125,106                                                                           |   | 929                                   |
| Series                6 | 302,484                              |   | 300,253                                                                           |   | 2,231                                 |

----

|                                                                  |
|------------------------------------------------------------------|
|                                                             | Series                2 |   | Series                3 |   | Series                4 |
| Due                within 1 year                                 | $  125,106 |   | $  125,106 |   | $  175,148 |
| After                1 year through 5 years                      |               0 |   |               0 |   |               0 |
|   Total                Amount Carried on Balance Sheet | $  125,106 |   | $  125,106 |   | $  175,148 |

|                                                             | Series                5                                                               |   | Series                6                                                               |   | Total                                                                                 |
|------------------------------------------------------------------|---------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------|
| Due                within 1 year                                 | $  125,106                                                                  |   | $  300,253                                                                  |   | $  850,719                                                                  |
| After                1 year through 5 years                      |               0 |   |               0 |   |               0 |
|   Total                Amount Carried on Balance Sheet | $  125,106                                                                  |   | $  300,253                                                                  |   | $  850,719                                                                  |

|                    | 2007                      |   | 2006                      |
|-------------------------|---------------------------|--------|---------------------------|
| Series                2 | $   47,226 |   | $   50,534 |
| Series                3 | 33,635                    |   | 46,843                    |
| Series                4 | 49,603                    |   | 57,697                    |
| Series                5 | 67,009                    |   | 69,288                    |
| Series                6 |   75,929        |   |   75,848        |
|   Total       | $                273,402  |   | $                300,210  |

|                    | 2007                           |   | 2006                     |
|-------------------------|--------------------------------|--------|--------------------------|
| Series                2 | $   47,515      |   | $  46,694      |
| Series                3 | 39,540                         |   | 48,817                   |
| Series                4 | 54,798                         |   | 61,552                   |
| Series                5 | 70,820                         |   | 74,287                   |
| Series                6 |     81,190 |   |    78,532 |
|   Total       | $                293,863       |   | $                309,882 |

----

| NOTE                5 - INVESTMENTS IN PROJECT                PARTNERSHIPS:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| As                of December 31, 2007, Gateway had acquired a 99% interest in the                profits,                losses, and Tax Credits as a limited partner in Project Partnerships                (Series 2 - 18, Series 3 - 15, and Series 4 - 16) 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 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | December                31, |   |   | March                31, |   |   | December                31, |   |   | March                31, |   |   | December                31, |   |   | March                31, |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | 2007 |   |   | 2007 |   |   | 2007 |   |   | 2007 |   |   | 2007 |   |   | 2007 |   |
| Capital                Contributions to Project Partnerships                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| and                purchase price paid for limited partner                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| interests                in Project Partnerships                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | $ | 3,351,639 |   |   | $ | 4,524,678 |   |   | $ | 2,494,974 |   |   | $ | 2,866,874 |   |   | $ | 2,719,619 |   |   | $ | 4,273,215 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cumulative                equity in losses of Project                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Partnerships                (1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   | (3,497,278 | ) |   |   | (4,742,761 | ) |   |   | (2,675,808 | ) |   |   | (3,060,820 | ) |   |   | (2,893,641 | ) |   |   | (4,545,684 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cumulative                distributions received from                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Project                Partnerships                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   | (69,851 | ) |   |   | (87,605 | ) |   |   | (93,673 | ) |   |   | (116,035 | ) |   |   | (75,188 | ) |   |   | (96,180 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment                in Project Partnerships before                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Adjustment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   | (215,490 | ) |   |   | (305,688 | ) |   |   | (274,507 | ) |   |   | (309,981 | ) |   |   | (249,210 | ) |   |   | (368,649 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Excess                of investment cost over the underlying                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| assets                acquired:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Acquisition                fees and expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | 278,463 |   |   |   | 390,838 |   |   |   | 318,739 |   |   |   | 365,375 |   |   |   | 300,311 |   |   |   | 466,220 |   |
|   Accumulated                amortization of acquisition                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   fees                and expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   | (62,973 | ) |   |   | (85,150 | ) |   |   | (44,232 | ) |   |   | (55,394 | ) |   |   | (51,101 | ) |   |   | (97,571 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investments                in Project Partnerships                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (1)                In accordance with Gateway's accounting policy to not carry investments                in                Project Partnerships below zero, cumulative suspended losses of $4,616,298                in Series 2, $5,277,172 in Series 3, and $4,627,807 in Series 4 for                the                period ended December 31, 2007; and cumulative suspended losses of                $6,160,318 in Series 2, $5,412,602 in Series 3, and $5,924,461 in                Series 4                for the year ended March 31, 2007 are not included.                                |   |

----

| NOTE                5 - INVESTMENTS IN                PROJECT PARTNERSHIPS (continued):                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| As                of December 31, 2007, Gateway had acquired a 99% interest in the                profits,                losses, and Tax Credits as a limited partner in Project Partnerships                (Series 5 - 28 and Series 6 - 35) 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 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | December                31, |   |   | March                31, |   |   | December                31, |   |   | March                31, |   |   | December                31, |   |   | March                31, |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | 2007 |   |   | 2007 |   |   | 2007 |   |   | 2007 |   |   | 2007 |   |   | 2007 |   |
| Capital                Contributions to Project Partnerships                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| and                purchase price paid for limited partner                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| interests                in Project Partnerships                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | $ | 5,097,323 |   |   | $ | 6,010,273 |   |   | $ | 6,511,934 |   |   | $ | 7,250,034 |   |   | $ | 20,175,489 |   |   | $ | 24,925,074 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cumulative                equity in losses of Project                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Partnerships                (1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   | (5,306,596 | ) |   |   | (6,132,734 | ) |   |   | (6,722,162 | ) |   |   | (6,853,010 | ) |   |   | (21,095,485 | ) |   |   | (25,335,009 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cumulative                distributions received from                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Project                Partnerships                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   | (155,200 | ) |   |   | (204,351 | ) |   |   | (225,288 | ) |   |   | (226,728 | ) |   |   | (619,200 | ) |   |   | (730,899 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment                in Project Partnerships before                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Adjustment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   | (364,473 | ) |   |   | (326,812 | ) |   |   | (435,516 | ) |   |   | 170,296 |   |   |   | (1,539,196 | ) |   |   | (1,140,834 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Excess                of investment cost over the underlying                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| assets                acquired:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Acquisition                fees and expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | 531,092 |   |   |   | 632,419 |   |   |   | 667,412 |   |   |   | 768,912 |   |   |   | 2,096,017 |   |   |   | 2,623,764 |   |
|   Accumulated                amortization of acquisition                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   fees                and expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   | (138,873 | ) |   |   | (180,204 | ) |   |   | (199,643 | ) |   |   | (284,185 | ) |   |   | (496,822 | ) |   |   | (702,504 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Reserve                for Impairment of Investment in                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Project                Partnerships                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (446,244 | ) |   |   | - |   |   |   | (446,244 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investments                in Project Partnerships                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | $ | 27,746 |   |   | $ | 125,403 |   |   | $ | 32,253 |   |   | $ | 208,779 |   |   | $ | 59,999 |   |   | $ | 334,182 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (1)                In accordance with Gateway's accounting policy to not carry investments                in                Project Partnerships below zero, cumulative suspended losses of $6,731,067                in Series 5 and $5,064,998 in Series 6 for the period ended December                31,                2007; and cumulative suspended losses of $7,065,462 in Series 5 and                $4,856,648 in Series 6 for the year ended March 31, 2007 are not                included.                                                                                 |   |

----

| NOTE                5 - INVESTMENTS IN PROJECT PARTNERSHIPS                (continued):                                                                                                                                                                                                                                                                                                                                                                            |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |
| In                accordance with Gateway's policy of presenting the financial information                of the Project Partnerships on a three month lag, below is the summarized                balance sheets for the Project Partnerships of Series 2 and Series                3 as of                September 30 and the respective summarized statements of operations                for                the nine months ended September 30 of each year: |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | SERIES                2 |   |   | SERIES                3 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | 2007 |   |   | 2006 |   |   | 2007 |   |   | 2006 |   |
| SUMMARIZED                BALANCE SHEETS                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| Assets:                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|     Current                assets                                                                                                                                                                                                                                                                                                                                                                                                              |   | $ | 1,676,580 |   |   | $ | 2,308,986 |   |   | $ | 1,580,205 |   |   | $ | 2,949,137 |   |
|     Investment                properties, net                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | 10,127,587 |   |   |   | 14,338,758 |   |   |   | 5,707,761 |   |   |   | 11,318,072 |   |
|     Other                assets                                                                                                                                                                                                                                                                                                                                                                                                                |   |   | 22,670 |   |   |   | 7,974 |   |   |   | 40,484 |   |   |   | 157,201 |   |
|         Total                assets                                                                                                                                                                                                                                                                                                                                                                                        |   | $ | 11,826,837 |   |   | $ | 16,655,718 |   |   | $ | 7,328,450 |   |   | $ | 14,424,410 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities                and Partners' Deficit:                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Current                liabilities                                                                                                                                                                                                                                                                                                                                                                                                         |   | $ | 325,543 |   |   | $ | 401,955 |   |   | $ | 54,671 |   |   | $ | 306,973 |   |
|     Long-term                debt                                                                                                                                                                                                                                                                                                                                                                                                              |   |   | 16,501,560 |   |   |   | 22,653,237 |   |   |   | 12,924,278 |   |   |   | 21,307,645 |   |
|         Total                liabilities                                                                                                                                                                                                                                                                                                                                                                                   |   |   | 16,827,103 |   |   |   | 23,055,192 |   |   |   | 12,978,949 |   |   |   | 21,614,618 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Partners'                equity (deficit)                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Limited                Partner                                                                                                                                                                                                                                                                                                                                                                                                             |   |   | (4,890,824 | ) |   |   | (6,253,766 | ) |   |   | (5,821,303 | ) |   |   | (7,513,883 | ) |
|     General                Partners                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | (109,442 | ) |   |   | (145,708 | ) |   |   | 170,804 |   |   |   | 323,675 |   |
|         Total                partners' deficit                                                                                                                                                                                                                                                                                                                                                                             |   |   | (5,000,266 | ) |   |   | (6,399,474 | ) |   |   | (5,650,499 | ) |   |   | (7,190,208 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         Total                liabilities and partners' deficit                                                                                                                                                                                                                                                                                                                                                             |   | $ | 11,826,837 |   |   | $ | 16,655,718 |   |   | $ | 7,328,450 |   |   | $ | 14,424,410 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| SUMMARIZED                STATEMENTS OF OPERATIONS                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
| Rental                and other income                                                                                                                                                                                                                                                                                                                                                                                                                             |   | $ | 1,727,834 |   |   | $ | 2,286,419 |   |   | $ | 1,496,251 |   |   | $ | 2,289,044 |   |
| Expenses:                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Operating                expenses                                                                                                                                                                                                                                                                                                                                                                                                          |   |   | 1,103,382 |   |   |   | 1,496,231 |   |   |   | 957,597 |   |   |   | 1,469,140 |   |
|     Interest                expense                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | 279,608 |   |   |   | 390,487 |   |   |   | 197,635 |   |   |   | 332,766 |   |
|     Depreciation                and amortization                                                                                                                                                                                                                                                                                                                                                                                               |   |   | 490,794 |   |   |   | 656,607 |   |   |   | 483,147 |   |   |   | 718,768 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         Total                expenses                                                                                                                                                                                                                                                                                                                                                                                      |   |   | 1,873,784 |   |   |   | 2,543,325 |   |   |   | 1,638,379 |   |   |   | 2,520,674 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|             Net                loss                                                                                                                                                                                                                                                                                                                                                                    |   | $ | (145,950 | ) |   | $ | (256,906 | ) |   | $ | (142,128 | ) |   | $ | (231,630 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                partners' share of net loss                                                                                                                                                                                                                                                                                                                                                                                                                   |   | $ | (1,460 | ) |   | $ | (2,569 | ) |   | $ | (1,421 | ) |   | $ | (4,084 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gateway's                share of net loss                                                                                                                                                                                                                                                                                                                                                                                                                         |   | $ | (144,490 | ) |   | $ | (254,337 | ) |   | $ | (140,707 | ) |   | $ | (227,546 | ) |
| Suspended                losses                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | 144,490 |   |   |   | 254,337 |   |   |   | 140,707 |   |   |   | 227,546 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity                in Losses of Project Partnerships                                                                                                                                                                                                                                                                                                                                                                                                            |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |

----

| NOTE                5 - INVESTMENTS IN PROJECT PARTNERSHIPS                (continued):                                                                                                                                                                                                                                                                                                                                                                            |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |
| In                accordance with Gateway's policy of presenting the financial information                of the Project Partnerships on a three month lag, below is the summarized                balance sheets for the Project Partnerships of Series 4 and Series                5 as of                September 30 and the respective summarized statements of operations                for                the nine months ended September 30 of each year: |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | SERIES                4 |   |   | SERIES                5 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | 2007 |   |   | 2006 |   |   | 2007 |   |   | 2006 |   |
| SUMMARIZED                BALANCE SHEETS                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| Assets:                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|     Current                assets                                                                                                                                                                                                                                                                                                                                                                                                              |   | $ | 1,662,227 |   |   | $ | 2,663,110 |   |   | $ | 3,052,355 |   |   | $ | 3,630,313 |   |
|     Investment                properties, net                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | 8,058,821 |   |   |   | 18,385,908 |   |   |   | 16,014,784 |   |   |   | 20,801,657 |   |
|     Other                assets                                                                                                                                                                                                                                                                                                                                                                                                                |   |   | 41,564 |   |   |   | 40,878 |   |   |   | 8,809 |   |   |   | 7,470 |   |
|         Total                assets                                                                                                                                                                                                                                                                                                                                                                                        |   | $ | 9,762,612 |   |   | $ | 21,089,896 |   |   | $ | 19,075,948 |   |   | $ | 24,439,440 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities                and Partners' Deficit:                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Current                liabilities                                                                                                                                                                                                                                                                                                                                                                                                         |   | $ | 359,685 |   |   | $ | 802,431 |   |   | $ | 295,096 |   |   | $ | 583,922 |   |
|     Long-term                debt                                                                                                                                                                                                                                                                                                                                                                                                              |   |   | 14,375,925 |   |   |   | 26,077,954 |   |   |   | 26,184,820 |   |   |   | 31,249,137 |   |
|         Total                liabilities                                                                                                                                                                                                                                                                                                                                                                                   |   |   | 14,735,610 |   |   |   | 26,880,385 |   |   |   | 26,479,916 |   |   |   | 31,833,059 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Partners'                equity (deficit)                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Limited                Partner                                                                                                                                                                                                                                                                                                                                                                                                             |   |   | (4,948,124 | ) |   |   | (6,453,182 | ) |   |   | (7,125,690 | ) |   |   | (7,029,290 | ) |
|     General                Partners                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | (24,874 | ) |   |   | 662,693 |   |   |   | (278,278 | ) |   |   | (364,329 | ) |
|         Total                partners' deficit                                                                                                                                                                                                                                                                                                                                                                             |   |   | (4,972,998 | ) |   |   | (5,790,489 | ) |   |   | (7,403,968 | ) |   |   | (7,393,619 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         Total                liabilities and partners' deficit                                                                                                                                                                                                                                                                                                                                                             |   | $ | 9,762,612 |   |   | $ | 21,089,896 |   |   | $ | 19,075,948 |   |   | $ | 24,439,440 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| SUMMARIZED                STATEMENTS OF OPERATIONS                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
| Rental                and other income                                                                                                                                                                                                                                                                                                                                                                                                                             |   | $ | 1,601,604 |   |   | $ | 2,753,087 |   |   | $ | 2,911,745 |   |   | $ | 3,308,479 |   |
| Expenses:                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Operating                expenses                                                                                                                                                                                                                                                                                                                                                                                                          |   |   | 1,081,672 |   |   |   | 1,847,153 |   |   |   | 1,893,607 |   |   |   | 2,239,114 |   |
|     Interest                expense                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | 235,382 |   |   |   | 439,766 |   |   |   | 427,447 |   |   |   | 518,233 |   |
|     Depreciation                and amortization                                                                                                                                                                                                                                                                                                                                                                                               |   |   | 463,056 |   |   |   | 783,141 |   |   |   | 796,476 |   |   |   | 902,646 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         Total                expenses                                                                                                                                                                                                                                                                                                                                                                                      |   |   | 1,780,110 |   |   |   | 3,070,060 |   |   |   | 3,117,530 |   |   |   | 3,659,993 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|             Net                loss                                                                                                                                                                                                                                                                                                                                                                    |   | $ | (178,506 | ) |   | $ | (316,973 | ) |   | $ | (205,785 | ) |   | $ | (351,514 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                partners' share of net loss                                                                                                                                                                                                                                                                                                                                                                                                                   |   | $ | (1,919 | ) |   | $ | (3,903 | ) |   | $ | (2,058 | ) |   | $ | (3,516 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gateway's                share of net loss                                                                                                                                                                                                                                                                                                                                                                                                                         |   | $ | (176,587 | ) |   | $ | (313,070 | ) |   | $ | (203,727 | ) |   | $ | (347,998 | ) |
| Suspended                losses                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | 176,587 |   |   |   | 313,070 |   |   |   | 184,559 |   |   |   | 351,962 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity                in (Losses) Income of Project Partnerships                                                                                                                                                                                                                                                                                                                                                                                                   |   | $ | - |   |   | $ | - |   |   | $ | (19,168 | ) |   | $ | 3,964 |   |

----

| NOTE                5 - INVESTMENTS IN                PROJECT PARTNERSHIPS (continued):                                                                                                                                                                                                                                                                                                                                                                                      |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| In                accordance with Gateway's policy of presenting the financial information                of the Project Partnerships on a three month lag, below is the summarized                balance sheets for the Project Partnerships of Series 6 and Total                Series 2                - 6 as of September 30 and the respective summarized statements of                operations for the nine months ended September 30 of each                year: |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | SERIES                6 |   |   | TOTAL                SERIES 2 - 6 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | 2007 |   |   | 2006 |   |   | 2007 |   |   | 2006 |   |
| SUMMARIZED                BALANCE SHEETS                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Assets:                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
|     Current                assets                                                                                                                                                                                                                                                                                                                                                                                                                        |   | $ | 4,498,444 |   |   | $ | 4,561,108 |   |   | $ | 12,469,811 |   |   | $ | 16,112,654 |   |
|     Investment                properties, net                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | 22,950,672 |   |   |   | 24,373,437 |   |   |   | 62,859,625 |   |   |   | 89,217,832 |   |
|     Other                assets                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   | 65,389 |   |   |   | 13,420 |   |   |   | 178,916 |   |   |   | 226,943 |   |
|         Total                assets                                                                                                                                                                                                                                                                                                                                                                                                  |   | $ | 27,514,505 |   |   | $ | 28,947,965 |   |   | $ | 75,508,352 |   |   | $ | 105,557,429 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities                and Partners' Deficit:                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Current                liabilities                                                                                                                                                                                                                                                                                                                                                                                                                   |   | $ | 414,631 |   |   | $ | 467,439 |   |   | $ | 1,449,626 |   |   | $ | 2,562,720 |   |
|     Long-term                debt                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   | 33,309,712 |   |   |   | 33,511,342 |   |   |   | 103,296,295 |   |   |   | 134,799,315 |   |
|         Total                liabilities                                                                                                                                                                                                                                                                                                                                                                                             |   |   | 33,724,343 |   |   |   | 33,978,781 |   |   |   | 104,745,921 |   |   |   | 137,362,035 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Partners'                deficit                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Limited                Partner                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   | (5,643,647 | ) |   |   | (4,516,474 | ) |   |   | (28,429,588 | ) |   |   | (31,766,595 | ) |
|     General                Partners                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   | (566,191 | ) |   |   | (514,342 | ) |   |   | (807,981 | ) |   |   | (38,011 | ) |
|         Total                partners' deficit                                                                                                                                                                                                                                                                                                                                                                                       |   |   | (6,209,838 | ) |   |   | (5,030,816 | ) |   |   | (29,237,569 | ) |   |   | (31,804,606 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         Total                liabilities and partners' deficit                                                                                                                                                                                                                                                                                                                                                                       |   | $ | 27,514,505 |   |   | $ | 28,947,965 |   |   | $ | 75,508,352 |   |   | $ | 105,557,429 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| SUMMARIZED                STATEMENTS OF OPERATIONS                                                                                                                                                                                                                                                                                                                                                                                                                           |   |
| Rental                and other income                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | $ | 3,633,442 |   |   | $ | 3,555,038 |   |   | $ | 11,370,876 |   |   | $ | 14,192,067 |   |
| Expenses:                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Operating                expenses                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | 2,359,854 |   |   |   | 2,325,680 |   |   |   | 7,396,112 |   |   |   | 9,377,318 |   |
|     Interest                expense                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   | 522,574 |   |   |   | 556,844 |   |   |   | 1,662,646 |   |   |   | 2,238,096 |   |
|     Depreciation                and amortization                                                                                                                                                                                                                                                                                                                                                                                                         |   |   | 951,061 |   |   |   | 969,913 |   |   |   | 3,184,534 |   |   |   | 4,031,075 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         Total                expenses                                                                                                                                                                                                                                                                                                                                                                                                |   |   | 3,833,489 |   |   |   | 3,852,437 |   |   |   | 12,243,292 |   |   |   | 15,646,489 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|             Net                loss                                                                                                                                                                                                                                                                                                                                                                              |   | $ | (200,047 | ) |   | $ | (297,399 | ) |   | $ | (872,416 | ) |   | $ | (1,454,422 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                partners' share of net loss                                                                                                                                                                                                                                                                                                                                                                                                                             |   | $ | (3,433 | ) |   | $ | (3,443 | ) |   | $ | (10,291 | ) |   | $ | (17,515 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gateway's                share of net loss                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | $ | (196,614 | ) |   | $ | (293,956 | ) |   | $ | (862,125 | ) |   | $ | (1,436,907 | ) |
| Suspended                losses                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   | 208,350 |   |   |   | 306,517 |   |   |   | 854,693 |   |   |   | 1,453,432 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity                in Income (Losses) of Project Partnerships                                                                                                                                                                                                                                                                                                                                                                                                             |   | $ | 11,736 |   |   | $ | 12,561 |   |   | $ | (7,432 | ) |   | $ | 16,525 |   |

----

| TransactionMonth                    / Year | Project                    Partnership        | Net                    Proceeds          | Net                    ProceedsPer                    BAC | Gain                    (Loss)on                    Disposal |
|--------------------------------------------|-----------------------------------------------|------------------------------------------|-----------------------------------------------------------|--------------------------------------------------------------|
| October                    2007            | Inverness                    Club             |  $                     309,188 |     $                     50.39  |  $                     309,080                     |
| October                    2007            | Lakeshore                    Apartments       |    105,432                |       17.18                 |    105,324                                    |
| April                    2007              | Rolling                    Oaks II Apartments |      56,043     |         9.13      |      56,043                         |
| April                    2007              | Brookhaven                    Apartments      |    183,026                |       29.83                 |    182,807                                    |
|                                       |                                          |                                     |                                                      |                         $  653,254  |

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

| TransactionMonth                    / Year | Project                    Partnership           | Net                    Proceeds                 | Net                    ProceedsPer                    BAC | Gain                    (Loss)on                    Disposal                             | Deferred Gain                    on                    Disposal |
|--------------------------------------------|--------------------------------------------------|-------------------------------------------------|-----------------------------------------------------------|------------------------------------------------------------------------------------------|----------------------------------------------------------------------|
| December                    2007           | Sunchase                    II Apartments        |  $  73,000                       |     $                     13.38  |  $         -                      |  $  73,000                                            |
| December                    2007           | Logansport                    Seniors Apartments |        6,000 |         1.10      |        5,863                                          |  -                                                    |
| March                    2007              | Belmont                    Senior Apartments     |  -                               |  -                                         |      43,850                                                     |  -                                                    |
|                                       | Other,                    net (see below)        |  -                               |  -                                         |           185                     |  -                                                    |
|                                       |                                             |                                            |                                                      |     $ 49,898                                                    |                                                                 |

----

| TransactionMonth                    / Year | Project                    Partnership               | Net                    Proceeds                 | Net                    ProceedsPer                    BAC | Gain                    (Loss)on                    Disposal |
|--------------------------------------------|------------------------------------------------------|-------------------------------------------------|-----------------------------------------------------------|--------------------------------------------------------------|
| December                    2007           | Oaks                    Apartments                   |  $    6,000            |     $  0.87                 |  $    6,000                         |
| December                    2007           | Tarpon                    Heights Apartments         |      10,000            |         1.45      |      10,000                         |
| December                    2007           | Sonora                    Seniors Apartments         |        6,000 |         0.87      |        6,000              |
| December                    2007           | Fredericksburg                    Seniors Apartments |      10,000            |         1.45      |      10,000                         |
| December                    2007           | Ozona                    Seniors Apartments          |        4,000 |         0.58      |        4,000              |
| December                    2007           | Brackettville                    Seniors Apartments  |        6,000 |         0.87      |        6,000              |
| December                    2007           | Timpson                    Seniors Apartments        |        5,000 |         0.72      |        5,000              |
| November                    2007           | River                    Bend Apartments             |      99,700            |       14.42                 |      99,700                         |
| October                    2007            | Pine                    Crest II Apartments          |      63,379            |         9.17      |      63,218                         |
| March                    2007              | Edmonton                    Senior Apartments        | -                                          | -                                               |      38,350                         |
| March                    2007              | Owingsville                    Senior Apartments     | -                                          | -                                               |      45,850                    |
|                                       |                                                 |                                            |                                                      |    $                    294,118               |

| TransactionMonth                    / Year | Project                    Partnership                       | Net                    Proceeds      | Net                    ProceedsPer                    BAC | Gain                    (Loss)on                    Disposal |
|--------------------------------------------|--------------------------------------------------------------|--------------------------------------|-----------------------------------------------------------|--------------------------------------------------------------|
| November                    2007           | Villa                    Del Rio                             |  $  74,935            |     $  8.70                 |  $   (3,880)                             |
| October                    2007            | Pemberton                    Village II Apartments           |      53,560 |         6.22      |      53,560                         |
| October                    2007            | Magic                    Circle II Apartments                |      51,787 |         6.01      |      51,787                         |
| September                    2007          | Redmont                    II Apartments                     |      16,575 |         1.92      |      16,575                         |
| September                    2007          | Fox                    Ridge Apartments                      |      16,650 |         1.93      |      16,650                         |
| September                    2007          | Country                    Place Apartments II (Georgetown)  |      46,736 |         5.42      |      46,736                         |
| September                    2007          | Country                    Place Apartments II (Portland II) |      47,163 |         5.47      |      47,163                         |
|                                       |                                                         |                                 |                                                      |   $ 228,591                                   |

----

| TransactionMonth                    / Year | Project                    Partnership     | Net                    Proceeds      | Net                    ProceedsPer                    BAC | Gain                    (Loss)on                    Disposal |
|--------------------------------------------|--------------------------------------------|--------------------------------------|-----------------------------------------------------------|--------------------------------------------------------------|
| December                    2007           | Spring                    Woods Apartments |  $  39,837            |     $  3.94                 |  $                     (11,271)                    |
| August                    2007             | Autumn                    Place Apartments |      60,837 |         5.99      |     (64,800)                             |
|                                       |                                       |                                 |                                                      |   $  (76,071)                            |

|   | The                    net proceeds from the sale of Autumn Place Apartments were distributed                    to                    the Series 6 Assignees in November 2007. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| TransactionMonth                    / Year | Project                    Partnership             | Net                    Proceeds      | Net                    ProceedsPer                    BAC | Gain                    (Loss)on                    Disposal                                               | Deferred                    Gain                    on                    Disposal |
|--------------------------------------------|----------------------------------------------------|--------------------------------------|-----------------------------------------------------------|------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------|
| March                    2007              | Belmont                    Senior Apartments       |  $  43,850            |    $                      8.04   |  $           -                       |  $  43,850                                                          |
| January                    2007            | Southwood                    Apartments            |      42,652 |        7.82            |      42,652                                                                       |                                                                               |
| January                    2007            | Plaza                    Senior Village Apartments |      82,145 |      15.06                       |      82,145                                                                       |                                                                               |
| January                    2007            | Brubaker                    Square Apartments      |    115,009            |      21.08                       |    115,009                                                                                  |                                                                               |
| January                    2007            | Villa                    Allegra Apartments        |      73,408 |      13.45                       |      73,408                                                                       |                                                                               |
| November                    2006           | Birchwood                    Apartments            |      99,410 |      18.25                       |      99,410                                                                       |                                                                               |
|                                       |                                               |                                 |                                                      |    $                    412,624                                                             |                                                                               |

| TransactionMonth                    / Year | Project                    Partnership           | Net                    Proceeds      | Net                    ProceedsPer                    BAC | Gain                    (Loss)on                    Disposal                                                          | Deferred                    Gain                    on                    Disposal |
|--------------------------------------------|--------------------------------------------------|--------------------------------------|-----------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------|
| March                    2007              | Edmonton                    Senior Apartments    |  $  38,350            |    $                      5.55   |  $         -                                              |  $                      38,350                                      |
| March                    2007              | Owingsville                    Senior Apartments |      45,850 |        6.63            |               -                       |      45,850                                               |
| January                    2007            | Alsace                    Village Apartments     |      23,370 |        3.38            |      23,370                                                                                  |  -                                                                  |
| January                    2007            | Greenbriar                    Apartments         |      39,370 |        5.69            |      39,370                                                                                  |  -                                                                  |
|                                       |                                             |                                 |                                                      |     $                     62,740                                                             |                                                                               |

----

----

----

----

| TransactionMonth                  / Year | Project                  Partnership        | Net                  Proceeds          | Net                  ProceedsPer                  BAC  | Gain                  (Loss)on                  Disposal  |
|------------------------------------------|---------------------------------------------|----------------------------------------|--------------------------------------------------------|-----------------------------------------------------------|
| October                  2007            | Inverness                  Club             |  $                   309,188 |     $                   50.39 |  $                   309,080                    |
| October                  2007            | Lakeshore                  Apartments       |    105,432              |       17.18              |    105,324                                 |
| April                  2007              | Rolling                  Oaks II Apartments |      56,043   |         9.13   |      56,043                      |
| April                  2007              | Brookhaven                  Apartments      |    183,026              |       29.83              |    182,807                                 |
|                                     |                                        |                                   |                                                   |                       $  653,254 |

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

----

| TransactionMonth                  / Year | Project                  Partnership           | Net                  Proceeds                   | Net                  ProceedsPer                  BAC  | Gain                  (Loss)on                  Disposal                               | Deferred                  Gain                  on                  Disposal |
|------------------------------------------|------------------------------------------------|-------------------------------------------------|--------------------------------------------------------|----------------------------------------------------------------------------------------|------------------------------------------------------------------------------|
| December                  2007           | Sunchase                  II Apartments        |  $  73,000                       |     $                   13.38 |  $         -                    |  $  73,000                                                    |
| December                  2007           | Logansport                  Seniors Apartments |        6,000 |         1.10   |        5,863                                        |  -                                                            |
| March                  2007              | Belmont                  Senior Apartments     |  -                               |  -                                      |      43,850                                                   |  -                                                            |
|                                     | Other,                  net (see below)        |  -                               |  -                                      |           185                   |  -                                                            |
|                                     |                                           |                                            |                                                   |     $ 49,898                                                  |                                                                         |

| TransactionMonth                  / Year | Project                  Partnership               | Net                  Proceeds                   | Net                  ProceedsPer                  BAC | Gain                  (Loss)on                  Disposal |
|------------------------------------------|----------------------------------------------------|-------------------------------------------------|-------------------------------------------------------|----------------------------------------------------------|
| December                  2007           | Oaks                  Apartments                   |  $    6,000            |     $  0.87             |  $    6,000                     |
| December                  2007           | Tarpon                  Heights Apartments         |      10,000            |         1.45  |      10,000                     |
| December                  2007           | Sonora                  Seniors Apartments         |        6,000 |         0.87  |        6,000          |
| December                  2007           | Fredericksburg                  Seniors Apartments |      10,000            |         1.45  |      10,000                     |
| December                  2007           | Ozona                  Seniors Apartments          |        4,000 |         0.58  |        4,000          |
| December                  2007           | Brackettville                  Seniors Apartments  |        6,000 |         0.87  |        6,000          |
| December                  2007           | Timpson                  Seniors Apartments        |        5,000 |         0.72  |        5,000          |
| November                  2007           | River                  Bend Apartments             |      99,700            |       14.42             |      99,700                     |
| October                  2007            | Pine                  Crest II Apartments          |      63,379            |         9.17  |      63,218                     |
| March                  2007              | Edmonton                  Senior Apartments        | -                                          | -                                           |      38,350                     |
| March                  2007              | Owingsville                  Senior Apartments     | -                                          | -                                           |      45,850                |
|                                     |                                               |                                            |                                                  |    $                  294,118             |

| TransactionMonth                      / Year | Project                      Partnership                       | Net                      Proceeds    | Net                      ProceedsPer                      BAC | Gain                      (Loss)on                      Disposal |
|----------------------------------------------|----------------------------------------------------------------|--------------------------------------|---------------------------------------------------------------|------------------------------------------------------------------|
| November                      2007           | Villa                      Del Rio                             |  $  74,935            |     $  8.70                     |  $   (3,880)                                 |
| October                      2007            | Pemberton                      Village II Apartments           |      53,560 |         6.22          |      53,560                             |
| October                      2007            | Magic                      Circle II Apartments                |      51,787 |         6.01          |      51,787                             |
| September                      2007          | Redmont                      II Apartments                     |      16,575 |         1.92          |      16,575                             |
| September                      2007          | Fox                      Ridge Apartments                      |      16,650 |         1.93          |      16,650                             |
| September                      2007          | Country                      Place Apartments II (Georgetown)  |      46,736 |         5.42          |      46,736                             |
| September                      2007          | Country                      Place Apartments II (Portland II) |      47,163 |         5.47          |      47,163                             |
|                                         |                                                           |                                 |                                                          |   $ 228,591                                       |

----

| TransactionMonth                      / Year | Project                      Partnership     | Net                      Proceeds    | Net                      ProceedsPer                      BAC | Gain                      (Loss)on                      Disposal |
|----------------------------------------------|----------------------------------------------|--------------------------------------|---------------------------------------------------------------|------------------------------------------------------------------|
| December                      2007           | Spring                      Woods Apartments |  $  39,837            |     $  3.94                     |  $                       (11,271)                      |
| August                      2007             | Autumn                      Place Apartments |      60,837 |         5.99          |     (64,800)                                 |
|                                         |                                         |                                 |                                                          |   $  (76,071)                                |

|   | The                      net proceeds from the sale of Autumn Place Apartments were                      distributed to                      the Series 6 Assignees in November 2007. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| TransactionMonth                        / Year | Project                        Partnership             | Net                        Proceeds  | Net                        ProceedsPer                        BAC | Gain                        (Loss)on                        Disposal                                           | Deferred                        Gain                        on                        Disposal |
|------------------------------------------------|--------------------------------------------------------|--------------------------------------|-------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------|
| March                        2007              | Belmont                        Senior Apartments       |  $  43,850            |    $                          8.04       |  $           -                           |  $  43,850                                                                      |
| January                        2007            | Southwood                        Apartments            |      42,652 |        7.82                    |      42,652                                                                           |                                                                                           |
| January                        2007            | Plaza                        Senior Village Apartments |      82,145 |      15.06                               |      82,145                                                                           |                                                                                           |
| January                        2007            | Brubaker                        Square Apartments      |    115,009            |      21.08                               |    115,009                                                                                      |                                                                                           |
| January                        2007            | Villa                        Allegra Apartments        |      73,408 |      13.45                               |      73,408                                                                           |                                                                                           |
| November                        2006           | Birchwood                        Apartments            |      99,410 |      18.25                               |      99,410                                                                           |                                                                                           |
|                                           |                                                   |                                 |                                                              |    $                        412,624                                                             |                                                                                           |

| TransactionMonth                        / Year | Project                        Partnership           | Net                        Proceeds  | Net                        ProceedsPer                        BAC | Gain                        (Loss)on                        Disposal                                                      | Deferred                        Gain                        on                        Disposal |
|------------------------------------------------|------------------------------------------------------|--------------------------------------|-------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------|
| March                        2007              | Edmonton                        Senior Apartments    |  $  38,350            |    $                          5.55       |  $         -                                                  |  $                          38,350                                              |
| March                        2007              | Owingsville                        Senior Apartments |      45,850 |        6.63                    |               -                           |      45,850                                                           |
| January                        2007            | Alsace                        Village Apartments     |      23,370 |        3.38                    |      23,370                                                                                      |  -                                                                              |
| January                        2007            | Greenbriar                        Apartments         |      39,370 |        5.69                    |      39,370                                                                                      |  -                                                                              |
|                                           |                                                 |                                 |                                                              |     $                         62,740                                                             |                                                                                           |

----

| Ashland                Estates |   |
|--------------------------------|--------|

| Countrywood                Apartments | Wildwood                Apartments |
|---------------------------------------|------------------------------------|

----

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

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

----

----

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

| Date:February                14,                2008 |   | By:/s/                Ronald M.                Diner |
|------------------------------------------------------|--------|------------------------------------------------------|
|                                                 |   | Ronald                M. Diner                       |
|                                                 |   | President,                Director                   |

| Date:February                14,                2008 |   | By:/s/                Jonathan                Oorlog                     |
|------------------------------------------------------|--------|--------------------------------------------------------------------------|
|                                                 |   | Jonathan                Oorlog                                           |
|                                                 |   | Vice                President and Chief Financial                Officer |

| Date:February                14,                2008 |   | By:/s/                Sandra C.                Humphreys |
|------------------------------------------------------|--------|----------------------------------------------------------|
|                                                 |   | Sandra                C. Humphreys                       |
|                                                 |   | Secretary                and Treasurer                   |

----