UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC  20549

FORM 10-Q

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

For the quarterly period ended September 30, 2006OR

[ ]   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
      ACT OF 1934

For the transition period from __________ to ___________

Commission File Number:  0-19022

Gateway Tax Credit Fund II Ltd.                                Exact name of Registrant as specified in its charter)Florida                                       65-0142704

(State or other jurisdiction of                   (IRS Employer No.)
      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) 567-1000Indicate by check mark whether the Registrant: (1) has filed all reports 
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
                                           YES X     NO 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer.  See definition of "accelerated filer and large accelerated filer" in Rule 12b-2 of the Exchange Act.
Large accelerated filer [ ]   Accelerated filer [ ]   Non-accelerated filer [X]
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  [ ]    No  [X]

---

PART I - Financial Information

Item 1.  Financial Statements:

GATEWAY TAX CREDIT FUND II LTD.(A Florida Limited Partnership)BALANCE SHEETS

|SERIES 2                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | September 30,
2006
---------
(Unaudited)                                                                                                                                                                                          | March 31,
2006
----------
(Audited)                                                                                                                                                                                                
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ASSETS
Current Assets:
 Cash and Cash Equivalents
 Investments in Securities
    Total Current Assets
 Investments in Project Partnerships, Net
    Total Assets
LIABILITIES AND PARTNERS' EQUITY (Deficit)
Current Liabilities:
 Payable to General Partners
 Other Payable
    Total Current Liabilities
Long-Term Liabilities:
 Payable to General Partners
Partners' Equity (Deficit):
Assignor Limited Partner
 Units of limited partnership interest consisting of 40,000 authorized BAC's, of which 6,136 at September 30, 2006 and March 31, 2006 have been issued to the assignees
Assignees
 Units of beneficial interest of the limited partnership interest of the assignor limited partner, $1,000 stated value per BAC, 6,136 at September 30, 2006 and March 31, 2006, issued and outstanding
General Partners
  Total Partners' (Deficit)
    Total Liabilities and Partners'     (Deficit) | $  151,735 
126,583 
-----------
278,318 
0 
-----------
$  278,318 
===========
$   49,155 
0 
-----------
49,155 
-----------
632,942 
-----------
(345,942)
(57,837)
-----------
(403,779)
-----------
$  278,318 
=========== | $  250,529 
66,276 
-----------
316,805 
0 
-----------$  316,805 
===========
$   48,304 
8,030 
-----------
56,334 
-----------
599,253 
-----------
(281,595)
(57,187)
-----------
(338,782)
-----------
$  316,805 
===========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND II LTD.(A Florida Limited Partnership)BALANCE SHEETS

|SERIES 3                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | September 30,
2006
---------
(Unaudited)                                                                                                                                                                                          | March 31,
2006
----------
(Audited)                                                                                                                                                                                                 
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ASSETS
Current Assets:
 Cash and Cash Equivalents
 Investments in Securities
  Total Current Assets
 Investments in Project Partnerships, Net
    Total Assets
LIABILITIES AND PARTNERS' EQUITY (Deficit)
Current Liabilities:
 Payable to General Partners
 Other Payable
  Total Current Liabilities
Long-Term Liabilities:
 Payable to General Partners
Partners' Equity (Deficit):
Assignor Limited Partner
 Units of limited partnership interest consisting of 40,000 authorized BAC's, of which 5,456 at September 30, 2006 and March 31, 2006 have been issued to the assignees
Assignees
 Units of beneficial interest of the limited partnership interest of the assignor limited partner, $1,000 stated value per BAC, 5,456 at September 30, 2006 and March 31, 2006, issued and outstanding
General Partners
  Total Partners' (Deficit)
    Total Liabilities and Partners'     (Deficit) | $  134,240 
126,583 
-----------
260,823 
0 
-----------
$  260,823 
===========
$   51,958 
0 
-----------
51,958 
-----------
524,384 
-----------
(264,549)
(50,970)
-----------
(315,519)
-----------
$  260,823 
=========== | $  236,035 
58,952 
-----------
294,987 
0 
-----------
$  294,987 
===========
$   52,905 
7,300 
-----------
60,205 
-----------
493,156 
-----------
(207,975)
(50,399)
-----------
(258,374)
-----------
$  294,987 
===========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND II LTD.(A Florida Limited Partnership)BALANCE SHEETS

|SERIES 4                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | September 30,
2006
---------
(Unaudited)                                                                                                                                                                                          | March 31,
2006
----------
(Audited)                                                                                                                                                                                                 
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ASSETS
Current Assets:
 Cash and Cash Equivalents
 Investments in Securities
  Total Current Assets
 Investments in Project Partnerships, Net
    Total Assets
LIABILITIES AND PARTNERS' EQUITY (Deficit)
Current Liabilities:
 Payable to General Partners
 Other Payable
  Total Current Liabilities
Long-Term Liabilities:
 Payable to General Partners
Partners' Equity (Deficit):
Assignor Limited Partner
 Units of limited partnership interest consisting of 40,000 authorized BAC's, of which 6,915 at September 30, 2006 and March 31, 2006 have been issued to the assignees
Assignees
 Units of beneficial interest of the limited partnership interest of the assignor limited partner, $1,000 stated value per BAC, 6,915 at September 30, 2006 and  March 31, 2006, issued and outstanding
General Partners
  Total Partners' (Deficit)
    Total Liabilities and Partners'     (Deficit) | $  177,519 
177,414 
-----------
354,933 
0 
-----------
$  354,933 
===========
$   58,095 
0 
-----------
58,095 
-----------
685,902 
-----------
(324,518)
(64,546)
-----------
(389,064)
-----------
$  354,933 
=========== | $  322,204 
74,685 
-----------
396,889 
0 
-----------
$  396,889 
===========
$   59,221 
8,030 
-----------
67,251 
-----------
647,438 
-----------
(253,967)
(63,833)
-----------
(317,800)
-----------
$  396,889 
===========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND II LTD.(A Florida Limited Partnership)BALANCE SHEETS

|SERIES 5                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | September 30,
2006
---------
(Unaudited)                                                                                                                                                                                                  | March 31,
2006
----------
(Audited)                                                                                                                                                                                                         
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ASSETS
Current Assets:
 Cash and Cash Equivalents
 Accounts Receivable - Other
 Investments in Securities
  Total Current Assets
 Investments in Project Partnerships, Net
    Total Assets
LIABILITIES AND PARTNERS' EQUITY (Deficit)
Current Liabilities:
 Payable to General Partners
 Other Payable
  Total Current Liabilities
Long-Term Liabilities:
 Payable to General Partners
Partners' Equity (Deficit):
Assignor Limited Partner
 Units of limited partnership interest consisting of 40,000 authorized BAC's, of which 8,616 at September 30, 2006 and March 31, 2006 have been issued to the assignees
Assignees
 Units of beneficial interest of the limited partnership interest of the assignor limited partner, $1,000 stated value per BAC, 8,616 at September 30, 2006 and March 31, 2006, issued and outstanding
General Partners
  Total Partners' Equity (Deficit)
    Total Liabilities and Partners' Equity     (Deficit) | $  215,980 
0 
100,669 
-----------
316,649 
139,633 
-----------
$  456,282 
===========
$   76,209 
0 
-----------
76,209 
-----------
557,769 
-----------
(174,680)
(3,016)
-----------
(177,696)
-----------
$  456,282 
=========== | $  262,439 
912 
93,086 
-----------
356,437 
151,630 
-----------
$  508,067 
===========
$   77,770 
3,650 
-----------
81,420 
-----------
511,577 
-----------
(82,842)
(2,088)
-----------
(84,930)
-----------
$  508,067 
===========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND II LTD.(A Florida Limited Partnership)BALANCE SHEETS

|SERIES 6                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | September 30,
2006
---------
(Unaudited)                                                                                                                                                                                            | March 31,
2006
----------
(Audited)                                                                                                                                                                                        
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ASSETS
Current Assets:
 Cash and Cash Equivalents
 Investments in Securities
  Total Current Assets
 Investments in Project Partnerships, Net
    Total Assets
LIABILITIES AND PARTNERS' EQUITY (Deficit)
Current Liabilities:
 Payable to General Partners
 Distribution Payable
  Total Current Liabilities
Long-Term Liabilities:
 Payable to General Partners
Partners' Equity (Deficit):
Assignor Limited Partner
 Units of limited partnership interest consisting of 40,000 authorized BAC's, of which 10,105 at September 30, 2006 and March 31, 2006 have been issued to the assignees
Assignees
 Units of beneficial interest of the limited partnership interest of the assignor limited partner, $1,000 stated value per BAC, 10,105 at September 30, 2006 and March 31, 2006, issued and outstanding
General Partners
  Total Partners' Equity (Deficit)
    Total Liabilities and Partners' Equity     (Deficit) | $  150,270 
359,406 
-----------
509,676 
363,025 
-----------
$  872,701 
===========
$   72,778 
46 
-----------
72,824 
-----------
888,621 
-----------
(87,835)
(909)
-----------
(88,744)
-----------
$  872,701 
=========== | $  463,580 
78,370 
-----------
541,950 
372,285 
-----------
$  914,235 
===========
$   73,971 
46 
-----------
74,017 
-----------
838,056 
-----------
2,162 
0 
-----------
2,162 
-----------
$  914,235 
===========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND II LTD.(A Florida Limited Partnership)BALANCE SHEETS

|TOTAL SERIES 2 - 6                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | September 30,
2006
---------
(Unaudited)                                                                                                                                                                                                                 | March 31,
2006
----------
(Audited)                                                                                                                                                                                                                        
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ASSETS
Current Assets:
 Cash and Cash Equivalents
 Accounts Receivable - Other
 Investments in Securities
  Total Current Assets
 Investments in Project Partnerships, Net
    Total Assets
LIABILITIES AND PARTNERS' EQUITY (Deficit)
Current Liabilities:
 Payable to General Partners
 Distribution Payable
 Other Payable
  Total Current Liabilities
Long-Term Liabilities:
 Payable to General Partners
Partners' Equity (Deficit):
Assignor Limited Partner
 Units of limited partnership interest consisting of 40,000 authorized BAC's, of which 37,228 at September 30, 2006 and March 31, 2006 have been issued to the assignees
Assignees
 Units of beneficial interest of the limited partnership interest of the assignor limited partner, $1,000 stated value per BAC, 37,228 at September 30, 2006 and  March 31, 2006, issued and outstanding
General Partners
  Total Partners' Equity (Deficit)
    Total Liabilities and Partners' Equity     (Deficit) | $  829,744 
0 
890,655 
-----------
1,720,399 
502,658 
-----------
$2,223,057 
===========
$  308,195 
46 
0 
-----------
308,241 
-----------
3,289,618 
-----------
(1,197,524)
(177,278)
-----------
(1,374,802)
-----------
$2,223,057 
=========== | $1,534,787 
912 
371,369 
-----------
1,907,068 
523,915 
-----------
$2,430,983 
===========
$  312,171 
46 
27,010 
-----------
339,227 
-----------
3,089,480 
-----------
(824,217)
(173,507)
-----------
(997,724)
-----------
$2,430,983 
===========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND II LTD.(A Florida Limited Partnership)STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30,(Unaudited)

|SERIES 2                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | 2006
----                                                                                                                                                                                                                                                     | 2005
----                                                                                                                                                                                                                                                           
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Distribution Income
  Total Revenues
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Losses of
 Project Partnerships and Other Income
Equity in Losses of Project Partnerships
 Interest Income
Net Loss
Allocation of Net Loss:
 Assignees
 General Partners
Net Loss Per Beneficial
Assignee Certificate
Number of Beneficial Assignee
Certificates Outstanding | $    1,237 
-----------
1,237 
-----------
16,845 
22,350 
10,085 
0 
-----------
49,280 
-----------
(48,043)
0 
4,323 
-----------
$  (43,720)
===========
$  (43,283)
(437)
-----------
$  (43,720)
===========
$    (7.05)
===========
6,136 
=========== | $    1,237 
-----------
1,237 
-----------
16,902 
11,903 
10,270 
174 
-----------
39,249 
-----------
(38,012)
(4,694)
3,312 
-----------
$  (39,394)
===========
$  (39,000)
(394)
-----------
$  (39,394)
===========
$    (6.36)
===========
6,136 
===========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND II LTD.(A Florida Limited Partnership)STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30,
(Unaudited)

|SERIES 3                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 2006
----                                                                                                                                                                                                                                               | 2005
----                                                                                                                                                                                                                                                 
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Distribution Income
  Total Revenues
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
  Total Expenses
Loss Before Equity in Losses of
 Project Partnerships and Other Income
Equity in Losses of Project Partnerships
 Interest Income
Net Loss
Allocation of Net Loss:
 Assignees
 General Partners
Net Loss Per Beneficial
Assignee Certificate
Number of Beneficial Assignee
Certificates Outstanding | $      874 
-----------
874 
-----------
15,614 
18,520 
9,195 
-----------
43,329 
-----------
(42,455)
0 
3,170 
-----------
$  (39,285)
===========
$  (38,892)
(393)
-----------
$  (39,285)
===========
$    (7.13)
===========
5,456 
=========== | $    4,618 
-----------
4,618 
-----------
15,679 
12,444 
12,717 
-----------
40,840 
-----------
(36,222)
0 
3,105 
-----------
$  (33,117)
===========
$  (32,786)
(331)
-----------
$  (33,117)
===========
$    (6.01)
===========
5,456 
===========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND II LTD.(A Florida Limited Partnership)STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30,(Unaudited)

|SERIES 4                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 2006
----                                                                                                                                                                                                                                                  | 2005
----                                                                                                                                                                                                                                                 
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Distribution Income
  Total Revenues
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
  Total Expenses
Loss Before Equity in Losses of
 Project Partnerships and Other Income
Equity in Losses of Project Partnerships
 Interest Income
Net Loss
Allocation of Net Loss:
 Assignees
 General Partners
Net Loss Per Beneficial Assignee
Certificate
Number of Beneficial Assignee
Certificates Outstanding | $    7,370 
-----------
7,370 
-----------
19,232 
23,350 
10,609 
-----------
53,191 
-----------
(45,821)
0 
4,285 
-----------
$  (41,536)
===========
$  (41,121)
(415)
-----------
$  (41,536)
===========
$    (5.95)
===========
6,915 
=========== | $    7,587 
-----------
7,587 
-----------
20,551 
15,690 
12,075 
-----------
48,316 
-----------
(40,729)
0 
4,053 
-----------
$  (36,676)
===========
$  (36,309)
(367)
-----------
$  (36,676)
===========
$    (5.25)
===========
6,915 
===========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND II LTD.(A Florida Limited Partnership)STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30,(Unaudited)

|SERIES 5                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | 2006
----                                                                                                                                                                                                                                                           | 2005
----                                                                                                                                                                                                                                                        
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Distribution Income
  Total Revenues
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Income of
 Project Partnerships and Other Income
Equity in Income of Project Partnerships
 Interest Income
Net Loss
Allocation of Net Loss:
 Assignees
 General Partners
Net Loss Per Beneficial Assignee
Certificate
Number of Beneficial Assignee
Certificates Outstanding | $    6,528 
-----------
6,528 
-----------
23,096 
28,181 
11,464 
3,859 
-----------
66,600 
-----------
(60,072)
828 
3,727 
-----------
$  (55,517)
===========
$  (54,962)
(555)
-----------
$  (55,517)
===========
$    (6.38)
===========
8,616 
=========== | $    4,805 
-----------
4,805 
-----------
23,180 
19,478 
11,784 
501 
-----------
54,943 
-----------
(50,138)
672 
4,560 
-----------
$  (44,906)
===========
$  (44,457)
(449)
-----------
$  (44,906)
===========
$    (5.16)
===========
8,616 
===========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND II LTD.(A Florida Limited Partnership)STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30,(Unaudited)

|SERIES 6                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | 2006
----                                                                                                                                                                                                                                                               | 2005
----                                                                                                                                                                                                                                                            
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Distribution Income
  Total Revenues
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Income of
 Project Partnerships and Other Income
Equity in Income of Project Partnerships
 Interest Income
Net Loss
Allocation of Net Loss:
 Assignees
 General Partners
Net Loss Per Beneficial Assignee
Certificate
Number of Beneficial Assignee
Certificates Outstanding | $    7,628 
-----------
7,628 
-----------
25,278 
29,792 
13,826 
9,513 
-----------
78,409 
-----------
(70,781)
13,820 
7,026 
-----------
$  (49,935)
===========
$  (49,436)
(499)
-----------
$  (49,935)
===========
$    (4.89)
===========
10,105 
=========== | $    4,677 
-----------
4,677 
-----------
26,127 
20,560 
9,138 
1,241 
-----------
57,066 
-----------
(52,389)
1,803 
6,931 
-----------
$  (43,655)
===========
$  (43,219)
(436)
-----------
$  (43,655)
===========
$    (4.28)
===========
10,105 
===========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND II LTD.(A Florida Limited Partnership)STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30,
(Unaudited)

|TOTAL SERIES 2 - 6                                                                                                                                                                                                                                                                                                                                                                                      | 2006
----                                                                                                                                                                                                                            | 2005
----                                                                                                                                                                                                                         
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Distribution Income
  Total Revenues
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Income (Losses) of
 Project Partnerships and Other Income
Equity in Income (Losses) of Project  Partnerships
 Interest Income
Net Loss
Allocation of Net Loss:
 Assignees
 General Partners | $   23,637 
-----------
23,637 
-----------
100,065 
122,193 
55,179 
13,372 
-----------
290,809 
-----------
(267,172)
14,648 
22,531 
-----------
$ (229,993)
===========
$ (227,694)
(2,299)
-----------
$ (229,993)
=========== | $   22,924 
-----------
22,924 
-----------
102,439 
80,075 
55,984 
1,916 
-----------
240,414 
-----------
(217,490)
(2,219)
21,961 
-----------
$ (197,748)
===========
$ (195,771)
(1,977)
-----------
$ (197,748)
===========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND II LTD.(A Florida Limited Partnership)STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED SEPTEMBER 30,(Unaudited)

|SERIES 2                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | 2006
----                                                                                                                                                                                                                                                     | 2005
----                                                                                                                                                                                                                                                            
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Distribution Income
  Total Revenues
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Losses of
 Project Partnerships and Other Income
Equity in Losses of Project Partnerships
 Interest Income
Net Loss
Allocation of Net Loss:
 Assignees
 General Partners
Net Loss Per Beneficial
Assignee Certificate
Number of Beneficial Assignee
Certificates Outstanding | $    3,793 
-----------
3,793 
-----------
33,690 
31,217 
11,431 
0 
-----------
76,338 
-----------
(72,545)
0 
7,548 
-----------
$  (64,997)
===========
$  (64,347)
(650)
-----------
$  (64,997)
===========
$   (10.49)
===========
6,136 
=========== | $    3,487 
-----------
3,487 
-----------
33,804 
22,002 
13,190 
351 
-----------
69,347 
-----------
(65,860)
(13,112)
5,977 
-----------
$  (72,995)
===========
$  (72,265)
(730)
-----------
$  (72,995)
===========
$   (11.78)
===========
6,136 
===========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND II LTD.(A Florida Limited Partnership)STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED SEPTEMBER 30,
(Unaudited)

|SERIES 3                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 2006
----                                                                                                                                                                                                                                                   | 2005
----                                                                                                                                                                                                                                                  
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Distribution Income
  Total Revenues
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
  Total Expenses
Loss Before Equity in Losses of
 Project Partnerships and Other Income
Equity in Losses of Project Partnerships
 Interest Income
Net Loss
Allocation of Net Loss:
 Assignees
 General Partners
Net Loss Per Beneficial
Assignee Certificate
Number of Beneficial Assignee
Certificates Outstanding | $   11,814 
-----------
11,814 
-----------
31,229 
32,637 
11,323 
-----------
75,189 
-----------
(63,375)
0 
6,230 
-----------
$  (57,145)
===========
$  (56,574)
(571)
-----------
$  (57,145)
===========
$   (10.37)
===========
5,456 
=========== | $   17,016 
-----------
17,016 
-----------
31,358 
23,002 
15,609 
-----------
69,969 
-----------
(52,953)
0 
5,553 
-----------
$  (47,400)
===========
$  (46,926)
(474)
-----------
$  (47,400)
===========
$    (8.60)
===========
5,456 
===========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND II LTD.(A Florida Limited Partnership)STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED SEPTEMBER 30,(Unaudited)

|SERIES 4                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 2006
----                                                                                                                                                                                                                                                   | 2005
----                                                                                                                                                                                                                                                  
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Distribution Income
  Total Revenues
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
  Total Expenses
Loss Before Equity in Losses of
 Project Partnerships and Other Income
Equity in Losses of Project Partnerships
 Interest Income
Net Loss
Allocation of Net Loss:
 Assignees
 General Partners
Net Loss Per Beneficial Assignee
Certificate
Number of Beneficial Assignee
Certificates Outstanding | $   13,347 
-----------
13,347 
-----------
38,464 
41,150 
13,347 
-----------
92,961 
-----------
(79,614)
0 
8,350 
-----------
$  (71,264)
===========
$  (70,551)
(713)
-----------
$  (71,264)
===========
$   (10.20)
===========
6,915 
=========== | $   12,700 
-----------
12,700 
-----------
38,602 
29,002 
15,759 
-----------
83,363 
-----------
(70,663)
0 
7,280 
-----------
$  (63,383)
===========
$  (62,749)
(634)
-----------
$  (63,383)
===========
$    (9.07)
===========
6,915 
===========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND II LTD.(A Florida Limited Partnership)STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED SEPTEMBER 30,(Unaudited)

|SERIES 5                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | 2006
----                                                                                                                                                                                                                                                                | 2005
----                                                                                                                                                                                                                                                              
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Distribution Income
  Total Revenues
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Losses of
 Project Partnerships and Other Income
Equity in Losses of Project Partnerships
 Interest Income
Net Loss
Allocation of Net Loss:
 Assignees
 General Partners
Net Loss Per Beneficial Assignee
Certificate
Number of Beneficial Assignee
Certificates Outstanding | $   19,028 
-----------
19,028 
-----------
46,192 
49,664 
13,080 
7,718 
-----------
116,654 
-----------
(97,626)
(2,537)
7,397 
-----------
$  (92,766)
===========
$  (91,838)
(928)
-----------
$  (92,766)
===========
$   (10.66)
===========
8,616 
=========== | $   15,981 
-----------
15,981 
-----------
46,360 
36,003 
16,154 
1,002 
-----------
99,519 
-----------
(83,538)
(1,348)
8,683 
-----------
$  (76,203)
===========
$  (75,441)
(762)
-----------
$  (76,203)
===========
$    (8.76)
===========
8,616 
===========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND II LTD.(A Florida Limited Partnership)STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED SEPTEMBER 30,(Unaudited)

|SERIES 6                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 2006
----                                                                                                                                                                                                                                                                    | 2005
----                                                                                                                                                                                                                                                               
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Distribution Income
  Total Revenues
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Income (Losses) of
 Project Partnerships and Other Income
Equity in Income (Losses) of Project  Partnerships
 Interest Income
Net Loss
Allocation of Net Loss:
 Assignees
 General Partners
Net Loss Per Beneficial Assignee
Certificate
Number of Beneficial Assignee
Certificates Outstanding | $   21,001 
-----------
21,001 
-----------
50,565 
52,502 
15,925 
19,026 
-----------
138,018 
-----------
(117,017)
12,741 
13,370 
-----------
$  (90,906)
===========
$  (89,997)
(909)
-----------
$  (90,906)
===========
$    (8.91)
===========
10,105 
=========== | $   14,867 
-----------
14,867 
-----------
52,254 
38,003 
13,981 
2,767 
-----------
107,005 
-----------
(92,138)
(106)
12,147 
-----------
$  (80,097)
===========
$  (79,296)
(801)
-----------
$  (80,097)
===========
$    (7.85)
===========
10,105 
===========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND II LTD.(A Florida Limited Partnership)STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED SEPTEMBER 30,
(Unaudited)

|TOTAL SERIES 2 - 6                                                                                                                                                                                                                                                                                                                                                                                      | 2006
----                                                                                                                                                                                                                            | 2005
----                                                                                                                                                                                                                           
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Distribution Income
  Total Revenues
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Income (Losses) of
 Project Partnerships and Other Income
Equity in Income (Losses) of Project  Partnerships
 Interest Income
Net Loss
Allocation of Net Loss:
 Assignees
 General Partners | $   68,983 
-----------
68,983 
-----------
200,140 
207,170 
65,106 
26,744 
-----------
499,160 
-----------
(430,177)
10,204 
42,895 
-----------
$ (377,078)
===========
$ (373,307)
(3,771)
-----------
$ (377,078)
=========== | $   64,051 
-----------
64,051 
-----------
202,378 
148,012 
74,693 
4,120 
-----------
429,203 
-----------
(365,152)
(14,566)
39,640 
-----------
$ (340,078)
===========
$ (336,677)
(3,401)
-----------
$ (340,078)
===========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND II LTD.(A Florida Limited Partnership)STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2006 AND 2005(Unaudited)

|SERIES 2                                                                                                                          | Assignees
---------                                                                                                       | General
Partners
--------                                                                                           | Total
-----                                                                                                              
|--------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 2005
Net Loss
Balance at September 30, 2005
Balance at March 31, 2006
Net Loss
Balance at September 30, 2006 | $  (126,760)
(72,265)
------------
$  (199,025)
============
$  (281,595)
(64,347)
------------
$  (345,942)
============ | $   (55,623)
(730)
------------
$   (56,353)
============
$   (57,187)
(650)
------------
$   (57,837)
============ | $  (182,383)
(72,995)
------------
$  (255,378)
============
$  (338,782)
(64,997)
------------
$  (403,779)
============

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND II LTD.(A Florida Limited Partnership)STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2006 AND 2005(Unaudited)

|SERIES 3                                                                                                                          | Assignees
---------                                                                                                       | General
Partners
--------                                                                                           | Total
-----                                                                                                              
|--------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 2005
Net Loss
Balance at September 30, 2005
Balance at March 31, 2006
Net Loss
Balance at September 30, 2006 | $  (100,780)
(46,926)
------------
$  (147,706)
============
$  (207,975)
(56,574)
------------
$  (264,549)
============ | $   (49,316)
(474)
------------
$   (49,790)
============
$   (50,399)
(571)
------------
$   (50,970)
============ | $  (150,096)
(47,400)
------------
$  (197,496)
============
$  (258,374)
(57,145)
------------
$  (315,519)
============

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND II LTD.(A Florida Limited Partnership)STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2006 AND 2005(Unaudited)

|SERIES 4                                                                                                                          | Assignees
---------                                                                                                       | General
Partners
--------                                                                                           | Total
-----                                                                                                              
|--------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 2005
Net Loss
Balance at September 30, 2005
Balance at March 31, 2006
Net Loss
Balance at September 30, 2006 | $  (117,046)
(62,749)
------------
$  (179,795)
============
$  (253,967)
(70,551)
------------
$  (324,518)
============ | $   (62,450)
(634)
------------
$   (63,084)
============
$   (63,833)
(713)
------------
$   (64,546)
============ | $  (179,496)
(63,383)
------------
$  (242,879)
============
$  (317,800)
(71,264)
------------
$  (389,064)
============

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND II LTD.(A Florida Limited Partnership)STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2006 AND 2005(Unaudited)

|SERIES 5                                                                                                                          | Assignees
---------                                                                                                       | General
Partners
--------                                                                                           | Total
-----                                                                                                              
|--------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 2005
Net Loss
Balance at September 30, 2005
Balance at March 31, 2006
Net Loss
Balance at September 30, 2006 | $   123,860 
(75,441)
------------
$    48,419 
============
$   (82,842)
(91,838)
------------
$  (174,680)
============ | $         0 
(762)
------------
$      (762)
============
$    (2,088)
(928)
------------
$    (3,016)
============ | $   123,860 
(76,203)
------------
$    47,657 
============
$   (84,930)
(92,766)
------------
$  (177,696)
============

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND II LTD.(A Florida Limited Partnership)STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2006 AND 2005(Unaudited)

|SERIES 6                                                                                                                          | Assignees
---------                                                                                                       | General
Partners
--------                                                                                           | Total
-----                                                                                                              
|--------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 2005
Net Loss
Balance at September 30, 2005
Balance at March 31, 2006
Net Loss
Balance at September 30, 2006 | $   651,535 
(79,296)
------------
$   572,239 
============
$     2,162 
(89,997)
------------
$   (87,835)
============ | $   (83,041)
(801)
------------
$   (83,842)
============
$         0 
(909)
------------
$      (909)
============ | $   568,494 
(80,097)
------------
$   488,397 
============
$     2,162 
(90,906)
------------
$   (88,744)
============

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND II LTD.(A Florida Limited Partnership)STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2006 AND 2005(Unaudited)

|TOTAL SERIES 2 - 6                                                                                                                | Assignees
---------                                                                                                         | General
Partners
--------                                                                                               | Total
-----                                                                                                                
|--------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 2005
Net Loss
Balance at September 30, 2005
Balance at March 31, 2006
Net Loss
Balance at September 30, 2006 | $   430,809 
(336,677)
------------
$    94,132 
============
$  (824,217)
(373,307)
------------
$(1,197,524)
============ | $  (250,430)
(3,401)
------------
$  (253,831)
============
$  (173,507)
(3,771)
------------
$  (177,278)
============ | $   180,379 
(340,078)
------------
$  (159,699)
============
$  (997,724)
(377,078)
------------
$(1,374,802)
============

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND II LTD.(A Florida Limited Partnership)STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2006 AND 2005(Unaudited)

|SERIES 2
--------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 2006
----                                                                                                                                                                                     | 2005
----                                                                                                                                                                                  
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Cash Flows from Operating Activities:
 Net Loss
 Adjustments to Reconcile Net Loss to Net
 Cash Used in Operating Activities:
   Amortization
   Accreted Interest Income on Investments in    Securities
   Equity in Losses of Project Partnerships
   Distribution Income
   Changes in Operating Assets and Liabilities:
      Increase in Accounts Receivable
      Increase in Payable to General Partners
      Decrease in Other Payable
       Net Cash Used in Operating        Activities
Cash Flows from Investing Activities:
  Distributions Received from Project
  Partnerships
  Redemption of Investment in Securities
  Investment in Securities
      Net Cash (Used in) Provided by Investing
      Activities
(Decrease) Increase in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
Cash and Cash Equivalents at End of Period | $ (64,997)
0 
(1,406)
0 
(3,793)
0 
34,540 
(8,030)
----------
(43,686)
----------
3,793 
66,276 
(125,177)
----------
(55,108)
----------
(98,794)
250,529 
----------
$ 151,735 
========== | $ (72,995)
351 
(2,409)
13,112 
(3,487)
(1,237)
39,858 
0 
----------
(26,807)
----------
3,487 
63,562 
0 
----------
67,049 
----------
40,242 
235,004 
----------
$ 275,246 
==========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND II LTD.(A Florida Limited Partnership)STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2006 AND 2005(Unaudited)

|SERIES 3
--------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 2006
----                                                                                                                                                                               | 2005
----                                                                                                                                                                   
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Cash Flows from Operating Activities:
 Net Loss
 Adjustments to Reconcile Net Loss to Net
 Cash Used in Operating Activities:
   Accreted Interest Income on Investments
   in Securities
   Distribution Income
   Changes in Operating Assets and Liabilities:
     Increase in Payable to General Partners
     (Decrease) Increase in Other Payable
        Net Cash Used in Operating         Activities
Cash Flows from Investing Activities:
  Distributions Received from Project
  Partnerships
  Redemption of Investment in Securities
  Investment in Securities
        Net Cash (Used in) Provided by Investing
        Activities
(Decrease) Increase in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
Cash and Cash Equivalents at End of Period | $ (57,145)
(1,406)
(11,814)
30,281 
(7,300)
----------
(47,384)
----------
11,814 
58,952 
(125,177)
----------
(54,411)
----------
(101,795)
236,035 
----------
$ 134,240 
========== | $ (47,400)
(2,143)
(17,016)
39,157 
1,237 
----------
(26,165)
----------
17,016 
56,537 
0 
----------
73,553 
----------
47,388 
218,547 
----------
$ 265,935 
==========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND II LTD.(A Florida Limited Partnership)STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2006 AND 2005(Unaudited)

|SERIES 4
-------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 2006
----                                                                                                                                                                              | 2005
----                                                                                                                                                              
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Cash Flows from Operating Activities:
 Net Loss
 Adjustments to Reconcile Net Loss to Net
 Cash Used in Operating Activities:
    Accreted Interest Income on Investments in
    Securities
    Distribution Income
    Changes in Operating Assets and Liabilities:
       Increase in Payable to General Partners
       Decrease in Other Payable
        Net Cash Used in Operating Activities
Cash Flows from Investing Activities:
  Distributions Received from Project
  Partnerships
  Redemption of Investment in Securities
  Investment in Securities
       Net Cash (Used in) Provided by Investing
       Activities
(Decrease) Increase in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
Cash and Cash Equivalents at End of Period | $ (71,264)
(1,970)
(13,347)
37,338 
(8,030)
----------
(57,273)
----------
13,347 
74,685 
(175,444)
----------
(87,412)
----------(144,685)
322,204 
----------
$ 177,519 
========== | $ (63,383)
(2,714)
(12,700)
45,043 
0 
----------
(33,754)
----------
12,700 
71,627 
0 
----------
84,327 
----------50,573 
304,447 
----------
$ 355,020 
==========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)STATEMENTS OF CASH FLOWSFOR THE SIX MONTHS ENDED SEPTEMBER 30, 2006 AND 2005
(Unaudited)

|SERIES 5
--------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 2006
----                                                                                                                                                                                               | 2005
----                                                                                                                                                                                    
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Cash Flows from Operating Activities:
 Net Loss
 Adjustments to Reconcile Net Loss to Net
 Cash Used in Operating Activities:
   Amortization
   Accreted Interest Income on Investments in
   Securities
   Equity in Losses of Project Partnerships
   Distribution Income
   Changes in Operating Assets and Liabilities:
     Decrease in Accounts Receivable - Other
     Increase in Payable to General Partners
     Decrease in Other Payable
        Net Cash Used in Operating         Activities
Cash Flows from Investing Activities:
  Distributions Received from Project
  Partnerships
  Redemption of Investment in Securities
  Investment in Securities
        Net Cash Provided by Investing
        Activities
(Decrease) Increase in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
Cash and Cash Equivalents at End of Period | $ (92,766)
7,718 
(1,118)
2,537 
(19,028)
912 
44,631 
(3,650)
----------
(60,764)
----------
20,770 
93,086 
(99,551)
----------
14,305 
----------
(46,459)
262,439 
----------
$ 215,980 
========== | $ (76,203)
1,002 
(3,383)
1,348 
(15,981)
0 
51,189 
(700)
----------
(42,728)
----------
15,981 
89,273 
0 
----------
105,254 
----------
62,526 
238,360 
----------
$ 300,886 
==========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND II LTD.(A Florida Limited Partnership)STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2006 AND 2005(Unaudited)

|SERIES 6
--------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 2006
----                                                                                                                                                                                       | 2005
----                                                                                                                                                                            
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Cash Flows from Operating Activities:
 Net Loss
 Adjustments to Reconcile Net Loss to Net Cash  Used in Operating Activities:
    Amortization
    Accreted Interest Income on Investments
    in Securities
    Equity in (Income) Losses of Project     Partnerships
    Distribution Income
    Changes in Operating Assets and Liabilities:
      Decrease in Accounts Receivable - Other
      Increase in Payable to General Partners
      Decrease in Other Payable
        Net Cash Used In Operating
        Activities
Cash Flows from Investing Activities:
  Distributions Received from Project
  Partnerships
  Investment in Securities
        Net Cash (Used in) Provided by Investing
        Activities
Decrease in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
Cash and Cash Equivalents at End of Period | $ (90,906)
19,026 
(6,045)
(12,741)
(21,001)
0 
49,372 
0 
----------
(62,295)
----------
23,976 
(274,991)
----------
(251,015)
----------
(313,310)
463,580 
----------
$ 150,270 
========== | $ (80,097)
2,767 
(5,525)
106 
(14,867)
700 
53,851 
(500)
----------
(43,565)
----------
15,790 
0 
----------
15,790 
----------
(27,775)
444,751 
----------
$ 416,976 
==========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND II LTD.(A Florida Limited Partnership)STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2006 AND 2005(Unaudited)

|TOTAL SERIES 2 - 6
--------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 2006
----                                                                                                                                                                                                              | 2005
----                                                                                                                                                                                                
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Cash Flows from Operating Activities:
 Net Loss
 Adjustments to Reconcile Net Loss to Net
 Cash Used in Operating Activities:
    Amortization
    Accreted Interest Income on Investments
    in Securities
    Equity in (Income) Losses of Project     Partnerships
    Distribution Income
    Changes in Operating Assets and Liabilities:
      Decrease (Increase) in Accounts Receivable        Other
      Increase in Payable to General Partners
      (Decrease) Increase in Other Payable
        Net Cash Used in Operating         Activities
Cash Flows from Investing Activities:
  Distributions Received from Project
  Partnerships
  Redemption of Investment in Securities
  Investment in Securities
       Net Cash (Used in) Provided by Investing
       Activities
(Decrease) Increase in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
Cash and Cash Equivalents at End of Period | $ (377,078)
26,744 
(11,945)
(10,204)
(68,983)
912 
196,162 
(27,010)
----------
(271,402)
----------
73,700 
292,999 
(800,340)
----------
(433,641)
----------
(705,043)
1,534,787 
----------
$829,744 
=========== | $ (340,078)
4,120 
(16,174)
14,566 
(64,051)
(537)
229,098 
37 
----------
(173,019)
----------
64,974 
280,999 
0 
----------
345,973 
----------
172,954 
1,441,109 
----------
$1,614,063 
===========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND II LTD.(A Florida Limited Partnership)NOTES TO FINANCIAL STATEMENTS(Unaudited)SEPTEMBER 30, 2006

NOTE 1 - ORGANIZATION:   Gateway Tax Credit Fund II Ltd. ("Gateway" or "Partnership"), a Florida Limited Partnership, was formed September 12, 1989, under the laws of Florida. Operations commenced on September 14, 1990 for Series 2, September 28, 1990 for Series 3, February 1, 1991 for Series 4, July 1, 1991 for Series 5 and January 1, 1992 for Series 6.  Gateway has invested, as a limited partner, in other limited partnerships ("Project Partnerships") each of which owns and operates one or more apartment complexes expected to qualify for Low-Income Housing Tax Credits.  Gateway will terminate on December 31, 2040, or sooner, in accordance with the terms of the Limited Partnership Agreement.  As of September 30, 2006, Gateway had received capital contributions of $1,000 from the General Partners and $37,228,000 from Beneficial Assignee Certificate investors (the "Assignees").  The fiscal year of Gateway for reporting purposes ends on March 31.
   Pursuant to the Securities Act of 1933, Gateway filed a Form S-11 Registration Statement with the Securities and Exchange Commission, effective September 12, 1989, which covered the offering (the "Public Offering") of Gateway's Beneficial Assignee Certificates ("BACs") representing assignments of units for the beneficial interest of the limited partnership interest of the Assignor Limited Partner.  The Assignor Limited Partner was formed for the purpose of serving in that capacity for the Fund and will not engage in any other business.
   Raymond James Partners, Inc. and Raymond James Tax Credit Funds, Inc., wholly-owned subsidiaries of Raymond James Financial, Inc., are the General Partner and the Managing General Partner, respectively.
   Gateway offered BACs in five series.  BACs in the amounts of $6,136,000, $5,456,000, $6,915,000, $8,616,000 and $10,105,000 for Series 2, 3, 4, 5 and 6, respectively had been issued as of September 30, 2006.  Each Series is treated as a separate partnership, investing in a separate and distinct pool of Project Partnerships.  Net proceeds from each Series are used to acquire Project Partnerships which are specifically allocated to such Series.  Income or loss and all tax items from the Project Partnerships acquired by each Series are specifically allocated among the Assignees of such Series.
   Operating profits and losses, cash distributions from operations and tax credits are allocated 99% to the Assignees and 1% to the General Partners.  Profit or loss and cash distributions from sales of properties will be allocated as formulated in the Limited Partnership Agreement.NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES:Basis of Accounting   Gateway utilizes the accrual basis of accounting whereby revenues are recognized when earned and expenses are recognized when obligations are incurred.
   Gateway accounts for its investments as the sole limited partner in Project Partnerships ("Investments in Project Partnerships") using the equity method of accounting, because management believes that Gateway does not have a majority control of the major operating and financial policies of the Project Partnerships in which it invests, and reports the equity in losses of the Project Partnerships on a 3-month lag in the Statements of Operations.  Under the equity method, the Investments in Project Partnerships initially include:

   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.
Quarterly the Investments in Project Partnerships are increased or decreased as follows:
   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.
   For the fiscal year ended March 31, 2006, Gateway changed the period over which the intangible acquisition fees and expenses are amortized.  In all prior years, the period in which such intangible assets had been amortized was 35 years.  In the fiscal year ended March 31, 2006, this amortization period was changed to 15 years to better approximate the period over which the benefits of these investments are realized.  As a result of this change in estimate, an additional amortization expense of $23,779 for Series 5 and $33,465 for Series 6, or a total of $57,244 for all Series of Gateway, was recognized during the year-ended March 31, 2006, as compared to the amortization expense amount which would have been realized had the estimated amortization period not changed during the year.  The amortization expense is shown on the Statements of Operations.
   Pursuant to the limited partnership agreements for the Project Partnerships, cash losses generated by the Project Partnerships are allocated to the general partners of those partnerships.  In subsequent years, cash profits, if any, are first allocated to the general partners to the extent of the allocation of prior years' cash losses.
   Since Gateway invests as a limited partner, and therefore is not obligated to fund losses or make additional capital contributions, it does not recognize losses from individual Project Partnerships to the extent that these losses would reduce the investment in those Project Partnerships below zero.  The suspended losses will be used to offset future income from the individual Project Partnerships.  Any cash distributions received from Project Partnerships which have a zero investment balance are accounted for as distribution income in the period the cash distribution is received by Gateway.
   Gateway reviews its investments in Project Partnerships to determine if there has been any permanent impairment whenever events or changes in circumstances indicate that the carrying amount of the investment may not be recoverable.  If the sum of the expected future cash flows is less than the carrying amount of the investment, Gateway recognizes an impairment loss.  No impairment loss has been recognized in the accompanying financial statements for the six-month period ended September 30, 2006.  For the fiscal year ended March 31, 2006, impairment expense was recognized in the statement of operations in Series 6 in the total amount of $343,241.  Refer to Note 5
- Investment in Project Partnerships for further details regarding the components of the Investment in Project Partnership balance.
   Gateway, as a limited partner in the Project Partnerships, is subject to risks inherent in the ownership of property which are beyond its control, such as fluctuations in occupancy rates and operating expenses, variations in rental schedules, proper maintenance and continued eligibility of tax credits.  If the cost of operating a property exceeds the rental income earned thereon, Gateway may deem it in its best interest to voluntarily provide funds in order to protect its investment.  Gateway does not guarantee any of the mortgages or other debt of the Project Partnerships.Cash and Cash Equivalents   It is Gateway's policy to include short-term investments with an original maturity of three months or less in Cash and Cash Equivalents.  Short-term investments are comprised of money market mutual funds.Concentration of Credit Risk   Financial instruments which potentially subject Gateway to concentrations of credit risk consist of cash investments in a money market mutual fund that is advised by a wholly-owned subsidiary of Raymond James Financial, Inc.Use of Estimates in the Preparation of Financial Statements   The preparation of financial statements in conformity with generally accepted accounting principles requires the use of estimates that affect certain reported amounts and disclosures.  These estimates are based on management's knowledge and experience.  Accordingly, actual results could differ from these estimates.Investment in Securities   Gateway applies Statement of Financial Accounting Standards No. 115, Accounting for Certain Investments in Debt and Equity Securities ("FAS 115").  Under FAS 115, Gateway is required to categorize its debt securities as held-to-maturity, available-for-sale or trading securities, dependent upon Gateway's intent in holding the securities.  Gateway's intent is to hold all of its debt securities (U.S. Government Security Strips and U.S. Treasury Notes) until maturity and to use these assets to fund Gateway's ongoing operations.  Interest income is recognized ratably on the U.S. Government Strips and U.S. Treasury Notes using the effective yield to maturity.Income Taxes   No provision for income taxes has been made in these financial statements, as income taxes are a liability of the partners rather than of Gateway.Reclassifications
   For comparability, certain 2005 figures have been reclassified, where appropriate, to conform with the financial statement presentation used in 2006.Variable Interest Entities
   In January 2003, the FASB issued FASB Interpretation No. 46 ("FIN46"), "Consolidation of Variable Interest Entities, an Interpretation of ARB No. 51," which was subsequently revised in December, 2003.  Gateway has adopted FIN 46 and applied its requirements to all Project Partnerships in which Gateway held an interest.  Generally, a variable interest entity, or VIE, is an entity with one or more of the following characteristics, (a) the total equity investment at risk is not sufficient to permit the entity to finance its activities without additional subordinated financial support; (b) as a group the holders of the equity investment at risk lack (i) the ability to make decisions about an entity's activities through voting or similar rights, (ii) the obligation to absorb the expected losses of the entity; or (c) the equity investors have voting rights that are not proportional to their economic interests and substantially all of the entity's activities either involve, or are conducted on behalf of, an investor that has disproportionately few voting rights.  FIN 46 requires VIE to be consolidated in the financial statements of the entity that is determined to be the primary beneficiary of the VIE.  The primary beneficiary, as is applicable to Gateway's circumstances, is the party in the Project Partnership equity group that is most closely associated with the Project Partnership.
   Gateway holds variable interests in 141 VIE's, which consist of Project Partnerships, which Gateway is not the primary beneficiary.  Gateway's maximum exposure to loss as a result of its involvement with unconsolidated VIE's is limited to Gateway's recorded investments in and receivables from those VIE's, which is approximately $502,658 at September 30, 2006.  Gateway may be subject to additional losses to the extent of any financial support that Gateway voluntarily provides to those Project Partnerships in the future.Basis of Preparation    The unaudited financial statements presented herein have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and note disclosures required by generally accepted accounting
principles.  These statements should be read in conjunction with the financial statements and notes thereto included with the Partnership's report on Form 10-K for the year ended March 31, 2006.  In the opinion of management these financial statements include adjustments, consisting only of normal recurring adjustments, necessary to fairly summarize the Partnership's financial position and results of operations.  The results of operations for the periods may not be indicative of the results to be expected for the year.

---

NOTE 3 - INVESTMENT IN SECURITIES:   The September 30, 2006 Balance Sheet includes Investment in Securities consisting of U.S. Government Security Strips and U.S. Treasury Notes which represents their cost, plus accreted interest income of $1,406 for Series 2, $1,406 for Series 3, $1,970 for Series 4, $1,118 for Series 5 and $55,900 for Series 6.  The Investment in Securities are commonly held in a brokerage account with Raymond James and Associates, Inc.  A separate accounting is maintained for each series' share of the investments.

|         | Estimated Market
Value
---------------- | Cost Plus 
Accreted Interest
---------------- | Gross Unrealized
Gains & (Losses)
---------------
|-------- | --------------------------------------- | --------------------------------------------- | -------------------------------------------------
|Series 2 | $  125,710                              | $  126,583                                    | $   (873)                                        
|Series 3 | 125,710                                 | 126,583                                       | (873)                                            
|Series 4 | 176,192                                 | 177,414                                       | (1,222)                                          
|Series 5 | 99,974                                  | 100,669                                       | (695)                                            
|Series 6 | 357,695                                 | 359,406                                       | (1,711)                                          

As of September 30, 2006, the cost and accreted interest of debt securities by contractual maturities is as follows:

|                                        | Series 2
--------   | Series 3
--------   | Series 4
--------  
|--------------------------------------- | ------------------- | ------------------- | -------------------
|Due within 1 year                       | $ 126,583           | $ 126,583           | $ 177,414          
|After 1 year through 5 years            | 0                   | 0                   | 0                  
|                                        | ---------           | ---------           | ---------          
|Total Amount Carried on
  Balance Sheet | $ 126,583
========= | $ 126,583
========= | $ 177,414
=========



|                                        | Series 5
--------   | Series 6
--------   | Total
--------       
|--------------------------------------- | ------------------- | ------------------- | ---------------------
|Due within 1 year                       | $ 100,669           | $ 359,406           | $  890,655           
|After 1 year through 5 years            | 0                   | 0                   | 0                    
|                                        | ---------           | ---------           | ---------            
|Total Amount Carried on
  Balance Sheet | $ 100,669
========= | $ 359,406
========= | $  890,655
==========

---

NOTE 4 - RELATED PARTY TRANSACTIONS:   The Payable to General Partners primarily represents the asset management fees owed to the General Partners at the end of the period.  It is unsecured, due on demand and, in accordance with the limited partnership agreement, non-interest bearing.  Within the next 12 months, the Managing General Partner does not intend to demand payment on the portion of Asset Management Fees payable classified as long-term on the Balance Sheet.
   For the six months ended September 30, 2006 and 2005 the General Partners and affiliates are entitled to compensation and reimbursement for costs and expenses incurred by Gateway as follows:
   Asset Management Fee - The Managing General Partner is entitled to be paid an annual asset management fee equal to 0.25% of the aggregate cost of Gateway's interest in the projects owned by the Project Partnerships.  The asset management fee will be paid only after all other expenses of Gateway have been paid.  These fees are included in the Statements of Operations.
                               2006             2005
                              -----            -----
  Series 2                $  33,690         $  33,804
  Series 3                   31,229            31,358
  Series 4                   38,464            38,602
  Series 5                   46,192            46,360
  Series 6                   50,565	           52,254
                           ---------        ---------
  Total                   $ 200,140         $ 202,378
                           =========        =========
   General and Administrative Expenses - The Managing General Partner is reimbursed for general and administrative expenses of Gateway on an accountable basis.  This expense is included in the Statements of Operations.
                              2006              2005
                              -----             -----
  Series 2                $  31,217         $  22,002
  Series 3                   32,637	           23,002
  Series 4                   41,150            29,002
  Series 5                   49,664            36,003
  Series 6                   52,502            38,003
                          ---------          --------
  Total                   $ 207,170         $ 148,012
                          =========	         ========

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS:   As of September 30, 2006, the Partnership had acquired a 99% interest in the profits, losses and tax credits as a limited partner in 22 Project Partnerships which own and operate government assisted multi-family housing complexes.  Cash flows from operations are allocated according to each Partnership agreement.  Upon dissolution proceeds will be distributed according to each Partnership agreement.

   The following is a summary of Investments in Project Partnerships as of:

|SERIES 2                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | SEPTEMBER 30, 
2006
-----------                                                                                 | MARCH 31,
2006
-----------                                                                                   
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------
|Capital Contributions to Project Partnerships
and purchase price paid for limited partner
interests in Project Partnerships
Cumulative equity in losses of Project
Partnerships (1)
Cumulative distributions received from Project
Partnerships
Investment in Project Partnerships before
Adjustment
Excess of investment cost over the underlying
assets acquired:
 Acquisition fees and expenses
 Accumulated amortization of acquisition
 fees and expenses
Investments in Project Partnerships | $ 4,524,678 
(4,742,761)
(87,605)
-----------
(305,688)
390,838 
(85,150)
-----------
$         0 
============ | $ 4,524,678 
(4,742,761)
(87,605)
-----------
(305,688)
390,838 
(85,150)
-----------
$        0 
===========

(1) In accordance with the Partnership's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $5,798,330 for the period ended September 30, 2006 and cumulative suspended losses of $5,632,737 for the year ended March 31, 2006 are not included.

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):   As of September 30, 2006, the Partnership had acquired a 99% interest in the profits, losses and tax credits as a limited partner in 23 Project Partnerships which own and operate government assisted multi-family housing complexes.  Cash flows from operations are allocated according to each Partnership agreement.  Upon dissolution proceeds will be distributed according to each Partnership agreement.
The following is a summary of Investments in Project Partnerships as of:

|SERIES 3                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | SEPTEMBER 30, 
2006
------------                                                                               | MARCH 31, 
2006
-------------                                                                                 
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------
|Capital Contributions to Project Partnerships
and purchase price paid for limited partner
interests in Project Partnerships
Cumulative equity in losses of Project
Partnerships (1)
Cumulative distributions received from Project
Partnerships
Investment in Project Partnerships before
Adjustment
Excess of investment cost over the underlying
assets acquired:
 Acquisition fees and expenses
 Accumulated amortization of acquisition
 fees and expenses
Investments in Project Partnerships | $ 3,888,713 
(4,133,478)
(164,417)
-----------
(409,182)
491,746 
(82,564)
-----------
$        0 
=========== | $ 3,888,713 
(4,133,478)
(164,417)
-----------
(409,182)
491,746 
(82,564)
-----------
$        0 
===========

(1) In accordance with the Partnership's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $6,575,682 for the period ended September 30, 2006 and cumulative suspended losses of $6,446,347 for the year ended March 31, 2006 are not included.
   Subsequent to this quarter-end, Gateway sold its Project Partnership investment in Birchwood Apartments.  Gateway received approximately $100,000 in net proceeds from this sale transaction subsequent to quarter-end.

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):   As of September 30, 2006, the Partnership had acquired a 99% interest in the profits, losses and tax credits as a limited partner in 29 Project Partnerships which own and operate government assisted multi-family housing complexes.  Cash flows from operations are allocated according to each Partnership agreement.  Upon dissolution proceeds will be distributed according to each Partnership agreement.
The following is a summary of Investments in Project Partnerships as of:

|SERIES 4                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | SEPTEMBER 30, 
2006
------------                                                                                | MARCH 31, 
2006
-------------                                                                                  
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------
|Capital Contributions to Project Partnerships
and purchase price paid for limited partner
interests in Project Partnerships
Cumulative equity in losses of Project
Partnerships (1)
Cumulative distributions received from
Project Partnerships
Investment in Project Partnerships before
Adjustment
Excess of investment cost over the underlying
assets acquired:
 Acquisition fees and expenses
 Accumulated amortization of acquisition
 fees and expenses
Investments in Project Partnerships | $ 4,952,519 
(5,268,905)
(124,819)
-----------
(441,205)
562,967 
(121,762)
-----------
$        0 
=========== | $ 4,952,519 
(5,268,905)
(124,819)
-----------
(441,205)
562,967 
(121,762)
-----------
$        0 
===========

(1) In accordance with the Partnership's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $5,829,134 for the period ended September 30, 2006 and cumulative suspended losses of $5,604,678 for the year ended March 31, 2006 are not included.

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):   As of September 30, 2006, the Partnership had acquired a 99% interest in the profits, losses and tax credits as a limited partner in 35 Project Partnerships which own and operate government assisted multi-family housing complexes.  Cash flows from operations are allocated according to each Partnership agreement.  Upon dissolution proceeds will be distributed according to each Partnership agreement.
The following is a summary of Investments in Project Partnerships as of:

|SERIES 5                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | SEPTEMBER 30, 
2006
------------                                                                                | MARCH 31, 
2006
-------------                                                                                  
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------
|Capital Contributions to Project Partnerships
and purchase price paid for limited partner
interests in Project Partnerships
Cumulative equity in losses of Project
Partnerships (1)
Cumulative distributions received from
Project Partnerships
Investment in Project Partnerships before
Adjustment
Excess of investment cost over the underlying
assets acquired:
 Acquisition fees and expenses
 Accumulated amortization of acquisition
 fees and expenses
Investments in Project Partnerships | $ 6,010,273 
(6,129,743)
(200,831)
-----------
(320,301)
632,419 
(172,485)
-----------
$  139,633 
=========== | $ 6,010,273 
(6,127,206)
(199,089)
-----------
(316,022)
632,419 
(164,767)
-----------
$  151,630 
===========

(1) In accordance with the Partnership's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $6,587,270 for the period ended September 30, 2006 and cumulative suspended losses of $6,332,840 for the year ended March 31, 2006 are not included.

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):   As of September 30, 2006, the Partnership had acquired a 99% interest in the profits, losses and tax credits as a limited partner in 37 Project Partnerships which own and operate government assisted multi-family housing complexes.  Cash flows from operations are allocated according to each Partnership agreement.  Upon dissolution proceeds will be distributed according to each Partnership agreement.
   The following is a summary of Investments in Project Partnerships as of:

|SERIES 6                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | SEPTEMBER 30, 
2006
------------                                                                                           | MARCH 31, 
2006
-------------                                                                                             
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------
|Capital Contributions to Project Partnerships
and purchase price paid for limited partner
interests in Project Partnerships
Cumulative equity in losses of Project
Partnerships (1)
Cumulative distributions received from
Project Partnerships
Investment in Project Partnerships before
Adjustment
Excess of investment cost over the underlying
assets acquired:
 Acquisition fees and expenses
 Accumulated amortization of acquisition
 fees and expenses
 Impairment of Investment in Project Partnerships
Investments in Project Partnerships | $ 7,250,034 
(6,833,112)
(221,286)
-----------
195,636 
768,912 
(258,282)
(343,241)
-----------
$   363,025 
============ | $ 7,250,034 
(6,845,853)
(218,311)
-----------
185,870 
768,912 
(239,256)
(343,241)
-----------
$   372,285 
============

(1) In accordance with the Partnership's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $4,502,066 for the period ended September 30, 2006 and cumulative suspended losses of $4,294,234 for the year ended March 31, 2006 are not included.

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):   The following is a summary of Investments in Project Partnerships as of:

|TOTAL SERIES 2 - 6                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | SEPTEMBER 30, 
2006
------------                                                                                                  | MARCH 31, 
2006
-------------                                                                                                      
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | --------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------
|Capital Contributions to Project Partnerships
and purchase price paid for limited partner
interests in Project PartnershipsCumulative equity in losses of Project
Partnerships 
Cumulative distributions received from
Project Partnerships
Investment in Project Partnerships before
Adjustment
Excess of investment cost over the underlying
assets acquired:
 Acquisition fees and expenses
 Accumulated amortization of acquisition
 fees and expenses
 Impairment of Investment in Project Partnerships
Investments in Project Partnerships | $ 26,626,217 
(27,107,999)
(798,958)
-----------
(1,280,740)
2,846,882 
(720,243)
(343,241)
-----------
$   502,658 
============ | $ 26,626,217 
(27,118,203)
(794,241)
------------
(1,286,227)
2,846,882 
(693,499)
(343,241)
------------
$   523,915 
============

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):   In accordance with the Partnership's policy of presenting the financial information of the Project Partnerships on a three month lag, below is the summarized financial information for the Series' Project Partnerships as of 
June 30, of each year:

|SERIES 2                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 2006
----                                                                                                                                                                                                                                                                                                                                                                                                                | 2005
----                                                                                                                                                                                                                                                                                                                                                                                                               
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|SUMMARIZED BALANCE SHEETS
Assets:
  Current assets
  Investment properties, net
  Other assets
    Total assets
Liabilities and Partners' Equity:
  Current liabilities
  Long-term debt
    Total liabilities
Partners' equity (deficit)
  Limited Partner
  General Partners
    Total Partners' equity (deficit)
    Total liabilities and partners'
    equity
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income
Expenses:
  Operating expenses
  Interest expense
  Depreciation and amortization
    Total expenses
      Net loss
Other partners' share of net loss
Partnerships' share of net loss
Suspended losses
Equity in Losses of Project Partnerships | $ 2,211,387 
14,557,627 
6,859 
-----------
$16,775,873 
===========
$   432,470 
22,653,237 
-----------
23,085,707 
-----------
(6,165,022)
(144,812)
-----------
(6,309,834)
-----------
$16,775,873 
===========
$ 1,518,651 
-----------
987,854 
260,325 
437,738 
-----------
1,685,917 
-----------
$  (167,266)
===========
$    (1,673)
===========
$  (165,593)
165,593 
-----------
$          0
=========== | $ 2,047,419 
15,345,055 
6,770 
-----------
$17,399,244 
===========
$   374,026 
22,746,522 
-----------
23,120,548 
-----------
(5,593,026)
(128,278)
-----------
(5,721,304)
-----------
$17,399,244 
===========
$ 1,444,589 
-----------
989,219 
261,730 
434,855 
-----------
1,685,804 
-----------
$  (241,215)
===========
$    (2,412)
===========
$  (238,803)
225,691 
-----------
$   (13,112)
===========

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):   In accordance with the Partnership's policy of presenting the financial information of the Project Partnerships on a three month lag, below is the summarized financial information for the Series' Project Partnerships as of 
June 30, of each year:

|SERIES 3                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 2006
----                                                                                                                                                                                                                                                                                                                                                                                                                 | 2005
----                                                                                                                                                                                                                                                                                                                                                                                                                
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|SUMMARIZED BALANCE SHEETS
Assets:
  Current assets
  Investment properties, net
  Other assets
    Total assets
Liabilities and Partners' Equity:
  Current liabilities
  Long-term debt
    Total liabilities
Partners' equity (deficit)
  Limited Partner
  General Partners
    Total Partners' equity (deficit)
    Total liabilities and partners'
    equity
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income
Expenses:
  Operating expenses
  Interest expense
  Depreciation and amortization
    Total expenses
      Net loss
Other partners' share of net loss
Partnerships' share of net loss
Suspended losses
Equity in Losses of Project Partnerships | $ 2,835,217 
11,557,399 
156,337 
-----------
$14,548,953 
===========
$   331,584 
21,307,645 
-----------
21,639,229 
-----------
(7,415,672)
325,396 
-----------
(7,090,276)
-----------
$14,548,953 
===========
$ 1,545,386 
-----------
976,061 
221,844 
479,179 
-----------
1,677,084 
-----------
$  (131,698)
===========
$    (2,363)
===========
$  (129,335)
129,335 
-----------
$         0 
=========== | $ 2,600,359 
12,390,597 
171,739 
-----------
$15,162,695 
===========
$   292,238 
21,412,108 
-----------
21,704,346 
-----------
(6,894,233)
352,582 
-----------
(6,541,651)
-----------
$15,162,695 
===========
$ 1,448,986 
-----------
960,675 
226,850 
482,927 
-----------
1,670,452 
-----------
$  (221,466)
===========
$    (3,398)
===========
$  (218,068)
218,068 
-----------
$         0 
===========

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):   In accordance with the Partnership's policy of presenting the financial information of the Project Partnerships on a three month lag, below is the summarized financial information for the Series' Project Partnerships as of 
June 30, of each year:

|SERIES 4                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 2006
----                                                                                                                                                                                                                                                                                                                                                                                                                  | 2005
----                                                                                                                                                                                                                                                                                                                                                                                                                 
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|SUMMARIZED BALANCE SHEETS
Assets:
  Current assets
  Investment properties, net
  Other assets
    Total assets
Liabilities and Partners' Equity:
  Current liabilities
  Long-term debt
    Total liabilities
Partners' equity (deficit)
  Limited Partner
  General Partners
    Total Partners' equity (deficit)
    Total liabilities and partners'
    equity
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income
Expenses:
  Operating expenses
  Interest expense
  Depreciation and amortization
    Total expenses
      Net loss
Other partners' share of net loss
Partnerships' share of net loss
Suspended losses
Equity in Losses of Project Partnerships | $ 2,571,246 
18,646,911 
37,301 
-----------
$21,255,458 
===========
$   875,931 
26,080,239 
-----------
26,956,170 
-----------
(6,364,568)
663,856 
-----------
(5,700,712)
-----------
$21,255,458 
===========
$ 1,796,635 
-----------
1,208,559 
293,178 
522,094 
-----------
2,023,831 
-----------
$  (227,196)
===========
$    (2,740)
===========
$  (224,456)
224,456 
-----------
$         0 
=========== | $ 2,432,873 
19,533,486 
37,300 
-----------
$22,003,659 
===========
$   805,078 
26,191,312 
-----------
26,996,390 
-----------
(5,716,335)
723,604 
-----------
(4,992,731)
-----------
$22,003,659 
===========
$ 1,741,802 
-----------
1,216,587 
293,627 
516,596 
-----------
2,026,810 
-----------
$  (285,008)
===========
$    (3,693)
===========
$  (281,315)
281,315 
-----------
$         0 
===========

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):   In accordance with the Partnership's policy of presenting the financial information of the Project Partnerships on a three month lag, below is the summarized financial information for the Series' Project Partnerships as of 
June 30, of each year:

|SERIES 5                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 2006
----                                                                                                                                                                                                                                                                                                                                                                                                                  | 2005
----                                                                                                                                                                                                                                                                                                                                                                                                                  
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|SUMMARIZED BALANCE SHEETS
Assets:
  Current assets
  Investment properties, net
  Other assets
    Total assets
Liabilities and Partners' Equity:
  Current liabilities
  Long-term debt
    Total liabilities
Partners' equity (deficit)
  Limited Partner
  General Partners
    Total Partners' equity (deficit)
    Total liabilities and partners'
    equity
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income
Expenses:
  Operating expenses
  Interest expense
  Depreciation and amortization
    Total expenses
      Net loss
Other partners' share of net loss
Partnerships' share of net loss
Suspended losses
Equity in Losses of Project Partnerships | $ 3,461,936 
21,102,539 
9,294 
-----------
$24,573,769 
===========
$   618,857 
31,256,580 
-----------
31,875,437 
-----------
(6,938,259)
(363,409)
-----------
(7,301,668)
-----------
$24,573,769 
===========
$ 2,190,256 
-----------
1,502,566 
345,488 
601,764 
-----------
2,449,818 
-----------
$  (259,562)
===========
$    (2,595)
===========
$  (256,967)
254,430 
-----------
$    (2,537)
=========== | $ 3,284,921 
22,136,780 
59,568 
-----------
$25,481,269 
===========
$   663,562 
31,392,413 
-----------
32,055,975 
-----------
(6,250,476)
(324,230)
-----------
(6,574,706)
-----------
$25,481,269 
===========
$ 2,093,203 
-----------
1,454,380 
349,562 
612,593 
-----------
2,416,535 
-----------
$  (323,332)
===========
$    (3,233)
===========
$  (320,099)
318,751 
-----------
$    (1,348)
===========

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):   In accordance with the Partnership's policy of presenting the financial information of the Project Partnerships on a three month lag, below is the summarized financial information for the Series' Project Partnerships as of 
June 30, of each year:

|SERIES 6                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 2006
----                                                                                                                                                                                                                                                                                                                                                                                                                   | 2005
----                                                                                                                                                                                                                                                                                                                                                                                                                 
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|SUMMARIZED BALANCE SHEETS
Assets:
  Current assets
  Investment properties, net
  Other assets
    Total assets
Liabilities and Partners' Equity:
  Current liabilities
  Long-term debt
    Total liabilities
Partners' equity (deficit)
  Limited Partner
  General Partners
    Total Partners' equity (deficit)
    Total liabilities and partners'
    equity
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income
Expenses:
  Operating expenses
  Interest expense
  Depreciation and amortization
    Total expenses
      Net loss
Other partners' share of net loss
Partnerships' share of net loss
Suspended losses
Equity in Income (Losses) of Project Partnerships | $ 4,478,713 
24,696,733 
44,228 
-----------
$29,219,674 
===========
$   613,117 
33,537,501 
-----------
34,150,618 
-----------
(4,417,609)
(513,335)
-----------
(4,930,944)
-----------
$29,219,674 
===========
$ 2,362,528 
-----------
1,542,217 
371,229 
646,609 
-----------
2,560,055 
-----------
$  (197,527)
===========
$    (2,436)
===========
$  (195,091)
207,832 
-----------
$    12,741 
=========== | $ 4,316,656 
26,393,149 
8,279 
-----------
$30,718,084 
===========
$   553,790 
34,688,448 
-----------
35,242,238 
-----------
(4,034,234)
(489,920)
-----------
(4,524,154)
-----------
$30,718,084 
===========
$ 2,417,948 
-----------
1,578,752 
387,018 
689,524 
-----------
2,655,294 
-----------
$  (237,346)
===========
$    (2,588)
===========
$  (234,758)
234,652 
-----------
$      (106)
===========

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):   In accordance with the Partnership's policy of presenting the financial information of the Project Partnerships on a three month lag, below is the summarized financial information for the Series' Project Partnerships as of 
June 30, of each year:

|TOTAL SERIES 2- 6                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 2006
----                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 2005
----                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|SUMMARIZED BALANCE SHEETS
Assets:
  Current assets
  Investment properties, net
  Other assets
    Total assets
Liabilities and Partners' Equity:
  Current liabilities
  Long-term debt
    Total liabilities
Partners' equity (deficit)
  Limited Partner
  General Partners
    Total Partners' equity (deficit)
    Total liabilities and partners'
    equity
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income
Expenses:
  Operating expenses
  Interest expense
  Depreciation and amortization
    Total expenses
      Net loss
Other partners' share of net loss
Partnerships' share of net loss
Suspended losses
Equity in Income (Losses) of Project Partnerships | $ 15,558,499 
90,561,209 
254,019 
------------
$106,373,727 
============
$  2,871,959 
134,835,202 
------------
137,707,161 
------------
(31,301,130)
(32,304)
------------
(31,333,434)
------------
$106,373,727 
============
$  9,413,456 
------------
6,217,257 
1,492,064 
2,687,384 
------------
10,396,705 
------------
$   (983,249)
============
$    (11,807)
============
$   (971,442)
981,646 
------------
$     10,204 
============ | $ 14,682,228 
95,799,067 
283,656 
------------
$110,764,951 
============
$  2,688,694 
136,430,803 
------------
139,119,497 
------------
(28,488,304)
133,758 
------------
(28,354,546)
------------
$110,764,951 
============
$  9,146,528 
------------
6,199,613 
1,518,787 
2,736,495 
------------
10,454,895 
------------
$ (1,308,367)
============
$    (15,324)
============
$ (1,293,043)
1,278,477 
------------
$    (14,566)
============

---

NOTE 6 - SALE OF PROJECT PARTNERSHIPS:
   Gateway is currently in the process of disposing of its investments in Project Partnerships which have reached the end of their fifteen year tax-credit compliance period.  This process may take a number of years to complete. Gateway's objective is to maximize the investor's return wherever possible and ultimately, to liquidate the Project Partnerships.  Gateway has not classified the Project Partnerships as held for sale in the accompanying financial statements because Gateway believes they do not meet all of the criteria required by SFAS 144, "Accounting for the Impairment or Disposal of Long-Lived Assets".
   Generally, the market for Project Partnerships is limited.  Some of the factors which negatively impact the marketability of these projects include 
1) requirements by government agencies or the projects debt holder to continue to maintain the property in the low-income housing program, and 2) the mortgage balance of the property is very near the initial balance as a result of the heavily subsidized debt of the Project Partnerships which offered extremely low interest rates to the borrower and lengthy (usually 50 year) amortization periods.
   The following summarizes the most recent status of the Project Partnership sale/disposal process:Series 2Gateway has consented to the general partner granting an option for either the general partner or a third-party to purchase the Partnership Interest:Brookhaven Apartments                     Lewiston Country Estates
Lakeshore Apartments                      Rolling Oaks II Apartments
   Should all these options be exercised, the estimated net sales proceeds to Gateway from the sales transactions are estimated to be $445,000, or $72.52 per limited partnership unit potentially available for distribution to the Limited Partners over the next 24 months.  These options to purchase could expire without being exercised which would result in no sales proceeds and remarketing of the Project Partnerships, the results of which are undeterminable.Series 3Project Partnerships currently listed for sale on a commercial real estate for sale website:Logansport Seniors Apartments             Southwood Apartments
Mill Run ApartmentsGateway has consented to the general partner granting an option for either the general partner or a third-party to purchase the Partnership Interest:Birchwood Apartments                      Countrywood Apartments
   Should all these options be exercised, the estimated net sales proceeds to Gateway from the sales transactions are estimated to be $175,000, or $32.07 per limited partnership unit potentially available for distribution to the Limited Partners over the next 24 months.  These options to purchase could expire without being exercised which would result in no sales proceeds and remarketing of the Project Partnerships, the results of which are undeterminable.Gateway has approved the sale to the general partner of the Project Partnerships:Brubaker Square Apartments                Villa Allegra Apartments
Plaza Senior Village Apartments
The estimated net proceeds to Gateway from the sales of these Project Partnerships are estimated to be $255,000, or $46.74 per limited partnership unit, which would be available for distribution to the Limited Partners subsequent to the closing of the sales transactions.

---

NOTE 6 - SALE OF PROJECT PARTNERSHIPS (Continued):Series 4Project Partnerships currently listed for sale on a commercial real estate for sale website:Alsace Village Apartments                 Oaks Apartments
Ashland Estates                           Ozona Seniors Apartments
Brackettville Seniors Apartments          Sonora Seniors Apartments
Chestnut Apartments                       Tarpon Heights Apartments
Fredericksburg Seniors Apartments         Village Apartments of St. Joseph II
Greenbriar ApartmentsSeries 5Project Partnerships currently listed for sale on a commercial real estate for sale website:Fox Ridge Apartments                      Village Apartments of Effingham
Redmont II Apartments                     Village Apartments of Seymour II

---

Item 2.  Management's Discussion and Analysis of Financial Condition and
Results of Operations:Results of Operations, Liquidity and Capital Resources
   Operations commenced on September 14, 1990, with the first admission of Assignees in Series 2.  The proceeds from Assignees' capital contributions available for investment were used to acquire interests in Project Partnerships.
   As disclosed on the statement of operations for each Series, interest income is comparable for the six months ended September 30, 2006 and September 30, 2005.  The General and Administrative expenses - General Partner and General and Administrative expenses
- Other for the six months ended September 30, 2006, as compared to the six months ended September 30, 2005, have increased due to higher administrative costs arising from the process of evaluating potential dispositions of Project Partnerships.
   The capital resources of each Series are used to pay General and Administrative operating costs including personnel, supplies, data processing, travel and legal and accounting associated with the administration and monitoring of Gateway and the Project Partnerships.  The capital resources are also used to pay the Asset Management Fee due the Managing General Partner, but only to the extent that Gateway's remaining resources are sufficient to fund Gateway's ongoing needs.  (Payment of any Asset Management Fee unpaid at the time Gateway sells its interests in the Project Partnerships is subordinated to the return of the investors' original capital contributions).
   The sources of funds to pay the operating costs of each Series are cash and cash equivalents, short-term investments and interest earned thereon, the maturity of U.S. Treasury Security Strips ("Zero Coupon Treasuries") and U.S. Treasury Notes (purchased in July 2006), which were purchased with funds set aside for this purpose and cash distributed to the Series from the operations of the Project Partnerships.
   From inception of Gateway to-date, two Series have paid distributions upon sale of Project Partnerships.  A distribution of $157,126 related to the sale of Highland View, LP, in Series 5 was made during the quarter ended September 30, 2005, and a distribution of $224,074 related to the sale of Mountain Crest, LP, in Series 6 was made during the quarter ended December 31, 2005.  Future distributions may be made for any particular Series as a result of the sale of other Project Partnerships.
   Series 2 - Gateway closed this series on September 14, 1990 after receiving $6,136,000 from 375 Assignees.  Equity in Losses of Project Partnerships for the six months ended September 30, 2006 decreased from $13,112 for the six months ended September 30, 2005 to $0 as a result of the suspension of losses in this Series so that the Investment in Project Partnerships does not fall below zero. (These Project Partnerships reported depreciation and amortization of $434,855 and $437,738 for the six months ended June 30, 2005 and 2006, respectively.)  As a result, management expects that this Series, as well as those described below, will report its equity in Project Partnerships as a loss for tax and financial reporting purposes.  Overall, management believes the Project Partnerships are operating as expected and have generated tax credits which met projections.
   At September 30, 2006, the Series had $151,735 of short-term investments (Cash and Cash Equivalents).  It also had $126,583 in U.S. Treasury Notes with a maturity value of $127,000 at June 30, 2007.  Management believes the sources of funds are sufficient to meet current and ongoing operating costs for the foreseeable future, and to pay part of the Asset Management Fee.
   As disclosed on the statement of cash flows, the Series had a net loss of $64,997 for the six months ended September 30, 2006.  However, after adjusting for the changes in operating assets and liabilities, net cash used in operating activities was $43,686.  Cash used in investing activities totaled $55,108, consisting of cash distributions from the Project Partnerships and proceeds from the redemption of securities, offset by the purchase of U.S. Treasury Notes in July 2006.   Series 3 - Gateway closed this series on December 13, 1990 after receiving $5,456,000 from 398 Assignees.  Equity in Losses of Project Partnerships for the six months ended September 30, 2006 and 2005 was $0 as a result of the suspension of losses in this Series so that the Investment in Project Partnerships does not fall below zero.  (These Project Partnerships reported depreciation and amortization of $482,927 and $479,179 for the six months ended June 30, 2005 and 2006, respectively.)  Overall, management believes the Project Partnerships are operating as expected and have generated tax credits which met projections.
   At September 30, 2006, the Series had $134,240 of short-term investments (Cash and Cash Equivalents).  It also had $126,583 in U.S. Treasury Notes with a maturity value of $127,000 at June 30, 2007.  Management believes the sources of funds are sufficient to meet current and ongoing operating costs for the foreseeable future, and to pay part of the Asset Management Fee.
   As disclosed on the statement of cash flows, the Series had a net loss of $57,145 for the six months ended September 30, 2006.  However, after adjusting for the changes in operating assets and liabilities, net cash used in operating activities was $47,384.  Cash used in investing activities totaled $54,411, consisting of cash distributions from the Project Partnerships and proceeds from the redemption of securities, offset by the purchase of U.S. Treasury Notes in July 2006.
   Subsequent to September 30, 2006, Gateway sold its Project Partnership investment in Birchwood Apartments.  The sale of this Project Partnerships' assets will be reflected in the financial statements for the quarter ended December 31, 2006.  Gateway received net proceeds from the sale of this Project Partnership of approximately $100,000.
   Series 4 - Gateway closed this series on May 31, 1991 after receiving $6,915,000 from 465 Assignees.  Equity in Losses of Project Partnerships for the six months ended September 30, 2006 and 2005 was $0 as a result of the suspension of all losses in this Series so that the Investment in Project Partnerships does not fall below zero.  (These Project Partnerships reported depreciation and amortization of $516,596 and $522,094 for the six months ended June 30, 2005 and 2006, respectively.)  Overall, management believes the Project Partnerships are operating as expected and have generated tax credits which met projections.
   At September 30, 2006, the Series had $177,519 of short-term investments (Cash and Cash Equivalents).  It also had $177,414 in U.S. Treasury Notes with a maturity value of $178,000 at June 30, 2007.  Management believes the sources of funds are sufficient to meet current and ongoing operating costs for the foreseeable future, and to pay part of the Asset Management Fee.
   As disclosed on the statement of cash flows, the Series had a net loss of $71,264 for the six months ended September 30, 2006.  However, after adjusting for the changes in operating assets and liabilities, net cash used in operating activities was $57,273.  Cash used in investing activities totaled $87,412, consisting of cash distributions from the Project Partnership and proceeds from the redemption of securities, offset by the purchase of U.S. Treasury Notes in July 2006.   Series 5 - Gateway closed this series on October 11, 1991 after receiving $8,616,000 from 535 Assignees.  Equity in Losses of Project Partnerships for the six months ended September 30, 2006 increased from $1,348 for the six months ended September 30, 2005 to $2,537 as a result of a lesser proportion of the Partnerships' share of net loss being suspended.  Suspended losses are a direct result of the Investment balance in Project Partnership reaching a zero balance of individual Project Partnerships.  Since more Project Partnerships have accumulated enough losses to warrant a zero balance, additional losses are suspended since the Partnership's accounting policy is to not carry Investments in Project Partnerships below zero.  (These Project Partnerships reported depreciation and amortization of $612,593 and $601,764 for the six months ended June 30, 2005 and 2006, respectively.)  Overall, management believes the Project Partnerships are operating as expected and have generated tax credits which met projections.
   At September 30, 2006, the Series had $215,980 of short-term investments (Cash and Cash Equivalents).  It also had $100,669 in U.S. Treasury Notes with a maturity value of $101,000 at June 30, 2007.  Management believes the sources of funds are sufficient to meet current and ongoing operating costs for the foreseeable future, and to pay part of the Asset Management Fee.   As disclosed on the statement of cash flows, the Series had a net loss of $92,766 for the six months ended September 30, 2006.  However, after adjusting for Equity in Losses of Project Partnerships of $2,537 and the changes in operating assets and liabilities, net cash used in operating activities was $60,764.  Cash provided by investing activities totaled $14,305, consisting of cash distributions from the Project Partnerships and proceeds from the redemption of securities, offset by the purchase of U.S. Treasury Notes in July 2006.
   Series 6 - Gateway closed this series on March 11, 1992 after receiving $10,105,000 from 625 Assignees.  Equity in Losses of Project Partnerships for the six months ended September 30, 2006 decreased from a loss of $106 for the six months ended September 30, 2005 to income of $12,741 due to a decrease in total expenses of the Project Partnership.  (These Project Partnerships reported depreciation and amortization of $689,524 and $646,609 for the six months ended June 30, 2005 and 2006, respectively.)  Overall, management believes the Project Partnerships are operating as expected and are generating tax credits which meet projections.
   At September 30, 2006, the Series had $150,270 of short-term investments (Cash and Cash Equivalents).  It also had $81,327 in Zero Coupon Treasuries with maturities providing $83,000 in fiscal year 2007.  In addition, the series had $278,079 in U.S. Treasury Notes with a maturity value of $279,000 at June 30, 2007.  Management believes the sources of funds are sufficient to meet current and ongoing operating costs for the foreseeable future, and to pay part of the Asset Management Fee.
   As disclosed on the statement of cash flows, the Series had a net loss of $90,906 for the six months ended September 30, 2006.  However, after adjusting for Equity in Income of Project Partnerships of $12,741 and the changes in operating assets and liabilities, net cash used in operating activities was $62,295.  Cash used in investing activities totaled $251,015, consisting of cash distributions from the Project Partnerships, offset by the purchase of U.S. Treasury Notes in July 2006.Exit Strategy
   The IRS compliance period for low-income housing tax credit properties is generally 15 years from occupancy following construction or rehabilitation completion.
   Many of the Project Partnerships have reached the end of their tax-credit compliance period and those Project Partnerships that have yet to reach the end of their tax-credit compliance period will do so within the next three years.  To-date, two of the Project Partnerships have been sold and, in accordance with the Gateway partnership agreement, the entire net proceeds received from these sales have been disbursed to the Limited Partners of those series of Gateway.
   Gateway is presently evaluating the potential disposition of each of the Project Partnerships which have reached the end of their tax-credit compliance period and as opportunities arise, will endeavor to sell Gateway's interest in those Project Partnerships.  The Partnerships objective is to maximize the investor's return wherever possible and ultimately, to liquidate the Project Partnerships that no longer provide tax benefits to investors.  Refer to Note 6
- Sale of Project Partnerships for discussion of the process.
   Gateway has no direct employees.  The General Partners have full and exclusive discretion in management and control of Gateway.

---

Item 3.  Quantitative and Qualitative Disclosure About Market Risk:
   As a small business issuer, no information is required.
Item 4.  Controls and Procedures:
   Within 90 days prior to the filing of this report, under the supervision and with the participation of the Partnership's management, including the General Managing Partnership's chief executive and chief financial officers, an evaluation of the effectiveness of the Partnership's disclosure controls and procedures (as defined in Rule 13a-14(c) under the Securities Exchange Act of 1934) was performed.  Based on this evaluation, such officers have concluded that the Partnership's disclosure controls and procedures were effective as of the date of that evaluation in alerting them in a timely manner to material information relating to the Partnership required to be included in this report and the Partnership's other reports that it files or submits under the Securities Exchange Act of 1934.  There were no significant changes in the Partnership's internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation.

PART II - Other Information

Item 1.  Legal Proceedings:
   None.
Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds:
   None.
Item 3.  Defaults upon Senior Securities:
   None.
Item 4.  Submission of Matters to a Vote of Security Holders:
   None.
Item 5.  Other Information:
   None.
Item 6.  Exhibits:
   31.1 Principal Executive Officer Certification as required by Rule 13a-   14(a)/15d-14(a), filed herewith.
   31.2 Principal Financial Officer Certification as required by Rule 13a-   14(a)/15d-14(a), filed herewith.
   32. Certification of the Chief Executive Officer and Chief Financial Officer    Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of  the
   Sarbanes-Oxley Act of 2002, filed herewith.

---



SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

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

Date: November 15, 2006           By:/s/ Ronald M. Diner                                  Ronald M. Diner
                                  President
Date: November 15, 2006           By:/s/ Jonathan Oorlog
                                  Jonathan Oorlog
                                  Vice President and Chief Financial Officer
Date: November 15, 2006           By:/s/ Sandra C. Humphreys                                  Sandra C. Humphreys
                                  Secretary and Treasurer

---

EXHIBIT 31.1
CERTIFICATIONS*

I, Ron Diner, certify that:
1. I have reviewed this quarterly report on Form 10-Q of Gateway Tax Credit Fund, II, Ltd.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: November 15, 2006          By:/s/ Ronald M. Diner                                 Ronald M. Diner
                                 President
                                 Raymond James Tax Credit Funds, Inc.
                                 (Managing General Partner)

---

EXHIBIT 31.2
CERTIFICATIONS*

I, Jonathan Oorlog, certify that:
1. I have reviewed this quarterly report on Form 10-Q of Gateway Tax Credit Fund, II, Ltd.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: November 15, 2006          By:/s/ Jonathan Oorlog
                                 Jonathan Oorlog
                                 Vice President and Chief Financial Officer
                                 Raymond James Tax Credit Funds, Inc.
                                 (Managing General Partner)

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EXHIBIT 32

CERTIFICATION PURSUANT TO 
18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO 
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Gateway Tax Credit Fund II, Ltd.; (the "Partnership") on Form 10-Q for the period ended September 30, 2006 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), we hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to our knowledge:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Partnership.

/s/ Ronald M. DinerRonald M. Diner
President
Raymond James Tax Credit Funds, Inc.
(Managing General Partner)
November 15, 2006

/s/ Jonathan OorlogJonathan Oorlog
Vice President and Chief Financial Officer
Raymond James Tax Credit Funds, Inc.
(Managing General Partner)
November 15, 2006