----

| Gateway Tax Credit      Fund, Ltd.                          |
|-------------------------------------------------------------|
| (Exact      name of Registrant as specified in its charter) |
|                                                        |   |
| Florida                                                     | 59-2852555 |
| (State      or other jurisdiction of                        | (IRS      Employer |
| incorporation      or organization)                         | Identification      No.) |
|                                                        |   |
| 880 Carillon      Parkway                                   | St.      Petersburg,  Florida     33716 |
| (Address      of principal executive offices)               | (Zip      Code) |
|                                                        |   |
| Registrant's      Telephone Number, Including Area Code     | (727)      567-1000 |

| Securities      registered pursuant to Section 12(b) of the      Act:         None |
|---------------------------------------------------------------------------------------------------------------------------------|
|    Securities      registered pursuant to Section 12(g) of theAct:                                               |

| Title      of Each Class                   |
|--------------------------------------------|
| Units      of Limited Partnership Interest |
|                                       |   |
|                                       | Number      of Record Holders |
| Title of      Class                        | as of March 31,      2008 |
| Limited      Partnership Interest          |                 1,906 |
| General      Partner Interest              |     2 |

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

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

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

----

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

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

----

| 1)   | Provide      tax benefits to Limited Partners in the form of Tax Credits during the      period in which each Project is eligible to claim Tax    Credits; |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2)   | Provide      passive losses to individual investors to offset passive income from other      passive activities, and provide passive losses to corporate investors to      offset business income; |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3)   | Preserve      and protect the capital contributions of Investors;  and |
|----------------|------------------------------------------------------------------------|

| 4)   | Participate      in any capital appreciation in the value of the  Projects. |
|----------------|-----------------------------------------------------------------------------|

----

----

| PARTNERSHIP             |   | LOCATION      OF PROPERTY      |   | #      OF UNITS |   | DATE      ACQUIRED |   | PROPERTY      COST |   | OCCUPANCY      RATE |
|-------------------------|--------|--------------------------------|--------|-----------------|--------|--------------------|--------|--------------------|--------|---------------------|
|                    |   |                           |   |            |
|                    |   |                           |   |            |   |               |   |               |   |                |
| Laynecrest              |   | Medway,      OH                |   | 48              |   | 6/88               |   | 1,861,785          |   | 94%                 |
| Martindale              |   | Union,      OH                 |   | 30              |   | 6/88               |   | 1,194,870          |   | 93%                 |
| La      Villa Elena     |   | Bernalillo,      NM            |   | 54              |   | 8/88               |   | 2,190,297          |   | 91%                 |
| Rio      Abajo          |   | Truth      or Consequences, NM |   | 42              |   | 9/88               |   | 1,942,830          |   | 83%                 |
| Fortville      II       |   | Fortville,      IN             |   | 24              |   | 11/88              |   | 810,389            |   | 92%                 |
| Summitville             |   | Summitville,      IN           |   | 24              |   | 11/88              |   | 879,994            |   | 79%                 |
| Suncrest                |   | Yanceyville,      NC           |   | 40              |   | 12/88              |   | 2,177,840          |   | 95%                 |
| Brandywine      III     |   | Millsboro,      DE             |   | 32              |   | 12/88              |   | 1,352,121          |   | 100%                |
| Concord      IV         |   | Perryville,      MD            |   | 32              |   | 12/88              |   | 1,436,704          |   | 100%                |
| Dunbarton      Oaks III |   | Georgetown,      DE            |   | 32              |   | 12/88              |   | 1,434,474          |   | 100%                |
| Federal      Manor      |   | Federalsburg,      MD          |   | 32              |   | 12/88              |   | 1,534,081          |   | 94%                 |
| Laurel      Apts        |   | Laurel,      DE                |   | 32              |   | 12/88              |   | 1,422,715          |   | 88%                 |
| Mulberry      Hill IV   |   | Easton,      MD                |   | 16              |   | 12/88              |   | 759,749            |   | 100%                |
| Madison                 |   | Madison,      OH               |   | 39              |   | 12/88              |   | 1,478,675          |   | 97%                 |
| Hannah's      Mill      |   | Thomaston,      GA             |   | 50              |   | 12/88              |   | 1,812,786          |   | 96%                 |
| Longleaf      Apts.     |   | Cairo,      GA                 |   | 36              |   | 12/88              |   | 1,218,731          |   | 97%                 |
| Sylacauga      Garden   |   | Sylacauga,      AL             |   | 42              |   | 12/88              |   | 1,636,950          |   | 67%                 |
| Monroe      Family      |   | Monroe,      GA                |   | 48              |   | 12/88              |   | 1,788,673          |   | 85%                 |
| Casa      Linda         |   | Silver      City, NM           |   | 41              |   | 3/89               |   | 1,831,895          |   | 90%                 |
| Crosstown               |   | Kalamazoo,      MI             |   | 201             |   | 4/89               |   | 6,360,171          |   | 95%                 |
| Limestone      Estates  |   | Limestone,      ME             |   | 25              |   | 6/89               |   | 1,462,783          |   | 92%                 |
| Eagle's      Bay        |   | Beaufort,      NC              |   | 40              |   | 6/89               |   | 1,975,445          |   | 100%                |
| Sage                    |   | Gallup,      NM                |   | 44              |   | 7/89               |   | 2,043,143          |   | 93%                 |
| Middleport              |   | Middleport,      NY            |   | 25              |   | 9/89               |   | 1,167,852          |   | 100%                |
| Oakwood      Apts.      |   | Columbus,      NE              |   | 24              |   | 9/89               |   | 1,042,681          |   | 88%                 |
| Morgantown              |   | Morgantown,      IN            |   | 24              |   | 9/89               |   | 959,783            |   | 96%                 |
| Cuthbert      Elderly   |   | Cuthbert,      GA              |   | 32              |   | 9/89               |   | 1,028,295          |   | 100%                |
| Sandhill      Forest    |   | Melrose,      FL               |   | 16              |   | 9/89               |   | 754,288            |   | 100%                |
| Oakwood      Grove      |   | Crescent      City, FL         |   | 36              |   | 9/89               |   | 1,238,885          |   | 92%                 |
| Hastings      Manor     |   | Hastings,      FL              |   | 24              |   | 9/89               |   | 863,202            |   | 88%                 |
| Lakewood      Apts.     |   | Norfolk,      NE               |   | 72              |   | 9/89               |   | 3,343,467          |   | 92%                 |
| Mabank      1988        |   | Mabank,      TX                |   | 42              |   | 9/89               |   | 1,431,070          |   | 95%                 |
| Buena      Vista        |   | Buena      Vista, GA           |   | 24              |   | 9/89               |   | 814,227            |   | 92%                 |
| Woodcroft               |   | Elizabethtown,      NC         |   | 32              |   | 9/89               |   | 1,497,433          |   | 94%                 |
| Spring      Creek       |   | Quitman,      GA               |   | 18              |   | 10/89              |   | 607,608            |   | 100%                |
| Spring      Creek       |   | Cherokee,      AL              |   | 24              |   | 11/89              |   | 1,032,402          |   | 88%                 |
| Milton      Elderly     |   | Milton,      FL                |   | 43              |   | 11/89              |   | 1,396,378          |   | 100%                |
| Winder      Apartments  |   | Winder,      GA                |   | 48              |   | 11/89              |   | 1,762,725          |   | 100%                |
| Stone      Arbor        |   | Madison,      NC               |   | 40              |   | 12/89              |   | 1,874,064          |   | 98%                 |
| Centralia      II       |   | Centralia,      IL             |   | 24              |   | 12/89              |   | 976,228            |   | 92%                 |
| Poteau      IV          |   | Poteau,      OK                |   | 32              |   | 12/89              |   | 716,016            |   | 84%                 |
| Barling                 |   | Barling,      AR               |   | 48              |   | 12/89              |   | 1,152,864          |   | 92%                 |
| Booneville              |   | Booneville,      AR            |   | 48              |   | 12/89              |   | 1,682,587          |   | 94%                 |
| Augusta                 |   | Augusta,      KS               |   | 66              |   | 12/89              |   | 2,381,719          |   | 79%                 |
| Meadows                 |   | Farmville,      VA             |   | 40              |   | 12/89              |   | 1,588,193          |   | 80%                 |
| Middlefield             |   | Middlefield,      OH           |   | 36              |   | 3/90               |   | 1,350,227          |   | 92%                 |
| Mathis      Retirement  |   | Mathis,      TX                |   | 36              |   | 3/90               |   | 1,084,390          |   | 100%                |

----

| PARTNERSHIP                                                                                                               |   | LOCATION      OF PROPERTY |   | #      OF UNITS |   | DATE      ACQUIRED |   | PROPERTY      COST |   | OCCUPANCY      RATE |
|---------------------------------------------------------------------------------------------------------------------------|--------|---------------------------|--------|-----------------|--------|--------------------|--------|--------------------|--------|---------------------|
|                                                                                                                      |   |                      |   |            |
|                                                                                                                      |   |                      |   |            |   |               |   |               |   |                |
| Sabinal      Housing                                                                                                      |   | Sabinal,      TX          |   | 24              |   | 3/90               |   | 780,115            |   | 96%                 |
| Kingsland      Housing                                                                                                    |   | Kingsland,      TX        |   | 34              |   | 3/90               |   | 1,161,513          |   | 100%                |
| Poteau      Prop. III                                                                                                     |   | Poteau,      OK           |   | 19              |   | 4/90               |   | 583,005            |   | 100%                |
| Decatur      Properties                                                                                                   |   | Decatur,      AR          |   | 24              |   | 4/90               |   | 969,816            |   | 83%                 |
| Broken      Bow Prop II                                                                                                   |   | Broken      Bow, OK       |   | 46              |   | 4/90               |   | 1,957,868          |   | 98%                 |
| Turtle      Creek II                                                                                                      |   | Grove,      OK            |   | 42              |   | 4/90               |   | 1,558,446          |   | 100%                |
| Hartwell      Elderly                                                                                                     |   | Hartwell,      GA         |   | 24              |   | 4/90               |   | 821,329            |   | 100%                |
| Pulaski      Village                                                                                                      |   | Pulaski,      VA          |   | 44              |   | 7/90               |   | 1,879,998          |   | 100%                |
|                                                                                                                      |   |                      |   |            |   |               |   |               |   |                |
| Total                                                                                                                     |   |                      |   | 2,115           |   |               |   | $82,065,775        |   |                |
|                                                                                                                      |   |                      |   |            |   |               |   |               |   |                |
| The      average effective rental per unit for the year ended December 31, 2007 is      $4,640 per year ($387 per month). |
|                                                                                                                      |   |                      |   |            |   |               |   |               |   |                |
| The      average effective occupancy rate at December 31, 2007 was      93.1%                                             |

| A summary of the book value of the fixed assets of the      Project Partnerships (excluding Sparta for the years    ended |   |
|---------------------------------------------------------------------------------------------------------------------------|--------|
| December      31, 2006 and 2005), as of December 31, 2007, 2006 and 2005 is as      follows:                              |   |
|                                                                                                                      |   |   |   |   |   |   |   |   |   |
|                                                                                                                      |   | December      31, |   |   | December      31, |   |   | December      31, |   |
|                                                                                                                      |   | 2007 |   |   | 2006 |   |   | 2005 |   |
|                                                                                                                      |   |   |   |   |   |   |   |   |   |
| Land                                                                                                                      |   | $ | 3,379,633 |   |   | $ | 4,370,614 |   |   | $ | 4,799,885 |   |
| Land      Improvements                                                                                                    |   |   | 1,044,572 |   |   |   | 1,568,350 |   |   |   | 1,566,732 |   |
| Buildings                                                                                                                 |   |   | 74,155,361 |   |   |   | 90,212,695 |   |   |   | 99,681,232 |   |
| Furniture      and Fixtures                                                                                               |   |   | 3,486,209 |   |   |   | 4,359,598 |   |   |   | 4,723,415 |   |
|                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Properties,      at Cost                                                                                                  |   |   | 82,065,775 |   |   |   | 100,511,257 |   |   |   | 110,771,264 |   |
| Less:  Accumulated      Depreciation                                                                            |   |   | 46,432,941 |   |   |   | 53,702,442 |   |   |   | 56,049,471 |   |
|                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Properties,      Net                                                                                                      |   | $ | 35,632,834 |   |   | $ | 46,808,815 |   |   | $ | 54,721,793 |   |
|                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |

----

|   |                              | Number      of Record Holders                                                             |
|--------|-----------------------------------|-------------------------------------------------------------------------------------------|
|   | Title of      Class               | as of March 31,      2008                                                                 |
|   |                              |                                                                                      |
|   | Limited      Partnership Interest |               1,906 |
|   | General      Partner Interest     |         2                                         |

|                         |   | 2008   |      |   | 2007   |   |      | 2006   |   |   | 2005      |   |   | 2004   |       |
|------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|--------|------------|
| Total      Revenues          |   | $      | 82,163    |   |   | $      | 72,730    |   |   | $      | 89,743    |   |   | $      | 216,372    |   |   | $ | 201,958 |   |
| Net      Income (Loss)       |   |   | 1,048,120 |   |   |   | (190,201  | )      |   |   | (378,769  | )      |   |   | (1,018,200 | ) |   |   | (55,577 | ) |
|                         |   |   |      |   |   |   |      |   |   |   |      |   |   |   |       |   |   |   |   |   |
| Equity      in Income (Loss) |   |   |      |   |   |   |      |   |   |   |      |   |   |   |       |   |   |   |   |   |
| of      Project Partnerships |   |   | (32,216   | )      |   |   | (26,727   | )      |   |   | (107,224  | )      |   |   | (371,209   | ) |   |   | 541,590 |   |
|                         |   |   |      |   |   |   |      |   |   |   |      |   |   |   |       |   |   |   |   |   |
| Total      Assets            |   |   | 970,950   |   |   |   | 2,009,969 |   |   |   | 2,054,699 |   |   |   | 2,381,717  |   |   |   | 3,360,108 |   |
|                         |   |   |      |   |   |   |      |   |   |   |      |   |   |   |       |   |   |   |   |   |
| Investments      In Project  |   |   |      |   |   |   |      |   |   |   |      |   |   |   |       |   |   |   |   |   |
| Partnerships                 |   |   | 418,023   |   |   |   | 541,534   |   |   |   | 620,184   |   |   |   | 938,137    |   |   |   | 1,355,760 |   |
|                         |   |   |      |   |   |   |      |   |   |   |      |   |   |   |       |   |   |   |   |   |
| Per      Limited Partnership |   |   |      |   |   |   |      |   |   |   |      |   |   |   |       |   |   |   |   |   |
| Unit:      (A)               |   |   |      |   |   |   |      |   |   |   |      |   |   |   |       |   |   |   |   |   |
| Tax      Credits             |   |   | .00       |   |   |   | .00       |   |   |   | .00       |   |   |   | .00        |   |   |   | 2.01 |   |
| Portfolio      Income        |   |   | 68.16     |   |   |   | (10.40    | )      |   |   | 10.46     |   |   |   | 13.65      |   |   |   | 10.59 |   |
| Passive      Loss            |   |   | (78.32    | )      |   |   | (103.29   | )      |   |   | (135.51   | )      |   |   | (160.84    | ) |   |   | (139.25 | ) |
|                         |   |   |      |   |   |   |      |   |   |   |      |   |   |   |       |   |   |   |   |   |
|                         |   |   |      |   |   |   |      |   |   |   |      |   |   |   |       |   |   |   |   |   |
| Net      Income (Loss)       |   |   | 40.59     |   |   |   | (16.84    | )      |   |   | (24.07    | )      |   |   | (39.43     | ) |   |   | (3.08 | ) |
|                         |   |   |      |   |   |   |      |   |   |   |      |   |   |   |       |   |   |   |   |   |

----

----

----

----

|  TransactionMonth      / Year |   Project      Partnership         |  Net      Proceeds                                                               |  Net      ProceedsPer      LP Unit                                   |  Gain      (Loss)on      Disposal                                                              | Component      of Discontinued Operations                                                                                 |
|------------------------------------|----------------------------------------------|---------------------------------------------------------------------------------------|---------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------|
| March      2008                    | Village      Apartments of Sparta            |   $          -            |     $      -            | $               -        | $   401,634                                                                                                |
| March      2008                    | Scotts      Hill                             |               - |             - |         (2,000)                                             |                 -                         |
| January      2008                  | Teton      View Apartments (Phase I)         |      23,000                                                  |        0.90                            |         21,811                                              |                 -                         |
| January      2008                  | Teton      View Apartments (Phase II)        |      15,000                                                  |        0.59                            |         14,504                                              |                 -                         |
| December      2007                 | Claremont      Housing                       |      22,000                                                  |        0.86                            |         23,850                                              |                 -                         |
| December      2007                 | Pleasant      Valley Housing                 |      31,775                                                  |        1.24                            |         31,249                                              |                 -                         |
| December      2007                 | River      Road Apartments                   |        8,750                                       |        0.34                            |       (51,411)                                                        |                 -                         |
| December      2007                 | Kenly      Court Apartments Phase I & II |    137,444                                                             |        5.38                            |       137,444                                                         |                 -                         |
| October      2007                  | Riverside      Apartments                    |    110,056                                                             |        4.30                            |       109,530                                                         |                 -                         |
| September      2007                | Hunters      Ridge Apartments (AL)           |      27,362                                                  |        1.07                            |         27,363                                              |                 -                         |
| August      2007                   | Greenville      Landing Apartments           |      34,306                                                  |        1.34                            |         33,775                                              |                 -                         |
| July      2007                     | Sandridge      Apartments                    |    248,000                                                             |        9.70                            |       248,798                                                         |                 -                         |
| July      2007                     | Brookshire      Apartments                   |    248,000                                                             |        9.70                            |       249,032                                                         |                 -                         |
| May      2007                      | Laurel      Woods Apartments                 |    223,240                                                             |        8.73                            |       224,347                                                         |                 -                         |
| April      2007                    | Ashburn      Housing                         |    148,309                                                             |        5.80                            |       147,778                                                         |                 -                         |
|                               | Other,      net (see below)                  |                                                                                  |                                                                      |              645    |                 -     |
|                               |                                         |                                                                                  |                                                                      | $      1,216,715                                                                                    |  $  401,634                                                                                                |

| Floresville      Square Apartments     | $   57,694 |
|----------------------------------------|---------------------------|
| Albany      Village Apartments         | 29,923                    |
| Hunters      Ridge Apartments (KY)     | 29,922                    |
| Ashburn      Housing                   | 201,181                   |
|                                   |                      |
| Total      Re-syndication contribution | $      318,720            |

----

|  TransactionMonth      / Year |   Project      Partnership  |  Net      Proceeds                                                               |  Net      ProceedsPer      LP Unit                                   |  Gain      (Loss)on      Disposal                                                            | Component      of Discontinued Operations                                                         |
|------------------------------------|---------------------------------------|---------------------------------------------------------------------------------------|---------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------|
| February      2007                 | Skyview      Terrace Apartments       |  $  38,732                                                             |     $      1.51                                       |   $   38,732                                                             |   $            -            |
| February      2007                 | Fairview      South Apartments        |      50,360                                                  |        1.97                            |        50,360                                                  |                 - |
| February      2007                 | Southwood      Apartments             |      42,710                                                  |        1.67                            |        42,710                                                  |                 - |
| February      2007                 | Robinhood      Apartments             |      40,383                                                  |        1.58                            |        40,383                                                  |                 - |
| January      2007                  | Applewood      Apartments             |    105,538                                                             |        4.14                            |      105,538                                                             |                 - |
| October      2006                  | Hunters      Ridge Apartments (KY)    |      47,616                                                  |        1.90                            |        47,616                                                  |                 - |
| October      2006                  | Albany      Village Apartments        |      47,668                                                  |        1.90                            |        47,668                                                  |                 - |
| July      2006                     | Floresville      Square Apartments II |      39,064                                                  |        1.54                            |        38,210                                                  |                 - |
| April      2006                    | Village      Apartments of Divernon   |               - |             - |                 - |      151,256                                                             |
|                               |                                  |                                                                                  |                                                                      |   $      411,217                                                                        |   $      151,256                                                                        |

|  TransactionMonth      / Year |   Project      Partnership |  Net      Proceeds         |  Net      ProceedsPer      LP Unit                    |  Gain      (Loss)on      Disposal |
|------------------------------------|--------------------------------------|---------------------------------|------------------------------------------------------------|----------------------------------------|
| June      2005                     | Rivermeade      Apartments I         |  $      329,950            |     $      12.90                       |   $      328,681             |
| June      2005                     | Rivermeade      Apartments II        |     167,550 |          6.55 |      167,060  |
| June      2005                     | Keysville      Apartments            |     102,758 |          4.02 |      102,758  |
|                               |                                 |                            |                                                       |   $      598,499             |

| Middlefield,      Ltd. | Pulaski      Village Limited Partnership |
|------------------------|------------------------------------------|

----

| Crosstown      Seniors              | Limestone      Estates              |
|-------------------------------------|-------------------------------------|
| Buena      Vista Housing            | Hannah’s      Mill Apartments |
| Mabank      1988 Limited            | La      Villa Elena L.P.            |
| Casa      Linda Limited Partnership | Sage      L.P.                      |
| Rio      Abajo                      |                                |

| Laurel      Apartments Limited Partnership | Cuthbert      Elderly Housing, Ltd. |
|--------------------------------------------|-------------------------------------|
| Spring      Creek Apartments, Ltd. (GA)    | Madison,      Ltd.                  |
| Middleport      Limited Partnership        | The      Meadows Associates         |
| Longleaf      Apartments, Ltd.             |                                |

| Winder      Apartments, Ltd., L.P.            | Spring      Creek Apartments, Ltd. (AL)                      |
|-----------------------------------------------|--------------------------------------------------------------|
| Lakewood      Apartments Limited Partnership  | Oakwood      Apartments Limited Partnership                  |
| Sabinal      Housing, Ltd.                    | Hartwell      Elderly, Ltd., L.P.                            |
| Hastings      Manor, Ltd.                     | Oakwood      Grove, Ltd.                                     |
| Sandhill      Forest, Ltd.                    | Eagle’s      Bay Limited Partnership                   |
| Stone      Arbor Limited Partnership          | Suncrest      Limited Partnership                            |
| Woodcroft      Limited Partnership            | Laynecrest      Associates Limited Partnership               |
| Martindale      Limited Partnership           | Village      Apartments of Centralia II, Limited Partnership |
| Village      Apartments of Fortville II, L.P. | Village      Apartments of Morgantown, Limited Partnership   |
| Village      Apartments of Summitville, L.P.  |                                                         |

----

|                                             |                |              Payment due by  period |
|--------------------------------------------------|---------------------|------------------------------------------------------------------------------------------------------|
|  Contractual      Obligations               |  Total         | Less      than1      year                                                                            |  1-3      years |  3-5      years | More      than5      years |
|                                             |                |                                                                                                 |   |   |   |
| Debt      Obligations                            |                |                                                                                                 |   |   |   |
| Capital      Lease Obligations                   |                |                                                                                                 |   |   |   |
| Operating      Lease Obligations                 |                |                                                                                                 |   |   |   |
| Purchase      Obligations                        |                |                                                                                                 |   |   |   |
| Other      Liabilities reflected on the          |                |                                                                                                 |   |   |   |
| Registrant’s      Balance Sheet under GAAP | $4,945,524      (1) | 4,945,524                                                                                            | 0 |                 0 | 0 |
|                                             |                |                                                                                                 |   |   |   |

----

----

|                                                                   |   | March      31, |       |   | March      31, |   |
|------------------------------------------------------------------------|--------|----------------|------------|--------|----------------|--------|
|                                                                   |   | 2008           |       |   | 2007           |   |
| ASSETS                                                                 |   |           |       |   |           |   |
| Current      Assets:                                                   |   |           |       |   |           |   |
| Cash      and Cash Equivalents                                         |   | $              | 350,280    |   |           | $      | 1,014,950 |   |
| Investments      in Securities                                         |   |           | 202,647    |   |           |   | 0 |   |
| Accounts      Receivable                                               |   |           | 0          |   |           |   | 3,008 |   |
|    Investments      in Project Partnerships, net        |   |           | 124,138    |   |           |   | 0 |   |
|    Investment      in Project Partnership Held for Sale |   |           | 293,885    |   |           |   | 0 |   |
|                                                                   |   |           |       |   |           |   |   |   |
| Total      Current Assets                                              |   |           | 970,950    |   |           |   | 1,017,958 |   |
|                                                                   |   |           |       |   |           |   |   |   |
| Investments      in Project Partnerships, net                          |   |           | 0          |   |           |   | 207,203 |   |
| Investment      in Project Partnership Held for Sale                   |   |           | 0          |   |           |   | 334,331 |   |
| Assets      of Consolidated Project Partnership                        |   |           |       |   |           |   |   |   |
| Held      for Sale                                                     |   |           | 0          |   |           |   | 450,477 |   |
|                                                                   |   |           |       |   |           |   |   |   |
| Total      Assets                                                      |   | $              | 970,950    |   |           | $      | 2,009,969 |   |
|                                                                   |   |           |       |   |           |   |   |   |
| LIABILITIES      AND PARTNERS' DEFICIT                                 |   |           |       |   |           |   |   |   |
| Current      Liabilities:                                              |   |           |       |   |           |   |   |   |
| Payable      to General Partners                                       |   | $              | 4,945,524  |   |           | $      | 496,513 |   |
| Distribution      Payable                                              |   |           | 0          |   |           |   | 278,126 |   |
| Accounts      Payable - Other                                          |   |           | 6,131      |   |           |   | 5,435 |   |
|                                                                   |   |           |       |   |           |   |   |   |
| Total      Current Liabilities                                         |   |           | 4,951,655  |   |           |   | 780,074 |   |
|                                                                   |   |           |       |   |           |   |   |   |
| Long-Term      Liabilities:                                            |   |           |       |   |           |   |   |   |
| Payable      to General Partners                                       |   |           | 0          |   |           |   | 4,187,572 |   |
| Liabilities      of Consolidated Project Partnership                   |   |           |       |   |           |   |   |   |
| Held      for Sale                                                     |   |           | 0          |   |           |   | 825,051 |   |
|                                                                   |   |           |       |   |           |   |   |   |
| Total      Long-Term Liabilities                                       |   |           | 0          |   |           |   | 5,012,623 |   |
|                                                                   |   |           |       |   |           |   |   |   |
| Minority      Interest in Local Limited                                |   |           |       |   |           |   |   |   |
| Partnership                                                            |   |           | 0          |   |           |   | (30,271 | ) |
|                                                                   |   |           |       |   |           |   |   |   |
| Partners'      Equity (Deficit):                                       |   |           |       |   |           |   |   |   |
| Limited      Partners (25,566 units outstanding                        |   |           |       |   |           |   |   |   |
| at      March 31, 2008 and March 31, 2007)                             |   |           | (4,571,641 | )      |           |   | (4,014,192 | ) |
| General      Partners                                                  |   |           | 590,936    |   |           |   | 261,735 |   |
|                                                                   |   |           |       |   |           |   |   |   |
| Total      Partners' Deficit                                           |   |           | (3,980,705 | )      |           |   | (3,752,457 | ) |
|                                                                   |   |           |       |   |           |   |   |   |
| Total      Liabilities and Partners' Deficit                           |   | $              | 970,950    |   |           | $      | 2,009,969 |   |
|                                                                   |   |           |       |   |           |   |   |   |

----

|                                                |   | 2008   |      |   | 2007   |   |     | 2006   |   |
|-----------------------------------------------------|--------|--------|-----------|--------|--------|--------|----------|--------|--------|
| Revenues:                                           |   |   |      |   |   |   |     |   |   |
| Distribution      Income                            |   | $      | 82,163    |   |   | $      | 72,730   |   |   | $ | 89,743 |   |
|                                                |   |   |      |   |   |   |     |   |   |   |   |   |
| Total      Revenues                                 |   |   | 82,163    |   |   |   | 72,730   |   |   |   | 89,743 |   |
|                                                |   |   |      |   |   |   |     |   |   |   |   |   |
| Expenses:                                           |   |   |      |   |   |   |     |   |   |   |   |   |
| Asset      Management Fee - General Partner         |   |   | 379,409   |   |   |   | 450,140  |   |   |   | 464,115 |   |
| General      and Administrative:                    |   |   |      |   |   |   |     |   |   |   |   |   |
| General      Partner                                |   |   | 104,564   |   |   |   | 223,671  |   |   |   | 173,378 |   |
| Other                                               |   |   | 94,622    |   |   |   | 101,732  |   |   |   | 129,041 |   |
| Amortization                                        |   |   | 0         |   |   |   | 0        |   |   |   | 181,818 |   |
|                                                |   |   |      |   |   |   |     |   |   |   |   |   |
| Total      Expenses                                 |   |   | 578,595   |   |   |   | 775,543  |   |   |   | 948,352 |   |
|                                                |   |   |      |   |   |   |     |   |   |   |   |   |
| Loss      Before Equity in Loss of Project          |   |   |      |   |   |   |     |   |   |   |   |   |
| Partnerships      and Other Income                  |   |   | (496,432  | )      |   |   | (702,813 | )      |   |   | (858,609 | ) |
|                                                |   |   |      |   |   |   |     |   |   |   |   |   |
| Equity      in Loss of Project Partnerships         |   |   | (32,216   | )      |   |   | (26,727  | )      |   |   | (107,224 | ) |
| Gain      on Sale of Project Partnerships           |   |   | 1,216,715 |   |   |   | 411,217  |   |   |   | 598,499 |   |
| Minority      Interest in (Income) Loss of          |   |   |      |   |   |   |     |   |   |   |   |   |
| Consolidated      Project Partnership               |   |   | (30,768   | )      |   |   | (39,246  | )      |   |   | 398 |   |
| Interest      Income                                |   |   | 38,902    |   |   |   | 35,035   |   |   |   | 27,927 |   |
|                                                |   |   |      |   |   |   |     |   |   |   |   |   |
| Net      Income (Loss) from Continuing Operations   |   | $      | 696,201   |   |   | $      | (322,534 | )      |   | $ | (339,009 | ) |
|                                                |   |   |      |   |   |   |     |   |   |   |   |   |
| Income      (Loss) from Discontinued Operations     |   |   |      |   |   |   |     |   |   |   |   |   |
| (See      Notes 2 & 8)                          |   |   | 351,919   |   |   |   | 132,333  |   |   |   | (39,760 | ) |
|                                                |   |   |      |   |   |   |     |   |   |   |   |   |
| Net      Income (Loss)                              |   | $      | 1,048,120 |   |   | $      | (190,201 | )      |   | $ | (378,769 | ) |
|                                                |   |   |      |   |   |   |     |   |   |   |   |   |
| Allocation      of Net Income (Loss):               |   |   |      |   |   |   |     |   |   |   |   |   |
| Limited      Partners                               |   | $      | 1,037,639 |   |   | $      | (430,524 | )      |   | $ | (615,305 | ) |
| General      Partners                               |   |   | 10,481    |   |   |   | 240,323  |   |   |   | 236,536 |   |
|                                                |   |   |      |   |   |   |     |   |   |   |   |   |
|                                                |   | $      | 1,048,120 |   |   | $      | (190,201 | )      |   | $ | (378,769 | ) |
|                                                |   |   |      |   |   |   |     |   |   |   |   |   |
| Net      Income (Loss) Per Limited Partnership Unit |   | $      | 40.59     |   |   | $      | (16.84   | )      |   | $ | (24.07 | ) |
|                                                |   |   |      |   |   |   |     |   |   |   |   |   |
| Number      of Limited Partnership Units            |   |   |      |   |   |   |     |   |   |   |   |   |
| Outstanding                                         |   |   | 25,566    |   |   |   | 25,566   |   |   |   | 25,566 |   |
|                                                |   |   |      |   |   |   |     |   |   |   |   |   |
|                                                |   |   |      |   |   |   |     |   |   |   |   |   |

----

|                           |   | Limited   |       |   | General               |   |     |   |   |
|--------------------------------|--------|-----------|------------|--------|-----------------------|--------|----------|--------|--------|
|                           |   | Partners' |       |   | Partners'             |   |     |   |   |
|                           |   | Deficit   |       |   | Equity      (Deficit) |   |     | Total  |   |
| Balance      at March 31, 2005 |   | $         | (1,953,424 | )      |                  | $      | (215,124 | )      |   | $ | (2,168,548 | ) |
|                           |   |      |       |   |                  |   |     |   |   |   |   |   |
| Net      Income (Loss)         |   |      | (615,305   | )      |                  |   | 236,536  |   |   |   | (378,769 | ) |
|                           |   |      |       |   |                  |   |     |   |   |   |   |   |
| Distributions                  |   |      | (600,258   | )      |                  |   | 0        |   |   |   | (600,258 | ) |
|                           |   |      |       |   |                  |   |     |   |   |   |   |   |
| Balance      at March 31, 2006 |   |      | (3,168,987 | )      |                  |   | 21,412   |   |   |   | (3,147,575 | ) |
|                           |   |      |       |   |                  |   |     |   |   |   |   |   |
| Net      Income (Loss)         |   |      | (430,524   | )      |                  |   | 240,323  |   |   |   | (190,201 | ) |
|                           |   |      |       |   |                  |   |     |   |   |   |   |   |
| Distributions                  |   |      | (414,681   | )      |                  |   | 0        |   |   |   | (414,681 | ) |
|                           |   |      |       |   |                  |   |     |   |   |   |   |   |
| Balance      at March 31, 2007 |   |      | (4,014,192 | )      |                  |   | 261,735  |   |   |   | (3,752,457 | ) |
|                           |   |      |       |   |                  |   |     |   |   |   |   |   |
| Capital      Contributions     |   |      | 0          |   |                  |   | 318,720  |   |   |   | 318,720 |   |
|                           |   |      |       |   |                  |   |     |   |   |   |   |   |
| Net      Income                |   |      | 1,037,639  |   |                  |   | 10,481   |   |   |   | 1,048,120 |   |
|                           |   |      |       |   |                  |   |     |   |   |   |   |   |
| Distributions                  |   |      | (1,595,088 | )      |                  |   | 0        |   |   |   | (1,595,088 | ) |
|                           |   |      |       |   |                  |   |     |   |   |   |   |   |
| Balance      at March 31, 2008 |   | $         | (4,571,641 | )      |                  | $      | 590,936  |   |   | $ | (3,980,705 | ) |
|                           |   |      |       |   |                  |   |     |   |   |   |   |   |

----

|                                                             |   | 2008   |       |   | 2007   |   |      | 2006   |   |
|------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|-----------|--------|--------|
| Cash      Flows from Operating Activities:                       |   |   |       |   |   |   |      |   |   |
| Net      Income (Loss)                                           |   | $      | 1,048,120  |   |   | $      | (190,201  | )      |   | $ | (378,769 | ) |
| Adjustments      to Reconcile Net Income (Loss) to               |   |   |       |   |   |   |      |   |   |   |   |   |
| Net      Cash Used in Operating Activities:                      |   |   |       |   |   |   |      |   |   |   |   |   |
| Amortization                                                     |   |   | 0          |   |   |   | 0         |   |   |   | 181,818 |   |
| Amortized      Premium on Investments in Securities              |   |   | 195        |   |   |   | 0         |   |   |   | 0 |   |
| Equity      in Loss of Project Partnerships                      |   |   | 32,216     |   |   |   | 26,727    |   |   |   | 107,224 |   |
| Gain      on Sale of Project Partnerships                        |   |   | (1,216,715 | )      |   |   | (411,217  | )      |   |   | (598,499 | ) |
| Discontinued      Operations                                     |   |   | (351,919   | )      |   |   | (132,333  | )      |   |   | 39,760 |   |
| Minority      Interest in Income (Loss) of Consolidated          |   |   |       |   |   |   |      |   |   |   |   |   |
| Project      Partnership                                         |   |   | 30,768     |   |   |   | 39,246    |   |   |   | (398 | ) |
| Net      Change in Assets and Liabilities of Consolidated        |   |   |       |   |   |   |      |   |   |   |   |   |
| Project      Partnership Held for Sale                           |   |   | 0          |   |   |   | 1,428     |   |   |   | 16,564 |   |
| Distribution      Income                                         |   |   | (82,163    | )      |   |   | (72,730   | )      |   |   | (89,743 | ) |
| Changes      in Operating Assets and Liabilities:                |   |   |       |   |   |   |      |   |   |   |   |   |
| Decrease      (Increase) in Accounts Receivable                  |   |   | 1,294      |   |   |   | 1,619     |   |   |   | (872 | ) |
| Increase      in Interest Receivable                             |   |   | (2,577     | )      |   |   | 0         |   |   |   | 0 |   |
| Increase      (Decrease) in Accounts Payable                     |   |   | 696        |   |   |   | (21,027   | )      |   |   | 26,462 |   |
| Increase      in Distribution Payable                            |   |   | 0          |   |   |   | 0         |   |   |   | 224 |   |
| Increase      in Payable to General Partners                     |   |   | 263,491    |   |   |   | 676,216   |   |   |   | 618,600 |   |
| Net      Cash Used in Operating Activities                       |   |   | (276,594   | )      |   |   | (82,272   | )      |   |   | (77,629 | ) |
|                                                             |   |   |       |   |   |   |      |   |   |   |   |   |
| Cash      Flows from Investing Activities:                       |   |   |       |   |   |   |      |   |   |   |   |   |
| Distributions      Received from Project Partnerships            |   |   | 92,198     |   |   |   | 87,232    |   |   |   | 116,895 |   |
| Net      Proceeds from Sale of Project Partnerships              |   |   | 1,276,538  |   |   |   | 408,239   |   |   |   | 600,258 |   |
| Purchase      of Investment Securities                           |   |   | (200,266   | )      |   |   | 0         |   |   |   | 0 |   |
| Cash      Related to Property Held for Sale                      |   |   | 0          |   |   |   | (19,979   | )      |   |   | (1,703 | ) |
| Net      Cash Provided by Investing Activities                   |   |   | 1,168,470  |   |   |   | 475,492   |   |   |   | 715,450 |   |
|                                                             |   |   |       |   |   |   |      |   |   |   |   |   |
| Cash      Flows from Financing Activities:                       |   |   |       |   |   |   |      |   |   |   |   |   |
| Capital      Contributions                                       |   |   | 318,720    |   |   |   | 0         |   |   |   | 0 |   |
| Distributions      to Limited Partners                           |   |   | (1,875,266 | )      |   |   | (136,779  | )      |   |   | (600,258 | ) |
| Net      Cash Used in Financing Activities                       |   |   | (1,556,546 | )      |   |   | (136,779  | )      |   |   | (600,258 | ) |
|                                                             |   |   |       |   |   |   |      |   |   |   |   |   |
| (Decrease)      Increase in Cash and Cash Equivalents            |   |   | (664,670   | )      |   |   | 256,441   |   |   |   | 37,563 |   |
| Cash      and Cash Equivalents at Beginning of Year              |   |   | 1,014,950  |   |   |   | 758,509   |   |   |   | 720,946 |   |
|                                                             |   |   |       |   |   |   |      |   |   |   |   |   |
| Cash      and Cash Equivalents at End of Year                    |   | $      | 350,280    |   |   | $      | 1,014,950 |   |   | $ | 758,509 |   |
|                                                             |   |   |       |   |   |   |      |   |   |   |   |   |
| Supplemental      Cash Flow Information:                         |   |   |       |   |   |   |      |   |   |   |   |   |
| Interest      Paid                                               |   | $      | 17,874     |   |   | $      | 19,632    |   |   | $ | 26,409 |   |
|                                                             |   |   |       |   |   |   |      |   |   |   |   |   |
| Supplemental      disclosure of non-cash activities:             |   |   |       |   |   |   |      |   |   |   |   |   |
| Increase      in Distribution Payable                            |   | $      | 2,052      |   |   | $      | 277,902   |   |   | $ | - |   |
| Decrease      in Payable to General Partners                     |   |   | (2,052     | )      |   |   | 0         |   |   |   | 0 |   |
| Distribution      to Limited Partners                            |   |   | 0          |   |   |   | (277,902  | )      |   |   | 0 |   |
| Increase      in Investment in Project Partnership Held for Sale |   |   | (293,885   | )      |   |   | 0         |   |   |   | 0 |   |
| Decrease      in Investments in Project Partnerships             |   |   | 293,885    |   |   |   | 0         |   |   |   | 0 |   |
|                                                             |   | $      | -          |   |   | $      | -         |   |   | $ | - |   |

----

----

----

|                                                         |   | 2008   |     |   | 2007   |   |    | 2006   |   |
|--------------------------------------------------------------|--------|--------|----------|--------|--------|--------|---------|--------|--------|
| Rental      Revenue                                          |   | $      | 109,586  |   |   | $      | 109,342 |   |   | $ | 133,428 |   |
| Miscellaneous      Income                                    |   |   | 2,646    |   |   |   | 3,695   |   |   |   | 4,212 |   |
| Rental      Operating Expenses                               |   |   | (105,550 | )      |   |   | (74,651 | )      |   |   | (92,138 | ) |
| Interest      Expense                                        |   |   | (49,295  | )      |   |   | (49,638 | )      |   |   | (85,529 | ) |
| Depreciation      Expense                                    |   |   | (38,714  | )      |   |   | (39,382 | )      |   |   | (57,669 | ) |
| Gain      on Disposition of Project Partnerships             |   |   | 401,634  |   |   |   | 151,256 |   |   |   | - |   |
| Interest      Subsidy                                        |   |   | 31,421   |   |   |   | 31,440  |   |   |   | 57,687 |   |
| Interest      Income                                         |   |   | 191      |   |   |   | 271     |   |   |   | 249 |   |
|   Total      Discontinued Operations Income (Loss) |   | $      | 351,919  |   |   | $      | 132,333 |   |   | $ | (39,760 | ) |

----

| Due      within 1 year                                 |   | $      | 202,647 |   |
|--------------------------------------------------------|--------|--------|---------|--------|
| After      1 year through 5 years                      |   |   | 0       |   |
|   Total      Amount Carried on Balance Sheet |   | $      | 202,647 |   |

----

|                                                      |   | 2008              |       |   | 2007              |   |       | 2006              |   |
|-----------------------------------------------------------|--------|-------------------|------------|--------|-------------------|--------|------------|-------------------|--------|
| Net      Income (Loss) per Financial Statements           |   | $                 | 1,048,120  |   |              | $      | (190,201   | )                 |   | $ | (378,769 | ) |
|                                                      |   |              |       |   |              |   |       |              |   |   |   |   |
| Equity      in Loss of Project Partnerships for tax       |   |              |       |   |              |   |       |              |   |   |   |   |
| purposes      in excess of losses for financial statement |   |              |       |   |              |   |       |              |   |   |   |   |
| purposes                                                  |   |              | (274,659   | )      |              |   | (114,857   | )                 |   |   | (905,444 | ) |
|                                                      |   |              |       |   |              |   |       |              |   |   |   |   |
| Losses      suspended for financial reporting purposes    |   |              | (1,262,292 | )      |              |   | (1,730,651 | )                 |   |   | (1,998,796 | ) |
|                                                      |   |              |       |   |              |   |       |              |   |   |   |   |
| Adjustments      to convert March 31, fiscal year end     |   |              |       |   |              |   |       |              |   |   |   |   |
| to      December 31, taxable year end                     |   |              | (47,007    | )      |              |   | (219,518   | )                 |   |   | 219,027 |   |
|                                                      |   |              |       |   |              |   |       |              |   |   |   |   |
| Additional      Gain on Sale of Project Partnerships for  |   |              |       |   |              |   |       |              |   |   |   |   |
| tax      purposes                                         |   |              | 2,897,681  |   |              |   | 526,598    |              |   |   | 999,397 |   |
|                                                      |   |              |       |   |              |   |       |              |   |   |   |   |
| Items      Expensed for Financial Statement purposes      |   |              |       |   |              |   |       |              |   |   |   |   |
| not      expensed for Tax purposes:                       |   |              |       |   |              |   |       |              |   |   |   |   |
| Asset      Management Fee                                 |   |              | 403,468    |   |              |   | 455,354    |              |   |   | 466,433 |   |
| Amortization      Expense                                 |   |              | 0          |   |              |   | 172,343    |              |   |   | 12,885 |   |
| Miscellaneous      Income                                 |   |              | (90,840    | )      |              |   | (58,505    | )                 |   |   | (89,491 | ) |
|                                                      |   |              |       |   |              |   |       |              |   |   |   |   |
| Items      Expensed for Tax purposes not expensed for     |   |              |       |   |              |   |       |              |   |   |   |   |
| Financial      Statement purposes:                        |   |              |       |   |              |   |       |              |   |   |   |   |
| Administrative      Expense                               |   |              | 0          |   |              |   | (224       | )                 |   |   | 0 |   |
|                                                      |   |              |       |   |              |   |       |              |   |   |   |   |
| Gateway      income (loss) for tax purposes as of         |   |              |       |   |              |   |       |              |   |   |   |   |
| December      31                                          |   | $                 | 2,674,471  |   |              | $      | (1,159,661 | )                 |   | $ | (1,674,758 | ) |
|                                                      |   |              |       |   |              |   |       |              |   |   |   |   |
|                                                      |   | December      31, |       |   | December      31, |   |       | December      31, |   |
|                                                      |   | 2007              |       |   | 2006              |   |       | 2005              |   |
|                                                      |   |              |       |   |              |   |       |              |   |   |   |   |
| Federal      Low Income Housing Tax Credits               |   |              |       |   |              |   |       |              |   |   |   |   |
| (Unaudited)                                               |   | $                 | 0          |   |              | $      | 0          |              |   | $ | 0 |   |

----

|                              |   | Financial |          |   | Tax       |   |        |        |   |
|-----------------------------------|--------|-----------|---------------|--------|-----------|--------|-------------|-------------|--------|
|                              |   | Reporting |          |   | Reporting |   |        |        |   |
|                              |   | Purposes  |          |   | Purposes  |   |        | Differences |   |
|                              |   |      |          |   |      |   |        |        |   |
| Investments      in Local Limited |   |      |          |   |      |   |        |        |   |
| Partnerships                      |   | $         |  418,023 |   |      | $      | (23,829,686 | )           |   | $ | 24,247,709 |   |
|                              |   |      |          |   |      |   |        |        |   |   |   |   |
| Other      Assets                 |   | $         |  552,927 |   |      | $      | 1,022,969   |        |   | $ | (470,042 | ) |
|                              |   |      |          |   |      |   |        |        |   |   |   |   |
| Liabilities                       |   | $         | 4,951,655     |   |      | $      | 745,918     |        |   | $ | 4,205,737 |   |

| As      of March 31, 2008, Gateway holds a 99% interest in the profits, losses,      and Tax Credits as a limited partner in 55 Project Partnerships holding 58      properties which own and operate government assisted multi-family housing      complexes. Cash flows from operations are allocated according to each      Project Partnership agreement. Upon dissolution, proceeds will be      distributed according to each Project Partnership agreement. The      total Investments in Project Partnerships includes both the Investments in      Project Partnerships and Investment in Project Partnership Held for Sale      on the consolidated balance sheet. |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |
| The      following is a summary of Investments in Project Partnerships, including      Crosstown but excluding Sparta for the year ended March 31, 2007, as      of:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | March      31, |   |   | March      31, |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | 2008 |   |   | 2007 |   |
| Capital      Contributions to Project Partnerships                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |
| and      purchase price paid for limited partner                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |
|  interests      in Project Partnerships                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | $ | 12,794,791 |   |   | $ | 15,720,185 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |
| Cumulative      equity in losses of Project Partnerships (1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   | (12,793,161 | ) |   |   | (15,751,914 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |
| Cumulative      distributions received from Project Partnerships                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | (605,078 | ) |   |   | (702,417 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |
| Investment      in Project Partnerships before Adjustment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   | (603,448 | ) |   |   | (734,146 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |
| Excess      of investment cost over the underlying                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |
| assets      acquired:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |
|   Acquisition      fees and expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   | 1,617,977 |   |   |   | 1,979,556 |   |
|   Accumulated      amortization of acquisition                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |
|   fees      and expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   | (596,506 | ) |   |   | (703,876 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |
| Investments      in Project Partnerships                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | $ | 418,023 |   |   | $ | 541,534 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |
| (1)      In accordance with Gateway's accounting policy to not carry Investments in      Project Partnerships below zero, cumulative suspended losses of      $17,461,710 for the year ended March 31, 2008 and cumulative suspended      losses of $19,299,452 for the year ended March 31, 2007 are not      included.                                                                                                                                                                                                                                                                                                                                                                    |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |

----

| In      accordance with Gateway's policy of presenting the financial information      of the Project Partnerships, excluding the Operating Entities for the      fiscal years ended March 31, 2007 and 2006, on a three month lag, below is      the summarized balance sheets for the Project Partnerships as of December      31 and the summarized statements of operations for the year ended December      31 of each year: |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                             |   | 2007 |   |   | 2006 |   |   | 2005 |   |
| SUMMARIZED      BALANCE SHEETS                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |
| Assets:                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |   |
|     Current      assets                                                                                                                                                                                                                                                                                                                                                                                      |   | $ | 7,261,688 |   |   | $ | 8,441,716 |   |   | $ | 8,866,220 |   |
|     Investment      properties, net                                                                                                                                                                                                                                                                                                                                                                          |   |   | 35,632,834 |   |   |   | 46,808,815 |   |   |   | 54,721,793 |   |
|     Other      assets                                                                                                                                                                                                                                                                                                                                                                                        |   |   | 449,635 |   |   |   | 876,557 |   |   |   | 476,710 |   |
|         Total      assets                                                                                                                                                                                                                                                                                                                                                                |   | $ | 43,344,157 |   |   | $ | 56,127,088 |   |   | $ | 64,064,723 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities      and Partners' Deficit:                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
|     Current      liabilities                                                                                                                                                                                                                                                                                                                                                                                 |   | $ | 3,488,506 |   |   | $ | 4,140,571 |   |   | $ | 3,673,308 |   |
|     Long-term      debt                                                                                                                                                                                                                                                                                                                                                                                      |   |   | 60,465,838 |   |   |   | 74,864,944 |   |   |   | 83,731,653 |   |
|         Total      liabilities                                                                                                                                                                                                                                                                                                                                                           |   |   | 63,954,344 |   |   |   | 79,005,515 |   |   |   | 87,404,961 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|  Partners'      deficit                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
|     Limited      Partner                                                                                                                                                                                                                                                                                                                                                                                     |   |   | (19,091,714 | ) |   |   | (20,692,359 | ) |   |   | (21,204,017 | ) |
|     General      Partners                                                                                                                                                                                                                                                                                                                                                                                    |   |   | (1,518,473 | ) |   |   | (2,186,068 | ) |   |   | (2,136,221 | ) |
|         Total      Partners' deficit                                                                                                                                                                                                                                                                                                                                                     |   |   | (20,610,187 | ) |   |   | (22,878,427 | ) |   |   | (23,340,238 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|         Total      liabilities and partners' deficit                                                                                                                                                                                                                                                                                                                                     |   | $ | 43,344,157 |   |   | $ | 56,127,088 |   |   | $ | 64,064,723 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| SUMMARIZED      STATEMENTS OF OPERATIONS                                                                                                                                                                                                                                                                                                                                                                                         |   |
| Rental      and other income                                                                                                                                                                                                                                                                                                                                                                                                     |   | $ | 13,642,751 |   |   | $ | 16,218,199 |   |   | $ | 17,514,169 |   |
| Expenses:                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
|     Operating      expenses                                                                                                                                                                                                                                                                                                                                                                                  |   |   | 7,523,441 |   |   |   | 8,922,830 |   |   |   | 9,322,311 |   |
|     Interest      expense                                                                                                                                                                                                                                                                                                                                                                                    |   |   | 4,949,038 |   |   |   | 6,019,721 |   |   |   | 6,997,036 |   |
|     Depreciation      and amortization                                                                                                                                                                                                                                                                                                                                                                       |   |   | 2,477,856 |   |   |   | 3,051,054 |   |   |   | 3,322,115 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|         Total      expenses                                                                                                                                                                                                                                                                                                                                                              |   |   | 14,950,335 |   |   |   | 17,993,605 |   |   |   | 19,641,462 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|             Net      loss                                                                                                                                                                                                                                                                                                                                            |   | $ | (1,307,584 | ) |   | $ | (1,775,406 | ) |   | $ | (2,127,293 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Other      partners' share of net loss                                                                                                                                                                                                                                                                                                                                                                                           |   | $ | (13,076 | ) |   | $ | (18,028 | ) |   | $ | (21,273 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Gateway's      share of net loss                                                                                                                                                                                                                                                                                                                                                                                                 |   | $ | (1,294,508 | ) |   | $ | (1,757,378 | ) |   | $ | (2,106,020 | ) |
| Suspended      losses                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | 1,262,292 |   |   |   | 1,730,651 |   |   |   | 1,998,796 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity      in Loss of Project Partnerships                                                                                                                                                                                                                                                                                                                                                                                      |   | $ | (32,216 | ) |   | $ | (26,727 | ) |   | $ | (107,224 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Gateway's      equity as reflected by the Project Partnerships of $(19,091,714) differs      from Gateway's Investments in Project Partnerships before acquisition fees      and expenses and amortization of $(603,448) primarily because of suspended      losses on Gateway's books.                                                                                                                                          |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                             |   |

----

|  TransactionMonth      / Year |   Project      Partnership         |  Net  Proceeds                                                         |  Net      ProceedsPer      LP Unit                                   |  Gain      (Loss)on      Disposal                                                       | Component      of Discontinued Operations                                                         |
|------------------------------------|----------------------------------------------|---------------------------------------------------------------------------------------|---------------------------------------------------------------------------|----------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------|
| March      2008                    | Village      Apartments of Sparta            |   $          -            |     $      -            | $               - | $   401,634                                                                        |
| March      2008                    | Scotts      Hill                             |               - |             - |         (2,000)                                      |                 - |
| January      2008                  | Teton      View Apartments (Phase I)         |      23,000                                                  |        0.90                            |         21,811                                       |                 - |
| January      2008                  | Teton      View Apartments (Phase II)        |      15,000                                                  |        0.59                            |         14,504                                       |                 - |
| December      2007                 | Claremont      Housing                       |      22,000                                                  |        0.86                            |         23,850                                       |                 - |
| December      2007                 | Pleasant      Valley Housing                 |      31,775                                                  |        1.24                            |         31,249                                       |                 - |
| December      2007                 | River      Road Apartments                   |        8,750                                       |        0.34                            |       (51,411)                                                 |                 - |
| December      2007                 | Kenly      Court Apartments Phase I & II |    137,444                                                             |        5.38                            |       137,444                                                  |                 - |
| October      2007                  | Riverside      Apartments                    |    110,056                                                             |        4.30                            |       109,530                                                  |                 - |
| September      2007                | Hunters      Ridge Apartments (AL)           |      27,362                                                  |        1.07                            |         27,363                                       |                 - |
| August      2007                   | Greenville      Landing Apartments           |      34,306                                                  |        1.34                            |         33,775                                       |                 - |
| July      2007                     | Sandridge      Apartments                    |    248,000                                                             |        9.70                            |       248,798                                                  |                 - |
| July      2007                     | Brookshire      Apartments                   |    248,000                                                             |        9.70                            |       249,032                                                  |                 - |
| May      2007                      | Laurel      Woods Apartments                 |    223,240                                                             |        8.73                            |       224,347                                                  |                 - |
| April      2007                    | Ashburn      Housing                         |    148,309                                                             |        5.80                            |       147,778                                                  |                 - |
|                               | Other,      net (see below)                  |                                                                                  |                                                                      |              645            |                 - |
|                               |                                         |                                                                                  |                                                                      | $      1,216,715                                                                             | $  401,634                                                                              |

----

| Floresville      Square Apartments     |   | $      | 57,694  |   |
|----------------------------------------|--------|--------|---------|--------|
| Albany      Village Apartments         |   |   | 29,923  |   |
| Hunters      Ridge Apartments (KY)     |   |   | 29,922  |   |
| Ashburn      Housing                   |   |   | 201,181 |   |
|                                   |   |   |    |   |
| Total      Re-syndication contribution |   | $      | 318,720 |   |

|               |                                  |                                                                                  |                                                                      |                                                                                              | Component      of                                                                                 |
|--------------------|---------------------------------------|---------------------------------------------------------------------------------------|---------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------|
| Transaction        |                                  | Net                                                                                   | Net      Proceeds                                                         | Gain      (Loss)                                                                                  | Discontinued                                                                                      |
| Month      / Year  | Project      Partnership              | Proceeds                                                                              | Per      LP Unit                                                          | on      Disposal                                                                                  | Operations                                                                                        |
| February      2007 | Skyview      Terrace Apartments       |  $  38,732                                                             |     $      1.51                                       |   $   38,732                                                             |   $            -            |
| February      2007 | Fairview      South Apartments        |      50,360                                                  |        1.97                            |        50,360                                                  |                 - |
| February      2007 | Southwood      Apartments             |      42,710                                                  |        1.67                            |        42,710                                                  |                 - |
| February      2007 | Robinhood      Apartments             |      40,383                                                  |        1.58                            |        40,383                                                  |                 - |
| January      2007  | Applewood      Apartments             |    105,538                                                             |        4.14                            |      105,538                                                             |                 - |
| October      2006  | Hunters      Ridge Apartments (KY)    |      47,616                                                  |        1.90                            |        47,616                                                  |                 - |
| October      2006  | Albany      Village Apartments        |      47,668                                                  |        1.90                            |        47,668                                                  |                 - |
| July      2006     | Floresville      Square Apartments II |      39,064                                                  |        1.54                            |        38,210                                                  |                 - |
| April      2006    | Village      Apartments of Divernon   |               - |             - |                 - |      151,256                                                             |
|               |                                  |                                                                                  |                                                                      |   $      411,217                                                                        |   $      151,256                                                                        |

| Transaction       |                          | Net                             | Net      Proceeds                                          | Gain      (Loss)                      |
|-------------------|-------------------------------|---------------------------------|------------------------------------------------------------|---------------------------------------|
| Month      / Year | Project      Partnership      | Proceeds                        | Per      LP Unit                                           | on      Disposal                      |
| June      2005    | Rivermeade      Apartments I  |  $      329,950            |     $      12.90                       |   $  328,681      |
| June      2005    | Rivermeade      Apartments II |     167,550 |          6.55 |      167,060 |
| June      2005    | Keysville      Apartments     |     102,758 |          4.02 |      102,758 |
|              |                          |                            |                                                       |   $  598,499      |

----

|                     |   | Quarter      1 |          |   | Quarter      2 |   |          | Quarter      3 |   |   | Quarter      4 |   |
|--------------------------|--------|----------------|---------------|--------|----------------|--------|---------------|----------------|--------|--------|----------------|--------|
|                     |   | 6/30/2007      |          |   | 9/30/2007      |   |          | 12/31/2007     |   |   | 3/31/2008      |   |
| Year      2008           |   |           |          |   |           |   |          |           |   |   |           |   |
|                     |   |           |          |   |           |   |          |           |   |   |           |   |
| Total      Revenues      |   | $              |  38,683  |   |           | $      |  4,663   |           |   | $      |  12,021   |   |   | $ | 26,796 |   |
|                     |   |           |          |   |           |   |          |           |   |   |           |   |   |   |   |   |
| Net      Income          |   | $              |  100,330 |   |           | $      |  540,140 |           |   | $      |  246,291  |   |   | $ |  161,359 |   |
|                     |   |           |          |   |           |   |          |           |   |   |           |   |   |   |   |   |
| Income      Per Weighted |   |           |          |   |           |   |          |           |   |   |           |   |   |   |   |   |
| Average      Limited     |   |           |          |   |           |   |          |           |   |   |           |   |   |   |   |   |
| Partnership      Units   |   |           |          |   |           |   |          |           |   |   |           |   |   |   |   |   |
| Outstanding              |   | $              | 3.89          |   |           | $      | 20.92         |           |   | $      | 9.54           |   |   | $ | 6.24 |   |

|                           |   | Quarter      1 |         |   | Quarter      2 |   |        | Quarter      3 |   |   | Quarter      4      |   |
|--------------------------------|--------|----------------|--------------|--------|----------------|--------|-------------|----------------|--------|--------|---------------------|--------|
|                           |   | 6/30/2006      |         |   | 9/30/2006      |   |        | 12/31/2006     |   |   | 3/31/2007           |   |
| Year      2007                 |   |           |         |   |           |   |        |           |   |   |                |   |
|                           |   |           |         |   |           |   |        |           |   |   |                |   |
| Total      Revenues            |   | $              |  23,901 |   |           | $      |  7,761 |           |   | $      |  5,595         |   |   | $ | 35,473 |   |
|                           |   |           |         |   |           |   |        |           |   |   |                |   |   |   |   |   |
| Net      Income (Loss)         |   | $              | (10,816      | )      |           | $      | (145,572    | )              |   | $      |        (36,044 | )      |   | $ |  2,231 |   |
|                           |   |           |         |   |           |   |        |           |   |   |                |   |   |   |   |   |
| Loss      Per Weighted Average |   |           |         |   |           |   |        |           |   |   |                |   |   |   |   |   |
| Limited      Partnership Units |   |           |         |   |           |   |        |           |   |   |                |   |   |   |   |   |
| Outstanding                    |   | $              | (0.42        | )      |           | $      | (5.64       | )              |   | $      | (1.40               | )      |   | $ | (9.38 | ) |

----

----

----

----

----

|   3.1 | Amended      Certificate of Limited Partnership of Gateway Tax Credit Fund, Ltd. (Filed      as an Exhibit to Registration Statement on Form S-11, File No.      33-18142 and incorporated herein by  reference.) |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   4.1 | The      form of Partnership Agreement of the Partnership (included as Exhibit "A"      to the Prospectus, File No. 33-18142, and incorporated herein by      reference.) |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   23 | The      consent of Reznick Group, P.C. (Filedherewith.) |
|----------------|----------------------------------------------------------|

|        31.1 | Certification      required by Rule 15d-14(a).(Filedherewith.) |
|------------------|----------------------------------------------------------------|

|   31.2 | Certification      required by Rule 15d-14(a).(Filedherewith.) |
|------------------|----------------------------------------------------------------|

|   32 | Certification      required by Rule 15d-14(b).(Filedherewith.) |
|----------------|----------------------------------------------------------------|

|   99.1 | Financial      statements of Crosstown Seniors Limited Dividend Housing Association      Limited Partnership for the years ended December 31, 2007 and      2006. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Apartment      Properties |                           |      |   |                                           |
|---------------------------|--------------------------------|-----------|--------|------------------------------------------------|
|                      |                           | #      of |   | Mortgage      Loan                             |
| Partnership               | Location                       | Units     |   | Balance                                        |
|                      |                           |      |   |                                           |
| Laynecrest                | Medway,      OH                | 48        |   |  $     1,424,267 |
| Martindale                | Union,      OH                 | 30        |   | 906,764                                        |
| La      Villa Elena       | Bernalillo,      NM            | 54        |   | 1,418,675                                      |
| Rio      Abajo            | Truth      or Consequences, NM | 42        |   | 1,350,892                                      |
| Fortville      II         | Fortville,      IN             | 24        |   | 649,699                                        |
| Summitville               | Summitville,      IN           | 24        |   | 709,995                                        |
| Suncrest                  | Yanceyville,      NC           | 40        |   | 1,426,604                                      |
| Brandywine      III       | Millsboro,      DE             | 32        |   | 1,049,262                                      |
| Concord      IV           | Perryville,      MD            | 32        |   | 1,049,589                                      |
| Dunbarton      Oaks III   | Georgetown,      DE            | 32        |   | 1,057,471                                      |
| Federal      Manor        | Federalsburg,      MD          | 32        |   | 1,119,643                                      |
| Laurel      Apts          | Laurel,      DE                | 32        |   | 1,092,023                                      |
| Mulberry      Hill IV     | Easton,      MD                | 16        |   | 580,563                                        |
| Madison                   | Madison,      OH               | 39        |   | 1,261,247                                      |
| Hannah's      Mill        | Thomaston,      GA             | 50        |   | 1,427,046                                      |
| Longleaf      Apts.       | Cairo,      GA                 | 36        |   | 939,723                                        |
| Sylacauga      Garden     | Sylacauga,      AL             | 42        |   | 1,364,159                                      |
| Monroe      Family        | Monroe,      GA                | 48        |   | 1,417,526                                      |
| Casa      Linda           | Silver      City, NM           | 41        |   | 1,337,294                                      |
| Crosstown                 | Kalamazoo,      MI             | 201       |   | 3,399,440                                      |
| Limestone      Estates    | Limestone,      ME             | 25        |   | 1,112,997                                      |
| Eagle's      Bay          | Beaufort,      NC              | 40        |   | 1,434,523                                      |
| Sage                      | Gallup,      NM                | 44        |   | 1,427,082                                      |
| Middleport                | Middleport,      NY            | 25        |   | 919,569                                        |
| Oakwood      Apts.        | Columbus,      NE              | 24        |   | 764,864                                        |
| Morgantown                | Morgantown,      IN            | 24        |   | 767,625                                        |
| Cuthbert      Elderly     | Cuthbert,      GA              | 32        |   | 796,193                                        |
| Sandhill      Forest      | Melrose,      FL               | 16        |   | 642,934                                        |
| Oakwood      Grove        | Crescent      City, FL         | 36        |   | 984,162                                        |
| Hastings      Manor       | Hastings,      FL              | 24        |   | 678,373                                        |
| Lakewood      Apts.       | Norfolk,      NE               | 72        |   | 2,357,417                                      |
| Mabank      1988          | Mabank,      TX                | 42        |   | 1,079,423                                      |
| Buena      Vista          | Buena      Vista, GA           | 24        |   | 638,002                                        |
| Woodcroft                 | Elizabethtown,      NC         | 32        |   | 1,121,609                                      |
| Spring      Creek         | Quitman,      GA               | 18        |   | 477,120                                        |
| Spring      Creek         | Cherokee,      AL              | 24        |   | 848,971                                        |
| Milton      Elderly       | Milton,      FL                | 43        |   | 1,051,391                                      |
| Winder      Apartments    | Winder,      GA                | 48        |   | 1,377,896                                      |
| Stone      Arbor          | Madison,      NC               | 40        |   | 1,447,368                                      |
| Centralia      II         | Centralia,      IL             | 24        |   | 776,967                                        |
| Poteau      IV            | Poteau,      OK                | 32        |   | 547,624                                        |
| Barling                   | Barling,      AR               | 48        |   | 846,368                                        |
| Booneville                | Booneville,      AR            | 48        |   | 1,301,243                                      |

----

| Apartment      Properties |                 |      |   |                                            |
|---------------------------|----------------------|-----------|--------|-------------------------------------------------|
|                      |                 | #      of |   | Mortgage      Loan                              |
| Partnership               | Location             | Units     |   | Balance                                         |
|                      |                 |      |   |                                            |
| Augusta                   | Augusta,      KS     | 66        |   | 1,863,417                                       |
| Meadows                   | Farmville,      VA   | 40        |   | 1,287,942                                       |
| Middlefield               | Middlefield,      OH | 36        |   | 1,154,615                                       |
| Mathis      Retirement    | Mathis,      TX      | 36        |   | 849,168                                         |
| Sabinal      Housing      | Sabinal,      TX     | 24        |   | 586,614                                         |
| Kingsland      Housing    | Kingsland,      TX   | 34        |   | 820,041                                         |
| Poteau      Prop. III     | Poteau,      OK      | 19        |   | 449,622                                         |
| Decatur      Properties   | Decatur,      AR     | 24        |   | 750,938                                         |
| Broken      Bow Prop II   | Broken      Bow, OK  | 46        |   | 1,440,915                                       |
| Turtle      Creek II      | Grove,      OK       | 42        |   | 1,209,963                                       |
| Hartwell      Elderly     | Hartwell,      GA    | 24        |   | 650,675                                         |
| Pulaski      Village      | Pulaski,      VA     | 44        |   | 1,350,242                                       |
|                      |                 |      |   |                                            |
| Total                     |                 | 2,115     |   |  $     60,795,755 |
|                      |                 |      |   |                                            |

----

|                      |   |  Cost      at Acquisition Date                |   |                                                       |
|---------------------------|--------|----------------------------------------------------|--------|------------------------------------------------------------|
| Apartment      Properties |   |                                               |   |                                                       |   | Net      Improvements |
|                      |   |                                               |   | Buildings                                                  |   | Capitalized |
|                      |   |                                               |   | Improvements                                               |   | Subsequent      to |
| Partnership               |   | Land                                               |   | & Equipment                                            |   | Acquisition |
|                      |   |                                               |   |                                                       |   |   |
| Laynecrest                |   |  $      310,264 |   |  $       1,533,433 |   |  $               18,088 |
| Martindale                |   | 243,665                                            |   | 928,824                                                    |   | 22,381 |
| La      Villa Elena       |   | 128,000                                            |   | 1,672,703                                                  |   | 389,594 |
| Rio      Abajo            |   | 88,500                                             |   | 1,610,884                                                  |   | 243,446 |
| Fortville      II         |   | 25,000                                             |   | 780,355                                                    |   | 5,034 |
| Summitville               |   | 30,000                                             |   | 849,511                                                    |   | 483 |
| Suncrest                  |   | 331,988                                            |   | 1,788,595                                                  |   | 57,257 |
| Brandywine      III       |   | 105,508                                            |   | 1,154,434                                                  |   | 92,179 |
| Concord      IV           |   | 120,440                                            |   | 1,198,338                                                  |   | 117,926 |
| Dunbarton      Oaks III   |   | 123,135                                            |   | 1,205,530                                                  |   | 105,809 |
| Federal      Manor        |   | 142,632                                            |   | 1,252,927                                                  |   | 138,522 |
| Laurel      Apts          |   | 144,680                                            |   | 1,156,847                                                  |   | 121,188 |
| Mulberry      Hill IV     |   | 55,379                                             |   | 652,234                                                    |   | 52,136 |
| Madison                   |   | 60,000                                             |   | 1,378,177                                                  |   | 40,498 |
| Hannah's      Mill        |   | 60,000                                             |   | 1,754,918                                                  |   | (2,132) |
| Longleaf      Apts.       |   | 54,700                                             |   | 1,135,966                                                  |   | 28,065 |
| Sylacauga      Garden     |   | 70,000                                             |   | 1,521,755                                                  |   | 45,195 |
| Monroe      Family        |   | 110,000                                            |   | 1,678,673                                                  |   | 0 |
| Casa      Linda           |   | 153,730                                            |   | 1,518,228                                                  |   | 159,937 |
| Crosstown                 |   | 408,338                                            |   | 5,164,734                                                  |   | 787,099 |
| Limestone      Estates    |   | 79,224                                             |   | 1,318,259                                                  |   | 65,300 |
| Eagle's      Bay          |   | 175,735                                            |   | 1,752,762                                                  |   | 46,948 |
| Sage                      |   | 196,207                                            |   | 1,616,554                                                  |   | 230,382 |
| Middleport                |   | 18,000                                             |   | 1,132,502                                                  |   | 17,350 |
| Oakwood      Apts.        |   | 96,800                                             |   | 862,439                                                    |   | 83,442 |
| Morgantown                |   | 15,000                                             |   | 940,191                                                    |   | 4,592 |
| Cuthbert      Elderly     |   | 22,550                                             |   | 1,006,889                                                  |   | (1,144) |
| Sandhill      Forest      |   | 28,091                                             |   | 544,545                                                    |   | 181,652 |
| Oakwood      Grove        |   | 44,712                                             |   | 1,191,986                                                  |   | 2,187 |
| Hastings      Manor       |   | 18,000                                             |   | 839,600                                                    |   | 5,602 |
| Lakewood      Apts.       |   | 207,700                                            |   | 2,754,382                                                  |   | 381,385 |
| Mabank      1988          |   | 57,200                                             |   | 1,210,248                                                  |   | 163,622 |
| Buena      Vista          |   | 11,390                                             |   | 804,816                                                    |   | (1,979) |
| Woodcroft                 |   | 82,500                                             |   | 1,402,798                                                  |   | 12,135 |
| Spring      Creek         |   | 33,330                                             |   | 575,656                                                    |   | (1,378) |
| Spring      Creek         |   | 20,000                                             |   | 589,739                                                    |   | 422,663 |
| Milton      Elderly       |   | 50,000                                             |   | 1,292,395                                                  |   | 53,983 |
| Winder      Apartments    |   | 73,500                                             |   | 1,692,510                                                  |   | (3,285) |
| Stone      Arbor          |   | 57,280                                             |   | 1,813,230                                                  |   | 3,554 |
| Centralia      II         |   | 36,450                                             |   | 954,070                                                    |   | (14,292) |
| Poteau      IV            |   | 33,000                                             |   | 683,016                                                    |   | 0 |
| Barling                   |   | 62,500                                             |   | 1,049,173                                                  |   | 41,191 |

----

|                      |   |  Cost      at Acquisition Date |   |                                            |
|---------------------------|--------|-------------------------------------|--------|-------------------------------------------------|
| Apartment      Properties |   |                                |   |                                            |   | Net      Improvements |
|                      |   |                                |   | Buildings                                       |   | Capitalized |
|                      |   |                                |   | Improvements                                    |   | Subsequent      to |
| Partnership               |   | Land                                |   | & Equipment                                 |   | Acquisition |
|                      |   |                                |   |                                            |   |   |
| Booneville                |   | 32,500                              |   | 1,650,087                                       |   | 0 |
| Augusta                   |   | 101,300                             |   | 2,280,419                                       |   | 0 |
| Meadows                   |   | 102,342                             |   | 1,455,858                                       |   | 29,993 |
| Middlefield               |   | 70,700                              |   | 1,250,957                                       |   | 28,570 |
| Mathis      Retirement    |   | 37,127                              |   | 1,041,038                                       |   | 6,225 |
| Sabinal      Housing      |   | 18,000                              |   | 752,263                                         |   | 9,852 |
| Kingsland      Housing    |   | 30,000                              |   | 894,081                                         |   | 237,432 |
| Poteau      Prop. III     |   | 18,350                              |   | 564,655                                         |   | 0 |
| Decatur      Properties   |   | 24,300                              |   | 945,516                                         |   | 0 |
| Broken      Bow Prop II   |   | 70,000                              |   | 1,887,868                                       |   | 0 |
| Turtle      Creek II      |   | 45,000                              |   | 1,513,446                                       |   | 0 |
| Hartwell      Elderly     |   | 49,800                              |   | 771,529                                         |   | 0 |
| Pulaski      Village      |   | 75,000                              |   | 1,650,373                                       |   | 154,625 |
|                      |   |                                |   |                                            |   |   |
| Total                     |   |  $   4,859,547  |   |  $     72,622,916 |   |  $          4,583,312 |
|                      |   |                                |   |                                            |   |   |

----

| Apartment      Properties |   | Gross      Amount At Which Carried At December 31, 2007       |
|---------------------------|--------|---------------------------------------------------------------|
|                      |   |                                                          |   | Buildings, |   |   |
|                      |   |                                                          |   | Improvements |   |   |
| Partnership               |   | Land                                                          |   | & Equipment |   | Total |
|                      |   |                                                          |   |   |   |   |
| Laynecrest                |   |  $        41,817 |   |  $                1,819,968 |   |  $        1,861,785 |
| Martindale                |   | 40,500                                                        |   | 1,154,370 |   | 1,194,870 |
| La      Villa Elena       |   | 187,734                                                       |   | 2,002,563 |   | 2,190,297 |
| Rio      Abajo            |   | 107,245                                                       |   | 1,835,585 |   | 1,942,830 |
| Fortville      II         |   | 25,000                                                        |   | 785,389 |   | 810,389 |
| Summitville               |   | 30,000                                                        |   | 849,994 |   | 879,994 |
| Suncrest                  |   | 349,456                                                       |   | 1,828,384 |   | 2,177,840 |
| Brandywine      III       |   | 30,382                                                        |   | 1,321,739 |   | 1,352,121 |
| Concord      IV           |   | 35,899                                                        |   | 1,400,805 |   | 1,436,704 |
| Dunbarton      Oaks III   |   | 27,853                                                        |   | 1,406,621 |   | 1,434,474 |
| Federal      Manor        |   | 86,281                                                        |   | 1,447,800 |   | 1,534,081 |
| Laurel      Apts          |   | 40,971                                                        |   | 1,381,744 |   | 1,422,715 |
| Mulberry      Hill IV     |   | 20,761                                                        |   | 738,988 |   | 759,749 |
| Madison                   |   | 60,000                                                        |   | 1,418,675 |   | 1,478,675 |
| Hannah's      Mill        |   | 60,000                                                        |   | 1,752,786 |   | 1,812,786 |
| Longleaf      Apts.       |   | 80,485                                                        |   | 1,138,246 |   | 1,218,731 |
| Sylacauga      Garden     |   | 70,000                                                        |   | 1,566,950 |   | 1,636,950 |
| Monroe      Family        |   | 110,000                                                       |   | 1,678,673 |   | 1,788,673 |
| Casa      Linda           |   | 161,550                                                       |   | 1,670,345 |   | 1,831,895 |
| Crosstown                 |   | 604,350                                                       |   | 5,755,821 |   | 6,360,171 |
| Limestone      Estates    |   | 62,222                                                        |   | 1,400,561 |   | 1,462,783 |
| Eagle's      Bay          |   | 181,070                                                       |   | 1,794,375 |   | 1,975,445 |
| Sage                      |   | 275,483                                                       |   | 1,767,660 |   | 2,043,143 |
| Middleport                |   | 18,000                                                        |   | 1,149,852 |   | 1,167,852 |
| Oakwood      Apts.        |   | 98,308                                                        |   | 944,373 |   | 1,042,681 |
| Morgantown                |   | 15,000                                                        |   | 944,783 |   | 959,783 |
| Cuthbert      Elderly     |   | 22,550                                                        |   | 1,005,745 |   | 1,028,295 |
| Sandhill      Forest      |   | 28,091                                                        |   | 726,197 |   | 754,288 |
| Oakwood      Grove        |   | 44,712                                                        |   | 1,194,173 |   | 1,238,885 |
| Hastings      Manor       |   | 18,000                                                        |   | 845,202 |   | 863,202 |
| Lakewood      Apts.       |   | 268,767                                                       |   | 3,074,700 |   | 3,343,467 |
| Mabank      1988          |   | 112,306                                                       |   | 1,318,764 |   | 1,431,070 |
| Buena      Vista          |   | 11,390                                                        |   | 802,837 |   | 814,227 |
| Woodcroft                 |   | 82,500                                                        |   | 1,414,933 |   | 1,497,433 |
| Spring      Creek         |   | 33,330                                                        |   | 574,278 |   | 607,608 |
| Spring      Creek         |   | 21,619                                                        |   | 1,010,783 |   | 1,032,402 |
| Milton      Elderly       |   | 50,000                                                        |   | 1,346,378 |   | 1,396,378 |
| Winder      Apartments    |   | 73,500                                                        |   | 1,689,225 |   | 1,762,725 |
| Stone      Arbor          |   | 57,280                                                        |   | 1,816,784 |   | 1,874,064 |
| Centralia      II         |   | 36,450                                                        |   | 939,778 |   | 976,228 |
| Poteau      IV            |   | 33,000                                                        |   | 683,016 |   | 716,016 |
| Barling                   |   | 62,500                                                        |   | 1,090,364 |   | 1,152,864 |
| Booneville                |   | 32,500                                                        |   | 1,650,087 |   | 1,682,587 |

----

| Apartment      Properties |   | Gross      Amount At Which Carried At December 31, 2007 |
|---------------------------|--------|---------------------------------------------------------|
|                      |   |                                                    |   | Buildings, |   |   |
|                      |   |                                                    |   | Improvements |   |   |
| Partnership               |   | Land                                                    |   | & Equipment |   | Total |
|                      |   |                                                    |   |   |   |   |
| Augusta                   |   | 101,300                                                 |   | 2,280,419 |   | 2,381,719 |
| Meadows                   |   | 75,766                                                  |   | 1,512,427 |   | 1,588,193 |
| Middlefield               |   | 70,700                                                  |   | 1,279,527 |   | 1,350,227 |
| Mathis      Retirement    |   | 37,127                                                  |   | 1,047,263 |   | 1,084,390 |
| Sabinal      Housing      |   | 18,000                                                  |   | 762,115 |   | 780,115 |
| Kingsland      Housing    |   | 30,000                                                  |   | 1,131,513 |   | 1,161,513 |
| Poteau      Prop. III     |   | 18,350                                                  |   | 564,655 |   | 583,005 |
| Decatur      Properties   |   | 24,300                                                  |   | 945,516 |   | 969,816 |
| Broken      Bow Prop II   |   | 70,000                                                  |   | 1,887,868 |   | 1,957,868 |
| Turtle      Creek II      |   | 45,000                                                  |   | 1,513,446 |   | 1,558,446 |
| Hartwell      Elderly     |   | 49,800                                                  |   | 771,529 |   | 821,329 |
| Pulaski      Village      |   | 75,000                                                  |   | 1,804,998 |   | 1,879,998 |
|                      |   |                                                    |   |   |   |   |
| Total                     |   |  $   4,424,205                      |   |  $         77,641,570 |   |  $      82,065,775 |
|                      |   |                                                    |   |   |   |   |

----

| Apartment      Properties |   |                                           |   |             |
|---------------------------|--------|------------------------------------------------|--------|------------------|
|                      |   | Accumulated                                    |   |             |
| Partnership               |   | Depreciation                                   |   | Depreciable Life |
|                      |   |                                           |   |             |   |
| Laynecrest                |   |  $     1,385,228 |   | 5.0              | -      27.5 |
| Martindale                |   | 810,041                                        |   | 5.0              | -      27.5 |
| La      Villa Elena       |   | 987,936                                        |   | 5.0              | -      40.0 |
| Rio      Abajo            |   | 875,309                                        |   | 5.0              | -      40.0 |
| Fortville      II         |   | 551,338                                        |   | 5.0              | -      27.5 |
| Summitville               |   | 599,931                                        |   | 5.0              | -      27.5 |
| Suncrest                  |   | 825,520                                        |   | 5.0              | -      40.0 |
| Brandywine      III       |   | 975,947                                        |   | 5.0              | -      27.5 |
| Concord      IV           |   | 1,039,398                                      |   | 5.0              | -      27.5 |
| Dunbarton      Oaks III   |   | 1,040,107                                      |   | 5.0              | -      27.5 |
| Federal      Manor        |   | 1,061,867                                      |   | 5.0              | -      27.5 |
| Laurel      Apts          |   | 1,040,716                                      |   | 5.0              | -      27.5 |
| Mulberry      Hill IV     |   | 540,954                                        |   | 5.0              | -      27.5 |
| Madison                   |   | 827,642                                        |   | 5.0              | -      33.0 |
| Hannah's      Mill        |   | 1,113,667                                      |   | 5.0              | -      30.0 |
| Longleaf      Apts.       |   | 734,747                                        |   | 5.0              | -      30.0 |
| Sylacauga      Garden     |   | 1,220,501                                      |   | 5.0              | -      27.5 |
| Monroe      Family        |   | 1,137,592                                      |   | 5.0              | -      27.5 |
| Casa      Linda           |   | 790,479                                        |   | 5.0              | -      40.0 |
| Crosstown                 |   | 3,156,957                                      |   | 5.0              | -      40.0 |
| Limestone      Estates    |   | 984,575                                        |   | 5.0              | -      27.5 |
| Eagle's      Bay          |   | 734,453                                        |   | 5.0              | -      50.0 |
| Sage                      |   | 842,934                                        |   | 5.0              | -      40.0 |
| Middleport                |   | 520,776                                        |   | 5.0              | -      27.5 |
| Oakwood      Apts.        |   | 542,402                                        |   | 5.0              | -      40.0 |
| Morgantown                |   | 606,678                                        |   | 5.0              | -      27.5 |
| Cuthbert      Elderly     |   | 612,239                                        |   | 5.0              | -      30.0 |
| Sandhill      Forest      |   | 274,271                                        |   | 5.0              | -      35.0 |
| Oakwood      Grove        |   | 594,954                                        |   | 5.0              | -      35.0 |
| Hastings      Manor       |   | 396,614                                        |   | 5.0              | -      40.0 |
| Lakewood      Apts.       |   | 1,962,016                                      |   | 5.0              | -      30.0 |
| Mabank      1988          |   | 818,062                                        |   | 5.0              | -      35.0 |
| Buena      Vista          |   | 479,927                                        |   | 5.0              | -      30.0 |
| Woodcroft                 |   | 554,100                                        |   | 5.0              | -      50.0 |
| Spring      Creek         |   | 343,611                                        |   | 5.0              | -      40.0 |
| Spring      Creek         |   | 348,299                                        |   | 5.0              | -      30.0 |
| Milton      Elderly       |   | 783,848                                        |   | 5.0              | -      30.0 |
| Winder      Apartments    |   | 1,034,620                                      |   | 5.0              | -      50.0 |
| Stone      Arbor          |   | 707,490                                        |   | 5.0              | -      50.0 |
| Centralia      II         |   | 612,179                                        |   | 5.0              | -      27.5 |
| Poteau      IV            |   | 490,758                                        |   | 5.0              | -      25.0 |
| Barling                   |   | 797,056                                        |   | 5.0              | -      25.0 |
| Booneville                |   | 1,208,136                                      |   | 5.0              | -      25.0 |

----

| Apartment      Properties |   |                                |   |             |
|---------------------------|--------|-------------------------------------|--------|------------------|
|                      |   | Accumulated                         |   |             |
| Partnership               |   | Depreciation                        |   | Depreciable Life |
|                      |   |                                |   |             |   |
| Augusta                   |   | 1,660,744                           |   | 5.0              | -      25.0 |
| Meadows                   |   | 1,031,756                           |   | 5.0              | -      27.5 |
| Middlefield               |   | 698,906                             |   | 5.0              | -      27.5 |
| Mathis      Retirement    |   | 390,758                             |   | 5.0              | -      50.0 |
| Sabinal      Housing      |   | 285,347                             |   | 5.0              | -      50.0 |
| Kingsland      Housing    |   | 391,192                             |   | 5.0              | -      50.0 |
| Poteau      Prop. III     |   | 406,913                             |   | 5.0              | -      25.0 |
| Decatur      Properties   |   | 668,653                             |   | 5.0              | -      25.0 |
| Broken      Bow Prop II   |   | 1,168,344                           |   | 5.0              | -      25.0 |
| Turtle      Creek II      |   | 1,070,888                           |   | 5.0              | -      25.0 |
| Hartwell      Elderly     |   | 484,836                             |   | 5.0              | -      27.5 |
| Pulaski      Village      |   | 1,208,729                           |   | 5.0              | -      27.5 |
|                      |   |                                |   |             |   |
| Total                     |   |  $   46,432,941 |   |             |   |

----

| Reconciliation      of Land, Building & Improvements current year changes: |   |   |        |   |
|--------------------------------------------------------------------------------|--------|--------|-------------|--------|
| Balance      at beginning of period - December 31, 2006                        |   |   |        |   | $ | 100,511,257 |   |
|    Additions      during period:                                |   |   |        |   |   |   |   |
| Acquisitions      through foreclosure                                          |   |   | 0           |   |   |   |   |   |
| Other      acquisitions                                                        |   |   | 471,426     |   |   |   |   |   |
| Improvements,      etc.                                                        |   |   | 0           |   |   |   |   |   |
| Other                                                                          |   |   | 0           |   |   |   |   |   |
|                                                                           |   |   |        |   |   |   | 471,426 |   |
|   Deductions      during period:                                     |   |   |        |   |   |   |   |   |
| Cost      of retired assets                                                    |   |   | (18,916,908 | )      |   |   |   |   |
| Other                                                                          |   |   | 0           |   |   |   |   |   |
|                                                                           |   |   |        |   |   |   | (18,916,908 | ) |
|                                                                           |   |   |        |   |   |   |   |   |
| Balance      at end of period - December 31, 2007                              |   |   |        |   |   | $ | 82,065,775 |   |
|                                                                           |   |   |        |   |   |   |   |   |
|                                                                           |   |   |        |   |   |   |   |   |
| Reconciliation      of Accumulated Depreciation current year changes           |   |   |        |   |   |
| Balance      at beginning of period - December 31, 2006                        |   |   |        |   |   | $ | 53,702,442 |   |
| Adjustment      to prior year's depreciation                                   |   |   |        |   |   |   | (2,109 | ) |
| Accumulated      depreciation of retired assets                                |   |   |        |   |   |   | (9,743,866 | ) |
| Current      year expense                                                      |   |   |        |   |   |   | 2,476,474 |   |
|                                                                           |   |   |        |   |   |   |   |   |
| Balance      at end of period - December 31, 2007                              |   |   |        |   |   | $ | 46,432,941 |   |
|                                                                           |   |   |        |   |   |   |   |   |

----

|                    |   |      |   |                                                       |   |     |   | MONTHLY |   |          |
|-------------------------|--------|-----------|--------|------------------------------------------------------------|--------|----------|--------|---------|--------|---------------|
|                    |   | #      OF |   |                                                       |   | INTEREST |   | DEBT    |   | TERM          |
| PARTNERSHIP             |   | UNITS     |   | BALANCE                                                    |   | RATE     |   | SERVICE |   |  (YEARS) |
|                    |   |      |   |                                                       |   |     |   |    |   |          |
| Laynecrest              |   | 48        |   |  $       1,424,267 |   | 10.63%   |   | 13,193  |   | 50            |
| Martindale              |   | 30        |   | 906,764                                                    |   | 9.50%    |   | 7,591   |   | 50            |
| La      Villa Elena     |   | 54        |   | 1,418,675                                                  |   | 9.00%    |   | 11,397  |   | 50            |
| Rio      Abajo          |   | 42        |   | 1,350,892                                                  |   | 9.50%    |   | 11,306  |   | 50            |
| Fortville      II       |   | 24        |   | 649,699                                                    |   | 9.00%    |   | 5,214   |   | 50            |
| Summitville             |   | 24        |   | 709,995                                                    |   | 9.00%    |   | 5,691   |   | 50            |
| Suncrest                |   | 40        |   | 1,426,604                                                  |   | 9.00%    |   | 11,372  |   | 50            |
| Brandywine      III     |   | 32        |   | 1,049,262                                                  |   | 9.00%    |   | 8,429   |   | 50            |
| Concord      IV         |   | 32        |   | 1,049,589                                                  |   | 9.50%    |   | 8,822   |   | 50            |
| Dunbarton      Oaks III |   | 32        |   | 1,057,471                                                  |   | 9.00%    |   | 8,270   |   | 50            |
| Federal      Manor      |   | 32        |   | 1,119,643                                                  |   | 9.00%    |   | 8,994   |   | 50            |
| Laurel      Apts        |   | 32        |   | 1,092,023                                                  |   | 9.50%    |   | 9,191   |   | 50            |
| Mulberry      Hill IV   |   | 16        |   | 580,563                                                    |   | 9.50%    |   | 4,822   |   | 50            |
| Madison                 |   | 39        |   | 1,261,247                                                  |   | 9.50%    |   | 9,604   |   | 50            |
| Hannah's      Mill      |   | 50        |   | 1,427,046                                                  |   | 9.50%    |   | 11,920  |   | 50            |
| Longleaf      Apts.     |   | 36        |   | 939,723                                                    |   | 9.50%    |   | 7,852   |   | 50            |
| Sylacauga      Garden   |   | 42        |   | 1,364,159                                                  |   | 9.00%    |   | 10,941  |   | 50            |
| Monroe      Family      |   | 48        |   | 1,417,526                                                  |   | 9.00%    |   | 11,294  |   | 50            |
| Casa      Linda         |   | 41        |   | 1,337,294                                                  |   | 9.50%    |   | 11,167  |   | 50            |
| Crosstown               |   | 201       |   | 3,399,440                                                  |   | 7.88%    |   | 36,182  |   | 30            |
| Limestone      Estates  |   | 25        |   | 1,112,997                                                  |   | 9.00%    |   | 8,910   |   | 50            |
| Eagle's      Bay        |   | 40        |   | 1,434,523                                                  |   | 8.75%    |   | 11,153  |   | 50            |
| Sage                    |   | 44        |   | 1,427,082                                                  |   | 8.75%    |   | 11,087  |   | 50            |
| Middleport              |   | 25        |   | 919,569                                                    |   | 8.75%    |   | 7,144   |   | 50            |
| Oakwood      Apts.      |   | 24        |   | 764,864                                                    |   | 9.50%    |   | 6,379   |   | 50            |
| Morgantown              |   | 24        |   | 767,625                                                    |   | 9.25%    |   | 6,226   |   | 50            |
| Cuthbert      Elderly   |   | 32        |   | 796,193                                                    |   | 8.75%    |   | 6,189   |   | 50            |
| Sandhill      Forest    |   | 16        |   | 642,934                                                    |   | 9.00%    |   | 3,615   |   | 50            |
| Oakwood      Grove      |   | 36        |   | 984,162                                                    |   | 9.50%    |   | 8,215   |   | 50            |
| Hastings      Manor     |   | 24        |   | 678,373                                                    |   | 9.00%    |   | 5,412   |   | 50            |
| Lakewood      Apts.     |   | 72        |   | 2,357,417                                                  |   | 8.75%    |   | 18,332  |   | 50            |
| Mabank      1988        |   | 42        |   | 1,079,423                                                  |   | 8.75%    |   | 8,345   |   | 50            |
| Buena      Vista        |   | 24        |   | 638,002                                                    |   | 9.25%    |   | 5,187   |   | 50            |
| Woodcroft               |   | 32        |   | 1,121,609                                                  |   | 9.00%    |   | 8,912   |   | 50            |
| Spring      Creek       |   | 18        |   | 477,120                                                    |   | 9.00%    |   | 4,591   |   | 50            |
| Spring      Creek       |   | 24        |   | 848,971                                                    |   | 11.50%   |   | 5,223   |   | 50            |
| Milton      Elderly     |   | 43        |   | 1,051,391                                                  |   | 9.25%    |   | 8,547   |   | 50            |
| Winder      Apartments  |   | 48        |   | 1,377,896                                                  |   | 8.75%    |   | 10,709  |   | 50            |
| Stone      Arbor        |   | 40        |   | 1,447,368                                                  |   | 9.25%    |   | 11,759  |   | 50            |
| Centralia      II       |   | 24        |   | 776,967                                                    |   | 8.75%    |   | 6,031   |   | 50            |
| Poteau      IV          |   | 32        |   | 547,624                                                    |   | 9.00%    |   | 4,777   |   | 50            |
| Barling                 |   | 48        |   | 846,368                                                    |   | 9.00%    |   | 7,382   |   | 50            |
| Booneville              |   | 48        |   | 1,301,243                                                  |   | 8.25%    |   | 10,250  |   | 50            |

----

|                    |   |      |   |                                            |   |     |   | MONTHLY |   |          |
|-------------------------|--------|-----------|--------|-------------------------------------------------|--------|----------|--------|---------|--------|---------------|
|                    |   | #      OF |   |                                            |   | INTEREST |   | DEBT    |   | TERM          |
| PARTNERSHIP             |   | UNITS     |   | BALANCE                                         |   | RATE     |   | SERVICE |   |  (YEARS) |
|                    |   |      |   |                                            |   |     |   |    |   |          |
| Augusta                 |   | 66        |   | 1,863,417                                       |   | 8.75%    |   | 14,465  |   | 50            |
| Meadows                 |   | 40        |   | 1,287,942                                       |   | 8.75%    |   | 10,010  |   | 50            |
| Middlefield             |   | 36        |   | 1,154,615                                       |   | 9.25%    |   | 8,579   |   | 50            |
| Mathis      Retirement  |   | 36        |   | 849,168                                         |   | 9.50%    |   | 7,082   |   | 50            |
| Sabinal      Housing    |   | 24        |   | 586,614                                         |   | 9.00%    |   | 4,674   |   | 50            |
| Kingsland      Housing  |   | 34        |   | 820,041                                         |   | 9.00%    |   | 6,554   |   | 50            |
| Poteau      Prop. III   |   | 19        |   | 449,622                                         |   | 9.00%    |   | 3,569   |   | 50            |
| Decatur      Properties |   | 24        |   | 750,938                                         |   | 8.75%    |   | 5,801   |   | 50            |
| Broken      Bow Prop II |   | 46        |   | 1,440,915                                       |   | 8.75%    |   | 11,110  |   | 50            |
| Turtle      Creek II    |   | 42        |   | 1,209,963                                       |   | 9.00%    |   | 9,818   |   | 50            |
| Hartwell      Elderly   |   | 24        |   | 650,675                                         |   | 8.75%    |   | 5,045   |   | 50            |
| Pulaski      Village    |   | 44        |   | 1,350,242                                       |   | 9.25%    |   | 10,978  |   | 50            |
|                    |   |      |   |                                            |   |     |   |    |   |          |
| TOTAL                   |   | 2,115     |   |  $     60,795,755 |   |     |   |    |   |          |
|                    |   |      |   |                                            |   |     |   |    |   |          |

----