SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC  20549

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT 
OF 1934 (FEE REQUIRES)
For the fiscal year endedMarch 31, 2002Commission File Number0-19022                           
                          Gateway Tax Credit Fund II Ltd.           (Exact name of Registrant as specified in its charter)Florida                                  65-0142704(State or other jurisdiction of               ( I.R.S. Employer No.)
incorporation or organization)880 Carillon Parkway,   St. Petersburg,   Florida    33716    (Address of principal executive offices)            (Zip Code)
Registrant's Telephone No., Including Area Code:(727)573-3800Securities registered pursuant to Section 12(b) of the Act:   None
Securities registered pursuant to Section 12(g) of the Act:
Title of Each Class:   Beneficial Assignee Certificates
Indicate by check mark whether the Registrant: (1) has filed all reports required 
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during 
the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
                                   YESX      NOIndicate by check mark if disclosure of delinquent filers pursuant to item 405 of Regulation S-K (Sec. 229.405 of this chapter) is not contained herein, and will be contained to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. X                                                   Number of Units
  Title of Each Class                               March 31, 2002Beneficial Assignee Certificates                        2,258
General Partner Interest                                    2

DOCUMENTS INCORPORATED BY REFERENCE

Parts III and IV - Form S-11 Registration Statement 
 and all amendments and supplements thereto.

---

PART I
Item 1.  Business   Gateway Tax Credit Fund II Ltd. ("Gateway") is a Florida Limited Partnership.  The general partners are Raymond James Tax Credit Funds, Inc., the Managing General Partner, and Raymond James Partners, Inc., both sponsors of Gateway Tax Credit Fund II Ltd. and wholly-owned subsidiaries of Raymond James Financial, Inc.
   Pursuant to the Securities Act of 1933, Gateway filed a Form S-11 Registration Statement with the Securities and Exchange Commission, effective September 12, 1989, which covered the offering (the "Public Offering") of Gateway's Beneficial Assignee Certificates ("BACs") representing assignments of units for the beneficial interest of the limited partnership interest of the Assignor Limited Partner.  The Assignor Limited Partner was formed for the purpose of serving in that capacity for the Fund and will not engage in any other business.
   Gateway is engaged in only one industry segment, to acquire limited partnership interests in unaffiliated limited partnerships ("Project Partnerships"), each of which owns and operates one or more apartment complexes eligible for Low-Income Housing Tax Credits under Section 42 of the Internal Revenue Code ("Tax Credits"), received over a ten year period.  Subject to certain limitations, Tax Credits may be used by Gateway's investors to reduce their income tax liability generated from other income sources.  Gateway will terminate on December 31, 2040, or sooner, in accordance with the terms of its Limited Partnership Agreement.  As of March 31, 2002, Gateway had received capital contributions of $1,000 from the General Partners and $37,228,000 from Assignees.
   Gateway offered BACs in five series.  BACs in the amounts of $6,136,000, $5,456,000, $6,915,000, $8,616,000 and $10,105,000 for Series 2, 3, 4, 5, and 6, respectively had been issued as of March 31, 2002.  Each series is treated as a separate partnership, investing in a separate and distinct pool of Project Partnerships.  Net proceeds from each series were used to acquire Project Partnerships which are specifically allocated to such series.  Income or loss and all tax items from the Project Partnerships acquired by each series are specifically allocated among the Assignees of such series.
   Operating profits and losses, cash distributions from operations and Tax Credits are allocated 99% to the Assignees and 1% to the General Partners.  Profit or loss and cash distributions from sales of property will be allocated as described in the Limited Partnership Agreement.
   As of March 31, 2002, Gateway had invested in 22 Project Partnerships for Series 2, 23 Project Partnerships for Series 3, 29 Project Partnerships for Series 4, 36 Project Partnerships for Series 5 and 38 Project Partnerships for Series 6.  Gateway acquired its interests in these properties by becoming a limited partner in the Project Partnerships that own the properties.  As of March 31, 2002 each series was fully invested in Project Partnerships and management plans no new investments in the future.
   The primary source of funds from the inception of each series has been the capital contributions from Assignees.  Gateway's operating costs are funded using the reserves, established for this purpose, the interest earned on these reserves and distributions received from Project Partnerships.
   All but two of the Project Partnerships are government subsidized with mortgage loans from the Farmers Home Administration (now called United States Department of Agriculture- Rural Development) ("USDA-RD") under Section 515 of the Housing Act of 1949.  These mortgage loans are made at low interest rates for multi-family housing in rural and suburban areas, with the requirement that the interest savings be passed on to low income tenants in the form of lower rents.  A significant portion of the project partnerships also receive rental assistance from USDA-RD to subsidize certain qualifying tenants.
   The General Partners do not believe the Project Partnerships are subject to the risks generally associated with conventionally financed nonsubsidized apartment

properties.  Risks related to the operations of Gateway are described in detail on pages 23 through 34 of the Prospectus, as supplemented, under the Caption "Risk Factors" which is incorporated herein by reference.  The investment objectives of Gateway are to:
   1)  Provide tax benefits to Assignees in the form of Tax Credits during the        period in which each Project is eligible to claim tax credits;
   2)  Preserve and protect the capital contribution of Investors;
   3)  Participate in any capital appreciation in the value of the Projects; and
   4)  Provide passive losses to i) individual investors to offset passive income        from other passive activities, and ii) corporate investors to offset business        income.
   The investment objectives and policies of Gateway are described in detail on pages 34 through 40 of the Prospectus, as supplemented, under the caption "Investment Objectives and Policies" which is incorporated herein by reference.
   Gateway's goal was to invest in a diversified portfolio of Project Partnerships located in rural and suburban locations with a high demand for low income housing.  As of March 31, 2002 the investor capital contributions were successfully invested in Project Partnerships, which met the investment criteria.  Management anticipates that competition for tenants will only be with other low income housing projects and not with conventionally financed housing.  With significant number of rural American households living below the poverty level in substandard housing, management believes there will be a continuing demand for affordable low income housing for the foreseeable future.
   Gateway has no direct employees.  Services are performed by the Managing General Partner and its affiliates and by agents retained by it.  The Managing General Partner has full and exclusive discretion in management and control of Gateway.
Item 2.  Properties   Gateway owns a majority interest in properties through its limited partnership investments in Project Partnerships.  The largest single investment in a Project Partnership in Series 2 is 12.2% of the Series' total assets, Series 3 is 6.6%, Series 4 is 6.3%, Series 5 is 8.1% and Series 6 is 6.5%.  The following table provides certain summary information regarding the Project Partnerships in which Gateway had an interest as of December 31, 2001:

---

Item 2 - Properties (continued):
SERIES 2

|PARTNERSHIP
-----------                                                                                                                                                                                                                                                                                                                       | LOCATION OF
PROPERTY
-----------                                                                                                                                                                                                                                                                     | # OF
UNIT
-----                                                            | DATE  
ACQUIRED
--------                                                                                          | PROPERTY
COST  
-----------                                                                                                                                                                                                            | OCCU-
PANCY
RATE
-----                                                                        
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------
|Claxton Elderly
Deerfield II
Hartwell Family
Cherrytree Apts.
Springwood Apts.
Lakeshore Apts.
Lewiston
Charleston
Sallisaw II
Pocola
Inverness Club
Pearson Elderly
Richland Elderly
Lake Park
Woodland Terrace
Mt. Vernon Elderly
Lakeland Elderly
Prairie Apartments
Sylacauga Heritage
Manchester Housing
Durango C.W.W.
Columbus Seniors | Claxton, GA
Douglas, GA
Hartwell, GA
Albion, PA
Westfield, NY
Tuskegee, AL
Lewiston, NY
Charleston, AR
Sallisaw, OK
Pocola, OK
Inverness, FL
Pearson, GA
Richland, GA
Lake Park, GA
Waynesboro, GA
Mt. Vernon, GA
Lakeland, GA
Eagle Butte, SD
Sylacauga, AL
Manchester, GA
Durango, CO
Columbus, KS | 24
24
24
33
32
34
25
32
47
36
72
25
33
48
30
21
29
21
44
49
24
16
----
723 | 9/90
9/90
9/90
9/90
9/90
9/90
10/90
9/90
9/90
10/90
9/90
9/90
9/90
9/90
9/90
9/90
9/90
10/90
12/90
1/91
1/91
5/92 | $799,538
854,562
859,698
1,439,636
1,512,872
1,278,341
1,233,935
1,076,098
1,517,589
1,245,870
3,496,824
781,460
1,057,871
1,794,542
1,079,691
700,935
955,815
1,274,335
1,761,852
1,781,301
1,307,669
520,066
-----------
$28,330,500 | 100%100%
92%
88%
94%
100%
96%
88%
96%
92%
85%
100%
88%
90%
93%
76%
100%
100%
91%
94%
100%
100%
|                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                                                                                      | ====                                                                       |                                                                                                                   | ===========                                                                                                                                                                                                                            |                                                                                               
|                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                                                                                      |                                                                            |                                                                                                                   |                                                                                                                                                                                                                                        |                                                                                               

The aggregate average effective rental per unit is $3,576 per year ($298 per month).
Inverness Club Ltd.'s fixed asset total is 12.2% of the Series 2 total Project Partnership fixed assets.  Inverness Club was placed in service in October 1991, is located on Florida's West Coast and operates as a low-income 72 unit apartment facility for the elderly.  It also offers an optional congregate services package to all tenants.  The property competes for tenants with six other apartment properties in the area.  The market study estimated a demand for 100 elderly units.
Inverness Club's occupancy rate was 85% and its average effective annual rental per unit was $4,879 ($407 per month) on December 31, 2001.  The land cost was $205,500 and the building cost was $3,291,324.  The building is depreciated using the straight line method over 27.5 years.  Management believes the property insurance coverage is adequate.  For the year ended December 31, 2001 the real estate taxes were $64,300.

|Item 2 - Properties (continued):
SERIES 3
PARTNERSHIP
-----------                                                                                                                                                                                                                                                           | LOCATION OF
PROPERTY
-----------                                                                                                                                                                                                                                                                            | # OF
UNIT
-----                                                               | DATE
ACQUIRED
--------                                                                                                    | PROPERTY
COST
-----------                                                                                                                                                                                                                      | OCCU-
PANCY
RATE
-----                                                                             
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------
|Poteau II
Sallisaw
Nowata Properties
Waldron Properties
Roland II
Stilwell
Birchwood Apts.
Hornellsville
Sunchase II
CE McKinley II
Weston Apartments
Countrywood Apts.
Wildwood Apts.
Hancock
Hopkins
Elkhart Apts.
Bryan Senior
Brubaker Square
Southwood
Villa Allegra
Belmont Senior
Heritage Villas
Logansport Seniors | Poteau, OK
Sallisaw, OK
Oolagah, OK
Waldron, AR
Roland, OK
Stilwell, OK
Pierre, SD
Arkport, NY
Watertown, SD
Rising Sun, MD
Weston, AL
Centreville, AL
Pineville, LA
Hawesville, KY
Madisonville, KY
Elkhart, TX
Bryan, OH
New Carlisle, OH
Savannah, TN
Celina, OH
Cynthiana, KY
Helena, GA
Logansport, LA | 52
52
32
24
52
48
24
24
41
16
10
40
28
12
24
54
40
38
44
32
24
25
32
----
768 | 8/90
8/90
8/90
9/90
10/90
10/90
9/90
9/90
9/90
9/90
11/90
11/90
11/90
12/90
12/90
1/91
1/91
1/91
1/91
1/91
1/91
3/91
3/91 | $1,789,148
1,744,103
1,148,484
860,273
1,804,010
1,597,701
1,072,975
1,122,594
1,377,916
826,883
339,949
1,564,882
1,086,720
440,425
927,256
1,598,400
1,188,292
1,459,016
1,801,011
1,150,622
935,143
824,759
1,109,993
---------
$27,770,555 | 94%
100%
97%
92%
83%
88%
63%
92%
100%
94%
100%
100%
93%
100%
96%
94%
95%
87%
98%
97%
100%
100%
100%
|                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                             | ====                                                                          |                                                                                                                           | ===========                                                                                                                                                                                                                                    |                                                                                                    

The average effective rental per unit is $3,158 per year ($263 per month).

---

Item 2 - Properties (continued):
SERIES 4

|PARTNERSHIP
-----------                                                                                                                                                                                                                                                                                                                                                                                                          | LOCATION OF
PROPERTY
-----------                                                                                                                                                                                                                                                                                                                                                                               | # OF
UNIT
----                                                                                  | DATE  
ACQUIRED
--------                                                                                                                          | PROPERTY
COST  
--------                                                                                                                                                                                                                                                                           | OCCU-
PANCY
RATE
------                                                                                                         
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------
|Alsace
Seneca Apartments
Eudora Senior
Westville
Wellsville Senior
Stilwell II
Spring Hill Sr.
Smithfield
Tarpon Heights
Oaks Apartments
Wynnwood Common
Chestnut
Apts -St. George
Williston
Brackettville Sr.
Sonora Seniors
Ozona Seniors
Fredericksburg Sr.
St. Joseph
Courtyard
Rural Development
Jasper Villas
Edmonton Senior
Jonesville Manor
Norton Green
Owingsville Senior
Timpson Seniors
Piedmont
S.F. Arkansas City | Soda Springs, ID
Seneca, MO
Eudora, KS
Westville, OK
Wellsville, KS
Stilwell, OK
Spring Hill, KS
Smithfield, UT
Galliano, LA
Oakdale, LA
Fairchance, PA
Howard, SD
St. George, SC
Williston, SC
Brackettville, TX
Sonora, TX
Ozona, TX
Fredericksburg, TX
St. Joseph, IL
Huron, SD
Ashland, ME
Jasper, AR
Edmonton, KY
Jonesville, VA
Norton, VA
Owingsville, KY
Timpson, TX
Barnesville, GA
Arkansas City, KS | 24
24
36
36
24
52
24
40
48
32
34
24
24
24
32
32
24
48
24
21
25
25
24
40
40
22
28
36
12
----
879 | 12/90
2/91
3/91
3/91
3/91
3/91
3/91
4/91
4/91
4/91
4/91
5/91
6/91
6/91
6/91
6/91
6/91
6/91
6/91
6/91
6/91
6/91
6/91
6/91
6/91
8/91
8/91
8/91
8/91 | $823,605
742,204
1,257,482
1,101,686
810,970
1,657,974
1,036,369
1,885,097
1,493,434
1,045,982
1,679,018
1,070,451
939,655
1,002,600
1,042,263
1,047,032
802,089
1,444,252
976,883
860,189
1,422,482
1,105,278
906,714
1,729,510
1,719,002
853,294
815,916
1,289,047
412,028
---------
$32,972,506 | 96%
96%
100%
100%
96%
94%
88%
95%
100%
97%
100%
67%
96%
100%
100%
100%
100%
100%
96%
100%
88%
88%
96%
100%
98%
100%
93%
97%
100%
|                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                | ====                                                                                            |                                                                                                                                                   | ==========                                                                                                                                                                                                                                                                                         |                                                                                                                                 

The average effective rental per unit is $3,475 per year ($290 per month).

---

Item 2 - Properties (continued):
SERIES 5

|PARTNERSHIP
-----------                                                                                                                                                                                                                                                                                                                                                                                                                                      | LOCATION OF
PROPERTY
-----------                                                                                                                                                                                                                                                                                                                                                                                                                                                           | # OF
UNIT
----                                                                                                          | DATEE
ACQUIREDD
--------                                                                                                                                                               | PROPERTY
COST
--------                                                                                                                                                                                                                                                                                                                           | OCCU-
PANCY
RATE
-----                                                                                                                                           
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ----------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -----------------------------------------------------------------------------------------------------------------------------------------------------------------
|Seymour
Effingham
S.F. Winfield
S.F.Medicine Lodge
S.F. Ottawa
S.F. Concordia
Highland View
Carrollton Club
Scarlett Oaks
Brooks Hill
Greensboro
Greensboro II
Pine Terrace
Shellman
Blackshear
Crisp Properties
Crawford
Yorkshire
Woodcrest
Fox Ridge
Redmont II
Clayton
Alma
Pemberton Village
Magic Circle
Spring Hill
Menard Retirement
Wallis Housing
Zapata Housing
Mill Creek
Portland II
Georgetown
Cloverdale
So. Timber Ridge
Pineville
Ravenwood | Seymour, IN
Effingham, IL
Winfield, KS
Medicine Lodge,KS
Ottawa, KS
Concordia, KS
Elgin, OR
Carrollton, GA
Lexington, SC
Ellijay, GA
Greensboro, GA
Greensboro, GA
Wrightsville, GA
Shellman, GA
Cordele, GA
Cordele, GA
Crawford, GA
Wagoner, OK
South Boston, VA
Russellville, AL
Red Bay, AL
Clayton, OK
Alma, AR
Hiawatha, KS
Eureka, KS
Spring Hill, KS
Menard, TX
Wallis, TX
Zapata, TX
Grove, OK
Portland, IN
Georgetown, OH
Cloverdale, IN
Chandler, TX
Pineville, MO
Americus, GA | 37
24
12
16
24
20
24
78
40
44
24
33
25
27
46
31
25
60
40
24
24
24
24
24
24
36
24
24
40
60
20
24
24
44
12
24
-----
1,106 | 8/91
8/91
8/91
8/91
8/91
8/91
9/91
9/91
9/91
9/91
9/91
9/91
9/91
9/91
9/91
9/91
9/91
9/91
9/91
9/91
9/91
9/91
9/91
9/91
9/91
9/91
9/91
9/91
9/91
11/91
11/91
11/91
1/92
1/92
5/92
1/94 | 1,517,702
980,617
402,402
564,559
732,342
692,426
893,154
3,217,901
1,677,363
1,753,174
866,259
1,088,664
885,186
901,648
1,602,149
1,127,071
907,712
2,574,298
1,574,776
889,941
840,596
871,530
957,710
776,725
823,643
1,449,378
760,852
578,333
1,238,405
1,741,669
780,437
959,965
962,915
1,308,876
409,427
900,996
----------
$40,210,801 | 78%
96%
92%
100%
100%
100%
100%
97%
98%
98%
96%
100%
92%
100%
100%
100%
100%
98%
98%
96%
100%
96%
100%
92%
88%
94%
100%
92%
100%
97%
100%
100%
100%
93%
100%
100%
|                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | =====                                                                                                                   |                                                                                                                                                                                        | ============                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                  

The average effective rental per unit is $3,355 per year ($280 per month).

---

Item 2 - Properties (continued):
SERIES 6

|PARTNERSHIP
-----------                                                                                                                                                                                                                                                                                                                                                                                                                 | LOCATION OF
PROPERTY
-----------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | # OF
UNIT
-----                                                                                                               | DATE
ACQUIRED
--------                                                                                                                                                                           | PROPERTY
COST
--------                                                                                                                                                                                                                                                                                                                                                                 | OCCU-
PANCY
RATE
-----                                                                                                                                               
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Spruce
Shannon
Carthage
Mountain Crest
Coal City
Blacksburg Terrace
Frazer Place
Ehrhardt
Sinton
Frankston
Flagler Beach
Oak Ridge
Monett
Arma
Southwest City
Meadowcrest
Parsons
Newport Village
Goodwater Falls
Northfield Station
Pleasant Hill
Winter Park
Cornell
Heritage Drive So.
Brodhead
Mt. Village
Hazlehurst
Sunrise
Stony Creek
Logan Place
Haines
Maple Wood
Summerhill
Dorchester
Lancaster
Autumn Village
Hardy
Dawson | Pierre, SD
O'Neill, NE
Carthage, MO
Enterprise, OR
Coal City, IL
Blacksburg, SC
Smyrna, DE
Ehrhardt, SC
Sinton, TX
Frankston, TX
Flagler Beach, FL
Williamsburg, KY
Monett, MO
Arma, KS
Southwest City, MO
Luverne, AL
Parsons, KS
Newport, TN
Jenkins, KY
Corbin, KY
Somerset, KY
Mitchell, SD
Watertown, SD
Jacksonville, TX
Brodhead, KY
Mt. Vernon, KY
Hazlehurst, MS
Yankton, SD
Hooversville, PA
Logan, OH
Haines, AK
Barbourville, KY
Gassville, AR
St. George, SC
Mountain View, AR
Harrison, AR
Hardy, AR
Dawson, GA | 24
16
24
39
24
32
30
16
32
24
43
24
32
28
12
32
48
40
36
24
24
24
24
40
24
24
32
33
32
40
32
24
28
12
33
16
24
40
-----
1,086 | 11/91
11/91
1/92
3/92
3/92
4/92
4/92
4/92
4/92
4/92
5/92
5/92
5/92
5/92
5/92
6/92
7/92
7/92
7/92
7/92
7/92
7/92
7/92
1/92
7/92
7/92
8/92
8/92
8/92
9/92
8/92
8/92
9/92
9/92
9/92
7/92
7/92
11/93 | 1,136,691
675,251
731,133
1,244,525
1,258,825
1,357,066
1,676,842
685,776
1,053,059
674,981
1,653,116
1,037,966
970,357
881,140
407,837
1,206,133
1,532,968
1,619,953
1,399,638
1,022,561
967,376
1,273,535
1,092,468
1,215,014
962,793
943,900
1,193,657
1,420,160
1,649,283
1,526,912
3,037,929
1,025,489
844,240
562,272
1,383,886
615,604
936,515
1,474,973
----------
$44,351,824 | 63%
100%
96%
79%
100%
97%
97%
94%
97%
100%
100%
92%
91%
96%
100%
100%
96%
95%
97%
83%
96%
100%
100%
100%
92%
96%
97%
100%
94%
88%
84%
96%
96%
100%
100%
100%
96%
100%
|                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | =====                                                                                                                         |                                                                                                                                                                                                  | ===========                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                      

The average effective rental per unit is $3,589 per year ($299 per month).

---

Item 2 - Properties (continued):
A summary of the cost of the properties at December 31, 2001, 2000 and 1999 is as follows:

12/31/01

| | SERIES 2 | SERIES 3 | SERIES 4
| | -------- | -------- | --------

|Land
Land Improvements
Buildings
Furniture and Fixtures
Construction in Progress
Properties, at Cost
Less: Accum.Depreciation
Properties, Net | $ 1,012,180
125,464
26,261,278
931,578
0
-----------
28,330,500
10,152,720
-----------
$18,177,780 | $   985,546
251,976
25,247,403
1,285,630
0
-----------
27,770,555
12,513,532
-----------
$15,257,023 | $ 1,188,112
164,057
30,125,849
1,494,488
0
-----------
32,972,506
11,277,285
-----------
$21,695,221
|--------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------
|                                                                                                                                              | ===========                                                                                        | ===========                                                                                          | ===========                                                                                         

|                                                                                                                                              | SERIES 5                                                                                            | SERIES 6                                                                                             | TOTAL                                                                                                       
|--------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------
|Land
Land Improvements
Buildings
Furniture and Fixtures
Construction in Progress
Properties, at Cost
Less: Accum.Depreciation
Properties, Net | $ 1,456,671
72,944
37,045,749
1,635,437
0
-----------
40,210,801
13,336,649
-----------
$26,874,152 | $ 1,779,755
534,541
39,858,054
2,179,474
0
-----------
44,351,824
13,603,728
-----------
$30,748,096 | $  6,422,264
1,148,982
158,538,333
7,526,607
0
------------
173,636,186
60,883,914
------------
$112,752,272
|                                                                                                                                              | ===========                                                                                         | ===========                                                                                          | ============                                                                                                

12/31/00

|                                                                                                                                              | SERIES 2                                                                                                 | SERIES 3                                                                                                    | SERIES 4                                                                                                   
|--------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------
|Land
Land Improvements
Buildings
Furniture and Fixtures
Construction in Progress
Properties, at Cost
Less: Accum.Depreciation
Properties, Net | $ 1,012,180 
123,358 
26,249,454 
908,034 
0 
-----------
28,293,026 
9,287,713 
-----------
$19,005,313 | $   985,546 
379,665 
25,021,159 
1,234,233 
0 
-----------
27,620,603 
11,579,979 
-----------
$16,040,624 | $ 1,188,112 
153,052 
29,917,751 
1,465,181 
0 
-----------
32,724,096 
10,297,994 
-----------
$22,426,102
|                                                                                                                                              | ===========                                                                                              | ===========                                                                                                 | ===========                                                                                                

|                                                                                                                                              | SERIES 5                                                                                                   | SERIES 6                                                                                                    | TOTAL                                                                                                              
|--------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------
|Land
Land Improvements
Buildings
Furniture and Fixtures
Construction in Progress
Properties, at Cost
Less: Accum.Depreciation
Properties, Net | $ 1,456,671 
72,944 
37,006,489 
1,612,553 
0 
-----------
40,148,657 
12,049,324 
-----------
$28,099,333 | $ 1,779,755 
531,557 
39,822,962 
2,090,579 
0 
-----------
44,224,853 
12,258,319 
-----------
$31,966,534 | $  6,422,264 
1,260,576 
158,017,815 
7,310,580 
0 
------------
173,011,235 
55,473,329 
------------
$117,537,906
|                                                                                                                                              | ===========                                                                                                | ===========                                                                                                 | ============                                                                                                       

---

12/31/99

|                                                                                                                                              | SERIES 2                                                                                                 | SERIES 3                                                                                                    | SERIES 4                                                                                                  
|--------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------
|Land
Land Improvements
Buildings
Furniture and Fixtures
Construction in Progress
Properties, at Cost
Less: Accum.Depreciation
Properties, Net | $ 1,012,180 
123,358 
26,249,454 
898,766 
0 
-----------
28,283,758 
8,394,446 
-----------
$19,889,312 | $   985,546 
379,665 
25,015,969 
1,192,726 
0 
-----------
27,573,906 
10,647,074 
-----------
$16,926,832 | $ 1,188,112 
137,610 
29,894,951 
1,436,736 
0 
-----------
32,657,409 
9,323,398 
-----------
$23,334,011
|                                                                                                                                              | ===========                                                                                              | ===========                                                                                                 | ===========                                                                                               

|                                                                                                                                              | SERIES 5                                                                                                   | SERIES 6                                                                                                    | TOTAL                                                                                                              
|--------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------
|Land
Land Improvements
Buildings
Furniture and Fixtures
Construction in Progress
Properties, at Cost
Less: Accum.Depreciation
Properties, Net | $ 1,456,671 
66,384 
36,914,988 
1,563,738 
0 
-----------
40,001,781 
10,765,825 
-----------
$29,235,956 | $ 1,779,755 
517,455 
39,804,795 
2,012,364 
0 
-----------
44,114,369 
10,920,837 
-----------
$33,193,532 | $  6,422,264 
1,224,472 
157,880,157 
7,104,330 
0 
------------
172,631,223 
50,051,580 
------------
$122,579,643
|                                                                                                                                              | ===========                                                                                                | ===========                                                                                                 | ============                                                                                                       

Item 3.  Legal Proceedings  Gateway is not a party to any material pending legal proceedings.
Item 4.  Submission of Matters to a Vote of Security Holders  As of March 31, 2002, no matters were submitted to a vote of security holders, through the solicitation of proxies or otherwise.

---

PART II

Item 5.  Market for the Registrant's Securities and Related Security Holder Matters(a)  Gateway's Limited Partnership interests (BACs) are not publicly traded.  There is no market for Gateway's Limited Partnership interests and it is unlikely that any will develop.  No transfers of Limited Partnership Interest or BAC Units are permitted without the prior written consent of the Managing General Partner.  There have been several transfers from inception to date with most being from individuals to their trusts or heirs.  The Managing General Partner is not aware of the price at which the units are transferred.  The conditions under which investors may transfer units is found under ARTICLE XII -  "Issuance of BAC'S" on pages A-29 and A-30 of the Limited Partnership Agreement within the Prospectus, which is incorporated herein by reference. 
     There have been no distributions to Assignees from inception to date.
(b)  Approximate Number of Equity Security Holders:Title of Class                                    Number of Holders
                                                as of March 31, 2002
Beneficial Assignee Certificates                        2,258
General Partner Interest                                  2
Item 6.  Selected Financial DataFOR THE YEARS ENDED MARCH 31,:

|SERIES 2                                                | 2002
----              | 2001
----               | 2000
----               | 1999
----               | 1998
----              
|------------------------------------------------------- | ---------------------- | ----------------------- | ----------------------- | ----------------------- | -----------------------
|Total Revenues                                          | $  36,666              | $  43,114               | $  40,198               | $  41,405               | $  41,272              
|Net Loss                                                | (99,198)               | (123,576)               | (166,538)               | (221,305)               | (337,693)              
|Equity in Losses of Project Partnerships                | (43,931)               | (76,493)                | (115,544)               | (126,899)               | (288,412)              
|Total Assets                                            | 575,947                | 634,752                 | 723,067                 | 853,057                 | 1,045,569              
|Investments In Project Partnerships                     | 78,301                 | 124,529                 | 208,215                 | 331,579                 | 510,805                
|Per BAC: (A)
Tax Credits
Portfolio
 Income
Passive Loss | 64.12 
11.87 
(148.48) | 162.60 
14.10 
(127.50) | 166.30 
12.20 
(141.60) | 166.30 
12.90 
(144.60) | 166.40 
13.10  (147.90)
|Net Loss                                                | (16.00)                | (19.94)                 | (26.87)                 | (35.71)                 | (54.48)                
|                                                        |                        |                         |                         |                         |                        

---

FOR THE YEARS ENDED MARCH 31,:

|SERIES 3                                                 | 2002
----             | 2001
----              | 2000
----              | 1999
----               | 1998
----              
|-------------------------------------------------------- | --------------------- | ---------------------- | ---------------------- | ----------------------- | -----------------------
|Total Revenues                                           | $  42,526             | $  52,385              | $  51,385              | $  44,329               | $  65,111              
|Net Loss                                                 | (80,062)              | (58,677)               | (147,068)              | (187,324)               | (221,508)              
|Equity in Losses of
Project
Partnerships                 | (34,441)              | (26,094)               | (114,700)              | (105,820)               | (198,168)              
|Total Assets                                             | 465,530               | 512,301                | 545,897                | 669,866                 | 846,210                
|Investments In Project Partnerships                      | 34,601                | 71,138                 | 100,190                | 218,820                 | 378,000                
|Per BAC: (A)
Tax Credits 
Portfolio
 Income
Passive Loss | 6.22 
13.83 
(154.72) | 44.70 
14.00 
(156.40) | 68.90 
12.80 
(151.20) | 164.30 
14.10 
(145.00) | 176.60 
20.10 
(154.10)
|Net Loss                                                 | (14.53)               | (10.65)                | (26.69)                | (33.99)                 | (40.19)                
|                                                         |                       |                        |                        |                         |                        

---

Item 6.  Selected Financial DataFOR THE YEARS ENDED MARCH 31,:

|SERIES 4                                                | 2002
----              | 2001
----               | 2000
----               | 1999
----               | 1998
----              
|------------------------------------------------------- | ---------------------- | ----------------------- | ----------------------- | ----------------------- | -----------------------
|Total Revenues                                          | $  44,426              | $  51,145               | $  48,997               | $  46,672               | $  44,309              
|Net Loss                                                | (185,366)              | (311,663)               | (235,491)               | (348,671)               | (485,415)              
|Equity in Losses of Project
Partnerships                | (118,314)              | (254,163)               | (175,823)               | (208,919)               | (421,886)              
|Total Assets                                            | 663,983                | 807,069                 | 1,082,020               | 1,280,602               | 1,600,054              
|Investments In Project Partnerships                     | 96,741                 | 223,689                 | 487,692                 | 676,348                 | 981,823                
|Per BAC: (A)
Tax Credits
Portfolio
 Income
Passive Loss | 82.68 
12.51  (149.99) | 165.70 
15.00  (160.40) | 168.60 
14.30 
(137.50) | 168.60 
14.10  (136.00) | 168.60 
13.70  (157.20)
|Net Loss                                                | (26.54)                | (44.62)                 | (33.71)                 | (49.92)                 | (69.50)                
|                                                        |                        |                         |                         |                         |                        

FOR THE YEARS ENDED MARCH 31,:

|SERIES 5                                                 | 2002
----               | 2001
----               | 2000
----               | 1999
----               | 1998
----              
|-------------------------------------------------------- | ----------------------- | ----------------------- | ----------------------- | ----------------------- | -----------------------
|Total Revenues                                           | $  58,867               | $  64,244               | $  65,839               | $  64,661               | $  54,417              
|Net Loss                                                 | (268,277)               | (248,131)               | (243,982)               | (403,555)               | (813,502)              
|Equity in Losses of Project
Partnerships                 | (189,327)               | (179,765)               | (178,140)               | (300,042)               | (728,729)              
|Total Assets                                             | 1,298,281               | 1,519,231               | 1,728,422               | 1,932,914               | 2,306,065              
|Investments In Project Partnerships                      | 550,146                 | 752,227                 | 951,449                 | 1,145,581               | 1,500,087              
|Per BAC: (A)
Tax Credits 
Portfolio
 Income
Passive Loss | 153.83 
12.75 
(145.76) | 164.60 
15.60 
(140.30) | 164.60 
14.30 
(134.60) | 164.60 
14.40  (149.20) | 164.60 
14.10  (141.60)
|Net Loss                                                 | (30.83)                 | (28.51)                 | (28.03)                 | (46.37)                 | (93.47)                
|                                                         |                         |                         |                         |                         |                        

---

Item 6.  Selected Financial DataFOR THE YEARS ENDED MARCH 31,:

|SERIES 6                                                 | 2002
----               | 2001
----               | 2000
----               | 1999
---                | 1998
----              
|-------------------------------------------------------- | ----------------------- | ----------------------- | ----------------------- | ----------------------- | -----------------------
|Total Revenues                                           | $  52,783               | $  57,541               | $  54,234               | $  50,722               | $  49,707              
|Net Loss                                                 | (407,763)               | (481,031)               | (531,947)               | (701,324)               | (870,137)              
|Equity in Losses of Project Partnerships                 | (306,042)               | (384,730)               | (433,597)               | (601,405)               | (761,923)              
|Total Assets                                             | 2,016,612               | 2,364,264               | 2,793,368               | 3,272,734               | 3,930,665              
|Investments In Project Partnerships                      | 1,257,026               | 1,584,877               | 1,997,390               | 2,464,086               | 3,102,793              
|Per BAC: (A)
Tax Credits 
Portfolio
 Income
Passive Loss | 167.27 
11.24 
(127.50) | 165.60 
13.80 
(127.30) | 165.50 
12.70 
(126.50) | 165.50 
12.90  (129.30) | 165.50 
12.90  (124.30)
|Net Loss                                                 | (39.95)                 | (47.13)                 | (52.12)                 | (68.54)                 | (85.25)                
|                                                         |                         |                         |                         |                         |                        

(A) The per BAC tax information is as of December 31, the year end for tax purposes.
The above selected financial data should be read in conjunction with the financial statements and related notes appearing elsewhere in this report.  This statement is not covered by the auditor's opinion included elsewhere in this report.

---

Item 7.  Management's Discussion and Analysis of Financial Condition and Results of Operations
Results of Operations, Liquidity and Capital Resources  Operations commenced on September 14, 1990, with the first admission of Assignees in Series 2.  The proceeds from Assignees' capital contributions available for investment were used to acquire interests in Project Partnerships. 
  As disclosed on the statement of operations for each Series, except as described below, interest income is comparable for the years ended March 31, 2002, March 31, 2001 and March 31, 2000.  The General and Administrative expenses - General Partner and General and Administrative expenses - Other for the year ended March 31, 2002 are comparable to March 31, 2001 and March 31, 2000.
  The capital resources of each Series are used to pay General and Administrative operating costs including personnel, supplies, data processing, travel and legal and accounting associated with the administration and monitoring of Gateway and the Project Partnerships.  The capital resources are also used to pay the Asset Management Fee due the Managing General Partner, but only to the extent that Gateway's remaining resources are sufficient to fund Gateway's ongoing needs.  (Payment of any Asset Management Fee unpaid at the time Gateway sells its interests in the Project Partnerships is subordinated to the return of the investors' original capital contributions).
  The sources of funds to pay the operating costs of each Series are short term investments and interest earned thereon, the maturity of U.S. Treasury Security Strips ("Zero Coupon Treasuries") which were purchased with funds set aside for
this purpose, and cash distributed to the Series from the operations of the Project Partnerships.
  From inception, no Series has paid distributions and management does not anticipate distributions in the future.
  Series 2 - Gateway closed this series on September 14, 1990 after receiving $6,136,000 from 375 Assignees.  As of March 31, 2002, the series had invested $4,524,678 in 22 Project Partnerships located in 10 states containing 723 apartment units.  Average occupancy of the Project Partnerships was 93% at December 31, 2001.
  Equity in Losses of Project Partnerships decreased from $ 115,544 for the year ended March 31, 2000 to $76,493 for the year ended March 31, 2001 and to $43,931 for the year ended March 31, 2002.  As presented in Note 5, Gateway's share of net loss decreased from $716,618 for the year ended March 31,2000 to $611,603 for the year ended March 31,2001 and increased to $706,233 for the year ended March 31,2002.  Suspended Losses decreased from $601,074 for the year ended March 31, 2000 to $535,110 for the year ended March 31, 2001 and increased to $662,302 for the year ended March 31, 2002.  These losses would reduce the investment in Project Partnerships below zero. In general, it is common in the real estate industry to experience losses for financial and tax reporting purposes because of the non-cash expenses of depreciation and amortization. (These Project Partnerships reported depreciation and amortization of $897,242, $893,266 and $865,003 for the years ended December 31, 1999, 2000, and 2001 respectively.)  As a result, management expects that this Series, as well as those described below, will report its equity in Project Partnerships as a loss for tax and financial reporting purposes.  Overall, management believes the Project Partnerships are operating as expected and are generating tax credits which meet projections.
  At March 31, 2002, the Series had $235,805 of short-term investments (Cash and Cash Equivalents).  It also had $261,841 in Zero Coupon Treasuries with annual maturities providing $56,105 in fiscal year 2003 increasing to $66,285 in fiscal year 2007.  Management believes the sources of funds are sufficient to meet current and ongoing operating costs for the foreseeable future, and to pay part of the Asset Management Fee.
  As disclosed on the statement of cash flows, the Series had a net loss of $99,198 for the year ending March 31, 2002.  However, after adjusting for Equity in Losses of Project Partnerships of $43,931 and the changes in operating assets and liabilities, net cash used in operating activities was $17,511, of which $34,981 was the Asset Management Fee actually paid.  Cash provided by investing activities totaled $39,388, consisting of $12,460 in cash distributions from the Project Partnerships and $26,928 from matured Zero Coupon Treasuries. There were no unusual events or trends to describe.
  Series 3 - Gateway closed this series on December 13, 1990 after receiving $5,456,000 from 398 Assignees.  As of March 31, 2002 the series had invested $3,888,713 in 23 Project Partnerships located in 12 states containing 768 apartment units.   Average occupancy of the Project Partnerships was 94% as of December 31, 2001.
  Equity in Losses of Project Partnerships decreased from $ 114,700 for the year ended March 31, 2000 to $26,094 for the year ended March 31, 2001 and increased to $34,441 for the year ended March 31, 2002.  As presented in Note 5, Gateway's share of net loss decreased from $988,019 for the year ended March 31,2000 to $735,412 for the year ended March 31,2001 and to $710,345 for the year ended March 31,2002.  Suspended Losses decreased from $873,319 for the year ended March 31, 2000 to $709,318 for the year ended March 31, 2001 and to $675,904 for the year ended March 31, 2002.  These losses would reduce the investment in Project Partnerships below zero.  (These Project Partnerships reported depreciation and amortization of $1,213,599, $941,538 and $946,476 for the years ended December 31, 1999, 2000 and 2001, respectively.)  Overall, management believes these Project Partnerships are operating as expected and are generating tax credits which meet projections.
  At March 31, 2002, the Series had $198,028 of short-term investments (Cash and Cash Equivalents).  It also had $232,901 in Zero Coupon Treasuries with annual maturities providing $49,888 in fiscal year 2003 increasing to $58,940 in fiscal year 2007.  Management believes these sources of funds are sufficient to meet the Series' current and ongoing operating costs for the foreseeable future, and to pay part of the Asset Management Fee.
  As disclosed on the statement of cash flows, the Series had a net loss of $80,062 for the year ended March 31, 2002.  However, after adjusting for Equity in Losses of Project Partnerships of $34,441 and the changes in operating assets and liabilities, net cash used in operating activities was $24,505, of which $37,164 was the Asset Management Fee actually paid.  Cash provided by investing activities totaled $44,918, consisting of $20,966 in cash distributions received from the Project Partnerships and $23,952 from matured Zero Coupon Treasuries.  There were no unusual events or trends to describe.
  Series 4 - Gateway closed this series on May 31, 1991 after receiving $6,915,000 from 465 Assignees.  As of March 31, 2002, the series had invested $4,952,519 in 29 Project Partnerships located in 16 states containing 879 apartment units.  Average occupancy of the Project Partnerships was 96% at December 31, 2001.
  Equity in Losses of Project Partnerships increased from $175,823 for the year ended March 31, 2000 to $254,163 for the year ended March 31, 2001 and decreased to $118,314 for the year ended March 31, 2002. As presented in Note 5, Gateway's share of net loss increased from $704,086 for the year ended March 31,2000 to $847,148 for the year ended March 31,2001 and decreased to $766,057 for the year ended March 31,2002.  Suspended Losses increased from $528,263 for the year ended March 31, 2000 to $592,985 for the year ended March 31, 2001 and to $647,743 for the year ended March 31,2002.  These losses would reduce the investment in Project Partnerships below zero.  (These Project Partnerships reported depreciation and amortization of $983,083, $976,176 and $979,666 for the years ended December 31, 1999, 2000 and 2001, respectively.)  Overall, management believes these Project Partnerships are operating as expected and are generating tax credits which meet projections.
  At March 31, 2002, the Series had $272,179 of short-term investments (Cash and Cash Equivalents).  It also had $295,063 in Zero Coupon Treasuries with annual maturities providing $63,227 in fiscal year 2003 increasing to $74,700 in fiscal year 2007.  Management believes these sources of funds are sufficient to meet the Series' current and ongoing operating costs for the foreseeable future, and to pay part of the Asset Management Fee.
  As disclosed on the statement of cash flows, the Series had a net loss of $185,366 for the year ended March 31, 2002.  However, after adjusting for Equity in Losses of Project Partnerships of $118,314 and the changes in operating assets and liabilities, net cash used in operating activities was $27,548, of which $44,751 was the Asset Management Fee actually paid.  Cash provided by investing activities totaled $50,236, consisting of $19,892 in cash distributions from the Project Partnerships and $30,344 from matured Zero Coupon Treasuries.  There were no unusual events or trends to describe.Series 5 - Gateway closed this series on October 11, 1991 after receiving $8,616,000 from 535 Assignees.  As of March 31, 2002, the series had invested $6,164,472 in 36 Project Partnerships located in 13 states containing 1,106 apartment units.  Average occupancy of the Project Partnerships was 97% as of December 31, 2001.
  Equity in Losses of Project Partnerships were comparable for the years ended March 31, 2000, 2001, and 2002.  (These Project Partnerships reported depreciation and amortization of $1,286,201, $1,283,498 and $1,294,116 for the years ended December 31, 1999, 2000 and 2001, respectively.)  Overall, management believes these Project Partnerships are operating as expected and are generating tax credits which meet projections.
  At March 31, 2002, the Series had $380,377 of short-term investments (Cash and Cash Equivalents).  It also had $367,758 in Zero Coupon Treasuries with annual maturities providing $78,780 in fiscal year 2003 increasing to $93,075 in fiscal year 2007.  Management believes these sources of funds are sufficient to meet the Series' current and ongoing operating costs for the foreseeable future, and to pay part of the Asset Management Fee.
  As disclosed on the statement of cash flows, the Series had a net loss of $268,277 for the year ended March 31, 2002.  However, after adjusting for Equity in Losses of Project Partnerships of $189,327 and the changes in operating assets and liabilities, net cash used in operating activities was $37,473, of which $60,518 was the Asset Management Fee actually paid.  Cash provided by investing activities totaled $66,996 consisting of $29,176 in cash distributions from the Project Partnerships and $37,820 from matured Zero Coupon Treasuries.  There were no unusual events or trends to describe.
  Series 6 - Gateway closed this series on March 11, 1992 after receiving $10,105,000 from 625 Assignees.  As of March 31, 2002, the series had invested $7,462,215 in 38 Project Partnerships located in 19 states containing 1,086 apartment units.  Average occupancy of the Project Partnerships was 95% as of December 31, 2001.
  Equity in Losses of Project Partnerships decreased from $433,957 for the year ended March 31, 2000 to $384,730 for the year ended March 31, 2001 and to $306,042 for the year ended March 31, 2002.  These decreases were due to additional suspended losses of $430,306, $523,064, and $609,347 for the years ended March 31, 2000, 2001 and 2002 respectively, as these losses would reduce the investment in certain Project Partnerships below zero.  (These Project Partnerships reported depreciation and amortization of $1,371,839, $1,337,714 and $1,347,661 for the years ended December 31, 1999, 2000 and 2001, respectively.)  Overall, management believes these Project Partnerships are operating as expected and are generating tax credits which meet projections.
  At March 31, 2002, the Series had $455,377 of short-term investments (Cash and Cash Equivalents).  It also had $304,209 in Zero Coupon Treasuries with annual maturities providing $66,000 in fiscal year 2003 increasing to $83,000 in fiscal year 2007.  Management believes these sources of funds are sufficient to meet the Series' current and ongoing operating costs for the foreseeable future, and to pay part of the Asset Management Fee.
  As disclosed on the statement of cash flows, the Series had a net loss of $407,763 for the year ended March 31, 2002.  However, after adjusting for Equity in Losses of Project Partnerships of $306,042 and the changes in operating assets and liabilities, net cash used in operating activities was $45,330, of which $57,881 was the Asset Management Fee actually paid.  Cash provided by investing activities totaled $63,071 of which $30,012 was received in cash distributions from the Project Partnerships and $33,059 from matured Zero Coupon Treasuries.  There were no unusual events or trends to describe.
  
Item 8. Financial Statements and Supplementary Data

---



INDEPENDENT AUDITOR'S REPORT

To the Partners of Gateway Tax Credit Fund II Ltd.
   We have audited the accompanying balance sheets of each of the five Series (Series 2 through 6) constituting Gateway Tax Credit Fund II Ltd. (a Florida Limited Partnership) as of March 31, 2002 and 2001 and the related  statements of operations, partners' equity (deficit), and cash flows of each of the five Series for each of the three years in the period ended March 31, 2002.  These financial statements are the responsibility of the Partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audits.  We did not audit the financial statements of certain Project Partnerships for which cumulative equity in losses included on the balance sheets as of March 31, 2002 and 2001 and net losses included on the statements of operations for each of the three years in the period ended March 31, 2002 are:

|         |  | Cumulative Equity in Losses
March 31,
-------- | Partnership Loss
Year Ended March 31,
--------------------
|-------- |  | ---------------------------------------------- | ----------------------------------------------------------
|         |  |                                                | 2002
----                                                 
|         |  |                                                |                                                           
|Series 2 |  |                                                | $3,763,013                                                
|Series 3 |  |                                                | 3,126,202                                                 
|Series 4 |  |                                                | 3,360,237                                                 
|Series 5 |  |                                                | 3,680,345                                                 
|Series 6 |  |                                                | 4,418,917                                                 

Those statements were audited by other auditors whose reports have been furnished to us, and our opinion, insofar as it relates to the amounts included for such underlying partnerships, is based solely on the reports of the other auditors.
    We conducted our audits in accordance with auditing standards generally accepted in the United States of America.  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audits and the reports of other auditors provide a reasonable basis for our opinion.
    In our opinion, based on our audits and the reports of other auditors, the financial statements referred to above present fairly, in all material respects, the financial position of each of the five Series (Series 2 through 6) constituting Gateway Tax Credit Fund II Ltd. as of March 31, 2002 and 2001, and the results of their operations and their cash flows for each of the three years in the period ended March 31, 2002, in conformity with accounting principles generally accepted in the United States of America.
    Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole.  The schedules listed under Item 14(a)(2) in the index are presented for purposes of complying with the Securities and Exchange Commission's rules and are not part of the basic financial statements.  These schedules have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, based on our audits and the reports of other auditors, fairly state in all material respects the financial data required to be set forth therein in relation to the basic financial statements taken as a whole.

/s/ Spence, Marston, Bunch, Morris & Co.
                                         SPENCE, MARSTON, BUNCH, MORRIS & CO.
                                         Certified Public Accountants
Clearwater, Florida
June 20, 2002

---

PART I - Financial Information
  Item 1.  Financial Statements

GATEWAY TAX CREDIT FUND II LTD.(A Florida Limited Partnership)BALANCE SHEETSMARCH 31, 2002 AND 2001

|SERIES 2                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 2002
----                                                                                                                                                                                                                    | 2001
----                                                                                                                                                                                                                     | 
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 
|ASSETS
Current Assets:
 Cash and Cash Equivalents
 Investments in Securities
  Total Current Assets
 Investments in Securities
 Investments in Project Partnerships, Net
    Total Assets
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners
  Total Current Liabilities
Long-Term Liabilities:
 Payable to General Partners
Partners' Equity (deficit):
Assignor Limited Partner
 Units of limited partnership interest consisting of 40,000 authorized BAC's, of which Series 2 had 6,136 at March 31, 2002 and 2001 have been issued to the assignees
Assignees
 Units of beneficial interest of the limited partnership interest of the assignor limited partner, $1,000 stated value per BAC, Series 2 had 6,136 at March  31, 2002 and 2001, issued and outstanding
General Partners
  Total Partners' Equity
    Total Liabilities and Partners' Equity | $ 235,805 
56,098 
----------
291,903 
205,743 
78,301
----------
$ 575,947 
==========
$  54,118 
----------
 54,118 
----------
429,262 
----------
 145,441 
(52,874)
----------
92,567 
----------
$ 575,947 
========== | $ 213,928 
53,836 
----------
267,764 
242,459 
124,529 
----------
$ 634,752 
==========
$  46,941 
----------
46,941 
----------
396,046 
----------
243,647 
(51,882)
----------
191,765 
----------
$ 634,752 
========== | 

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND II LTD.(A Florida Limited Partnership)BALANCE SHEETSMARCH 31, 2002 AND 2001

|SERIES 3                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | 2002
----                                                                                                                                                                                                                    | 2001
----                                                                                                                                                                                                                   | 
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 
|ASSETS
Current Assets:
 Cash and Cash Equivalents
 Investments in Securities
  Total Current Assets
 Investments in Securities
 Investments in Project Partnerships, Net
    Total Assets
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners
  Total Current Liabilities
Long-Term Liabilities:
 Payable to General Partners
Partners' Equity (deficit):
Assignor Limited Partner
 Units of limited partnership interest consisting of 40,000 authorized BAC's, of which Series 3 had 5,456 at March 31, 2002 and 2001 have been issued to the assignees
Assignees
 Units of beneficial interest of the limited partnership interest of the assignor limited partner, $1,000 stated value per BAC, Series 3 had 5,456 at March 31, 2002 and 2001, issued and outstanding
General Partners
  Total Partners' Equity
    Total Liabilities and Partners' Equity | $ 198,028 
49,898 
----------
247,926 
183,003 
34,601 
----------
$ 465,530 
==========
$  58,717 
----------
 58,717 
----------
319,290 
----------
134,464 
(46,941)
----------
87,523 
----------
$ 465,530 
========== | $ 177,615 
47,886 
---------
225,501 
215,662 
71,138 
----------
$ 512,301 
==========
$  51,154 
----------
51,154 
----------
293,562 
----------
213,725 
(46,140)
----------
167,585 
----------
$ 512,301 
========== | 

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND II LTD.

|SERIES 4                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 2002
----                                                                                                                                                                                                                               | 2001
----                                                                                                                                                                                                                               | 
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 
|ASSETS
Current Assets:
 Cash and Cash Equivalents
 Investments in Securities
  Total Current Assets
 Investments in Securities
 Investments in Project Partnerships, Net
    Total Assets
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners
  Total Current Liabilities
Long-Term Liabilities:
 Payable to General Partners
Partners' Equity (deficit):
Assignor Limited Partner
 Units of limited partnership interest consisting of 40,000 authorized BAC's, of which Series 4 had 6,915 at March 31, 2002 and  2001 have been issued to the assignees
Assignees
 Units of beneficial interest of the limited partnership interest of the assignor limited partner, $1,000 stated value per BAC, Series 4 had 6,915 at March 31, 2002 and 2001, issued and outstanding
General Partners
  Total Partners' Equity
    Total Liabilities and Partners' Equity | $  272,179 
63,215 
-----------
335,394 
231,848 
96,741 
-----------
$  663,983 
===========
$   66,364 
-----------
66,364 
-----------
415,676 
-----------
240,778 
(58,835)
----------
181,943 
----------
$  663,983 
=========== | $  249,491 
60,666 
-----------
310,157 
273,223 
223,689 
-----------
$  807,069 
===========
$   56,807 
----------
56,807 
----------
382,953 
----------
424,290 
(56,981)
-----------
367,309 
-----------
$  807,069 
=========== | 

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND II LTD.(A Florida Limited Partnership)BALANCE SHEETSMARCH 31, 2002 AND 2001

|SERIES 5                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 2002
----                                                                                                                                                                                                                                  | 2001
----                                                                                                                                                                                                                                      | 
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 
|ASSETS
Current Assets:
 Cash and Cash Equivalents
 Investments in Securities
  Total Current Assets
 Investments in Securities
 Investments in Project Partnerships, Net
    Total Assets
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners
  Total Current Liabilities
Long-Term Liabilities:
 Payable to General Partners
Partners' Equity (deficit):
Assignor Limited Partner
 Units of limited partnership interest consisting of 40,000 authorized BAC's, of which Series 5 had 8,616 at March 31, 2002 and 2001 have been issued to the assignees
Assignees
 Units of beneficial interest of the limited partnership interest of the assignor limited partner, $1,000 stated value per BAC, Series 5 had 8,616 at March 31, 2002 and 2001, issued and outstanding
General Partners
  Total Partners' Equity
   Total Liabilities and Partners' Equity | $  380,377 
78,790 
-----------
459,167 
288,968 
550,146 
-----------
$1,298,281 
===========
$   87,779 
-----------
87,779 
-----------
417,637 
-----------
860,560 
(67,695)
-----------
792,865 
-----------
$1,298,281 
=========== | $  350,854 
75,613 
-----------
426,467 
340,537 
752,227 
-----------
$1,519,231 
===========
$   75,689 
-----------
75,689 
-----------
382,400 
-----------
1,126,154 
(65,012)
-----------
1,061,142 
-----------
$1,519,231 
=========== | 

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND II LTD.(A Florida Limited Partnership)BALANCE SHEETSMARCH 31, 2002 AND 2001

|SERIES 6                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 2002
----                                                                                                                                                                                                                                        | 2001
----                                                                                                                                                                                                                                        | 
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | 
|ASSETS
Current Assets:
 Cash and Cash Equivalents
 Investments in Securities
  Total Current Assets
 Investments in Securities
 Investments in Project Partnerships, Net
    Total Assets
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners
  Total Current Liabilities
Long-Term Liabilities:
 Payable to General Partners
Partners' Equity (deficit):
Assignor Limited Partner
 Units of limited partnership interest consisting of 40,000 authorized BAC's, of which Series 6 had 10,105 at March 31, 2002 and 2001 have been issued to the assignees
Assignees
 Units of beneficial interest of the limited partnership interest of the assignor limited partner, $1,000 stated value per BAC, Series 6 had 10,105 at March 31, 2002 and 2001, issued and outstanding
General Partners
  Total Partners' Equity
    Total Liabilities and Partners' Equity | $  455,377 
62,622 
-----------
517,999 
241,587 
1,257,026 
-----------
$2,016,612 
===========
$   83,891 
-----------
83,891 
-----------
536,157 
-----------
1,471,324 
(74,760)
-----------
1,396,564 
-----------
$2,016,612 
=========== | $  437,636 
58,858 
-----------
496,494 
282,893 
1,584,877 
-----------
$2,364,264 
===========
$   71,653 
-----------
71,653 
-----------
488,284 
-----------
1,875,009 
(70,682)
-----------
1,804,327 
-----------
$2,364,264 
=========== | 

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND II LTD.(A Florida Limited Partnership)BALANCE SHEETSMARCH 31, 2002 AND 2001

|TOTAL SERIES 2 - 6                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 2002
----                                                                                                                                                                                                                                                 | 2001
----                                                                                                                                                                                                                                                 | 
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 
|ASSETS
Current Assets:
 Cash and Cash Equivalents
 Investments in Securities
  Total Current Assets
 Investments in Securities
 Investments in Project Partnerships, Net
    Total Assets
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners
  Total Current Liabilities
Long-Term Liabilities:
 Payable to General Partners
Partners' Equity (deficit):
Assignor Limited Partner
 Units of limited partnership interest consisting of 40,000 authorized BAC's, of which Series 2-6 had 37,228 at March 31, 2002 and 2001 have been issued to the assignees
Assignees
 Units of beneficial interest of the limited partnership interest of the assignor limited partner, $1,000 stated value per BAC, Series 2-6 had 37,228 at March  31, 2002 and 2001, issued and outstanding
General Partners
  Total Partners' Equity
    Total Liabilities and Partners' Equity | $1,541,766 
310,623 
-----------
1,852,389 
1,151,149 
2,016,815 
-----------
$5,020,353 
===========
$  350,869 
-----------
350,869 
-----------
2,118,022 
-----------
2,852,567 
(301,105)
-----------
2,551,462 
-----------
$5,020,353 
=========== | $1,429,524 
296,859 
-----------
1,726,383 
1,354,774 
2,756,460 
-----------
$5,837,617 
===========
$  302,244 
-----------
302,244 
-----------
1,943,245 
-----------
3,882,825 
(290,697)
-----------
3,592,128 
-----------
$5,837,617 
=========== | 

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND II LTD.(A Florida Limited Partnership)STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED MARCH 31,

|SERIES 2                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 2002
----                                                                                                                                                                                                                                                               | 2001
----                                                                                                                                                                                                                                                                 | 2000
----                                                                                                                                                                                                                                                                 
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Interest Income
 Other Income
  Total Revenues
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Losses
 of Project Partnerships
Equity in Losses of Project
 Partnerships
Net Loss
Allocation of Net Loss:
 Assignees
 General Partners
Net Loss Per Beneficial
Assignee Certificate
Number of Beneficial Assignee
Certificates Outstanding | $   25,806 
10,860 
-----------
36,666 
-----------
68,197 
11,737 
11,302 
697 
-----------
91,933 
-----------
(55,267)
(43,931)
-----------
$  (99,198)
===========
$  (98,206)
(992)
-----------
$  (99,198)
===========
$   (16.00)
===========
6,136 
=========== | $   34,132 
8,982 
-----------
43,114 
-----------
68,361 
9,149 
10,886 
1,801 
-----------
90,197 
-----------
(47,083)
(76,493)
-----------
$ (123,576)
===========
$ (122,340)
(1,236)
-----------
$ (123,576)
===========
$   (19.94)
===========
6,136 
=========== | $   33,028 
7,170 
-----------
40,198 
-----------
68,511 
8,181 
11,237 
3,263 
-----------
91,192 
-----------
(50,994)
(115,544)
-----------
$ (166,538)
===========
$ (164,873)
(1,665)
-----------
$ (166,538)
===========
$   (26.87)
===========
6,136 
===========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND II LTD.(A Florida Limited Partnership)STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED MARCH 31,

|Series 3                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 2002
----                                                                                                                                                                                                                                                  | 2001
----                                                                                                                                                                                                                                                 | 2000
----                                                                                                                                                                                                                                                   
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Interest Income
 Other Income
  Total Revenues
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Losses
 of Project Partnerships
Equity in Losses of Project
 Partnerships
Net Loss
Allocation of Net Loss:
 Assignees
 General Partners
Net Loss Per Beneficial
Assignee Certificate
Number of Beneficial Assignee
Certificates Outstanding | $  22,536 
19,990 
----------
42,526 
----------
62,892 
12,271 
11,864 
1,120 
----------
88,147 
----------
(45,621)
(34,441)
----------
$ (80,062)
==========
$ (79,261)
(801)
----------
$ (80,062)
==========
$  (14.53)
==========
5,456 
========== | $  29,545 
22,840 
----------
52,385 
----------
63,104 
9,565 
11,179 
1,120 
----------
84,968 
----------
(32,583)
(26,094)
----------
$ (58,677)
==========
$ (58,090)
(587)
----------
$ (58,677)
==========
$  (10.65)
==========
5,456 
========== | $  28,740 
22,645 
----------
51,385 
----------
63,301 
8,552 
10,780 
1,120 
----------
83,753 
----------
(32,368)
(114,700)
----------
$(147,068)
==========
$(145,597)
(1,471)
----------
$(147,068)
==========
$  (26.69)
==========
5,456 
==========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND II LTD.(A Florida Limited Partnership)STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED MARCH 31,

|SERIES 4                                                                                                                                                                                                                                                                                                                                                                                                                                                            | 2002
----                                                                                                                                                                                                                                                | 2001
----                                                                                                                                                                                                                                                  | 2000
----                                                                                                                                                                                                                                                 
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Interest Income
 Other Income
  Total Revenues
Expenses:
 Asset Management Fee - General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Losses
 of Project Partnerships
Equity in Losses of Project
 Partnerships
Net Loss
Allocation of Net Loss:
 Assignees
 General Partners
Net Loss Per Beneficial
Assignee Certificate
Number of Beneficial Assignee
Certificates Outstanding | $  29,219 
15,207 
---------
44,426 
---------
77,474 
15,471 
14,584 
3,949 
---------
111,478 
---------
(67,052)
(118,314)
---------
$(185,366)
==========
$(183,512)
(1,854)
---------
$(185,366)
==========
$  (26.54)
==========
6,915 
========== | $  38,975 
12,170 
---------
51,145 
---------
77,661 
12,060 
13,636 
5,288 
---------
108,645 
---------
(57,500)
(254,163)
----------
$(311,663)
==========
$(308,546)
(3,117)
----------
$(311,663)
==========
$  (44.62)
==========
6,915 
========== | $  37,964 
11,033 
---------
48,997 
---------
77,832 
10,779 
13,398 
6,656 
---------
108,665 
---------
(59,668)
(175,823)
----------
$(235,491)
==========
$(233,136)
(2,355)
----------
$(235,491)
==========
$  (33.71)
==========
6,915 
==========
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                           

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND II LTD.(A Florida Limited Partnership)STATEMENTS OF OPERATIONSFOR THE YEARS ENDED MARCH 31,

|SERIES 5                                                                                                                                                                                                                                                                                                                                                                                                                                                            | 2002
----                                                                                                                                                                                                                                                    | 2001
----                                                                                                                                                                                                                                                      | 2000
----                                                                                                                                                                                                                                                     
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Interest Income
 Other Income
  Total Revenues
Expenses:
 Asset Management Fee - General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Losses
 of Project Partnerships
Equity in Losses of Project
 Partnerships
Net Loss
Allocation of Net Loss:
 Assignees
 General Partners
Net Loss Per Beneficial
Assignee Certificate
Number of Beneficial Assignee
Certificates Outstanding | $ 37,335 
21,532 
----------
58,867 
----------
95,755 
19,205 
17,747 
5,110 
----------
137,817 
----------
(78,950)
(189,327)
----------
$(268,277)
==========
$(265,594)
(2,683)
----------
$(268,277)
==========
$  (30.83)
=========
8,616 
========== | $  50,345 
13,899 
----------
64,244 
----------
96,008 
14,972 
16,520 
5,110 
----------
132,610 
----------
(68,366)
(179,765)
----------
$(248,131)
==========
$(245,650)
(2,481)
----------
$(248,131)
==========
$  (28.51)
==========
8,616 
========== | $  48,721 
17,118 
----------
65,839 
----------
96,241 
13,386 
15,895 
6,159 
----------
131,681 
----------
(65,842)
(178,140)
----------
$(243,982)
==========
$(241,542)
(2,440)
----------
$(243,982)
==========
$  (28.03)
==========
8,616 
==========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND II LTD.(A Florida Limited Partnership)STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED MARCH 31,

|SERIES 6                                                                                                                                                                                                                                                                                                                                                                                                                                                            | 2002
----                                                                                                                                                                                                                                                         | 2001
----                                                                                                                                                                                                                                                        | 2000
----                                                                                                                                                                                                                                                       
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Interest Income
 Other Income
  Total Revenues
Expenses:
 Asset Management Fee - General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Losses
 of Project Partnerships
Equity in Losses of Project
 Partnerships
Net Loss
Allocation of Net Loss:
 Assignees
 General Partners
Net Loss Per Beneficial
Assignee Certificate
Number of Beneficial Assignee
Certificates Outstanding | $  35,129 
17,654 
----------
52,783 
----------
105,753 
20,272 
19,028 
9,451 
----------
154,504 
----------
(101,721)
(306,042)
----------
$(407,763)
==========
$(403,685)
(4,078)
----------
$(407,763)
==========
$  (39.95)
==========
10,105 
========== | $  48,609 
8,932 
----------
57,541 
----------
106,125 
15,803 
18,600 
13,314 
----------
153,842 
----------
(96,301)
(384,730)
----------
$(481,031)
==========
$(476,221)
(4,810)
----------
$(481,031)
==========
$  (47.13)
==========
10,105 
========== | $  46,177 
8,057 
----------
54,234 
----------
106,486 
14,130 
16,986 
14,982 
----------
152,584 
----------
(98,350)
(433,597)
----------
$(531,947)
==========
$(526,628)
(5,319)
----------
$(531,947)
==========
$  (52.12)
==========
10,105 
==========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND II LTD.(A Florida Limited Partnership)STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED MARCH 31,

|TOTAL SERIES 2 - 6                                                                                                                                                                                                                                                                                                                                            | 2002
----                                                                                                                                                                                                                                     | 2001
----                                                                                                                                                                                                                                     | 2000
----                                                                                                                                                                                                                                      
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Interest Income
 Other Income
  Total Revenues
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Losses
 of Project Partnerships
Equity in Losses of Project
 Partnerships
Net Loss
Allocation of Net Loss:
 Assignees
 General Partners | $  150,025 
85,243 
-----------
235,268 
-----------
410,071 
78,956 
74,525 
20,327 
-----------
583,879 
-----------
(348,611)
(692,055)
-----------
$(1,040,666)
============
$(1,030,258)
(10,408)
------------
$(1,040,666)
============ | $  201,606 
66,823 
-----------
268,429 
-----------
411,259 
61,549 
70,821 
26,633 
-----------
570,262 
-----------
(301,833)
(921,245)
-----------
$(1,223,078)
============
$(1,210,847)
(12,231)
------------
$(1,223,078)
============ | $  194,630 
66,023 
-----------
260,653 
-----------
412,371 
55,028 
68,296 
32,180 
-----------
567,875 
-----------
(307,222)
(1,017,804)
-----------
$(1,325,026)
============
$(1,311,776)
(13,250)
------------
$(1,325,026)
============

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND II LTD.(A Florida Limited Partnership)STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
FOR THE YEARS ENDED MARCH 31, 2002, 2001 AND 2000:

|SERIES 2                                                                                                                           | Assignees
---------                                                                                                  | General
Partners
--------                                                                                       | Total
-----                                                                                                          
|---------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 1999
Net Loss
Balance at March 31, 2000
Net Loss
Balance at March 31, 2001
Net Loss
Balance at March 31, 2002 | $ 530,860 
(164,873)
-----------
365,987 
(122,340)
-----------
243,647 
(98,206)
-----------
$ 145,441 
=========== | $  (48,981)
(1,665)
-----------
(50,646)
(1,236)
-----------
(51,882)
(992)
-----------
$  (52,874)
=========== | $  481,879 
(166,538)
-----------
315,341 
(123,576)
-----------
191,765 
(99,198)
-----------
$  92,567 
===========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND II LTD.(A Florida Limited Partnership)STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
FOR THE YEARS ENDED MARCH 31, 2002, 2001 AND 2000:

|SERIES 3                                                                                                                           | Assignees
---------                                                                                                   | General
Partners
--------                                                                                           | Total
-----                                                                                                          
|---------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 1999
Net Loss
Balance at March 31, 2000
Net Loss
Balance at March 31, 2001
Net Loss
Balance at March 31, 2002 | $  417,412 
(145,597)
-----------
271,815 
(58,090)
-----------
213,725 
(79,261)
-----------
$  134,464 
=========== | $   (44,082)
(1,471)
------------
(45,553)
(587)
------------
(46,140)
(801)
------------
$   (46,941)
============ | $  373,330 
(147,068)
-----------
226,262 
(58,677)
-----------
167,585 
(80,062)
-----------
$   87,523 
===========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND II LTD.(A Florida Limited Partnership)STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
FOR THE YEARS ENDED MARCH 31, 2002, 2001 AND 2000:

|SERIES 4                                                                                                                           | Assignees
---------                                                                                                     | General
Partners
--------                                                                                   | Total
-----                                                                                                                   
|---------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 1999
Net Loss
Balance at March 31, 2000
Net Loss
Balance at March 31, 2001
Net Loss
Balance at March 31, 2002 | $  965,972 
(233,136)
-----------
732,836 
(308,546)
-----------
424,290 
(183,512)
-----------
$  240,778 
=========== | $ (51,509)
(2,355)
----------
(53,864)
(3,117)
----------
(56,981)
(1,854)
----------
$ (58,835)
========== | $   914,463 
(235,491)
------------
678,972 
(311,663)
------------
367,309 
(185,366)
------------
$    181,943 
============

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND II LTD.(A Florida Limited Partnership)STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
FOR THE YEARS ENDED MARCH 31, 2002, 2001 AND 2000:

|SERIES 5                                                                                                                           | Assignees
---------                                                                                                             | General
Partners
--------                                                                                         | Total
-----                                                                                                                    
|---------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 1999
Net Loss
Balance at March 31, 2000
Net Loss
Balance at March 31, 2001
Net Loss
Balance at March 31, 2002 | $1,613,346 
(241,542)
------------
1,371,804 
(245,650)
------------
1,126,154 
(265,594)
------------
$  860,560 
============ | $  (60,091)
(2,440)
-----------
(62,531)
(2,481)
-----------
(65,012)
(2,683)
-----------
$  (67,695)
=========== | $1,553,255 
(243,982)
------------
1,309,273 
(248,131)
------------
1,061,142 
(268,277)
------------
$  792,865 
============

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND II LTD.(A Florida Limited Partnership)STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
FOR THE YEARS ENDED MARCH 31, 2002, 2001 AND 2000:

|SERIES 6                                                                                                                           | Assignees
---------                                                                                                               | General
Partners
--------                                                                                         | Total
-----                                                                                                                      
|---------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 1999
Net Loss
Balance at March 31, 2000
Net Loss
Balance at March 31, 2001
Net Loss
Balance at March 31, 2002 | $ 2,877,858 
(526,628)
------------
2,351,230 
(476,221)
------------
1,875,009 
(403,685)
------------
$ 1,471,324 
============ | $  (60,553)
(5,319)
-----------
(65,872)
(4,810)
-----------
(70,682)
(4,078)
-----------
$  (74,760)
=========== | $ 2,817,305 
(531,947)
------------
2,285,358 
(481,031)
------------
1,804,327 
(407,763)
------------
$ 1,396,564 
============
|                                                                                                                                   |                                                                                                                                   |                                                                                                                   |                                                                                                                                  

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND II LTD.(A Florida Limited Partnership)STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
FOR THE YEARS ENDED MARCH 31, 2002, 2001 AND 2000:

|TOTAL SERIES 2 - 6                                                                                                                 | Assignees
---------                                                                                                                     | General
Partners
--------                                                                                              | Total
-----                                                                                                                            
|---------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 1999
Net Loss
Balance at March 31, 2000
Net Loss
Balance at March 31, 2001
Net Loss
Balance at March 31, 2002 | $ 6,405,448 
(1,311,776)
------------
5,093,672 
(1,210,847)
------------
3,882,825 
(1,030,258)
------------
$ 2,852,567 
============ | $ (265,216)
(13,250)
-----------
(278,466)
(12,231)
-----------
(290,697)
(10,408)
-----------
$ (301,105)
=========== | $ 6,140,232 
(1,325,026)
------------
4,815,206 
(1,223,078)
------------
3,592,128 
(1,040,666)
------------
$ 2,551,462 
============
|                                                                                                                                   |                                                                                                                                         |                                                                                                                        |                                                                                                                                        

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND II LTD.(A Florida Limited Partnership)STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED MARCH 31, 2002, 2001 AND 2000:

|SERIES 2
--------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 2002
----                                                                                                                                                                               | 2001
----                                                                                                                                                                                 | 2000
----                                                                                                                                                                                 
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Cash Flows from Operating Activities:
  Net Loss
  Adjustments to Reconcile Net Loss   to Net Cash Used in Operating   Activities:
    Amortization
    Accreted Interest Income on
    Investments in Securities
    Equity in Losses of Project
    Partnerships
    Interest Income from
    Redemption of Securities
    Distributions Included in
    Other Income
    Changes in Operating Assets
    and Liabilities:
      Increase in Payable to
      General Partners
        Net Cash Used in
        Operating Activities
Cash Flows from Investing Activities:
  Distributions Received from
  Project Partnerships
  Redemption of Investment in
  Securities
        Net Cash Provided by
        Investing Activities
Increase in Cash and Cash Equivalents
Cash and Cash Equivalents at
Beginning of Year
Cash and Cash Equivalents at
End of Year | $(99,198)
697 
(19,381)
43,931 
26,907 
(10,860)
40,393 
----------
(17,511)
----------
12,460 
26,928 
----------
39,388 
----------
21,877 
213,928 
----------
$ 235,805 
========== | $(123,576)
1,801 
(21,814)
76,493 
23,537 
(8,982)
35,262 
----------
(17,279)
----------
14,374 
28,263 
----------
42,637 
----------
25,358 
188,570 
----------
$ 213,928 
========== | $(166,538)
3,263 
(23,854)
115,544 
20,241 
(7,170)
36,547 
----------
(21,967)
----------
11,727 
29,297 
----------
41,024 
----------
19,057 
169,513 
----------
$ 188,570 
==========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND II LTD.(A Florida Limited Partnership)STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED MARCH 31, 2002, 2001 AND 2000:

|SERIES 3
-------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 2002
----                                                                                                                                                                                  | 2001
----                                                                                                                                                                                  | 2000
----                                                                                                                                                                                  
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Cash Flows from Operating Activities:
  Net Loss
  Adjustments to Reconcile Net Loss   to Net Cash Used in Operating   Activities:
    Amortization
    Accreted Interest Income on
    Investments in Securities
    Equity in Losses of Project
    Partnerships
    Interest Income from
    Redemption of Securities
    Distributions Included In
    Other Income
    Changes in Operating Assets
    and Liabilities:
      Increase in Payable to
      General Partners
        Net Cash Used in
        Operating Activities
Cash Flows from Investing Activities:
  Distributions Received from
  Project Partnerships
  Redemption of Investment
  in Securities
        Net Cash Provided by
        Investing Activities
Increase in Cash and Cash Equivalents
Cash and Cash Equivalents at
Beginning of Year
Cash and Cash Equivalents at
End of Year | $ (80,062)
1,120 
(17,239)
34,441 
23,934 
(19,990)
33,291 
----------
(24,505)
----------
20,966 
23,952 
----------
44,918 
----------
20,413 
177,615 
----------
$ 198,028 
========== | $ (58,677)
1,120 
(19,403)
26,094 
20,936 
(22,840)
25,081 
----------
(27,689)
----------
24,678 
25,139 
----------
49,817 
----------
22,128 
155,487 
----------
$ 177,615 
========== | $(147,068)
1,120 
(21,218)
114,700 
18,004 
(22,645)
10,980 
----------
(34,008)
----------
25,455 
26,059 
----------
51,514 
----------
17,506 
137,981 
----------
$ 155,487 
==========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND II LTD.(A Florida Limited Partnership)STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED MARCH 31, 2002, 2001 AND 2000:

|SERIES 4
--------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 2002
----                                                                                                                                                                                   | 2001
----                                                                                                                                                                                   | 2000
----                                                                                                                                                                                  
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Cash Flows from Operating Activities:
  Net Loss
  Adjustments to Reconcile Net Loss   to Net Cash Used in Operating   Activities:
    Amortization
    Accreted Interest Income on
    Investments in Securities
    Equity in Losses of Project
    Partnerships
    Interest Income from
    Redemption of Securities
    Distributions Included In
    Other Income
    Changes in Operating Assets
    and Liabilities:
      Increase in Payable to
      General Partners
         Net Cash Used in 
         Operating Activities
Cash Flows from Investing Activities:
  Distributions Received from
  Project Partnerships
  Redemption of Investment in
  Securities
        Net Cash Provided by
        Investing Activities
Increase in Cash and Cash Equivalents
Cash and Cash Equivalents at
Beginning of Year
Cash and Cash Equivalents at
End of Year | $(185,366)
3,949 
(21,840)
118,314 
30,322 
(15,207)
42,280 
----------
(27,548)
----------
19,892 
30,344 
----------
50,236 
----------
22,688 
249,491 
----------
$ 272,179 
========== | $(311,663)
5,288 
(24,581)
254,163 
26,523 
(12,170)
36,712 
----------
(25,728)
----------
16,722 
31,849 
----------
48,571 
----------
22,843 
226,648 
----------
$ 249,491 
========== | $(235,491)
6,656 
(26,881)
175,823 
22,808 
(11,033)
36,909 
----------
(31,209)
----------
17,210 
33,015 
----------
50,225 
----------
19,016 
207,632 
----------
$ 226,648 
==========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND II LTD.(A Florida Limited Partnership)STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED MARCH 31, 2002, 2001 AND 2000:

|SERIES 5
--------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 2002
----                                                                                                                                                                                   | 2001
----                                                                                                                                                                                   | 2000
----                                                                                                                                                                                  
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Cash Flows from Operating Activities:
  Net Loss
  Adjustments to Reconcile Net Loss   to Net Cash Used in Operating   Activities:
    Amortization
    Accreted Interest Income on
    Investments in Securities
    Equity in Losses of Project
    Partnerships
    Interest Income from
    Redemption of Securities
    Distributions Included In
    Other Income
    Changes in Operating Assets
    and Liabilities:
      Increase in Payable to
      General Partners
        Net Cash Used in Operating
        Activities
Cash Flows from Investing Activities:
  Distributions Received from
  Project Partnerships
  Redemption of Investment in
  Securities
        Net Cash Provided by
        Investing Activities
Increase in Cash and Cash Equivalents
Cash and Cash Equivalents at
Beginning of Year
Cash and Cash Equivalents at
End of Year | $(268,277)
5,110 
(27,221)
189,327 
37,793 
(21,532)
47,327 
----------
(37,473)
----------
29,176 
37,820 
----------
66,996 
----------
29,523 
350,854 
----------
$ 380,377 
========== | $(248,131)
5,110 
(30,637)
179,765 
33,057 
(13,899)
38,940 
----------
(35,795)
----------
28,246 
39,696 
----------
67,942 
----------
32,147 
318,707 
----------
$ 350,854 
========== | $(243,982)
6,159 
(33,503)
178,140 
28,428 
(17,118)
39,490 
----------
(42,386)
----------
26,951 
41,148 
----------
68,099 
----------
25,713 
292,994 
----------
$ 318,707 
==========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND II LTD.(A Florida Limited Partnership)STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED MARCH 31, 2002, 2001 AND 2000:

|SERIES 6
-------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 2002
----                                                                                                                                                                                   | 2001
----                                                                                                                                                                                   | 2000
----                                                                                                                                                                                  
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Cash Flows from Operating Activities:
  Net Loss
  Adjustments to Reconcile Net Loss   to Net Cash Used in Operating   Activities:
    Amortization
    Accreted Interest Income on
    Investments in Securities
    Equity in Losses of Project
    Partnerships
    Interest Income from
    Redemption of Securities
    Distributions Included In
    Other Income
    Changes in Operating Assets
    and Liabilities:
      Increase in Payable to
      General Partners
        Net Cash Used in Operating
        Activities
Cash Flows from Investing Activities:
  Distributions Received from
  Project Partnerships
  Redemption of Investment in
  Securities
        Net Cash Provided by
        Investing Activities
Increase in Cash and Cash Equivalents
Cash and Cash Equivalents at
Beginning of Year
Cash and Cash Equivalents at
End of Year | $(407,763)
9,451 
(24,458)
306,042 
28,941 
(17,654)
60,111 
----------
(45,330)
----------
30,012 
33,059 
----------
63,071 
----------
17,741 
437,636 
----------
$ 455,377 
========== | $(481,031)
13,314 
(26,573)
384,730 
24,290 
(8,932)
51,927 
----------
(42,275)
----------
23,401 
33,710 
----------
57,111 
----------
14,836 
422,800 
----------
$ 437,636 
========== | $(531,947)
14,982 
(28,202)
433,597 
20,134 
(8,057)
52,581 
----------
(46,912)
----------
26,174 
34,866 
----------
61,040 
----------
14,128 
408,672 
----------
$ 422,800 
==========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND II LTD.(A Florida Limited Partnership)STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED MARCH 31, 2002, 2001 AND 2000:

|TOTAL SERIES 2 - 6
------------------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 2002
----                                                                                                                                                                                                        | 2001
----                                                                                                                                                                                                       | 2000
----                                                                                                                                                                                                       
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Cash Flows from Operating Activities:
  Net Loss
  Adjustments to Reconcile Net Loss
  to Net Cash Used in Operating   Activities:
    Amortization
    Accreted Interest Income on     Investments in Securities
    Equity in Losses of Project     Partnerships
    Interest Income from Redemption
    of Securities
    Distributions Included In Other
    Income
    Changes in Operating Assets and     Liabilities:
      Increase in Payable to
      General Partners
        Net Cash Used in Operating
        Activities
Cash Flows from Investing Activities:
  Distributions Received from
  Project Partnerships
  Redemption of Investment in
  Securities
         Net Cash Provided by
         Investing Activities
Increase in Cash and Cash Equivalents
Cash and Cash Equivalents at
Beginning of Year
Cash and Cash Equivalents at 
End of Year | $(1,040,666)
20,327 
(110,139)
692,055 
147,897 
(85,243)
223,402 
-----------
(152,367)
-----------
112,506 
152,103 
-----------
264,609 
-----------
112,242 
1,429,524 
-----------
$ 1,541,766 
=========== | $(1,223,078)
26,633 
(123,008)
921,245 
128,343 
(66,823)
187,922 
-----------
(148,766)
-----------
107,421 
158,657 
-----------
266,078 
-----------
117,312 
1,312,212 
-----------
$1,429,524 
=========== | $(1,325,026)
32,180 
(133,658)
1,017,804 
109,615 
(66,023)
188,626 
-----------
(176,482)
-----------
107,517 
164,385 
-----------
271,902 
-----------
95,420 
1,216,792 
-----------
$1,312,212 
===========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND II LTD.(A Florida Limited Partnership)NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2002, 2001 AND 2000

NOTE 1 - ORGANIZATION:  Gateway Tax Credit Fund II Ltd. ("Gateway"), a Florida Limited Partnership, was formed September 12, 1989, under the laws of Florida.  Operations commenced on September 14, 1990 for Series 2, September 28, 1990 for Series 3, February 1, 1991 for Series 4, July 1, 1991 for Series 5 and January 1, 1992 for Series 6.  Gateway has invested, as a limited partner, in other limited partnerships ("Project Partnerships") each of which owns and operates one or more apartment complexes expected to qualify for Low-Income Housing Tax Credits.  Gateway will terminate on December 31, 2040, or sooner, in accordance with the terms of the Limited Partnership Agreement.  As of March 31, 2002, Gateway had received capital contributions of $1,000 from the General Partners and $37,228,000 from Beneficial Assignee Certificate investors (the "Assignees").  The fiscal year of Gateway for reporting purposes ends on March 31.
  Pursuant to the Securities Act of 1933, Gateway filed a Form S-11 Registration Statement with the Securities and Exchange Commission, effective September 12, 1989, which covered the offering (the "Public Offering") of Gateway's Beneficial Assignee Certificates ("BACs") representing assignments of units for the beneficial interest of the limited partnership interest of the Assignor Limited Partner.  The Assignor Limited Partner was formed for the purpose of serving in that capacity for the Fund and will not engage in any other business. 
  Raymond James Partners, Inc. and Raymond James Tax Credit Funds, Inc., wholly-owned subsidiaries of Raymond James Financial, Inc., are the General Partner and the Managing General Partner, respectively.  The Managing General Partner manages and controls the business of Gateway.
  Gateway offered BACs in five series.  BACs in the amounts of $6,136,000, $5,456,000, $6,915,000, $8,616,000 and $10,105,000 for Series 2, 3, 4, 5 and 6, respectively had been issued as of March 31, 2002.  Each Series is treated as a separate partnership, investing in a separate and distinct pool of Project Partnerships.  Net proceeds from each Series are used to acquire Project Partnerships which are specifically allocated to such Series.  Income or loss and all tax items from the Project Partnerships acquired by each Series are specifically allocated among the Assignees of such Series.
  Operating profits and losses, cash distributions from operations and tax credits are allocated 99% to the Assignees and 1% to the General Partners.  Profit or loss and cash distributions from sales of properties will be allocated as formulated in the Limited Partnership Agreement.NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES:Basis of Accounting  Gateway utilizes the accrual basis of accounting whereby revenues are recognized when earned and expenses are recognized when obligations are incurred.

Gateway accounts for its investments as the limited partner in Project Partnerships ("Investments in Project Partnerships"), using the equity method of accounting, because management believes that Gateway does not have a majority control of the major operating and financial policies of the Project Partnerships in which it invests, and reports the equity in losses of the Project Partnerships on a 3-month lag in the Statements of Operations.  Under the equity method, the Investments in Project Partnerships initially include:
  1) Gateway's capital contribution,
  2) Acquisition fees paid to the General Partner for services rendered in selecting      properties for acquisition, and
  3) Acquisition expenses including legal fees, travel and other miscellaneous costs      relating to acquiring properties.
Quarterly the Investments in Project Partnerships are increased or decreased as follows:
  1) Increased for equity in income or decreased for equity in losses of the Project      Partnerships,
  2) Decreased for cash distributions received from the Project Partnerships, and

3) Decreased for the amortization of the acquisition fees and expenses.
  Amortization is calculated on a straight-line basis over 35 years, as this is the average estimated useful life of the underlying assets.  The amortization expense is shown on the Statements of Operations.
  Pursuant to the limited partnership agreements for the Project Partnerships, cash losses generated by the Project Partnerships are allocated to the general partners of those partnerships.  In subsequent years, cash profits, if any, are first allocated to the general partners to the extent of the allocation of prior years' cash losses.
  Since Gateway invests as a limited partner, and therefore is not obligated to fund losses or make additional capital contributions, it does not recognize losses from individual Project Partnerships to the extent that these losses would reduce the investment in those Project Partnerships below zero.  The suspended losses will be used to offset future income from the individual Project Partnerships. Distributions received from Project Partnerships whose investment has been reduced to zero are included in Other Income.
  Gateway reviews its investments in Project Partnerships to determine if there has been any permanent impairment whenever events or changes in circumstances indicate that the carrying amount of the investment may not be recoverable.  If the sum of the expected future cash flows is less than the carrying amount of the investment, Gateway recognizes an impairment loss.  No impairment loss has been recognized in the accompanying financial statements.
  Gateway, as a limited partner in the Project Partnerships, is subject to risks inherent in the ownership of property which are beyond its control, such as fluctuations in occupancy rates and operating expenses, variations in rental schedules, proper maintenance and continued eligibility of tax credits.  If the cost of operating a property exceeds the rental income earned thereon, Gateway may deem it in its best interest to voluntarily provide funds in order to protect its investment.

Cash and Cash Equivalents  It is Gateway's policy to include short-term investments with an original maturity of three months or less in Cash and Cash Equivalents.  Short-term investments are comprised of money market mutual funds.Concentration of Credit Risk  Financial instruments which potentially subject Gateway to concentrations of credit risk consist of cash investments in a money market mutual fund that is a wholly-owned subsidiary of Raymond James Financial, Inc.Use of Estimates in the Preparation of Financial Statements  The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the use of estimates that affect certain reported amounts and disclosures.  These estimates are based on management's knowledge and experience.  Accordingly, actual results could differ from these estimates.Investment in Securities  Effective April 1, 1995, Gateway adopted Statement of Financial Accounting Standards No. 115, Accounting for Certain Investments in Debt and Equity Securities ("FAS 115").  Under FAS 115, Gateway is required to categorize its debt securities as held-to-maturity, available-for-sale or trading securities, dependent upon Gateway's intent in holding the securities.  Gateway's intent is to hold all of its debt securities (U. S. Government Security Strips) until maturity and to use these reserves to fund Gateway's ongoing operations.  Interest income is recognized ratably on the U. S. Government Strips using the effective yield to maturity.Offering and Commission Costs  Offering and commission costs were charged against Assignees' Equity upon the admission of Limited Partners.Income Taxes  No provision for income taxes has been made in these financial statements, as income taxes are a liability of the partners rather than of Gateway.Reclassifications  For comparability, the 2001 and 2000 figures have been reclassified, where appropriate, to conform with the financial statement presentation used in 2002.

---

NOTE 3 - INVESTMENT IN SECURITIES:  The March 31, 2002 Balance Sheet includes Investment in Securities consisting of U.S. Government Security Strips which represents their cost, plus accreted interest income of $143,397 for Series 2, $127,549 for Series 3, $161,591 for Series 4, $201,404 for Series 5 and $151,531 for Series 6.  For convenience, the Investment in Securities are commonly held in a brokerage account with Raymond James and Associates, Inc.  A separate accounting is maintained for each series' share of the investments.

|         | Estimated Market
Value     
---------------- | Cost Plus Accreted
Interest    
----------------- | Gross Unrealized 
Gains and (Losses)
----------------
|-------- | -------------------------------------------- | ------------------------------------------------- | -----------------------------------------------------
|Series 2 | $  279,379                                   | $  261,841                                        | $  17,538                                            
|Series 3 | 248,421                                      | 232,901                                           | 15,520                                               
|Series 4 | 314,846                                      | 295,063                                           | 19,783                                               
|Series 5 | 392,296                                      | 367,758                                           | 24,538                                               
|Series 6 | 327,845                                      | 304,209                                           | 23,636                                               

As of March 31, 2002, the cost and accreted interest of debt securities by contractual maturities is as follows:

|                                        | Series 2
--------   | Series 3
--------   | Series 4
--------  
|--------------------------------------- | ------------------- | ------------------- | -------------------
|Due within 1 year                       | $  56,098           | $  49,898           | $  63,215          
|After 1 year through 5 years            | 205,743
---------   | 183,003
---------   | 231,848
---------  
|Total Amount Carried on   Balance Sheet | $ 261,841
========= | $ 232,901
========= | $ 295,063
=========

|                                        | Series 5
--------     | Series 6
--------     | Total
--------       
|--------------------------------------- | --------------------- | --------------------- | ---------------------
|Due within 1 year                       | $   78,790            | $   62,622            | $  310,623           
|After 1 year through 5 years            | 288,968
----------    | 241,587
----------    | 1,151,149
---------- 
|Total Amount Carried on   Balance Sheet | $  367,758
========== | $  304,209
========== | $1,461,772
==========

NOTE 4 - RELATED PARTY TRANSACTIONS:  The Payable to General Partners primarily represents the asset management fees owed to the General Partners at the end of the period.  It is unsecured, due on demand and, in accordance with the limited partnership agreement, non-interest bearing.  Within the next 12 months, the Managing General Partner does not intend to demand payment on the portion of Asset Management Fees payable classified as long-term on the Balance Sheet.

For the years ended March 31, 2002, 2001 and 2000 the General Partners and affiliates are entitled to compensation and reimbursement for costs and expenses incurred by Gateway as follows:

---

Asset Management Fee - The Managing General Partner is entitled to be paid an annual asset management fee equal to 0.25% of the aggregate cost of Gateway's interest in the projects owned by the Project Partnerships.  The asset management fee will be paid only after all other expenses of Gateway have been paid.  These fees are included in the Statements of Operations.

|         | 2002
----           | 2001
----           | 2000
----          
|-------- | ------------------- | ------------------- | -------------------
|Series 2 | $  68,197           | $  68,361           | $  68,511          
|Series 3 | 62,892              | 63,104              | 63,301             
|Series 4 | 77,474              | 77,661              | 77,832             
|Series 5 | 95,755              | 96,008              | 96,241             
|Series 6 | 105,753
---------   | 106,125
---------   | 106,486
---------  
|Total    | $ 410,071
========= | $ 411,259
========= | $ 412,371
=========
|         |                     |                     |                    

General and Administrative Expenses - The Managing General Partner is reimbursed for general and administrative expenses of Gateway on an accountable basis.  This expense is included in the Statements of Operations.

|         | 2002
----       | 2001
----       | 2000
----      
|-------- | --------------- | --------------- | ---------------
|Series 2 | $  11,737       | $  9,149        | $  8,181       
|Series 3 | 12,271          | 9,565           | 8,552          
|Series 4 | 15,471          | 12,060          | 10,779         
|Series 5 | 19,205          | 14,972          | 13,386         
|Series 6 | 20,272
-------- | 15,803
-------- | 14,130
--------
|         | $ 78,956        | $ 61,549        | $ 55,028       
|Total    | ========        | ========        | ========       

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS:SERIES 2
  As of March 31, 2002, the Partnership had acquired a 99% interest in the profits, losses and tax credits as a limited partner in 22 Project Partnerships which own and operate government assisted multi-family housing complexes.
  Cash flows from operations are allocated according to each Partnership agreement. Upon dissolution proceeds will be distributed according to each Partnership agreement.
  The following is a summary of Investments in Project Partnerships as of:

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | MARCH 31, 2002
--------------                                                                                    | MARCH 31, 2001
--------------                                                                                     | 
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------- | 
|Capital Contributions to Project Partner- ships and purchase price paid for limited partner interests in Project Partnerships
Cumulative equity in losses of Project Partnerships (1) 
Cumulative distributions received from Project Partnerships
Investment in Project Partnerships before Adjustment
Excess of investment cost over the underlying assets acquired:
 Acquisition fees and expenses
 Accumulated amortization of acquisition  fees and expenses
Investments in Project Partnerships | $ 4,524,678 
(4,673,651)
(81,202)
------------
(230,175)
390,838 
(82,362)
------------
$   78,301 
============ | $ 4,524,678 
(4,629,719)
(79,603)
------------
(184,644)
390,838 
(81,665)
------------
$   124,529 
============ | 

(1) In accordance with the Partnership's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $2,940,699 for the year ended March 31, 2002 and cumulative suspended losses of $2,278,397 for the year ended March 31, 2001 are not included.

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):SERIES 3
  As of March 31, 2002, the Partnership had acquired a 99% interest in the profits, losses and tax credits as a limited partner in 23 Project Partnerships which own and operate government assisted multi-family housing complexes.
  Cash flows from operations are allocated according to each Partnership agreement. Upon dissolution proceeds will be distributed according to each Partnership agreement.
  The following is a summary of Investments in Project Partnerships as of:

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | MARCH 31, 2002
--------------                                                                                      | MARCH 31, 2001
--------------                                                                                      | 
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------ | 
|Capital Contributions to Project Partner- ships and purchase price paid for limited partner interests in Project Partnerships
Cumulative equity in losses of Project Partnerships (1) 
Cumulative distributions received from Project Partnerships
Investment in Project Partnerships before Adjustment
Excess of investment cost over the underlying assets acquired:
 Acquisition fees and expenses
 Accumulated amortization of acquisition  fees and expenses
Investments in Project Partnerships | $ 3,888,713 
(4,102,836)
(161,490)
------------
(375,613)
491,746 
(81,532)
------------
$    34,601 
============ | $ 3,888,713 
(4,068,395)
(160,514)
------------
(340,196)
491,746 
(80,412)
------------
$    71,138 
============ | 

(1) In accordance with the Partnership's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $3,840,222 for the year ended March 31, 2002 and cumulative suspended losses of $3,164,318 for the year ended March 31, 2001 are not included.

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):SERIES 4
  As of March 31, 2002, the Partnership had acquired a 99% interest in the profits, losses and tax credits as a limited partner in 29 Project Partnerships which own and operate government assisted multi-family housing complexes.
  Cash flows from operations are allocated according to each Partnership agreement. Upon dissolution proceeds will be distributed according to each Partnership agreement.
  The following is a summary of Investments in Project Partnerships as of:

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | MARCH 31, 2002
--------------                                                                                     | MARCH 31, 2001
--------------                                                                                      | 
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------ | 
|Capital Contributions to Project Partner- ships and purchase price paid for limited partner interests in Project Partnerships
Cumulative equity in losses of Project Partnerships (1) 
Cumulative distributions received from Project Partnerships
Investment in Project Partnerships before Adjustment
Excess of investment cost over the underlying assets acquired:
 Acquisition fees and expenses
 Accumulated amortization of acquisition  fees and expenses
Investments in Project Partnerships | $ 4,952,519 
(5,182,485)
(116,404)
------------
(346,370)
562,967 
(119,856)
-----------
$   96,741 
============ | $ 4,952,519 
(5,064,172)
(111,719)
------------
(223,372)
562,967 
(115,906)
-----------
$   223,689 
============ | 

1) In accordance with the Partnership's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $2,771,886 for the year ended March 31, 2002 and cumulative suspended losses of $2,124,143 for the year ended March 31, 2001 are not included.

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):SERIES 5
  As of March 31, 2002, the Partnership had acquired a 99% interest in the profits, losses and tax credits as a limited partner in 36 Project Partnerships which own and operate government assisted multi-family housing complexes.
  Cash flows from operations are allocated according to each Partnership agreement. Upon dissolution proceeds will be distributed according to each Partnership agreement.
  The following is a summary of Investments in Project Partnerships as of:

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | MARCH 31, 2002
--------------                                                                                 | MARCH 31, 2001
--------------                                                                                  | 
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------- | 
|Capital Contributions to Project Partner- ships and purchase price paid for limited partner interests in Project Partnerships
Cumulative equity in losses of Project Partnerships (1) 
Cumulative distributions received from Project Partnerships
Investment in Project Partnerships before Adjustment
Excess of investment cost over the underlying assets acquired:
 Acquisition fees and expenses
 Accumulated amortization of acquisition fees  and expenses
Investments in Project Partnerships | $ 6,164,472 
(5,954,631)
(178,539)
-----------
31,302 
650,837 
(131,993)
-----------
$  550,146 
=========== | $ 6,164,472 
(5,765,304)
(170,895)
-----------
228,273 
650,837 
(126,883)
-----------
$  752,227 
=========== | 

(1) In accordance with the Partnership's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $3,217,418 for the year ended March 31, 2002 and cumulative suspended losses of $2,431,381 for the year ended March 31, 2001 are not included.

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):SERIES 6
  As of March 31, 2002, the Partnership had acquired a 99% interest in the profits, losses and tax credits as a limited partner in 38 Project Partnerships which own and operate government assisted multi-family housing complexes.
  Cash flows from operations are allocated according to each Partnership agreement. Upon dissolution proceeds will be distributed according to each Partnership agreement.
  The following is a summary of Investments in Project Partnerships as of:

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | MARCH 31, 2002
--------------                                                                                      | MARCH 31, 2001
--------------                                                                                      | 
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------ | 
|Capital Contributions to Project Partner- ships and purchase price paid for limited partner interests in Project Partnerships
Cumulative equity in losses of Project Partnerships (1) 
Cumulative distributions received from Project Partnerships
Investment in Project Partnerships before Adjustment
Excess of investment cost over the underlying assets acquired:
 Acquisition fees and expenses
 Accumulated amortization of acquisition fees  and expenses
Investments in Project Partnerships | $ 7,462,215 
(6,620,593)
(190,600)
------------
651,022 
785,179 
(179,175)
------------
$ 1,257,026 
============ | $ 7,462,215 
(6,314,551)
(178,242)
------------
969,422 
785,179 
(169,724)
------------
$ 1,584,877 
============ | 

(1) In accordance with the Partnership's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $2,161,546 for the year ended March 31, 2002 and cumulative suspended losses of $1,552,199 for the year ended March 31, 2001 are not included.

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):TOTAL SERIES 2 - 6
  The following is a summary of Investments in Project Partnerships:

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | MARCH 31, 2002
--------------                                                                                           | MARCH 31, 2001
--------------                                                                                          | 
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------- | 
|Capital Contributions to Project Partner- ships and purchase price paid for limited partner interests in Project Partnerships
Cumulative equity in losses of Project Partnerships (1) 
Cumulative distributions received from Project Partnerships
Investment in Project Partnerships before Adjustment
Excess of investment cost over the underlying assets acquired:
 Acquisition fees and expenses
 Accumulated amortization of acquisition  fees and expenses
Investments in Project Partnerships | $ 26,992,597 
(26,534,196)
(728,235)
------------
(269,834)
2,881,567 
(594,918)
------------
$ 2,016,815 
============ | $ 26,992,597 
(25,842,141)
(700,973)
------------
449,483 
2,881,567 
(574,590)
------------
$ 2,756,460 
============ | 

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | DECEMBER 31,                                                                                                                                                                                                                                                                                                                                                                                                                       
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|SERIES 2                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 2001
----                                                                                                                                                                                                                                                                                                                                                                                                                          
|SUMMARIZED BALANCE SHEETS
Assets:
  Current assets
  Investment properties, net
  Other assets
    Total assets
Liabilities and Partners' Equity:
  Current liabilities
  Long-term debt
    Total liabilities
Partners' equity
  Limited Partner
  General Partners
    Total Partners' equity
    Total liabilities and
    partners' equity
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income
Expenses:
  Operating expenses
  Interest expense
  Depreciation and amortization
    Total expenses
      Net loss
Other partners' share of net loss
Partnership's share of net loss
Suspended losses
Equity in Losses of Project Partnerships | $ 2,024,736 
18,177,780 
770 
------------
$20,203,286 
============
$   455,273 
22,983,936 
------------
23,439,209 
------------
(3,187,246)
(48,677)
------------
(3,235,923)
------------
$20,203,286 
============
$ 4,088,506 
------------
1,902,218 
2,034,652 
865,003 
------------
4,801,873 
------------
$ (713,367)
============
$   (7,134)
============
$ (706,233)
662,302 
------------
$  (43,931)
============

As of December 31, 2001, the largest Project Partnership constituted 12.2% and 13.6%, and as of December 31, 2000 the largest Project Partnership constituted 12.3% and 14.4% of the combined total assets by series and combined total revenues by series, respectively.

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):  In accordance with the Partnership's policy of presenting the financial information
of the Project Partnerships on a three month lag, below is the summarized financial information for the Series' Project Partnerships as of December 31 of each year:

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | DECEMBER 31,                                                                                                                                                                                                                                                                                                                                                                                                                     
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|SERIES 3                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 2001
----                                                                                                                                                                                                                                                                                                                                                                                                                        
|SUMMARIZED BALANCE SHEETS
Assets:
  Current assets
  Investment properties, net
  Other assets
    Total assets
Liabilities and Partners' Equity:
  Current liabilities
  Long-term debt
    Total liabilities
Partners' equity
  Limited Partner
  General Partners
    Total Partners' equity
    Total liabilities and
    partners' equity
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income
Expenses:
  Operating expenses
  Interest expense
  Depreciation and amortization
    Total expenses
      Net loss
Other partners' share of net loss
Partnership's share of net loss
Suspended losses
Equity in Losses of Project Partnerships | $ 2,142,126 
15,257,023 
181,645 
-----------
$17,580,794 
===========
$   518,692 
21,482,917 
-----------
22,001,609 
-----------
(4,567,560)
146,745 
-----------
(4,420,815)
-----------
$17,580,794 
============
$ 3,967,831 
-----------
1,809,964 
1,931,889 
946,476 
-----------
4,688,329 
-----------
$  (720,498)
============
$   (10,153)
============
$  (710,345)
675,904 
-----------
$   (34,441)
============

As of December 31, 2001, the largest Project Partnership constituted 6.6% and 6.3%, and
as of December 31, 2000 the largest Project Partnership constituted 6.6% and 6.5% of the combined total assets by series and combined total revenues by series, respectively.

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):  In accordance with the Partnership's policy of presenting the financial information
of the Project Partnerships on a three month lag, below is the summarized financial information for the Series' Project Partnerships as of December 31 of each year:

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | DECEMBER 31,                                                                                                                                                                                                                                                                                                                                                                                                               
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|SERIES 4                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 2001
----                                                                                                                                                                                                                                                                                                                                                                                                                  
|SUMMARIZED BALANCE SHEETS
Assets:
  Current assets
  Investment properties, net
  Other assets
    Total assets
Liabilities and Partners' Equity:
  Current liabilities
  Long-term debt
    Total liabilities
Partners' equity
  Limited Partner
  General Partners
    Total Partners' equity
    Total liabilities and 
    partners' equity
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income
Expenses:
  Operating expenses
  Interest expense
  Depreciation and amortization
    Total expenses
      Net loss
Other partners' share of net loss
Partnership's share of net loss
Suspended losses
Equity in Losses of Project Partnerships | $ 2,223,546 
21,695,221 
7,687 
-----------
$23,926,454 
===========
$   706,112 
26,300,200 
-----------
27,006,312 
-----------
(3,142,028)
62,170 
-----------
(3,079,858)
-----------
$23,926,454 
============
$ 4,691,169 
-----------
2,370,889 
2,116,061 
979,666 
-----------
5,466,616 
-----------
$  (775,447)
===========
$    (9,390)
===========
$  (766,057)
647,743 
-----------
$  (118,314)
===========

As of December 31, 2001, the largest Project Partnership constituted 6.3% and 6.1%, and
as of December 31, 2000 the largest Project Partnership constituted 6.2% and 5.9% of the combined total assets by series and combined total revenues by series, respectively.

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):
  In accordance with the Partnership's policy of presenting the financial information
of the Project Partnerships on a three month lag, below is the summarized financial information for the Series' Project Partnerships as of
December 31 of each year:

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | DECEMBER 31,                                                                                                                                                                                                                                                                                                                                                                                                                   
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|SERIES 5                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 2001                                                                                                                                                                                                                                                                                                                                                                                                                           
|SUMMARIZED BALANCE SHEETS
Assets:
  Current assets
  Investment properties, net
  Other assets
    Total assets
Liabilities and Partners' Equity:
  Current liabilities
  Long-term debt
    Total liabilities
Partners' equity
  Limited Partner
  General Partners
    Total Partners' equity
    Total liabilities and     partners' equity
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income
Expenses:
  Operating expenses
  Interest expense
  Depreciation and amortization
    Total expenses
      Net loss
Other partners' share of net loss
Partnership's share of net loss
Suspended losses
Equity in Losses of Project Partnerships | $ 2,984,516 
26,874,152 
2,302 
-----------
$29,860,970 
===========
$   735,358 
32,462,257 
-----------
33,197,615 
-----------
(3,138,040)
(198,605)
-----------
(3,336,645)
-----------
$29,860,970 
===========
$ 5,345,086 
-----------
2,776,878 
2,259,308 
1,294,116 
-----------
6,330,302 
-----------
$  (985,216)
===========

$    (9,852)
===========
$  (975,364)
786,037 
-----------
$  (189,327)
===========

As of December 31, 2001, the largest Project Partnership constituted 8.1% and 8.6%, and as of December 31, 2000 the largest Project Partnership constituted 8.0% and 8.6% of the combined total assets by series and combined total revenues by series, respectively.

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):  In accordance with the Partnership's policy of presenting the financial information of the Project Partnerships on a three month lag, below is the summarized financial information for the Series' Project Partnerships as of 
December 31 of each year:

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | DECEMBER 31,                                                                                                                                                                                                                                                                                                                                                                                                                                
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|SERIES 6                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 2001
----                                                                                                                                                                                                                                                                                                                                                                                                                                   
|SUMMARIZED BALANCE SHEETS
Assets:
  Current assets
  Investment properties, net
  Other assets
    Total assets
Liabilities and Partners' Equity:
  Current liabilities
  Long-term debt
    Total liabilities
Partners' equity
  Limited Partner
  General Partners
    Total Partners' equity
    Total liabilities and     partners' equity
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income
Expenses:
  Operating expenses
  Interest expense
  Depreciation and amortization
    Total expenses
      Net loss
Other partners' share of net loss
Partnership's share of net loss
Suspended losses
Equity in Losses of Project Partnerships | $ 3,313,947 
30,748,096 
4,626 
------------
$34,066,669 
============
$   739,207 
35,191,000 
------------
35,930,207 
------------
(1,523,911)
(339,627)
------------
(1,863,538)
------------
$34,066,669 
============
$ 5,951,586 
------------
2,826,568 
2,704,167 
1,347,661 
------------
6,878,396 
------------
$  (926,810)
============
$   (11,421)
============
$  (915,389)
609,347 
------------
$  (306,042)
============

As of December 31, 2001, the largest Project Partnership constituted 6.5% and 6.3%, and as of December 31, 2000 the largest Project Partnership constituted 6.7% and 5.8% of the combined total assets by series and combined total revenues by series, respectively.

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):  In accordance with the Partnership's policy of presenting the financial information
of the Project Partnerships on a three month lag, below is the summarized financial information for the Series' Project Partnerships as of
December 31 of each year:

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | DECEMBER 31,                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|TOTAL SERIES 2 - 6                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 2001                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|SUMMARIZED BALANCE SHEETS
Assets:
  Current assets
  Investment properties, net
  Other assets
    Total assets
Liabilities and Partners' Equity:
  Current liabilities
  Long-term debt
    Total liabilities
Partners' equity
  Limited Partner
  General Partners
    Total Partners' equity
    Total liabilities and 
    partners' equity
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income
Expenses:
  Operating expenses
  Interest expense
  Depreciation and amortization
    Total expenses
      Net loss
Other partners' share of net loss
Partnership's share of net loss
Suspended losses
Equity in Losses of Project Partnerships | $ 12,688,871 
  112,752,272 
      197,030 
  ----------
 $125,638,173 
  ==========
              

 $  3,154,642 
  138,420,310 
  ----------
  141,574,952 
  ----------
              

  (15,558,785)
     (377,994)
  ----------
  (15,936,779)
  ----------
              

 $125,638,173 
  ==========
              
 $ 24,044,178 
  --------
   11,686,517 
   11,046,077 
    5,432,922 
  ---------
   28,165,516 
  ---------
 $ (4,121,338)
    ==========
 $    (47,950)
    ==========
 $ (4,073,388)
              
    3,381,333 
    --------
              

 $   (692,055)
    ==========
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

|         | Equity Per Project Partnership   
------------------ | Equity Per Partnership
----------------------
|-------- | ---------------------------------------------------- | ---------------------------------------------
|Series 2 | $ (3,187,246)                                        | $  (230,175)                                 
|Series 3 | (4,567,560)                                          | (375,613)                                    
|Series 4 | (3,142,028)                                          | (346,370)                                    
|Series 5 | (3,138,040)                                          | 31,302                                       
|Series 6 | (1,523,911)                                          | 651,022                                      

The report of the independent certified public accountants with respect to the financial statements of one Project Partnership expressed substantial doubt as to the Project Partnership's ability to continue as a going concern.  Gateway's net investment in this Project Partnership at March 31, 2002 and 2001 is zero.  Gateway's original investment in the Project Partnership approximated $176,850.  Through December 31, 2001, the Project Partnership has had recurring losses from operations and has a net capital deficiency.

---

NOTE 6 - TAXABLE INCOME (LOSS):  The following is a reconciliation between Net Income (Loss) as described in the financial statements and the Partnership income (loss) for tax purposes:

|SERIES 2                                                                                                                                         | 2002
----                         | 2001
----                          | 2000
----                          
|------------------------------------------------------------------------------------------------------------------------------------------------ | --------------------------------- | ---------------------------------- | -----------------------------------
|Net Loss per Financial Statements                                                                                                                | $  (99,198)                       | $  (123,576)                       | $  (166,538)                       
|Equity in Losses of Project Partnerships for tax purposes less than (in excess of) losses for financial statement purposes                       | (766,507)                         | (607,544)                          | (667,867)                          
|Adjustments to convert March 31, fiscal year end to December 31, taxable year end                                                                | 2,365                             | (1,157)                            | (42,530)                           
|Items Expensed for Financial Statement purposes not expensed for Tax purposes:
  Asset Management Fee
  Amortization Expense
  Other Adjustments | 33,368 
703 
(8,982)
-----------  | 34,070 
2,074 
(7,170)
----------- | 35,353 
46,550 
(6,936)
-----------
|Partnership loss for tax purposes as of December 31                                                                                              | $  (838,251)
============         | $  (703,303)
============          | $  (801,968)
============          
|                                                                                                                                                 | December 31,
2001   
------------ | December 31,
2000   
------------  | December 31,
1999   
------------  
|Federal Low Income Housing Tax Credits  (Unaudited)                                                                                              | $   393,435 
============         | $ 1,007,776 
============          | $ 1,030,466 
============          



---

NOTE 6 - TAXABLE INCOME (LOSS):
  The following is a reconciliation between Net Income (Loss) as described in the financial statements and the Partnership income (loss) for tax purposes:

|SERIES 3                                                                                                                                         | 2002
----                           | 2001
----                          | 2000
----                            
|------------------------------------------------------------------------------------------------------------------------------------------------ | ----------------------------------- | ---------------------------------- | -------------------------------------
|Net Loss per Financial Statements                                                                                                                | $   (80,062)                        | $   (58,677)                       | $   (147,068)                        
|Equity in Losses of Project Partnerships for tax purposes less than (in excess of) losses for financial statement purposes                       | (701,962)                           | (729,147)                          | (617,452)                            
|Adjustments to convert March 31, fiscal year end to December 31, taxable year end                                                                | 6,786                               | 2,342                              | (48,955)                             
|Items Expensed for Financial Statement purposes not expensed for Tax purposes:
  Asset Management Fee
  Amortization Expense
  Other Adjustments | 25,902 
1,121 
(22,840)
----------- | 23,675 
(320)
(22,645)
----------- | 22,159 
43,005 
(14,514)
------------
|Partnership loss for tax purposes as of December 31                                                                                              | $  (771,055)
============           | $  (784,772)
============          | $  (762,825)
============            
|                                                                                                                                                 | December 31,
2001   
------------   | December 31,
2000   
------------  | December 31,
1999   
------------    
|Federal Low Income Housing Tax Credits  (Unaudited)                                                                                              | $   33,914 
============            | $   246,310 
============          | $   379,668 
============            

The differences in the assets and liabilities of the Series for financial reporting purposes and tax reporting purposes for the year ended March 31, 2002 are as follows:
                                   Financial         Tax
                                   Reporting         Reporting
                                   Purposes          Purposes      
Differences
Investments in Local
  Limited Partnerships             $  34,601        $(3,862,975)   $3,897,576
Other Assets                       $ 430,929        $ 1,073,956    $ (643,027)
Liabilities                        $ 378,007        $     5,892    $  372,115

---

NOTE 6 - TAXABLE INCOME (LOSS):
  The following is a reconciliation between Net Income (Loss) as described in the financial statements and the Partnership income (loss) for tax purposes:

|SERIES 4                                                                                                                                         | 2002
----                           | 2001
----                           | 2000
----                          
|------------------------------------------------------------------------------------------------------------------------------------------------ | ----------------------------------- | ----------------------------------- | -----------------------------------
|Net Loss per Financial Statements                                                                                                                | $  (185,366)                        | $  (311,663)                        | $  (235,491)                       
|Equity in Losses of Project Partnerships for tax purposes less than (in excess of) losses for financial statement purposes                       | (792,465)                           | (733,176)                           | (657,984)                          
|Adjustments to convert March 31, fiscal year end to December 31, taxable year end                                                                | 2,098                               | (255)                               | (81,152)                           
|Items Expensed for Financial Statement purposes not expensed for Tax purposes:
  Asset Management Fee
  Amortization Expense
  Other Adjustments | 32,919 
4,262 
(12,169)
----------- | 34,814 
5,852 
(11,033)
----------- | 35,656 
85,586 
(7,650)
-----------
|Partnership loss for tax purposes as of December 31                                                                                              | $  (950,721)
============           | $(1,015,461)
============           | $  (861,035)
============          
|                                                                                                                                                 | December 31,
2001   
------------   | December 31,
2000   
------------   | December 31,
1999   
------------  
|Federal Low Income Housing Tax Credits  (Unaudited)                                                                                              | $   571,729 
============           | $ 1,157,673 
============           | $ 1,177,677 
============          

The differences in the assets and liabilities of the Series for financial reporting purposes and tax reporting purposes for the year ended March 31, 2002 are as follows:
                                Financial          Tax
                                Reporting          Reporting
                                Purposes
           Purposes       Differences
Investments in Local
  Limited Partnerships         $   96,741        $(4,499,941)     $ 4,596,682
Other Assets                   $   567,242        $ 1,386,936       $ (819,694)
Liabilities                    $   482,040        $     7,288       $  474,752

---

NOTE 6 - TAXABLE INCOME (LOSS):  The following is a reconciliation between Net Income (Loss) as described in the financial statements and the Partnership income (loss) for tax purposes:

|SERIES 5                                                                                                                                         | 2002
----                           | 2001
----                           | 2000
----                           
|------------------------------------------------------------------------------------------------------------------------------------------------ | ----------------------------------- | ----------------------------------- | ------------------------------------
|Net Loss per Financial Statements                                                                                                                | $  (268,277)                        | $  (248,131)                        | $  (243,982)                        
|Equity in Losses of Project Partnerships for tax purposes less than (in excess of) losses for financial statement purposes                       | (904,115)                           | (866,880)                           | (831,003)                           
|Adjustments to convert March 31, fiscal year end to December 31, taxable year end                                                                | 487                                 | 4,320                               | (30,361)                            
|Items Expensed for Financial Statement purposes not expensed for Tax purposes:
  Asset Management Fee
  Amortization Expense
  Other Adjustments | 35,487 
4,324 
(13,898)
----------- | 36,613 
5,883 
(17,118)
----------- | 38,069 
35,067 
(14,529)
-----------
|Partnership loss for tax purposes as of December 31                                                                                              | $(1,145,992)
============           | $(1,085,313)
============           | $(1,046,739)
============           
|                                                                                                                                                 | December 31,
2001   
------------   | December 31,
2000   
------------   | December 31,
1999   
------------   
|Federal Low Income Housing Tax Credits  (Unaudited)                                                                                              | $ 1,325,419 
============           | $ 1,432,923 
============           | $ 1,432,448 
============           

The differences in the assets and liabilities of the Series for financial reporting purposes and tax reporting purposes for the year ended March 31, 2002 are as follows:
                                Financial        Tax
                                Reporting        Reporting
                                Purposes        Purposes        DifferencesInvestments in Local
  Limited Partnerships          $ 550,146        $(3,958,706)     $ 4,508,852Other Assets                    $ 748,135        $ 1,760,802      $(1,012,667)
Liabilities                     $ 505,416        $     8,932      $   496,484

---

NOTE 6 - TAXABLE INCOME (LOSS):  The following is a reconciliation between Net Income (Loss) as described in the financial statements and the Partnership income (loss) for tax purposes:

|SERIES 6                                                                                                                                         | 2002
----                            | 2001
----                            | 2000
----                          
|------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------ | ------------------------------------ | -----------------------------------
|Net Loss per Financial Statements                                                                                                                | $  (407,763)                         | $  (481,031)                         | $  (531,947)                       
|Equity in Losses of Project Partnerships for tax purposes less than (in excess of) losses for financial statement purposes                       | (813,890)                            | (734,221)                            | (667,038)                          
|Adjustments to convert March 31, fiscal year end to December 31, taxable year end                                                                | (4,523)                              | 1,053                                | 894                                
|Items Expensed for Financial Statement purposes not expensed
for Tax purposes:
  Asset Management Fee
  Amortization Expense
  Other Adjustments | 48,192 
12,066 
(8,930)
------------ | 49,073 
14,175 
(8,057)
------------ | 51,057 
10,829 
(3,915)
-----------
|Partnership loss for tax purposes as of December 31                                                                                              | $(1,174,848)
============            | $(1,159,008)
============            | $(1,140,120)
============          
|                                                                                                                                                 | December 31,
2001   
-----------     | December 31,
2000   
-----------     | December 31,
1999   
-----------   
|Federal Low Income Housing Tax Credits  (Unaudited)                                                                                              | $ 1,690,264 
============            | $ 1,690,085 
============            | $ 1,690,086 
============          

The differences in the assets and liabilities of the Series for financial reporting purposes and tax reporting purposes for the year ended March 31, 2002 are as follows:
                                       Financial         Tax
                                       Reporting         Reporting
                                       Purposes          Purposes      DifferencesInvestments in Local
  Limited Partnerships               $1,257,026         $(2,890,908)    $ 4,147,934
Other Assets                         $  759,586         $ 1,920,837     $(1,161,251)
Liabilities                          $  620,048         $     9,610     $   610,438

---

NOTE 6 - TAXABLE INCOME (LOSS):  The following is a reconciliation between Net Income (Loss) as described in the financial statements and the Partnership income (loss) for tax purposes:

|TOTAL SERIES 2 - 6                                                                                                                               | 2002
----                             | 2001
----                             | 2000
----                             
|------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------- | ------------------------------------- | --------------------------------------
|Net Loss per Financial Statements                                                                                                                | $(1,040,666)                          | $(1,223,078)                          | $(1,325,026)                          
|Equity in Losses of Project Partnerships for tax purposes less than (in excess of) losses for financial statement purposes                       | (3,978,939)                           | (3,670,968)                           | (3,441,344)                           
|Adjustments to convert March 31, fiscal year end to December 31, taxable year end                                                                | 7,213                                 | 6,303                                 | (202,104)                             
|Items Expensed for Financial Statement purposes not expensed
for Tax purposes:
  Asset Management Fee
  Amortization Expense
  Other Adjustments | 175,868 
22,476 
(66,819)
----------- | 178,245 
27,664 
(66,023)
----------- | 182,294 
221,037 
(47,544)
-----------
|Partnership loss for tax purposes as of December 31                                                                                              | $(4,808,867)
============             | $(4,747,857)
============             | $(4,612,687)
============             

The difference in the total value of the Partnership's Investment in Project Partnerships is approximately $4,093,000 higher for Series 2, $3,898,000 higher for Series 3, $4,597,000 higher for Series 4, $4,509,000 higher for Series 5 and $4,148,000 higher for Series 6 for financial reporting purposes than for tax return purposes because (i) there were depreciation differences between financial reporting purposes and tax return purposes and (ii) certain expenses are not deductible for tax return purposes.
  The differences in the assets and liabilities of the Fund for financial reporting purposes and tax reporting purposes for the year ended March 31, 2002 are as follows:
                                Financial         Tax
                                Reporting         Reporting
                                Purposes
          Purposes        DifferencesInvestments in Local
  Limited Partnerships          $2,016,815        $(19,227,699)    $21,244,514
Other Assets                    $3,003,538        $  7,362,083     $(4,358,545)
Liabilities                     $2,468,891        $     37,335     $ 2,431,556

---

NOTE 7 - SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED):Series 2Year 2002                Quarter 1
     Quarter 2     Quarter 3     Quarter 4                         6/30/2001     9/30/2001     12/31/2001    3/31/2002Total Revenues           $   7,363     $    6,765    $   6,024     $  16,514
Net Income (Loss)        $ (18,494)    $  (14,975)   $ (21,740)    $ (43,989)
Earnings (Loss) Per
Weighted Average
Beneficial Assignee
Certificates Outstanding $  (2.98)     $    (2.42)    $  (3.51)     $  (7.09)

Series 3Year 2002               Quarter 1
     Quarter 2     Quarter 3     Quarter 4
                         6/30/2001     9/30/2001    12/31/2001     3/31/2002
Total Revenues           $   6,294     $    5,948   $   5,298      $  24,986
Net Income (Loss)        $ (18,269)    $  (19,383)  $ (14,143)     $ (28,267)
Earnings (Loss) Per
Weighted Average
Beneficial Assignee
Certificates Outstanding $   (3.31)     $   (3.52)   $  (2.57)     $   (5.13)

Series 4Year 2002                Quarter 1Quarter 2     Quarter 3     Quarter 4
                         6/30/2001      9/30/2001     12/31/2001     3/31/2002Total Revenues           $   8,219      $   7,753     $   6,852      $  21,602
Net Income (Loss)        $ (49,210)     $ (30,100)    $ (40,404)     $ (65,652)
Earnings (Loss) Per
Weighted Average
Beneficial Assignee
Certificates Outstanding $  (7.05)     $   (4.30)     $  (5.79)      $   (9.40)

---

NOTE 7 - SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Continued):

Series 5Year 2002                  Quarter 1
    Quarter 2      Quarter 3     Quarter 4
                           6/30/2001     9/30/2001     12/31/2001     3/31/2002
Total Revenues            $   10,621    $   9,928     $   8,697      $  29,621
Net Income (Loss)         $ (64,253)    $ (48,932)    $ (95,529)     $ (59,563)
Earnings (Loss) Per
Weighted Average
Beneficial Assignee
Certificates Outstanding  $   (7.38)     $  (5.63)    $  (10.97)     $   (6.85)

Series 6Year 2002                 Quarter 1     Quarter 2     Quarter 3     Quarter 4
                          6/30/2001     9/30/2001     12/31/2001     3/31/2002Total Revenues            $  10,476     $   9,567     $   8,310     $  24,430
Net Income (Loss)         $(104,803)    $ (81,256)    $(126,383)    $ (95,321)
Earnings (Loss) Per
Weighted Average
Beneficial Assignee
Certificates Outstanding  $  (10.27)    $   (7.96)    $  (12.38)    $   (9.34)

Series 2 - 6Year 2002                  Quarter 1     Quarter 2     Quarter 3     Quarter 4
                          6/30/2001     9/30/2001     12/31/2001     3/31/2002Total Revenues            $  42,973     $  39,961     $  35,181      $ 117,153
Net Income (Loss)         $(255,029)    $(194,646)    $(298,199)     $(292,792)

---

NOTE 7 - SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Continued):

Series 2Year 2001                Quarter 1
    Quarter 2     Quarter 3     Quarter 4                         6/30/2000     9/30/2000     12/31/2000    3/31/2001Total Revenues           $   8,701     $   8,761     $   8,515     $   8,155
Net Income (Loss)        $ (67,552)    $ (73,068)    $  16,655     $     389
Earnings (Loss) Per
Weighted Average
Beneficial Assignee
Certificates Outstanding $  (10.90)    $  (11.79)    $    2.69     $    0.06

Series 3Year 2001                Quarter 1
    Quarter 2    Quarter 3     Quarter 4
                         6/30/2000     9/30/2000    12/31/2000     3/31/2001
Total Revenues           $   7,368     $   7,682    $   7,395      $  29,940
Net Income (Loss)        $ (23,998)    $ (24,576)   $ (13,401)     $   3,298
Earnings (Loss) Per
Weighted Average
Beneficial Assignee
Certificates Outstanding $   (4.35)     $   (4.46)   $  (2.44)     $    0.60

Series 4Year 2001                Quarter 1Quarter 2     Quarter 3     Quarter 4
                         6/30/2000      9/30/2000     12/31/2000     3/31/2001Total Revenues           $   9,724      $  10,110     $   9,814      $  21,497
Net Income (Loss)        $ (78,780)     $ (78,697)    $ (56,387)     $ (97,799)
Earnings (Loss) Per
Weighted Average
Beneficial Assignee
Certificates Outstanding $  (11.28)     $  (11.27)    $   (8.07)     $  (14.00)

---

NOTE 7 - SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Continued):Series 5Year 2001                  Quarter 1
    Quarter 2     Quarter 3     Quarter 4
                           6/30/2000     9/30/2000     12/31/2000     3/31/2001
Total Revenues            $  12,609     $  13,042     $  12,642      $  25,951
Net Income (Loss)         $ (84,676)    $ (94,498)    $ (26,885)     $ (42,072)
Earnings (Loss) Per
Weighted Average
Beneficial Assignee
Certificates Outstanding  $   (9.73)     $  (10.86)    $  (3.09)     $   (4.83)

Series 6Year 2001                 Quarter 1     Quarter 2     Quarter 3     Quarter 4
                          6/30/2000     9/30/2000     12/31/2000     3/31/2001Total Revenues            $  12,500     $  12,759     $  12,276     $  20,006
Net Income (Loss)         $(151,225)    $(184,659)    $(100,280)    $ (44,867)
Earnings (Loss) Per
Weighted Average
Beneficial Assignee
Certificates Outstanding  $  (14.82)    $  (18.09)    $   (9.82)    $   (4.40)

Series 2-6Year 2001                 Quarter 1      Quarter 2     Quarter 3     Quarter 4
                          6/30/2000      9/30/2000     12/31/2000     3/31/2001
Total Revenues            $  50,902     $  52,354     $  50,642      $ 114,531
Net Income (Loss)         $(406,231)    $(455,498)    $(180,298)     $(181,051)

---

Hill, Barth & King LLC
5121 Zuck Road
Erie, PA 16506
PHONE:  814-836-9968
FAX:  814-836-9989

INDEPENDENT AUDITORS' REPORT
                             -------------------------------

To the Partners 
Springwood Apartments Limited Partnership 
Westfield, New York

We have audited the accompanying balance sheets of Springwood Apartments Limited Partnership, as of December 31, 2001 and 2000, the related statements of operations, partners' deficit and cash flows for the years then ended.  These financial statements are the responsibility of the Partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with U.S. generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.  Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and the significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Springwood Apartments Limited Partnership as of December 31, 2001 and 2000 and the results of its operations and its cash flows for the years then ended in conformity with U.S. generally accepted accounting principles.

In accordance with Government Auditing Standards, we have also issued our  report dated January 18, 2002 on our consideration of Springwood Apartments Limited Partnership internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, and grants.  That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audits.

/s/ Hill, Barth & King LLC
Certified Public Accountants
January 18, 2002

---

Hill, Barth & King LLC
5121 Zuck Road
Erie, PA 16506
PHONE:  814-836-9968
FAX:  814-836-9989

INDEPENDENT AUDITORS' REPORT
                           ------------------------------

To the Partners 
Cherrytree Apartments Limited Partnership 
Albion, Pennsylvania

We have audited the accompanying balance sheets of Cherrytree Apartments Limited Partnership, as of December 31, 2001 and 2000, and the related statements of operations, partners' deficit and cash flows for the years then ended.  These financial statements are the responsibility of the Partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with U.S. generally accepted auditing standards and the standards applicable to financial audits contained in  Government Auditing Standards, issued by the Comptroller General of the United States.  Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Cherrytree Apartments Limited Partnership as of December 31, 2001 and 2000 and the results of its operations and its cash flows for the years then ended in conformity with U.S. generally accepted accounting principles.

In accordance with Government Auditing Standards, we have also issued our  report dated January 15, 2002 on our consideration of Cherrytree Apartments Limited Partnership internal control over financial reporting and our tests of compliance with certain provisions of laws, regulations, contracts, and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audits.

/s/ Hill, Barth & King LLC
Certified Public Accountants
January 15, 2002

---

Hill, Barth & King LLC
5121 Zuck Road
Erie, PA 16506
PHONE:  814-836-9968
FAX:  814-836-9989

INDEPENDENT AUDITORS' REPORT
                          ---------------------------------

To the Partners 
Wynnwood Commons Associates Limited Partnership
Fairchance, Pennsylvania

We have audited the accompanying balance sheets of Wynnwood Commons Associates Limited Partnership, as of December 31, 2001 and 2000, the related statements of operations, partners' equity (deficit) and cash flows for the years then ended.  These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with U.S. generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.  Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Wynnwood Common Associates Limited Partnership as of December 31, 2001 and 2000 and the results of its operations and its cash flows for the years then ended in conformity with U.S. generally accepted accounting principles.

In accordance with Government Auditing Standards, we have also issued our  report dated January 25, 2002 on our consideration of Wynnwood Commons Associates Limited Partnership internal control over financial reporting and our tests of compliance with certain provisions of laws, regulations, contracts, and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audits.

/s/ Hill, Barth & King LLC
Certified Public Accountants
January 25, 2002

---

Hill, Barth & King LLC
5121 Zuck Road
Erie, PA 16506
PHONE:  814-836-9968
FAX:  814-836-9989

INDEPENDENT AUDITORS' REPORT
                             --------------------------------

To the Partners 
Stony Creek Commons Limited Partnership 
Hooversville, Pennsylvania

We have audited the accompanying balance sheets of Stony Creek Commons Limited Partnership, as of December 31, 2001 and 2000, the related statements of operations, partners' equity (deficit) and cash flows for the years then ended.  These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with U.S. generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.  Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Stony Creek Commons Limited Partnership as of December 31, 2001 and 2000 and the results of its operations and its cash flows for the years then ended in conformity with U.S. generally accepted accounting principles.

In accordance with Government Auditing Standards, we have also issued our  report dated January 25, 2002 on our consideration of Stony Creek Commons Limited Partnership internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audits.

/s/ Hill, Barth & King LLC
Certified Public Accountants
January25, 2002

---

Henderson & Godbee, P.C.
3488 N. Valdosta Rd. - P.O. Box 2241
Valdosta, GA 31604-2241
PHONE:  229-245-6040
FAX:  229-245-1669

INDEPENDENT AUDITORS' REPORT
                             -------------------------------

To the Partners 
Richland Elderly Housing, Ltd.
Valdosta, Georgia

We have audited the accompanying balance sheets of Richland Elderly Housing, Ltd. (a limited partnership), Federal ID No.: 58-1848044, as of December 31, 2001 and 2000, and the related statements of income, partners' equity (deficit) and cash flows for the years then ended.  These financial statements are the responsibility of the Partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards issued by the Comptroller General of the United States.  Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Richland Elderly Housing, Ltd. as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued a report dated January 29, 2002 on our consideration of the Richland Elderly Housing, Ltd.'s internal control structure and a report dated January 29, 2002 on its compliance with laws and regulations.  These reports are an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audits.

/s/ Henderson & Godbee, P.C.
Certified Public Accountants
January 29, 2002

---

Henderson & Godbee, P.C.
3488 N. Valdosta Rd. - P.O. Box 2241
Valdosta, GA 31604-2241
PHONE:  229-245-6040
FAX:  229-245-1669

INDEPENDENT AUDITORS' REPORT
                               -----------------------------

To the Partners 
Pearson Elderly Housing, Ltd.
Valdosta, Georgia

We have audited the accompanying balance sheets of Pearson Elderly Housing, Ltd. (A Limited Partnership), Federal ID No.: 58-1848042, as of December 31, 2001 and 2000, and the related statements of income, partners' equity (deficit) and cash flows for the years then ended.  These financial statements are the responsibility of the Partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards issued by the Comptroller General of the United States.  Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Pearson Elderly Housing, Ltd. as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued a report dated January 29, 2002 on our consideration of the Pearson Elderly Housing, Ltd.'s internal control structure and a report dated January 29, 2002 on its compliance with laws and regulations.  These reports are an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audits.

/s/ Henderson & Godbee, P.C.
Certified Public Accountants
January 29, 2002

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Henderson & Godbee, P.C.
3488 N. Valdosta Rd. - P.O. Box 2241
Valdosta, GA 31604-2241
PHONE:  229-245-6040
FAX:  229-245-1669

INDEPENDENT AUDITORS' REPORT
                              -------------------------------

To the Partners 
Lake Park Apartments, Ltd.
Valdosta, Georgia

We have audited the accompanying balance sheets of Lake Park Apartments, Ltd. (A Limited Partnership), Federal ID No.: 58-1844429, as of December 31, 2001 and 2000, and the related statements of income, partners' equity (deficit) and cash flows for the years then ended.  These financial statements are the responsibility of the Partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of American and Government Auditing Standards issued by the Comptroller General of the United States.  Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Lake Park Apartments, Ltd. as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued a report dated January 29, 2002 on our consideration of the Lake Park Apartments, Ltd.'s internal control structure and a report dated January 29, 2002 on its compliance with laws and regulations.  These reports are an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with the report in considering the results.

/s/ Henderson & Godbee, P.C.
Certified Public Accountants
January 29, 2002

---

Henderson & Godbee, P.C.
3488 N. Valdosta Rd. - P.O. Box 2241
Valdosta, GA 31604-2241
PHONE:  229-245-6040
FAX:  229-245-1669

INDEPENDENT AUDITORS' REPORT
                             ------------------------------

To the Partners 
Lakeland Elderly Housing, Ltd.
Valdosta, Georgia

We have audited the accompanying balance sheets of Lakeland Elderly Housing, Ltd. (a limited partnership), Federal ID No.: 58-1898054, as of December 31, 2001 and 2000, and the related statements of income, partners' equity (deficit) and cash flows for the years then ended.  These financial statements are the responsibility of the Partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards issued by the Comptroller General of the United States.  Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Lakeland Elderly Housing, Ltd. as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued a report dated January 29, 2002 on our consideration of the Lakeland Elderly Housing, Ltd.'s  internal control structure and report dated January 29, 2002 on its compliance with laws and regulations.  These reports are and integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audits.

/s/ Henderson & Godbee, P.C.
Certified Public Accountants
January 29, 2002

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Habif, Arogeti & Wynne, LLP
5565 Glenridge Connector, Suite 200
Atlanta, GA 30342
PHONE:  404-892-9651
FAX:  404-876-3913

INDEPENDENT AUDITORS' REPORT
                                -------------------------------

To the Partners of
Woodland Terrace

We have audited the accompanying balance sheets of WOODLAND TERRACE  APARTMENTS, LTD., L.L.L.P. (USDA Rural Development Case No. 10-017-581854412), a limited partnership, as of December 31, 2001 and 2000, and the related statements of operations, changes in partners' equity (deficit), and cash flows for the years then ended.  These financial statements are the responsibility of the Partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America, Government Auditing Standards, issued by the Comptroller General of the United States, and the U.S. Department of Agriculture, Farmers Home Administration's Audit Program.  Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of WOODLAND TERRACE APARTMENTS, LTD. , L.L.L.P., as of December 31, 2001 and 2000, and the results of its operations, its changes in partner's equity (deficit), and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued a report dated January 25, 2002, on our consideration of WOODLAND TERRACE APARTMENTS, LTD., L.L.L.P.'s internal control and a report dated January 25, 2002, on its compliance with laws and regulations applicable to the financial statements.  Those reports are an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audits.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole.  The supplemental information on pages 12-14 is presented for purposes of additional analysis and is not a required part of the basic financial statements.  Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

/s/ Habif, Arogeti & Wynne, LLP
Certified Public Accountants
Atlanta, Georgia
January 25, 2002

---

Habif, Arogeti & Wynne, LLP
5565 Glenridge Connector, Suite 200
Atlanta, Georgia  30342
PHONE:  404-892-9651
FAX:  404-876-3913

INDEPENDENT AUDITORS' REPORT
                              ------------------------------

To the Partners of 
Manchester Housing, Ltd., L.L.L.P.

We have audited the accompanying balance sheets of MANCHESTER HOUSING, LTD., L.L.L.P., (USDA Rural Development Case No. 10-099-581845215), a limited partnership, as of December 31, 2001 and 2000, and the related statements of operations, changes in partners' equity (deficit), and cash flows for the years then ended.  These financial statements are the responsibility of the Partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America, Government Auditing Standards, issued by the Comptroller General of the United States, and the U.S. Department of Agriculture, Farmers Home Administration's Audit Program.  Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of MANCHESTER HOUSING, LTD., L.L.L.P., as of December 31, 2001 and 2000, and the results of its operations, its changes in partners' equity (deficit), and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued a report dated January 25, 2002, on our consideration of MANCHESTER HOUSING, LTD., L.L.L.P.'s internal control and a report dated January 25, 2002, on its compliance with laws and regulations applicable to the financial statements.  Those reports are an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audits.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole.  The supplemental information on pages 12-14 is presented for purposes of additional analysis and is not a required part of the basic financial statements.  Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

/s/ Habif, Arogeti & Wynne, LLP
Certified Public Accountants
Atlanta, Georgia
January 25, 2002

---

Davis, Nichols & Associates LLP
3555 North Crossing Circle
Valdosta, GA 31602
PHONE: 229-247-9801
FAX:  229-244-7704

INDEPENDENT AUDITORS' REPORT
                               -----------------------------

To the Partners 
Heritage Villas, L.P.
McRae, Georgia

We have audited the accompanying balance sheets of Heritage Villas, L.P. (a limited partnership), Federal ID #: 58-1898056, as of December 31, 2001 and 2000, and the related statements of income, partners' (deficit) and cash flows for the years then ended.  These financial statements are the responsibility of the Partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States.  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Heritage Villas, L.P. as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued  reports dated February 8, 2002 on our consideration of Heritage Villas, L.P.'s internal control structure and its compliance with laws and regulations.

/s/ Davis, Nichols & Associates LLP
Certified Public Accountants and Consultants
February 8, 2002

---

Habif, Arogeti & Wynne, LLP
5565 Glenridge Connector, Suite 200
Atlanta, GA 30342
PHONE:  404-892-9651
FAX:  404-876-3913

INDEPENDENT AUDITORS' REPORT
                           -----------------------------

To the Partners of
Crisp Properties, L.L.L.P.

We have audited the accompanying balance sheets of CRISP PROPERTIES, L.L.L.P. (USDA Rural Development Case No. 10-017-581854412), a limited partnership, as of December 31, 2001 and 2000, and the related statements of operations, changes in partners' equity (deficit), and cash flows for the years then ended.  These financial statements are the responsibility of the Partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America, Government Auditing Standards, issued by the Comptroller General of the United States, and the U.S. Department of Agriculture, Farmers Home Administration's Audit Program.  Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of CRISP PROPERTIES, L.L.L.P. as of December 31, 2001 and 2000, and the results of its operations, its changes in partners equity (deficit), and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued a report dated January 25, 2002 on our consideration of CRISP PROPERTIES, L.L.L.P.'s internal control and a report dated January 25, 2002 on its compliance with laws and regulations applicable to the financial statements.  Those reports are an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audits.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole.  The supplemental information on pages 12-14 is presented for purposes of additional analysis and is not a required part of the basic financial statements.  Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

/s/ Habif, Arogeti & Wynne, LLP
Certified Public Accountants
Atlanta, Georgia
January 25, 2002

---

Habif, Arogeti & Wynne, LLP
5565 Glenridge Connector, Suite 200
Atlanta, GA 30342
PHONE:  404-892-9651
FAX:  404-876-3913

INDEPENDENT AUDITORS' REPORT
                               -----------------------------

To the Partners of
Blackshear Apartments, L.L.L.P. Phase II

We have audited the accompanying balance sheets of BLACKSHEAR APARTMENTS, L.L.L.P. PHASE II (USDA Rural Development Case No. 10-040-581925616), a limited partnership, as of December 31, 2001 and 2000, and the related statements of operations, changes in partners' equity (deficit) and cash flows for the years then ended.  These financial statements are the responsibility of the Partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America, Government Auditing Standards, issued by the Comptroller General of the United States, and the U.S. Department of Agriculture, Farmers Home Administration's Audit Program.  Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of BLACKSHEAR APARTMENTS, L.L.L.P. PHASE II as of December 31, 2001 and 2000, and the results of its operations, its changes in partner's equity (deficit), and its cash flows for the years then ended in conformity with generally accepted accounting principles.

In accordance with Government Auditing Standards, we have also issued a report dated January 25, 2002 on our consideration of BLACKSHEAR APARTMENTS, L.L.L.P. PHASE II'S internal control and a report dated January 25, 2002 on its compliance with laws and regulations applicable to financial statements.  Those reports are an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of Our audits.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole.  The supplemental information on page 12 is presented for purposes of additional analysis and is not a required part of the basic financial statements.  Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

/s/ Habif, Arogeti & Wynne, LLP
Certified Public Accountants
Atlanta, Georgia
January 25, 2002

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Henderson & Godbee, P.C.
3488 N. Valdosta Rd. - P.O. Box 2241
Valdosta, GA 31604-2241
PHONE:  229-245-6040
FAX:  229-245-1669

INDEPENDENT AUDITORS' REPORT
                                ------------------------------

To the Partners 
Crawford Rental Housing, L.P.
Valdosta, Georgia

We have audited the accompanying balance sheets of Crawford Rental Housing, L.P. (a limited partnership), Federal ID #: 58-1850761, as of December 31, 2001 and 2000, and the related statements of income, partners' equity (deficit), and cash flows for the years then ended.  These financial statements are the responsibility of the Partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards issued by the Comptroller General of the United States.  Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Crawford Rental Housing, L.P. as of December 31, 2001and 2000, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued a report dated January 29, 2002 on our consideration of Crawford Rental Housing, L.P.'s internal control structure and a report dated January 29, 2002 on its compliance with laws and regulations.  These reports are an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audits.

/s/ Henderson & Godbee, P.C.
Certified Public Accountants
January 29, 2002

---

Henderson & Godbee, P.C.
3488 N. Valdosta Rd. - P.O. Box 2241
Valdosta, GA 31604-2241
PHONE:  229-245-6040
FAX:  229-245-1669

INDEPENDENT AUDITORS' REPORT
                             ------------------------------

To the Partners 
Shellman Housing, L.P.
Valdosta, Georgia

We have audited the accompanying balance sheets of Shellman Housing, L.P. (a limited partnership), Federal ID No. 58-1917615, as of December 31, 2001 and 2000, and the related statements of income, partners' equity (deficit), and cash flows for the years then ended.  These financial statements are the responsibility of the Partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards issued by the Comptroller General of the United States.  Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Shellman Housing L.P. as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued a report dated January 29, 2002 on our consideration of the Shellman Housing L.P.'s internal control structure and a report dated January 29, 2002 on its compliance with laws and regulations.  These reports are an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audits.

/s/ Henderson & Godbee, P.C.
Certified Public Accountants
January 29, 2002

---

Henderson & Godbee, P.C.
3488 N. Valdosta Rd. - P.O. Box 2241
Valdosta, GA 31604-2241
PHONE:  229-245-6040
FAX:  229-245-1669

INDEPENDENT AUDITORS' REPORT
                               -----------------------------

To the Partners 
Greensboro Properties, L.P., Phase II
Valdosta, Georgia

We have audited the accompanying balance sheets of Greensboro Properties, L.P., Phase II (a limited partnership), Federal ID No.: 58-1915804 as of December 31, 2001 and 2000, and the related statements of income, partners' equity (deficit), and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards issued by the Comptroller General of the United States.  Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Greensboro Properties, L.P., Phase II as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued a report dated January 29, 2002 on our consideration of the Greensboro Properties, L.P., Phase II's internal control structure and a report dated January 29, 2002 on it's compliance with laws and regulations.  These reports are an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audits.

/s/ Henderson & Godbee, P.C.
Certified Public Accountants
January 29, 2002

---

Henderson & Godbee, P.C.
3488 N. Valdosta Rd. - P.O. Box 2241
Valdosta, GA 31604-2241
PHONE:  229-245-6040
FAX:  229-245-1669

INDEPENDENT AUDITORS' REPORT
                               -------------------------------

To the Partners 
Dawson Elderly, L.P.
Dawson, Georgia

We have audited the accompanying balance sheets of Dawson Elderly, L.P. (a limited partnership), Federal ID No.: 58-1966658 as of December 31, 2001 and 2000, and the related statements of income, partners' equity (deficit), and cash flows for the years then ended.  These financial statements are the responsibility of the Partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards issued by the Comptroller General of the United States.  Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Dawson Elderly, L.P. as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued reports dated January 29, 2002 on our consideration of Dawson Elderly, L.P.'s internal control structure and a report dated January 29, 2002 on it's compliance with laws and regulations.

These reports are an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audits.

/s/ Henderson & Godbee, P.C.
Certified Public Accountants
January 29, 2002

---

Habif, Arogeti & Wynne, LLP
5565 Glenridge Connector, Suite 200
Atlanta, GA 30342
PHONE:  404-892-9651
FAX:  404-876-3913

INDEPENDENT AUDITORS' REPORT
                                  -----------------------------

To the Partners 
Piedmont Development Company of Lamar 
    County, LTD.

We have audited the accompanying balance sheets of PIEDMONT DEVELOPMENT COMPANY OF LAMAR COUNTY, LTD. (a limited partnership) as of December 31, 2001 and 2000, and the related statements of operations, changes in partners' equity (deficit), and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America, Government Auditing Standards, issued by the Comptroller General of the United States, and the U.S. Department of Agriculture, Farmers Home Administration's Audit Program.  Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of PIEDMONT DEVELOPMENT COMPANY OF LAMAR COUNTY, LTD. as of December 31, 2001 and 2000, and the results of its operations, its changes in partners' equity (deficit), and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued a report dated February 5, 2002, on our consideration of PIEDMONT DEVELOPMENT COMPANY OF LAMAR COUNTY, LTD.'s internal control and a report dated  February 5, 2002, on its compliance with laws and regulations applicable to the financial statements.

/s/ Habif, Arogeti & Wynne, LLP
Atlanta, Georgia
February 5, 2002

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Donald W. Causey & Associates, P.C.
516 Walnut Street - P.O. Box 775
Gadsden, AL 35902
PHONE:  256-543-3707
FAX:  256-543-9800

INDEPENDENT AUDITORS' REPORT
                                   -----------------------------

To the Partners 
Sylacauga Heritage Apartments Ltd.
Sylacauga, Alabama

We have audited the accompanying balance sheets of Sylacauga Heritage Apartments, Ltd., a limited partnership, RHS Project No.: 01-061-631025601 as of December 31, 2001 and 2000, and the related statements of operations, partners' deficit and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management.  Our  responsibility is to express an opinion on these financial statements based on our audits.

We conducted the audits in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards issued by the Comptroller General of the United States, and the U.S. Department of Agriculture, Farmers Home Administration Audit Program. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that the audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Sylacauga Heritage Apartments, Ltd., RHS Project No.: 01-061-631025601 as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

The audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole.  The supplemental information on pages 10 through 13 is presented for purposes of additional analysis and is not a required part of the basic financial statements.  The supplemental information presented in the Multiple Family Housing Borrower Balance Sheet (Form FmHA 1930-8) Parts I and II for the year ended December 31, 2001 and 2000, is presented for purposes of complying with the requirements of the Rural Housing Services and is also not a required part of the basic financial statements.  Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in our opinion is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

In accordance with Government Auditing Standards, we have also issued a report dated February 10, 2002 on our consideration of Sylacauga Heritage Apartments, Ltd.'s internal control over financial reporting and on our tests of its compliance with certain provisions of laws and regulations.

/s/ Donald W. Causey & Associates, P.C.
Certified Public Accountants
Gadsden, Alabama
February 10, 2002

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Pailet, Meunier and LeBlanc, L.L.P.
3421 N. Causeway Blvd., Suite 701
Metairie, LA 70002
PHONE:  504-837-0770
FAX:  504-837-7102

INDEPENDENT AUDITORS' REPORT
                             ------------------------------

To the Partners 
LOGANSPORT SENIORS APARTMENTS

We have audited the accompanying balance sheets of LOGANSPORT SENIORS APARTMENTS, RHS PROJECT NO. 22-016-721126743 as of December 31, 2001 and 2000 and the related statements of operations, changes in partners' equity (deficit) and cash flows for the years then ended.  These financial statements are the responsibility of the partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards, issued by the Comptroller General of the United States.  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of LOGANSPORT SENIORS APARTMENTS as of December 31, 2001 and 2000 and the results of its operations, changes in partners' equity and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole.  The supplemental information presented on pages 16 through 24, is presented for purposes of additional analysis and is not a required part of the basic financial statements.  Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

In accordance with Government Auditing Standards, we have also issued a report dated February 12, 2002 on our consideration of LOGANSPORT SENIORS APARTMENTS's internal control and a report dated February 12, 2002 on its compliance with laws and regulations applicable to the financial statements.

/s/ Pailet, Meunier and LeBlanc, L.L.P
Certified Public Accountants
Metairie, Louisiana
February 12, 2002

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Pailet, Meunier and LeBlanc, L.L.P.
3421 N. Causeway Blvd., Suite 701
Metairie, LA  70002
PHONE:  504-837-0770
FAX:  504-837-7102

INDEPENDENT AUDITORS' REPORT
                              -------------------------------

To the Partners
TARPON HEIGHTS APARTMENTS

We have audited the accompanying balance sheets of TARPON HEIGHTS APARTMENTS, RHS PROJECT NO. 22-029-721103419 as of December 31, 2001 and 2000 and the related statements of operations, changes in partners' equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards, issued by the Comptroller General of the United States.  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of TARPON HEIGHTS APARTMENTS, as of December 31, 2001 and 2000 and the results of its operations, changes in partners' equity and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole.  The supplemental information presented on pages 16 through 26, is presented for purposes of additional analysis and is not a required part of the basic financial statements.  Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

In accordance with Government Auditing Standards, we have also issued a report dated February 20, 2002 on our consideration of TARPON HEIGHTS APARTMENT's internal control and a report dated February 20, 2002 on its compliance with laws and regulations applicable to the financial statements.

/s/ Pailet, Meunier and LeBlanc, L.L.P.
Certified Public Accountants
Metairie, Louisiana
February 20, 2002

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Pailet, Meunier and LeBlanc, L.L.P.
3421 N. Causeway Blvd., Suite 701
Metairie, LA 70002
PHONE:  504-837-0770
FAX:  504-837-7102

INDEPENDENT AUDITORS' REPORT
                            --------------------------------

To the Partners 
THE OAKS APARTMENTS

We have audited the accompanying balance sheets of THE OAKS APARTMENTS, RHS PROJECT NO. 22-002-721144868 as of December 31, 2001 and 2000 and the related statements of operations, changes in partners' equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards, issued by the Comptroller General of the United States.  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of THE OAKS APARTMENTS as of December 31, 2001 and 2000 and the results of its operations, changes in partners' equity and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole.  The supplemental information presented on pages 16 through 26, is presented for purposes of additional analysis and is not a required part of the basic financial statements.  Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

In accordance with Government Auditing Standards, we have also issued a report dated February 22, 2002 on our consideration of THE OAKS APARTMENTS' internal control and a report dated February 22, 2002 on its compliance with laws and regulations applicable to the financial statements.

/s/ Pailet, Meunier and LeBlanc, L.L.P.
Certified Public Accountants
Metairie, Louisiana
February 22, 2002

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Pailet, Meunier and LeBlanc, L.L.P.
3421 N. Causeway Blvd., Suite 701
Metairie, LA 70002
PHONE:  504-837-0770
FAX:  504-837-7102

INDEPENDENT AUDITORS' REPORT
                              --------------------------------

To the Partners
SONORA SENIORS APARTMENTS

We have audited the accompanying balance sheets of SONORA SENIORS APARTMENTS, RHS PROJECT NO. 51-018-721125480 as of December 31, 2001 and 2000 and the related statements of operations, changes in partners' equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards, issued by the Comptroller General of the United States.  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of SONORA SENIORS APARTMENTS as of December 31, 2001 and 2000 and the results of its operations, changes in partners' equity and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole.  The supplemental information presented on pages 16 through 26, is presented for purposes of additional analysis and is not a required part of the basic financial statements.  Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole.

In accordance with Government Auditing Standards, we have also issued a report dated February 22, 2002 on our consideration of SONORA SENIORS APARTMENT's internal control and a report dated February 22, 2002 on its compliance with laws and regulations applicable to the financial statements.

/s/ Pailet, Meunier and LeBlanc, L.L.P.
Certified Public Accountants
Metairie, Louisiana
February 22, 2002

---

Pailet, Meunier and LeBlanc, L.L.P.
3421 N. Causeway Blvd., Suite 701
Metairie, LA 70002
PHONE:  504-837-0770
FAX:  504-837-7102

INDEPENDENT AUDITORS' REPORT
                            --------------------------------

To the Partners 
FREDERICKSBURG SENIORS APARTMENTS, LTD.

We have audited the accompanying balance sheets of FREDERICKSBURG SENIORS APARTMENTS, LTD., RHS PROJECT NO. 49-086-721150308 as of December 31, 2001 and 2000 and the related statements of operations, changes in partners' equity (deficit) and cash flows for the years then ended.  These financial statements are the responsibility of the partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards, issued by the Comptroller General of the United States.  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of FREDERICKSBURG SENIORS APARTMENTS, LTD. as of December 31, 2001 and 2000 and the results of its operations, changes in partners equity and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole.  The supplemental information presented on pages 16 through 26, is presented for purposes of additional analysis and is not a required part of the basic financial statements.  Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

In accordance with Government Auditing Standards, we have also issued a report dated February 21, 2002 on our consideration of FREDERICKSBURG SENIORS APARTMENTS, LTD.'s internal control and a report dated February 21, 2002 on its compliance with laws and regulations applicable to the financial statements.

/s/ Pailet, Meunier and LeBlanc, L.L.P.
Certified Public Accountants
Metairie, Louisiana
February 21, 2002

---

Pailet, Meunier and LeBlanc, L.L.P.
3421 N. Causeway Blvd., Suite 701
Metairie, LA 70002
PHONE:  504-837-0770
FAX:  504-837-7102

INDEPENDENT AUDITORS' REPORT
                              --------------------------------

To the Partners 
BRACKETTVILLE SENIORS APARTMENTS, LTD.

We have audited the accompanying balance sheets of BRACKETTVILLE SENIORS APARTMENTS, LTD., RHS PROJECT NO. 50-036-721150307 as of December 31, 2001 and 2000 and the related statements of operations, changes in partners' equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards, issued by the Comptroller General of the United States.  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of BRACKETTVILLE SENIORS APARTMENTS, LTD. as of December 31, 2001 and 2000 and the results of its operations, changes in partners' equity and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole.  The supplemental information presented on pages 16 through 24, is presented for purposes of additional analysis and is not a required part of the basic financial statements.  Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

In accordance with Government Auditing Standards, we have also issued a report dated February 21, 2002 on our consideration of BRACKETTVILLE SENIORS APARTMENTS, LTD.'s internal control and a report dated February 21, 2002 on its compliance with laws and regulations applicable to the financial statements.

/s/ Pailet, Meunier and LeBlanc, L.L.P.
Certified Public Accountants
Metairie, Louisiana
February 21, 2002

---

Pailet, Meunier and LeBlanc, L.L.P.
3421 N. Causeway Blvd., Suite 701
Metairie, LA 70002
PHONE:  504-837-0770
FAX:  504-837-7102

INDEPENDENT AUDITORS' REPORT
                             -------------------------------

To the Partners
TIMPSON SENIORS APARTMENTS

We have audited the accompanying balance sheets of TIMPSON SENIORS APARTMENTS, RHS PROJECT NO. 51-010-721152460 as of December 31, 2001 and 2000, and the related statements of operations, changes in partners' equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States.  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of TIMPSON SENIORS APARTMENTS as of December 31, 2001 and 2000 and the results of its operations and changes in partners' equity and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole.  The supplemental information presented on pages 16 through 26, is presented for purposes of additional analysis and is not a required part of the basic financial statements.  Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

In accordance with Government Auditing Standards, we have also issued a report dated February 20, 2002 on our consideration of TIMPSON SENIORS APARTMENT's internal control and a report dated February 20, 2002 on its compliance with laws and regulations applicable to the financial statements.

/s/ Pailet, Meunier and LeBlanc, L.L.P.
Certified Public Accountants
Metairie, Louisiana
February 20, 2002

---

Baird, Kurtz, & Dobson, LLP 
5000 Rogers Avenue, Suite 700
Fort Smith, AR 72903-2079
PHONE:  501-452-1040
FAX:  501-452-5542

INDEPENDENT AUDITORS' REPORT
                               --------------------------------

Partners 
Charleston Properties, A Limited Partnership
 D/B/A Savannah Park of Charleston II
Fort Smith, Arkansas

We have audited the accompanying balance sheets of Charleston Properties, A Limited Partnership, D/B/A Savannah Park of Charleston II as of December 31, 2001 and 2000, and the related statements of operations, partners' equity (deficit) and cash flows for the years then ended.  These financial statements are the responsibility of the Partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Charleston Properties, A Limited Partnership, D/B/A Savannah Park of Charleston II as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated February 7, 2002, on our consideration of the Partnerships' internal control over financial reporting and our tests of its compliance with certain provisions of the laws, regulations, contracts and grants.  That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

/s/ Baird, Kurtz, & Dobson, LLP 
Certified Public Accountants
February 7, 2002

---

Baird, Kurtz, & Dobson, LLP 
5000 Rogers Avenue, Suite 700
Fort Smith, AR 72903-2079
PHONE:  501-452-1040 
FAX:  501-452-5542

INDEPENDENT AUDITORS' REPORT
                              -------------------------------

Partners 
Sallisaw Properties II, A Limited Partnership
   D/B/A Mayfair Place II Apartments
Fort Smith, Arkansas

We have audited the accompanying balance sheets of Sallisaw Properties II, A Limited Partnership, D/B/A Mayfair Place II Apartments as of December 31, 2001 and 2000, and the related statements of operations, partners' equity (deficit) and cash flows for the years then ended.  These financial statements are the responsibility of the Partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Sallisaw Properties  II, A Limited Partnership, D/B/A Mayfair Place II Apartments as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated February 7, 2002, on our consideration of the Partnership's internal control over financial reporting and our tests of
its compliance with certain provisions of the laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

/s/ Baird, Kurtz, & Dobson, LLP 
Certified Public Accountants
February 7, 2002

---

Baird, Kurtz, & Dobson, LLP 
5000 Rogers Avenue, Suite 700
Fort Smith, AR 72903-2079
PHONE:  501-452-1040
FAX:  501-452-5542

INDEPENDENT AUDITORS' REPORT
                            -------------------------------

Partners 
Pocola Properties, A Limited Partnership
 D/B/A North Gate Apartments
Fort Smith, Arkansas

We have audited the accompanying balance sheets of Pocola Properties, A Limited Partnership, D/B/A North Gate Apartments as of December 31, 2001 and 2000, and the related statements of operations, partners' equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Pocola Properties, A Limited Partnership, D/B/A North Gate Apartments as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated February 7, 2002, on our consideration of the Partnership's internal control over financial reporting and our tests of its compliance with certain provisions of the laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

/s/ Baird, Kurtz, & Dobson, LLP 
Certified Public Accountants
February 7, 2002

---

Baird, Kurtz, & Dobson, LLP 
5000 Rogers Avenue, Suite 700
Fort Smith, AR 72903-2079
PHONE:  501-452-1040
FAX:  501-452-5542

INDEPENDENT AUDITORS' REPORT
                             --------------------------------

Partners 
Poteau Properties II, A Limited Partnership
   D/B/A North Pointe Apartments
Fort Smith, Arkansas

We have audited the accompanying balance sheets of Poteau Properties II, A Limited Partnership, D/B/A North Pointe Apartments as of December 31, 2001 and 2000, and the related statements of operations, partners' equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Poteau Properties II, A Limited Partnership, D/B/A North Pointe Apartments as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated February 7, 2002, on our consideration of the Partnership's internal control over financial reporting and our tests of its compliance with certain provisions of the laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

/s/ Baird, Kurtz, & Dobson, LLP 
Certified Public Accountants
February 7, 2002

---

Baird, Kurtz, & Dobson, LLP 
5000 Rogers Avenue, Suite 700
Fort Smith, AR 72903-2079
PHONE:  501-452-1040
FAX:  501-452-5542

INDEPENDENT AUDITORS' REPORT
                             -------------------------------

Partners 
Nowata Properties, A Limited Partnership
   D/B/A Cross Creek II Apartments
Fort Smith, Arkansas

We have audited the accompanying balance sheets of Nowata Properties, A Limited Partnership, D/B/A Cross Creek II Apartments as of December 31, 2001 and 2000, and the related statements of operations, partners' equity (deficit) and cash flows for the years then ended.  These financial statements are the responsibility of the Partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Nowata Properties, A Limited Partnership, D/B/A Cross Creek II Apartments as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated February 7, 2002, on our consideration of the Partnership's internal control over financial reporting and our tests of its compliance with certain provisions of the laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

The accompanying financial statements have been prepared assuming the Partnership will continue as a going concern.  As discussed in Note 8, the Partnership has suffered recurring losses from operations and has a net capital deficiency that raise substantial doubt about its ability to continue as a going concern.  Management's plans in regard to these matters are also described in Note 8.  The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

/s/ Baird, Kurtz, & Dobson, LLP 
Certified Public Accountants
February 7, 2002

---

Baird, Kurtz, & Dobson, LLP 
5000 Rogers Avenue, Suite 700
Fort Smith, AR 72903-2079
PHONE:  501-452-1040
FAX:  501-452-5542

INDEPENDENT AUDITORS' REPORT
                              -------------------------------

Partners 
Sallisaw Properties, A Limited Partnership
   D/B/A Mayfair Place Apartments
Fort Smith, Arkansas

We have audited the accompanying balance sheets of Sallisaw Properties, A Limited Partnership, D/B/A Mayfair Place Apartments as of December 31, 2001 and 2000, and the related statements of operations, partners' equity (deficit) and cash flows for the years then ended.  These financial statements are the responsibility of the Partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Sallisaw Properties, A Limited Partnership, D/B/A Mayfair Place Apartments as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated February 7, 2002, on our consideration of the Partnership's internal control over financial reporting and our tests of its compliance with certain provisions of the laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

/s/ Baird, Kurtz, & Dobson, LLP 
Certified Public Accountants
February 7, 2002

---

Baird, Kurtz, & Dobson, LLP 
5000 Rogers Avenue, Suite 700
Fort Smith, AR 72903-2079
PHONE:  501-452-1040
FAX:  501-452-5542

INDEPENDENT AUDITORS' REPORT
                             ------------------------------

Partners 
Roland Properties II, A Limited Partnership
   D/B/A Garden Walk of Roland II
Fort Smith, Arkansas

We have audited the accompanying balance sheets of Roland Properties II, A Limited Partnership, D/B/A Garden Walk of Roland  II as of December 31, 2001 and 2000, and the related statements of operations, partners' equity (deficit) and cash flows for the years then ended.  These financial statements are the responsibility of the Partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General  of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Roland Properties II, A Limited Partnership, D/B/A Garden Walk of Roland II as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated February 7, 2002, on our consideration of the Partnership's internal control over financial reporting and our tests of its  compliance with certain provisions of the laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

/s/ Baird, Kurtz, & Dobson, LLP 
Certified Public Accountants
February 7, 2002

---

Baird, Kurtz, & Dobson, LLP 
5000 Rogers Avenue, Suite 700
Fort Smith, AR 72903-2079
PHONE:  501-452-1040
FAX:  501-452-5542

INDEPENDENT AUDITORS' REPORT
                               -----------------------------

Partners 
Stilwell Properties, A Limited Partnership
   D/B/A Skywood Apartments
Fort Smith, Arkansas

We have audited the accompanying balance sheets of Stilwell Properties, A Limited Partnership, D/B/A Skywood Apartments as of December 31, 2001 and 2000, and the related statements of operations, partners' equity (deficit) and cash flows for the years then ended.  These financial statements are the responsibility of the Partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Stilwell Properties, A Limited Partnership, D/B/A Skywood Apartments as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated February 7, 2002, on our consideration of the Partnership's internal control over financial reporting and our tests of its compliance with certain provisions of the laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

/s/ Baird, Kurtz, & Dobson, LLP 
Certified Public Accountants
February 7, 2002

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Baird, Kurtz, & Dobson, LLP 
5000 Rogers Avenue, Suite 700
Fort Smith, AR 72903-2079
PHONE:  501-452-1040
FAX:  501-452-5542

INDEPENDENT AUDITORS' REPORT
                                   -----------------------------

Partners 
Stilwell Properties II, A Limited Partnership
   D/B/A Skywood II Apartments
Fort Smith, Arkansas

We have audited the accompanying balance sheets of Stilwell Properties II, A Limited Partnership, D/B/A Skywood II Apartments as of December 31, 2001 and 2000, and the related statements of operations, partners' equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Stilwell Properties II, A Limited Partnership, D/B/A Skywood II Apartments as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated February 7, 2002, on our consideration of the Partnership's internal control over financial reporting and our tests of its compliance with certain provisions of the laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

/s/ Baird, Kurtz, & Dobson, LLP 
Certified Public Accountant
February 7, 2002

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Baird, Kurtz, & Dobson, LLP 
5000 Rogers Avenue, Suite 700
Fort Smith, AR 72903-2079
PHONE:  501-452-1040
FAX:  501-452-5542

INDEPENDENT AUDITORS' REPORT
                              ------------------------------

Partners 
Westville Properties, A Limited Partnership
   D/B/A Greystone Place Apartments
Fort Smith, Arkansas

We have audited the accompanying balance sheets of Westville Properties, A Limited Partnership, D/B/A Greystone Place Apartments as of December 31, 2001 and 2000, and the related statements of operations, partners' equity (deficit) and cash flows for the years then ended.  These financial statements are the responsibility of the Partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Westville Properties, A Limited Partnership, D/B/A Greystone Place Apartments as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated February 7, 2002, on our consideration of the Partnership's internal control over financial reporting and our tests of its compliance with certain provisions of the laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

/s/ Baird, Kurtz, & Dobson, LLP 
Certified Public Accountants
February 7, 2002

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Baird, Kurtz, & Dobson, LLP 
5000 Rogers Avenue, Suite 700
Fort Smith, AR 72903-2079
PHONE:  501-452-1040
FAX:  501-452-5542

INDEPENDENT AUDITORS' REPORT
                                -------------------------------

Partners
Mill Creek Properties V, A Limited Partnership
   D/B/A Pleasant Grove Apartments
Fort Smith, Arkansas

We have audited the accompanying balance sheets of Mill Creek Properties V, A Limited Partnership, D/B/A Pleasant Grove Apartments as of December 31, 2001 and 2000, and the related statements of operations, partners' equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Mill Creek Properties V, A Limited Partnership, D/B/A Pleasant Grove Apartments as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated February 7, 2002, on our consideration of the Partnership's internal control over financial reporting and our tests of its compliance with certain provisions of the laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

/s/ Baird, Kurtz, & Dobson, LLP 
Certified Public Accountants
February 7, 2002

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Baird, Kurtz, & Dobson, LLP 
5000 Rogers Avenue, Suite 700
Fort Smith, AR 72903-2079
PHONE:  501-452-1040 
FAX:  501-452-5542

INDEPENDENT AUDITORS' REPORT
                                 -------------------------------

Partners 
Parsons Properties, A Limited Partnership
   D/B/A Savannah Park of Parsons
Fort Smith, Arkansas

We have audited the accompanying balance sheets of Parsons Properties, A Limited Partnership, D/B/A Savannah Park of Parsons as of December 31, 2001 and 2000, and the related statements of operations, partners' equity (deficit) and cash flows for the years then ended.  These financial statements are the responsibility of the Partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Parsons Properties, A Limited Partnership, D/B/A Savannah Park of Parsons as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated February 7, 2002, on our consideration of the Partnership's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

/s/ Baird, Kurtz, & Dobson, LLP 
Certified Public Accountants
February 7, 2002

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Henderson & Godbee, P.C.
3488 N. Valdosta Road - P.O. Box 2241
Valdosta, GA 31604-2241
PHONE:  229-245-6040
FAX:  229-245-1669

INDEPENDENT AUDITORS' REPORT
                                ------------------------------

To the Partners 
Inverness Club, Ltd., L.P.
(A Georgia Limited Partnership)
Valdosta, Georgia

We have audited the accompanying balance sheets of Inverness Club, Ltd., L.P. (A Georgia Limited Partnership), FmHA Project No.: 09-009-581808620, as of December 31, 2001 and 2000, and the related statements of operations, partners' (deficit) and cash flows for the years then ended.  These financial statements are the responsibility of the partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards issued by the Comptroller General of the United States.  Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Inverness Club, Ltd., L.P. as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued a report dated January 16, 2002 on our consideration of Inverness Club, Ltd., L.P.'s internal control structure and a report dated January 16, 2002 on its compliance with laws and regulations.  These reports are an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audits.

/s/ Henderson & Godbee, P.C.
Certified Public Accountants
January 16, 2002

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Henderson & Godbee, P.C.
3488 N. Valdosta Road - P.O. Box 2241
Valdosta, GA 31604-2241
PHONE:  229-245-6040
FAX:  229-245-1669

INDEPENDENT AUDITORS' REPORT
                                ------------------------------

To the Partners 
Carrollton Club, Ltd., L.P.
(A Georgia Limited Partnership)
Valdosta, Georgia

We have audited the accompanying balance sheets of Carrollton Club, Ltd., L.P., (A Georgia Limited Partnership), FmHA Project No.: 10-22-58188314, as of December 31, 2001 and 2000, and the related statements of operations, changes in partners' (deficit) and cash flows for the year then ended.  These financial statements are the responsibility of the partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards issued by the Comptroller General of the United States.  Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Carrollton Club, Ltd., L.P. as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued a report dated January 16, 2002 on our consideration of Carrollton Club, Ltd., L.P.'s internal control structure and a report dated January 16, 2002 on its compliance with laws and regulations. These reports are an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audits.

/s/ Henderson & Godbee, P.C.
Certified Public Accountants
January 16, 2002

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Grana & Teibel, CPAs, P.C.
300 Corporate Pkwy., Suite 116 N.
Amherst, NY 14226
PHONE:  716-862-4270
FAX:  716-862-0007

INDEPENDENT AUDITORS' REPORT
                             ------------------------------

To The Partners of
Lewiston Limited Partnership
Case No. 37-032-161349932 
and
RD Rural Housing Director
166 Washington Avenue
Batavia, New York 14020

We have audited the accompanying balance sheets of Lewiston Limited Partnership as of December 31, 2001 and 2000, and the related statements of operations, partners' capital (deficiency), and cash flows for the years then ended.  These financial statements are the responsibility of the Partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with U.S. generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States.  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Lewiston Limited Partnership as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with U.S. generally accepted accounting principles.

In accordance with Government Auditing Standards, we have also issued a report dated January 16, 2002, on our consideration of Lewiston Limited Partnership's internal control structure and a report dated January 16, 2002, on its compliance with laws and regulations.

/s/ Grana & Teibel, CPAs, P.C.
Certified Public Accountants
January 16, 2002

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Miller & Rose, P.L.L.C.
1309 E. Race Avenue
Searcy, AR 72143
PHONE:  501-268-8356
FAX:  501-268-9362

INDEPENDENT AUDITORS' REPORT
                                --------------------------------

Partners 
Lancaster House, An Arkansas Limited Partnership
D/B/A Pebble Creek Apartments
351 East 4th Street
Mountain Home, AR  72653

We have audited the accompanying financial statements of Lancaster House, An Arkansas Limited Partnership, D/B/A Pebble Creek Apartments as of December 31, 2001 and 2000, and for the years then ended, as listed in the table of contents.  These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statements presentation.  We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Lancaster House, An Arkansas Limited Partnership, D/B/A Pebble Creek Apartments as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued a report dated March 20, 2002 on our consideration of Lancaster House, An Arkansas Limited Partnership, D/B/A Pebble Creek Apartments' internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants.

/s/ Miller & Rose, P.L.L.C.
Certified Public Accountants
March 20, 2002

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Leavitt, Christensen & Co.
9100 W. Blackeagle Dr.
Boise, ID 83709
PHONE:  208-322-6769
FAX:  208-322-7307

INDEPENDENT AUDITORS' REPORT
                                 ------------------------------

Managing General Partner
Haines Associates Limited Partnership
Boise, Idaho

We have audited the accompanying balance sheets of Haines Associates Limited Partnership, as of December 31, 2001 and 2000, and the related statements of operations, partners' capital (deficit), and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America, the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and the USDA, Rural Housing Service Audit Program issued in December, 1989.  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and the significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Haines Associates Limited Partnership as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued  reports dated January 31, 2002 on our consideration of Haines Associates Limited Partnership's internal control and on its compliance with laws and regulations.  Those reports are an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

The partnership has filed tax returns with the Internal Revenue Service which allow the partners to receive the benefit of a low income housing tax credit.  Because the qualifying standards of the low income housing tax credit are different than the requirements of the loan agreement and the interest credit agreements, and due to the fact that the low income housing tax credit relates to income taxes which are the responsibility of the individual partners, the scope of these audits were not designed or intended to audit the compliance with the various low income housing tax credit laws.  Therefore, these audits can not be relied on to give assurances with regard to compliance with any low income housing tax credit laws.

/s/ Leavitt, Christensen & Co.
Certified Public Accountants
January 31, 2002

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Bernard Robinson & Company, L.L.P.
109 Muirs Chapel Rd. - P.O. Box 19608
Greensboro, NC 27410 (27419)
PHONE:  336-294-4494
FAX:  336-547-0840

INDEPENDENT AUDITORS' REPORT
                              -------------------------------

To the Partners 
Woodcrest Associates of South Boston, VA, Ltd.
Charlotte, North Carolina

We have audited the accompanying balance sheets of Woodcrest Associates of South Boston, VA, Ltd.(a Virginia limited partnership) as of December 31, 2001 and 2000, and the related statements of operations, partners' equity, and cash flows for the years then ended.  These financial statements are the responsibility of the Partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States.  Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Woodcrest Associates of South Boston, VA, Ltd. as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated January 31, 2002, on our consideration of the Partnership's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, and grants.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole.  The supplementary information listed in the table of contents is presented for purposes of additional analysis and is not a required part of the basic financial statements of the Partnership.  Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

/s/ Bernard Robinson & Company, L.L.P.
Certified Public Accountants
January 31, 2002

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Thomas C. Cunningham, CPA PC
23 Moore Street
Bristol, VA 24201
PHONE:  276-669-5531
FAX:  276-669-5576

INDEPENDENT AUDITORS' REPORT
                           -------------------------------

To the Partners 
Norton Green Limited Partnership

I have audited the accompanying balance sheets of Norton Green Limited Partnership as of December 31, 2001 and 2000, and the related statements of operations, partners' deficit and cash flows for the years then ended.  These financial statements are the responsibility of the Partnership's management.  My responsibility is to express an opinion on these financial statements based on my audits.

I conducted my audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States, and the U.S. Department of Agriculture, Farmers Home Administration Audit Program.   Those standards require that I plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  I believe that my audits provide a reasonable basis for my opinion.

In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Norton Green Limited Partnership as of December 31, 2001 and 2000, and the results of its operations, changes in partners' deficit, and its cash flows for the years then ended in conformity with generally accepted accounting principles.

In accordance with Government Auditing Standards, I have also issued my report dated February 15, 2002 on my consideration of Norton Green Limited Partnership's internal control over financial reporting and on my tests of its compliance with certain provisions of laws and regulations.

/s/ Thomas C. Cunningham, CPA PC
Certified Public Accountant
February 15, 2002

---

Thomas C. Cunningham, CPA PC
23 Moore Street
Bristol, VA 24201
PHONE:  276-669-5531
FAX:  276-669-5576

INDEPENDENT AUDITORS' REPORT
                            -------------------------------

To the Partners 
Jonesville Manor Limited Partnership

I have audited the accompanying balance sheets of Jonesville Manor Limited Partnership as of December 31, 2001 and 2000, and the related statements of operations, partners' deficit and cash flows for the years then ended.  These financial statements are the responsibility of the Partnership's management.  My responsibility is to express an opinion on these financial statements based on my audits.

I conducted my audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States, and the U.S. Department of Agriculture, Farmers Home Administration Audit Program.  Those standards require that I plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  I believe that my audits provide a reasonable basis for my opinion.

In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Jonesville Manor Limited Partnership as of December 31, 2001 and 2000, and the results of its operations, changes in partners' deficit, and its cash flows for the years then ended in conformity with generally accepted accounting principles.

In accordance with Government Auditing Standards, I have also issued my report dated February 15, 2002 on my consideration of Jonesville Manor Limited Partnership's internal control over financial reporting and on my tests of its compliance with certain provisions of laws and regulations.

/s/ Thomas C. Cunningham, CPA PC
Certified Public Accountant
February 15, 2002

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Thomas C. Cunningham, CPA PC
23 Moore Street
Bristol, VA 24201
PHONE:  276-669-5531
FAX:  276-669-5576

INDEPENDENT AUDITORS' REPORT
                               ----------------------------

To the Partners 
Blacksburg Terrace Limited Partnership

I have audited the accompanying balance sheets of Blacksburg Terrace Limited Partnership as of December 31, 2001 and 2000, and the related statements of operations, partners' deficit and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management.  My responsibility is to express an opinion on these financial statements based on my audits.

I conducted my audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States, and the U.S. Department of Agriculture, Farmers Home Administration Audit Program.  Those standards require that I plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  I believe that my audits provide a reasonable basis for my opinion.

In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Blacksburg Terrace Limited Partnership as of December 31, 2001 and 2000, and the results of its operations, changes in partners' deficit, and its cash flows for the years then ended in conformity with generally accepted accounting principles.

In accordance with Government Auditing Standards, I have also issued my report dated February 15, 2002 on my consideration of Blacksburg Terrace Limited Partnership's internal control over financial reporting and on my tests of its compliance with certain provisions of laws and regulations.

/s/ Thomas C. Cunningham, CPA PC
Certified Public Accountants
February 15, 2002

---

Thomas C. Cunningham, CPA PC
23 Moore Street
Bristol, VA 24201
PHONE:  276-669-5531
FAX:  276-669-5576

INDEPENDENT AUDITORS' REPORT
                               -------------------------------

To the Partners
Newport Village Limited Partnership

I have audited the accompanying balance sheets of Newport Village Limited Partnership as of December 31, 2001 and 2000, and the related statements of operations, partners' deficit and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management.  My responsibility is to express an opinion on these financial statements based on my audits.

I conducted my audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States, and the U.S. Department of Agriculture, Farmers Home Administration Audit Program.  Those standards require that I plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  I believe that my audits provide a reasonable basis for my opinion.

In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Newport Village Limited Partnership as of December 31, 2001 and 2000, and the results of its operations, changes in partners' deficit, and its cash flows for the years then ended in conformity with generally accepted accounting principles.

In accordance with Government Auditing Standards, I have also issued my report dated February 15, 2002 on my consideration of Newport Village Limited Partnership's internal control over financial reporting and on my tests of its compliance with certain provisions of laws and regulations.

/s/ Thomas C. Cunningham, CPA PC
Certified Public Accountants
February 15, 2002

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Lou Ann Montey and Associates, P.C.
8400 N. Mopac Expressway, Suite 304
Austin, TX 78759
PHONE:  512-338-0044
FAX:  512-338-5395

INDEPENDENT AUDITORS' REPORT
                                  -----------------------------

To The Partners
Zapata Housing, Ltd.-(A Texas Limited Partnership)
Burnet, Texas

We have audited the accompanying balance sheets of Zapata Housing, Ltd.-(A Texas Limited Partnership) as of December 31, 2001 and 2000, and the related statements of income (loss), partners' equity and cash flows for the years then ended.  These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with Generally Accepted Auditing Standards and Government Auditing Standards as issued by the Comptroller General of the United States and the U.S. Department of Agriculture, Farmers Home Administration Audit Program.  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Zapata Housing, Ltd.- (A Texas Limited Partnership) as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with Generally Accepted Accounting Principles.

In accordance with Government Auditing Standards, we have also issued a report dated January 24, 2002, on our consideration of the internal control structure of Zapata Housing, Ltd.- (A Texas Limited Partnership) and a report dated January 24, 2002, on its compliance with laws and regulations.

/s/ Lou Ann Montey and Associates, P.C.
Certified Public Accountants
Austin, Texas
January 24, 2002

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Lou Ann Montey and Associates, P.C.
8400 N. Mopac Expressway, Suite 304
Austin, TX 78759
PHONE:  512-338-0044
FAX:  512-338-5395

INDEPENDENT AUDITORS' REPORT
                               ------------------------------

To the Partners 
Sinton Retirement, Ltd.-(A Texas Limited Partnership)
Burnet, Texas

We have audited the accompanying balance sheets of Sinton Retirement, Ltd.- (A Texas Limited Partnership) as of December 31, 2001 and 2000, and the related statements of income (loss), partners' equity, and cash flows for the years then ended.  These financial statements are the responsibility of the Partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with Generally Accepted Auditing Standards and Government Auditing Standards as issued by the Comptroller General of the United States and the U.S. Department of Agriculture, Farmers Home Administration Audit Program.  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Sinton Retirement, Ltd.- (A Texas Limited Partnership) as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with Generally Accepted Accounting Principles.

In accordance with Government Auditing Standards, we have also issued a report dated January 19, 2002, on our consideration of the internal control structure of Sinton Retirement, Ltd.- (A Texas Limited Partnership) and a report dated January 19, 2002, on its compliance with laws and regulations.

/s/ Lou Ann Montey and Associates, P.C.
Certified Public Accountants
Austin, Texas
January 19, 2002

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Gubler and Carter, P.C.
7001 South 900 East, Suite 240
Midvale, UT 84047
PHONE:  801-566-5866
FAX:  801-561-8693

INDEPENDENT AUDITORS' REPORT
                                -----------------------------

TO THE PARTNERS
SMITHFIELD GREENBRIAR LIMITED PARTNERSHIP

We have audited the accompanying balance sheets of Smithfield Greenbriar Limited Partnership, as of December 31, 2001 and 2000 and the related statements of income, changes in partners' capital and cash flows for the years then ended.  These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States and the U.S. Department of Agriculture, Farmers Home Administration Audit Program.  Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statements presentation.  We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly in all material respects, the financial position of Smithfield Greenbriar Limited Partnership, as of December 31, 2001 and 2000 and the results of its operations, changes in partners' capital, and its cash flows for the years then ended, in conformity with generally accepted accounting principles.

In accordance with Government Auditing Standards, we have also issued our reports dated February 1, 2002 on our consideration of Smithfield Greenbriar Limited Partnership's internal control and on its compliance with laws and regulations.

Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying supplementary information shown on pages 13 through 15 is presented for purposes of additional analysis and is not a required part of the basic financial statements of Smithfield Greenbriar Limited Partnership. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

/s/ Gubler and Carter, P.C.
Certified Public Accountants
Salt Lake City, Utah
February 1, 2002

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Simmons and Clubb
410 S. Orchard, Suite 156
Boise, ID 83705
PHONE:  208-336-6800
FAX:  208-343-2381

INDEPENDENT AUDITORS' REPORT
                              --------------------------------

To the Partners 
Mountain Crest Limited Partnership
Boise, Idaho

We have audited the accompanying balance sheets of Mountain Crest Limited Partnership as of December 31, 2001 and 2000, and the related statements of operations, partners' equity and cash flows for the years then ended.  These financial statements are the responsibility of the Partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards, issued by the Comptroller General of the United States.  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Mountain Crest Limited Partnership as of December 31, 2001 and 2000, and the results of its operations, and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued  reports dated January 29, 2002, on our consideration of Mountain Crest Limited Partnership's internal controls and compliance with laws and regulations.  Those reports are an integral part of an audit performed in accordance with the Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

The partnership's tax returns have been filed allowing the partners to claim a benefit of a low income housing tax credit.  Because the compliance and qualification standards of the low income tax housing tax credit are not related to the interest credit agreement and loan agreement, and because the low income housing tax credit related to income taxes which are the responsibility of each individual partner, the scope of our audit was not designed or intended to audit the partnerships compliance with the low income housing tax credit laws.  Accordingly, our audit cannot be relied upon to give assurance with regard to the partnerships compliance with any of the low income housing tax credit laws.

/s/  Roger Clubb
Simmons and Clubb
Certified Public Accountants
Boise, Idaho
January 29, 2002

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Berberich Trahan & Co., P.A.
3630 S.W. Burlingame Road

Topeka, KS 66611-2050
PHONE:  785-234-3427
FAX:  785-233-1768

INDEPENDENT AUDITORS' REPORT
                              -------------------------------

The Partners 
Eudora Senior Housing, L.P.:

We have audited the accompanying balance sheets of Eudora Senior Housing, L.P., RHS Project No. 18-023-481065040, D/B/A Pinecrest Apartments II (Partnership), as of December 31, 2001 and 2000, and the related statements of operations, partners' equity (deficit) and cash flows for the years then ended.  These financial statements are the responsibility of the Partnership's management.  Our responsibility is to express an opinion on these statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards, issued by the Comptroller General of the United States.  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Eudora Senior Housing, L.P., RHS Project No. 18-023-481065040, as of December 31, 2001 and 2000, and the results of its operations, changes in partners' equity (deficit) and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued a report dated January 17, 2002 on our consideration of Eudora Senior Housing, L.P.'s internal control and a report dated January 17, 2002 on its compliance with laws, regulations and contracts.  These reports are an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of this audit.

Berberich Trahan & Co., P.A.
Certified Public Accountants
Topeka, Kansas
January 15, 2002
Audit Principal: Virginia A. Powell
IA Federal ID Number: 48-1066439

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Baird, Kurtz & Dobson, LLP
5000 Rogers Avenue, Suite 700
Fort Smith, AR 72903-2079
PHONE:  501-452-1040
FAX:  501-452-5542

INDEPENDENT AUDITORS' REPORT
                               -----------------------------

Partners 
Spring Hill Housing, L.P., A Limited Partnership
   D/B/A Spring Hill Housing II
Fort Smith, Arkansas

We have audited the accompanying balance sheets of Spring Hill Housing, L.P., A Limited Partnership, D/B/A Spring Hill Housing II as of December 31, 2001 and 2000, and the related statements of operations, changes in partners' equity (deficit) and cash flows for the years then ended.  These financial statements are the responsibility of the Partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Spring Hill Housing, L.P., A Limited Partnership, D/B/A Spring Hill Housing II as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated February 7, 2002, on our consideration of the Partnership's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants.  That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

/s/ Baird, Kurtz & Dobson, LLP 
Certified Public Accountants
February 7, 2002

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Eide Bailly LLP
200 East 10th St., Suite 500 - P.O. Box 5126
Sioux Falls, SD 57117-5126
PHONE:  605-339-1999
FAX:  605-339-1306

INDEPENDENT AUDITORS' REPORT
                               -------------------------------

The PartnersSunchase II, Ltd.Watertown, South Dakota

We have audited the accompanying balance sheets of Sunchase II, Ltd. (a limited partnership) as of December 31, 2001 and 2000, and the related statements of operations, changes in partners' deficit and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Sunchase II, Ltd. as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued a report dated January 24, 2002 on our consideration of Sunchase II, Ltd.'s internal control over financial reporting and our test of its compliance with certain provisions of laws, regulations, contracts and grants.  That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

Our audits were performed for the purpose of forming an opinion on the  financial statements taken as a whole.  The accompanying supplementary information on pages 11 and 12 is presented for purposes of additional analysis and is not a required part of the financial statements of Sunchase II, Ltd.  Such information has been subjected to the auditing procedures applied in the audits of the financial statements and, in our opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole.

/s/ Eide Bailly LLP
Certified Public Accountants
Sioux Falls, South Dakota
January 24, 2002

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Eide Bailly LLP
200 East 10th St., Suite 500 - P.O. Box 5126
Sioux Falls, SD 57117-5126
PHONE:  605-339-1999
FAX:  605-339-1306

INDEPENDENT AUDITORS' REPORT
                              ------------------------------

The PartnersCourtyard, Ltd.Huron, South Dakota

We have audited the accompanying balance sheets of Courtyard, Ltd. (a limited partnership) as of December 31, 2001 and 2000, and the related statements of operations, changes in partners' equity (deficit) and cash flows for the years then ended.  These financial statements are the responsibility of the Partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Courtyard, Ltd. as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated January 28, 2002, on our consideration of Courtyard, Ltd.'s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government AuditingStandards and should be read in conjunction with this report in considering the results of our audit.

Our audits were performed for the purpose of forming an opinion on the  financial statements taken as a whole.  The accompanying supplementary information on pages 13 and 14 is presented for purposes of additional analysis and is not a required part of the financial statements of Courtyard, Ltd.  Such information has been subjected to the auditing procedures applied in the audits of the financial statements and, in our opinion, is fairly stated in all material respects in relation to the  financial statements taken as a whole.

/s/ Eide Bailly LLP 
Certified Public Accountants
Sioux Falls, South Dakota
January 28, 2002

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Eide Bailly LLP
200 East 10th St., Suite 500 - P.O. Box 5126
Sioux Falls, SD 57117-5126
PHONE:  605-339-1999
FAX:  605-339-1306

INDEPENDENT AUDITORS' REPORT
                                 ---------------------------

The PartnersSunrise, Ltd.Yankton, South Dakota

We have audited the accompanying balance sheets of Sunrise Ltd. (a limited partnership) as of December 31, 2001 and 2000, and the related statements of operations, changes in partners' deficit and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Sunrise, Ltd. as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued a report dated January 24, 2002 on our consideration of Sunrise, Ltd.'s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government AuditingStandards and should be read in conjunction with this report in considering the results of our audit.

Our audits were performed for the purpose of forming an opinion on the financial statements taken as a whole.  The accompanying supplementary information on pages 12 and 13 is presented for purposes of additional analysis and is not a required part of the financial statements of Sunrise, Ltd.  Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

/s/ Eide Bailly LLP
Certified Public Accountants
Sioux Falls, South Dakota
January 24, 2002

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Johnson, Hickey & Murchison, P.C.
651 East Fourth Street,  Suite 200
Chattanooga, TN 37403-1924
PHONE:  423-756-0052
FAX:  423-267-5945

INDEPENDENT AUDITORS' REPORT
                             -----------------------------

To the General Partners of
Southwood, L.P.:

We have audited the accompanying balance sheets of Southwood, L.P. as of December 31, 2001 and 2000, and the related statements of operations, changes in partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.  Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Southwood, L.P. as of December 31, 2001 and 2000, and the results of its operations, changes in partners' equity and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated January 14, 2002, on our consideration of the partnership's  internal control over financial reporting and on its compliance with certain provisions of laws, regulations, contracts and grants.  That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

/s/ Johnson, Hickey & Murchison, P.C.
Certified Public Accountants
January 14, 2002

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Bob T. Robinson
2084 Dunbarton Drive
Jackson, MS 39216
PHONE:  601-982-3875
FAX:  601-982-3876

INDEPENDENT AUDITORS' REPORT
                                 -------------------------------

To the Partners 
Hazlehurst Manor, L.P.

I have audited the accompanying balance sheet of Hazlehurst Manor L.P. (RD Case Number 28-015-640803081), as of December 31, 2001 and 2000, and the related statements of income, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. My responsibility is to express an opinion on these financial statements based on my audit.

I conducted my audits in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards, issued by the Comptroller General of the United States.  Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  I believe that my audits provide a reasonable basis for my opinion.

In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Hazlehurst Manor, L.P. as of December 31, 2001 and 2000 and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, I have also issued a report dated February 1, 2002 on my consideration of the partnership's internal control structure and a report dated February 1, 2002 on its compliance with laws and regulations.

My audits were made for the purpose of forming an opinion on the financial statements taken as a whole.  The supplemental information is presented for the purposes of additional analysis and is not a required part of the financial statements of Hazlehurst Manor, L.P.  Such information has been subjected to the auditing procedures applied in the audit of the financial statements and, in my opinion, is fairly presented in all material respects in relation to the financial statements taken as a whole.

The annual budgets of Hazlehurst Manor, L.P. included in the accompanying prescribed form RD1930-7 (Rev 10-96) have not been compiled or examined by me, and I do not express any form of assurance on them.  In addition they may contain departures from guidelines for presentation of prospective financial information established by the American Institute of Certified Public Accountants.  The actual results may vary from the presentation and the variations may be material.

/s/ Bob T. Robinson
Certified Public Accountant
February 1, 2002
Jackson, Mississippi

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Donald W. Causey & Associates, P.C.
516 Walnut Street - P.O. Box 775
Gadsden, AL 35902
PHONE:  256-543-3707
FAX:  256-543-9800

INDEPENDENT AUDITORS' REPORT
                              ------------------------------

To the Partners 
Lakeshore Apartments Ltd.
Tuskegee, Alabama

We have audited the accompanying balance sheets of Lakeshore Apartments, Ltd. a limited partnership, RHS Project No.: 01-044-631014228 as of December 31, 2001 and 2000, and the related statements of operations, partners' deficit and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted the audits in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards issued by the Comptroller General of the United States, and the U.S. Department of Agriculture, Farmers Home Administration Audit Program. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that the audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Lakeshore Apartments, Ltd., RHS Project No.: 01-044-631014228 as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

The audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole.  The supplemental information on pages 9 through 12 is presented for purposes of additional analysis and is not a required part of the basic financial statements.  The supplemental information presented in the Multiple Family Housing Borrower Balance Sheet (Form FmHA 1930-8) Parts I and II for the year ended December 31, 2001 and 2000, is presented for purposes of complying with the requirements of the Rural Housing Services and is also not a required part of the basic financial statements.  Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in our opinion is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

In accordance with Government Auditing Standards, we have also issued a report dated February 11, 2002 on our consideration of Lakeshore Apartments, Ltd.'s internal control over financial reporting and on our tests of its compliance with certain provisions of laws and regulations.

/s/ Donald W. Causey & Associates, P.C.
Certified Public Accountants
Gadsden, Alabama
February 11, 2002

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Donald W. Causey & Associates, P.C.
16 Walnut Street - P.O. Box 775
Gadsden, AL 35902
PHONE:  256-543-3707
FAX:  256-543-9800

INDEPENDENT AUDITORS' REPORT
                              ------------------------------

To the Partners 
Countrywood Apartments Ltd.
Centerville, Alabama

We have audited the accompanying balance sheets of Countrywood Apartments, Ltd. a limited partnership, RHS Project No.: 01-004-630943678 December 31, 2001 and 2000, and the related statements of operations, partners' deficit and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted the audits in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards issued by the Comptroller General of the United States, and the U.S. Department of Agriculture, Farmers Home Administration Audit Program. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that the audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Countrywood Apartments, Ltd. RHS Project No.: 01-004-630943678 as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

The audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole.  The supplemental information on pages 10 through 13 is presented for purposes of additional analysis and is not a required part of the basic financial statements.  The supplemental information presented in the Multiple Family Housing Borrower Balance Sheet (Form FmHA 1930-8) Parts I and II for the year ended December 31, 2001 and 2000, is presented for purposes of complying with the requirements of the Rural Housing Services and is also not a required part of the basic financial statements.  Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in our opinion is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

In accordance with Government Auditing Standards, we have also issued a report dated February 28, 2002 on our consideration of Countrywood Apartments, Ltd.'s internal control over financial reporting and on our tests of its compliance with certain provisions of laws and regulations.

/s/ Donald W. Causey & Associates, P.C.
Certified Public Accountant
Gadsden, Alabama
February 28, 2002

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Donald W. Causey & Associates, P.C.
516 Walnut Street - P.O. Box 775
Gadsden, AL 35902
PHONE:  256-543-3707
FAX:  256-543-9800

INDEPENDENT AUDITORS' REPORT
                             --------------------------------

To the Partners 
Wildwood Apartments Ltd.
Pineville, Louisiana

We have audited the accompanying balance sheets of Wildwood Apartments, Ltd., a limited partnership, RHS Project No.: 22-040-630954515 as of December 31, 2001 and 2000, and the related statements of operations, partners' deficit and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted the audits in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards issued by the Comptroller General of the United States, and the U.S. Department of Agriculture, Farmers Home Administration Audit Program. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that the audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Wildwood Apartments, Ltd., RHS Project No.: 22-040-630954515 as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

The audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole.  The supplemental information on pages 10 through 13 is presented for purposes of additional analysis and is not a required part of the basic financial statements.  The supplemental information presented in the Multiple Family Housing Borrower Balance Sheet (Form FmHA 1930-8) Parts I and II for the year ended December 31, 2001 and 2000, is presented for purposes of complying with the requirements of the Rural Housing Services and is also not a required part of the basic financial statements.  Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in our opinion is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

In accordance with Government Auditing Standards, we have also issued a report dated February 21, 2002 on our consideration of Wildwood Apartments, Ltd.'s internal control over financial reporting and on our tests of its compliance with certain provisions of laws and regulations.

/s/ Donald W. Causey & Associates, P.C.
Certified Public Accountants
Gadsden, Alabama
February 21, 2002

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Donald W. Causey & Associates, P.C.
516 Walnut Street - P.O. Box 775
Gadsden, AL 35902
PHONE:  256-543-3707
FAX:  256-543-9800

INDEPENDENT AUDITORS' REPORT
                              --------------------------------

To the Partners 
Meadowcrest Apartments Ltd.
Luverne, Alabama

We have audited the accompanying balance sheets of Meadowcrest Apartments, Ltd. a limited partnership, RHS Project No.: 01-021-631047203 as of December 31, 2001 and 2000, and the related statements of operations, partners' deficit and capital and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted the audits in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards issued by the Comptroller General of the United States, and the U.S. Department of Agriculture, Farmers Home Administration Audit Program. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that the audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Meadowcrest Apartments, Ltd. RHS Project No.: 01-021-631047203 as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

The audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole.  The supplemental information on pages 10 through 13 is presented for purposes of additional analysis and is not a required part of the basic financial statements.  The supplemental information presented in the Multiple Family Housing Borrower Balance Sheet (Form FmHA 1930-8) Parts I and II for the year ended December 31, 2001 and 2000, is presented for purposes of complying with the requirements of the Rural Housing Services and is also not a required part of the basic financial statements.  Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in our opinion is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

In accordance with Government Auditing Standards, we have also issued a report dated February 11, 2002 on our consideration of Meadowcrest Apartments, Ltd.'s internal control over financial reporting and our tests of its compliance with certain provisions of laws and regulations.

/s/ Donald W. Causey & Associates, P.C.
Certified Public Accountants
Gadsden, Alabama
February 11, 2002

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Turk & Giles, CPAs, P.C.
2026 Connecticut - P.O. Box 3766
Joplin, MO 64803
PHONE:  417-623-8666
FAX:  417-623-4075

INDEPENDENT AUDITORS' REPORT
                              -------------------------------

To the Partners 
Seneca Apartments, L.P
Joplin, Missouri 64804

We have audited the accompanying balance sheets of Seneca Apartments, L.P. (a limited partnership) as of December 31, 2001 and 2000, and the related statements of operations, partners' capital and cash flows for the years then ended.  These financial statements are the responsibility of the Partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with generally accepted auditing standards and GOVERNMENT AUDITING STANDARDS, issued by the Comptroller General of the United States.  Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Seneca Apartments, L.P.  as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles.

In accordance with GOVERNMENT AUDITING STANDARDS, we have also issued our report dated February 19, 2002 on our consideration of Seneca Apartments, L.P.'s internal control over financial reporting and our tests of its compliance with certain provisions of laws and regulations.

Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole.  The Supplemental Letter on pages 14-16 is presented for purposes of additional analysis and is not a required part of the basic financial statements.  Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

/s/ Turk & Giles, CPAs, P.C.
Certified Public Accountants
February 19, 2002

---

Turk & Giles, CPAs, P.C.
2026 Connecticut - P.O. Box 3766
Joplin, MO 64803
PHONE:  417-623-8666
FAX:  417-623-4075

INDEPENDENT AUDITORS' REPORT
                           ----------------------------------

To the Partners 
Carthage Seniors, L.P.
Joplin, Missouri 64804

We have audited the accompanying balance sheets of Carthage Seniors, L.P. (a limited partnership) as of December 31, 2001 and 2000, and the related statements of operations, partners' capital and cash flows for the years then ended.  These financial statements are the responsibility of the Partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with generally accepted auditing standards and GOVERNMENT AUDITING STANDARDS, issued by the Comptroller General of the United States.  Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Carthage Seniors, L.P.  as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles.

In accordance with GOVERNMENT AUDITING STANDARDS, we have also issued our report dated February 19, 2002 on our consideration of Carthage Seniors, L.P.'s internal control over financial reporting and our tests of its compliance with certain provisions of laws and regulations.

Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole.  The Supplemental Letter on pages 14-16 is presented for purposes of additional analysis and is not a required part of the basic financial statements.  Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

/s/ Turk & Giles, CPAs, P.C.
Certified Public Accountants
February 19, 2002

---

Turk & Giles, CPAs, P.C.
2026 Connecticut - P.O. Box 3766
Joplin, MO 64803
PHONE:  417-623-8666
FAX:  417-623-4075

INDEPENDENT AUDITORS' REPORT
                              --------------------------------

To the Partners 
Southwest City Apartments, L.P.
Joplin, Missouri 64804

We have audited the accompanying balance sheets of Southwest City Apartments, L.P. (a limited partnership) as of December 31, 2001 and 2000, and the related statements of operations, partners' capital and cash flows for the years then ended.  These financial statements are the responsibility of the Partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with generally accepted auditing standards and GOVERNMENT AUDITING STANDARDS, issued by the Comptroller General of the United States.  Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Southwest City Apartments, L.P. as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles.

In accordance with GOVERNMENT AUDITING STANDARDS, we have also issued our report dated February 19, 2002 on our consideration of Southwest City Apartments, L.P.'s internal control over financial reporting and our tests of its compliance with certain provisions of laws and regulations.

Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole.  The Supplemental Letter on pages 14-16 is presented for purposes of additional analysis and is not a required part of the basic financial statements.  Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

/s/ Turk & Giles, CPAs, P.C.
Certified Public Accountants
February 19, 2002

---

Turk & Giles, CPAs, P.C.
2026 Connecticut - P.O. Box 3766
Joplin, MO 64803
PHONE:  417-623-8666
FAX:  417-623-4075

INDEPENDENT AUDITORS' REPORT
                                -----------------------------

To the Partners 
Pineville Apartments, L.P.
Joplin, Missouri 64804

We have audited the accompanying balance sheets of Pineville Apartments, L.P. (a limited partnership) as of December 31, 2001 and 2000, and the related statements of operations, partners' capital and cash flows for the years then ended.  These financial statements are the responsibility of the Partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with generally accepted auditing standards and GOVERNMENT AUDITING STANDARDS, issued by the Comptroller General of the United States.  Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Pineville Apartments, L.P. as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles.

In accordance with GOVERNMENT AUDITING STANDARDS, we have also issued our report dated February 19, 2002 on our consideration of Pineville Apartments, L.P.'s internal control over financial reporting and our tests of its compliance with certain provisions of laws and regulations.

Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole.  The Supplemental Letter on pages 14-16 is presented for purposes of additional analysis and is not a required part of the basic financial statements.  Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

/s/ Turk & Giles, CPAs, P.C.
Certified Public Accountants
February 19, 2002

---

Turk & Giles, CPAs, P.C.
2026 Connecticut - P.O. Box 3766
Joplin, MO 64803
PHONE:  417-623-8666
FAX:  417-623-4075

INDEPENDENT AUDITORS' REPORT
                              ------------------------------

To the Partners 
Monett Seniors, L.P
Joplin, Missouri 64804

We have audited the accompanying balance sheets of Monett Seniors, L.P. (a limited partnership) as of December 31, 2001 and 2000, and the related statements of operations, partners' capital and cash flows for the years then ended.  These financial statements are the responsibility of the Partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with generally accepted auditing standards and GOVERNMENT AUDITING STANDARDS, issued by the Comptroller General of the United States.  Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Monett Seniors, L.P. as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles.

In accordance with GOVERNMENT AUDITING STANDARDS, we have also issued our report dated February 19, 2002 on our consideration of Monett Seniors, L.P.'s internal control over financial reporting and our tests of its  compliance with certain provisions of laws and regulations.

Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole.  The Supplemental Letter on pages 14-16 is presented for purposes of additional analysis and is not a required part of the basic financial statements.  Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

/s/ Turk & Giles, CPAs, P.C.
Certified Public Accountants
February 19, 2002

---

Turk & Giles, CPAs, P.C.
2026 Connecticut - P.O. Box 3766
Joplin, MO 64803
PHONE:  417-623-8666
FAX:  417-623-4075

INDEPENDENT AUDITORS' REPORT
                              -------------------------------

To the Partners 
Columbus Seniors, L.P.
Joplin, Missouri 64804

We have audited the accompanying balance sheets of Columbus Seniors, L.P. (a limited partnership) as of December 31, 2001 and 2000, and the related statements of operations, partners' capital and cash flows for the years then ended.  These financial statements are the responsibility of the Partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with generally accepted auditing standards and GOVERNMENT AUDITING STANDARDS, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Columbus Seniors, L.P.  as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles.

In accordance with GOVERNMENT AUDITING STANDARDS, we have also issued our report dated February 19, 2002 on our consideration of Columbus Seniors, L.P.'s internal control over financial reporting and our tests of its compliance with certain provisions of laws and regulations.

Our audit was conducted for the purpose of forming and opinion on the basic financial statements taken as a whole.  The Supplemental Letter on pages 14-16 is presented for purposes of additional analysis and is not a required part of the basic financial statements.  Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

/s/ Turk & Giles, CPAs, P.C.
Certified Public Accountants
February 19, 2002

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Turk & Giles, CPAs, P.C.
2026 Connecticut - P.O. Box 3766
Joplin, MO 64803
PHONE:  417-623-8666
FAX:  417-623-4075

INDEPENDENT AUDITORS' REPORT
                                -------------------------------

To the Partners 
Arma Seniors, L.P.
Joplin, Missouri 64804

We have audited the accompanying balance sheets of Arma Seniors, L.P. (a limited partnership) as of December 31, 2001 and 2000, and the related statements of operations, partners' capital and cash flows for the years then ended.  These financial statements are the responsibility of the Partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with generally accepted auditing standards and GOVERNMENT AUDITING STANDARDS, issued by the Comptroller General of the United States.  Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Arma Seniors, L.P. as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles.

In accordance with GOVERNMENT AUDITING STANDARDS, we have also issued our report dated February 19, 2002 on our consideration of Arma Seniors, L.P.'s internal control over financial reporting and our tests of its compliance with certain provisions of laws and regulations.

Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole.  The Supplemental Letter on pages 14-16 is presented for purposes of additional analysis and is not a required part of the basic financial statements.  Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

/s/ Turk & Giles, CPAs, P.C.
Certified Public Accountants
February 19, 2002

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Suellen Doubet, CPA
603 West Cherokee Street
Wagoner, OK 74467
PHONE:  918-485-8085
FAX:  918-485-3092

INDEPENDENT AUDITORS' REPORT
                          ---------------------------------

To the Partners 
of Yorkshire Retirement Village:

I have audited the accompanying balance sheets of Yorkshire Retirement Village (an Oklahoma Limited Partnership) as of December 31, 2001 and 2000, and the related statement of operations, partners' equity, and cash flows for the years then ended.  These financial statements are the responsibility of the Company's management.  My responsibility is to express an opinion on these financial statements based on my audits.

I conducted my audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States.  Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  I believe that my audit provides a reasonable basis for my opinion.

In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Yorkshire Retirement Village as of December 31, 2001 and 2000 and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles.

My audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole.  The supplemental information is presented for purposes of additional analysis and is not a required part of the basic financial statements.  The supplementary information, "The Schedule of Maintenance Expenses" has been subjected to the audit procedures applied in the audit of the basic financial statements and, in my opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

In accordance with Government Auditing Standards, I have also issued a report dated March 24, 2002 on my consideration of Yorkshire Retirement Village's compliance and on internal control over financial reporting.  That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of my audit.

/s/ Suellen Doubet, CPA
Wagoner, OK  74467
March 24, 2002

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Chester M. Kearney
12 Dyer Street
Presque Isle, ME 04769-1550
PHONE:  207-764-3171
FAX:  207-764-6362

INDEPENDENT AUDITORS' REPORT
                          --------------------------------

Rural Development Group
d/b/a Ashland Estates
Caribou, Maine
To the Partners

We have audited the accompanying balance sheets of Rural Development Group, d/b/a Ashland Estates, (a limited partnership) as of December 31, 2001 and 2000, and the related statements of operations, partners' deficit, and cash flows for the years then ended.  These financial statements are the responsibility of the Partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.  Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Rural Development Group, d/b/a Ashland Estates as of December 31, 2001 and 2000, and the results of its operations, partners' deficit and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our  report dated January 28, 2002 on our consideration of Rural Development Group, d/b/a Ashland Estates' internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, and grants.  That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audits.

/s/ Chester M. Kearney
Certified Public Accountants
Presque Isle, Maine
January 28, 2002

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Richard A. Strauss
1310 Lady Street 
9th Floor, Keenan Building
Columbia, SC 29201
PHONE:  803-779-7472
FAX:  803-252-6171

INDEPENDENT AUDITORS' REPORT
                              -------------------------------

To the Partners 
Scarlett Oaks Limited Partnership
Lexington, South Carolina

I have audited the accompanying balance sheet of Scarlett Oaks Limited Partnership as of December 31, 2001 and 2000, and the related statements of income, expense and partners' equity and cash flows for the years then ended.  These financial statements are the responsibility of Scarlett Oaks Limited Partnership's management.  My responsibility is to express an opinion on these financial statements based on my audit.

I conducted my audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States.  Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  I believe that my audits provide a reasonable basis for my opinion.

In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Scarlett Oaks Limited Partnership as of December 31, 2001 and 2000, and the results of its operations, changes in partners' equity and cash flows for the years then ended in conformity with generally accepted accounting principles.

In accordance with Government Auditing Standards, I have also issued a report dated February 25, 2002, on my consideration of Scarlett Oaks Limited Partnership's internal control and a report dated February 25, 2002 on its compliance with laws and regulations.

This report is intended for the information of management and the Department of Agriculture, Rural Development.  However, this report is a matter of public record and its distribution is not limited.

Respectfully submitted,
/s/ Richard A. Strauss
Certified Public Accountants
Columbia, South Carolina
February 25, 2002

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David G. Pelliccione, C.P.A., P.C.
340 Eisenhower Drive, Suite 220
Savannah, GA 31406
PHONE:  912-354-2334
FAX:  912-354-2443

INDEPENDENT AUDITORS' REPORT
                             -----------------------------

To The Partners 
Brooks Hill Apartments, L.P.

We have audited the accompanying balance sheet of BROOKS HILL APARTMENTS, L.P., as of December 31, 2001 and 2000 and the related statement of operations, partners' equity and cash flows for the years then ended.  These financial statements are the responsibility of the Partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with generally accepted auditing standards of the United States and Government Auditing Standards issued by the Comptroller General of the United States.  These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of BROOKS HILL APARTMENTS, L.P., as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles of the United States.

In accordance with Government Auditing Standards, we have also issued our report dated February 15, 2002, on our consideration of BROOKS HILL APARTMENTS, L.P.'s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants.  That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

Our audit was made for the purpose of forming an opinion on the basic financial statements of BROOKS HILL APARTMENTS, L.P., taken as a whole.  The supplemental information on pages 9 through 12 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

/s/ David G. Pelliccione, C.P.A., P.C.
Certified Public Accountants
Savannah, Georgia
February 15, 2002

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K.B. Parrish & Co. LLP
6840 Eagle Highlands Way
Indianapolis, IN 46254-2693
PHONE:  317-347-5200
FAX:  317-347-5211

INDEPENDENT AUDITORS' REPORT
                              ------------------------------

To the Partners of
Village Apartments of Seymour II, L.P.
(A Limited Partnership)

We have audited the balance sheets of Village Apartments of Seymour II, L.P. (a limited partnership) as of December 31, 2001 and 2000, and the related statements of operations, changes in partnership capital (deficit) and cash flows for the years then ended.  These financial statements are the responsibility of the partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America, Government Auditing Standards issued by the Comptroller General of the United States, and the U.S. Department of Agriculture, Rural Development Audit Program.  Those standards and the audit program require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Village Apartments of Seymour II, L.P. at December 31, 2001 and 2000, and the results of its operations, changes in partnership capital (deficit), and cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued a report dated January 11, 2002 on our consideration of the partnership's internal control over financial reporting and our tests of its compliance  with laws and regulations.  That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

Respectfully submitted,
/s/ K.B. Parrish & Company LLP
Certified Public Accountants
Indianapolis, Indiana
January 11, 2002

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Scheiner, Mister & Grandizio, P.A.
1300 Bellona Avenue 
Lutherville, MD 21093
PHONE:  410-494-0885
FAX:  410-321-9024

INDEPENDENT AUDITORS' REPORT
                                -----------------------------

To the Partners 
Frazer Elderly Limited Partnership
Reisterstown, Maryland

We have audited the accompanying balance sheets of Frazer Elderly Limited Partnership as of December 31, 2001 and 2000, and the related statements of operations, partners' capital, and cash flows for the years then ended.  These financial statements are the responsibility of the Partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards issued by the Comptroller General of the United States.  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Frazer Elderly Limited Partnership as of December 31, 2001 and 2000, and the results of its operations, changes in partners' capital, and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued a report dated January 15, 2002 on our consideration of the Partnership's internal control and a report dated January 15, 2002 on its compliance with laws and regulations.  Those reports are an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering results of our audit.

Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole.  The accompanying supplementary information shown on pages 9 - 9A is presented for purposes of additional analysis and is not a required part of the basic financial statements of the Partnership.  Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole.

/s/ Scheiner, Mister & Grandizio, P.A.
Certified Public Accountants
January 15, 2002

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Fentress, Brown, CPAs & Associates, LLC
8001 Ravines Edge Court, Suite 112
Columbus, OH 43235-5421
PHONE:  614-825-0011
FAX:  614-825-0014

INDEPENDENT AUDITORS' REPORT
                             --------------------------------

To the Partners of                                        Rural Housing Service
Bryan Senior Village Limited Partnership                  Servicing Office
DBA Plaza Senior Village Apartments                       Findlay, Ohio
Mansfield, Ohio

We have audited the accompanying balance sheets of Bryan Senior Village Limited Partnership (a limited partnership), DBA Plaza Senior Village Apartments, Case No. 41-086-341561720, as of December 31, 2001 and 2000, and the related  statements of income, changes in partners' equity (deficit) and cash flows for the years then ended.  These financial statements are the responsibility of the Partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America, Government Auditing Standards, issued by the Comptroller General of the United States, and the U.S. Department of Agriculture, Farmers Home Administration "Audit Program" issued in December 1989.  Those standards require that we plan and perform our audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Bryan Senior Village Limited Partnership, DBA Plaza Senior Village Apartments, Case No. 41-086-341561720, at December 31, 2001 and 2000, and the results of its operations, changes in partners' equity (deficit) and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards and the U.S. Department of Agriculture, Farmers Home Administration "Audit Program,", issued in December 1989, we have also issued a report dated January 30, 2002, on our consideration of Bryan Senior Village Limited Partnership's internal control and a report dated January 30, 2002, on its compliance with specific requirements applicable to Rural Housing Service Programs.  Those reports are an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

/s/ Fentress, Brown, CPAs & Associates, LLC
Certified Public Accountants
Columbus, Ohio
January 30, 2002

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Fentress, Brown, CPAs & Associates, LLC
8001 Ravines Edge Court, Suite 112
Columbus, OH 43235-5421
PHONE:  614-825-0011
FAX:  614-825-0014

INDEPENDENT AUDITORS' REPORT
                              ------------------------------

To the Partners of                                         Rural Housing Service
Brubaker Square Limited Partnership                        Servicing Office
DBA Brubaker Square Apartments                             Hillsboro, Ohio
Mansfield, Ohio

We have audited the accompanying balance sheets of Brubaker Square Limited Partnership (a limited partnership), DBA Brubaker Square Apartments, Case No. 41-092-341561718, as of December 31, 2001 and 2000, and the related statements of income, changes in partners' equity (deficit), and cash flows for the years then ended.  These financial statements are the responsibility of the Partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America, Government Auditing Standards, issued by the Comptroller General of the United States, and the U.S. Department of Agriculture, Farmers Home Administration "Audit Program" issued in December 1989.  Those standards require that we plan and perform our audits to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Brubaker Square Limited Partnership, DBA Brubaker Square Apartments, Case No. 41-092-341561718, at December 31, 2001 and 2000, and the results of its operations, changes in partners' equity (deficit) and cash flows for the years then ended in conformity with  accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards and the U.S. Department of Agriculture, Farmers Home Administration "Audit Program,", issued in December 1989, we have also issued a report dated January 30, 2002, on our consideration of Brubaker Square Limited Partnership's internal control and a report dated January 30, 2002, on its compliance with specific requirements applicable to Rural Housing Service Programs.  Those reports are an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

/s/ Fentress, Brown, CPAs & Associates, LLC
Certified Public Accountants
Columbus, Ohio
January 30, 2002

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Fentress, Brown, CPAs & Associates, LLC
8001 Ravines Edge Court, Suite 112
Columbus, OH 43235-5421
PHONE:  614-825-0011
FAX:  614-825-0014

INDEPENDENT AUDITORS' REPORT
                            -------------------------------

To the Partners of                                      Rural Housing Service
Villa Allegra Limited Partnership                       Servicing Office
DBA Villa Allegra Apartments                            Findlay, Ohio
Mansfield, Ohio

We have audited the accompanying balance sheets of Villa Allegra Limited Partnership (a limited partnership), DBA Villa Allegra Apartments, Case No. 41-054-341561716, as of December 31, 2001 and 2000, and the related statements of income, changes in partners' equity (deficit) and cash flows for the years then ended.  These financial statements are the responsibility of the Partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America, Government Auditing Standards, issued by the Comptroller General of the United States, and the U.S. Department of Agriculture, Farmers Home Administration "Audit Program" issued in December 1989.  Those standards require that we plan and perform our audits to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Villa Allegra Limited Partnership, DBA Villa Allegra Apartments, Case No. 41-054-341561716, at December 31, 2001 and 2000, and the results of its operations, changes in partners' equity (deficit),and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards and the U.S. Department of Agriculture, Farmers Home Administration "Audit Program," issued in December 1989, we have also issued a report dated January 30, 2002, on our consideration of Villa Allegra Limited Partnership's internal control and a report dated January 30, 2002, on its compliance with specific requirements applicable to Rural Housing Service Programs.  Those reports are an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

/s/ Fentress, Brown, CPAs & Associates, LLC
Certified Public Accountants
Columbus, Ohio
January 30, 2002

---

Fentress, Brown, CPAs & Associates, LLC
8001 Ravines Edge Court, Suite 112
Columbus, OH  43235-5421
PHONE:  614-825-0011
FAX:  614-825-0014

INDEPENDENT AUDITORS' REPORT
                           --------------------------------

To the Partners of                                       Rural Housing Service
Logan Place Limited Partnership                          Servicing Office
DBA Logan Place Apartments                               Marietta, Ohio
Mansfield, Ohio

We have audited the accompanying balance sheets of Logan Place Limited Partnership (a limited partnership), DBA Logan Place Apartments, Case No. 41-037-341643639, as of December 31, 2001 and 2000, and the related statements of income, changes in partners' equity (deficit) and cash flows for the years then ended.  These financial statements are the responsibility of the Partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America, Government Auditing Standards, issued by the Comptroller General of the United States, and the U.S. Department of Agriculture, Farmers Home Administration "Audit Program" issued in December, 1989.  Those standards require that we plan and perform our audits to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Logan Place Limited Partnership, DBA Logan Place Apartments, Case No. 41-037-341643639, at December 31, 2001 and 2000, and the results of its operations, changes in partners' equity (deficit),and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards and the U.S. Department of Agriculture, Farmers Home Administration "Audit Program,"issued in December 1989, we have also issued a report dated January 30, 2002, on our consideration of Logan Place Limited Partnership's internal control and a report dated January 30, 2002, on its compliance with specific requirements applicable to Rural Housing Service Programs. Those reports are an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

Fentress, Brown, CPA's & Associates, LLC
Certified Public Accountants
Columbus, Ohio
January 30, 2002

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Duggan, Joiner & Company
334 N.W. Third Avenue
Ocala, FL 34475
PHONE:  352-732-0171
FAX:  352-867-1370

INDEPENDENT AUDITORS' REPORT
                                ------------------------------

To the Partners  
Flagler Beach Villas RRH, Ltd.

We have audited the accompanying basic financial statements of Flagler Beach Villas RRH, Ltd., as of and for the years ended December 31, 2001 and 2000, as listed in the table of contents. These basic financial statements are the responsibility of the partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in  Government Auditing Standards, issued by the Comptroller General of the United States.  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the basic financial statements referred to above present fairly, in all material respects, the financial position of Flagler Beach Villas RRH, Ltd. as of December 31, 2001 and 2000 and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated January 31, 2002 on our consideration of Flagler Beach Villas RRH, Ltd.'s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants.  That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole.  The additional information presented on pages 10 to 15 is presented for the purposes of additional analysis and is not a required part of the basic financial statements.  The information on pages 10 to 14 has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.  The information on page 15, which is of a nonaccounting nature, has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and we express no opinion on it.

/s/ Duggan, Joiner & Company
Certified Public Accountants
January 31, 2002

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Smith, Lambright & Associates, P.C.
505 E. Tyler - P.O. Box 912
Athens, TX 75751
PHONE:  903-675-5674
FAX:  903-675-5676

INDEPENDENT AUDITORS' REPORT
                            ---------------------------------

To the Partners 
Elkhart Apartments Limited
700 South Palestine
Athens, Texas 75751

We have audited the accompanying Balance Sheet of the Elkhart Apartments Limited as of December 31, 2001 and 2000, and the related Statements of Income and Expenses, Changes in Partner's Equity (Deficit), and Cash Flows for the years then ended.  These financial statements are the responsibility of the Elkhart Apartments Limited's management.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America, the standards applicable to financial audits contained in  Government Auditing Standards issued by the Comptroller General of the United States and "U.S. Department of Agriculture, Farmers Home Administration - Audit Program." Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Elkhart Apartments Limited as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated February 20, 2002 on our consideration of the Elkhart Apartments Limited's compliance and on internal control over financial reporting and our tests of its compliance with certain laws, regulations, contracts and grants.  That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

Our audit was performed for the purpose of forming an opinion on the financial statements of the Elkhart Apartments Limited, taken as a whole.  The accompanying supplemental letter is presented for purposes of additional analysis and is not a required part of the financial statements.  Such information has been subjected to the auditing procedures applied in the audit of the financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the financial statements taken as a whole.

/s/ Smith, Lambright & Associates, P.C.
Certified Public Accountants
February 20, 2002

---

Smith, Lambright & Associates, P.C.
505 E. Tyler - P.O. Box 912
Athens, TX 75751
PHONE:  903-675-5674
FAX:  903-675-5676

INDEPENDENT AUDITORS' REPORT
                                -------------------------------

To the Owners
South Timber Ridge Apartments, Ltd.
700 South Palestine
Athens, Texas  75751

We have audited the accompanying Balance Sheet of South Timber Ridge Apartments, Ltd. as of December 31, 2001 and 2000, and the related Statements of Income and Expenses, Changes in Partner's Equity (Deficit), and Cash Flows for the years then ended.  These financial statements are the responsibility of South Timber Ridge Apartments, Ltd.'s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America, the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States and "U.S. Department of Agriculture, Farmers Home Administration - Audit Program."  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of South Timber Ridge Apartments, Ltd. as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated March 12, 2002 on our consideration of South Timber Ridge Apartments, Ltd.'s compliance and on internal control over financial reporting and our tests of its compliance with certain laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

Our audit was performed for the purpose of forming an opinion on the financial statements of South Timber Ridge Apartments, Ltd., taken as a whole.  The accompanying supplemental letter is presented for purposes of additional analysis and is not a required part of the financial statements.  Such information has been subjected to the auditing procedures applied in the audit of the financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the financial statements taken as a whole.

/s/ Smith, Lambright & Associates, P.C.
Certified Public Accountant
March 12, 2002

---

Smith, Lambright & Associates, P.C.
505 E. Tyler-P.O. Box 912
Athens, TX 75751
PHONE:  903-675-5674
FAX:  903-675-5676

INDEPENDENT AUDITORS' REPORT
                              ----------------------------

To the Partners
Heritage Drive South, Limited
700 South Palestine
Athens, Texas  75751

We have audited the accompanying Balance Sheet of Heritage Drive South, Limited as of December 31, 2001 and 2000, and the related Statements of Income and Expenses, Changes in Partner's Equity (Deficit), and Cash Flows for the years then ended.  These financial statements are the responsibility of Heritage Drive South, Limited's management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America, the standards applicable to financial audits contained in  Government Auditing Standards issued by the Comptroller General of the United States and "U.S. Department of Agriculture, Farmers Home Administration - Audit Program."  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Heritage Drive South, Limited as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated February 25, 2002 on our consideration of Heritage Drive South, Limited's compliance and on internal control over financial reporting and our tests of its compliance with certain laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

Our audit was performed for the purpose of forming an opinion on the financial statements of Heritage Drive South, Limited, taken as a whole. The accompanying supplemental information is presented for purposes of additional analysis and is not a required part of the financial statements.  Such information has been subjected to the auditing procedures applied in the audit of the financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the financial statements taken as a whole.

/s/ Smith, Lambright & Associates. P.C.
Certified Public Accountants
February 25, 2002

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Miller, Mayer, Sullivan & Stevens LLP
2365 Harrodsburg Rd.
Lexington, KY 40504-3399
PHONE:  859-223-3095
FAX:  859-223-2143

INDEPENDENT AUDITORS' REPORT
                           --------------------------------

To the Partners                                        Rural Development 
Goodwater Falls, Ltd.                                  London, Kentucky

We have audited the accompanying balance sheets of Goodwater Falls, Ltd., (a limited partnership) Case No. 20-067-621424606, as of December 31, 2001 and 2000 and the related statements of operations, changes in partners' equity (deficit), and cash flows for the years then ended.  These financial statements are the responsibility of the partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards for financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States.  Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Goodwater Falls, Ltd. as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated February 1, 2002 on our consideration of Goodwater Falls, Ltd.'s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants.  That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audits.

Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental data included in this report is presented for purposes of additional analysis and is not a required part of the basic financial statements.  Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements, and in our opinion, is presented fairly, in all material respects, in relation to the basic financial statements taken as a whole.

/s/ Miller, Mayer, Sullivan & Stevens, LLP
Certified Public Accountants
Lexington, Kentucky
February 1, 2002

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Lou Ann Montey and Associates, P.C.
8400 N. Mopac Expressway, Suite 304
Austin, TX  78759
PHONE  512-338-0044
FAX  512-338-5395

INDEPENDENT AUDITORS' REPORT
                                --------------------------------

To The Partners 
Frankston Retirement, Ltd. - (A Texas Limited Partnership)
Burnet, Texas

We have audited the accompanying balance sheets of Frankston Retirement Ltd. - (A Texas Limited Partnership) as of December 31, 2001 and 2000, and the related statements of income (loss), partners' equity, and cash flows for the years then ended.  These financial statements are the responsibility of the Partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audit in accordance with Generally Accepted Auditing Standards and Government Auditing Standards as issued by the Comptroller General of the United States and the U.S. Department of Agriculture, Farmers Home Administration Audit Program.  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above presents fairly, in all material respects, the financial position of Frankston Retirement, Ltd. - (A Texas Limited Partnership) as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the year then ended in conformity with Generally Accepted Accounting Principles.

In accordance with Government Auditing Standards, we have also issued a report dated January 21, 2002, on our consideration of the internal control structure of Frankston Retirement, Ltd. - (A Texas Limited Partnership) and a report dated January 21, 2002, on its compliance with laws and regulations.

Lou Ann Montey and Associates, P.C.
Certified Public Accountants
Austin, Texas
January 21, 2002

---

Lou Ann Montey and Associates, P.C.
8400 N. Mopac Expressway, Suite 304
Austin, TX   78759
PHONE  512-338-0043154
FAX  512-338-5395

INDEPENDENT AUDITORS' REPORT
                              ------------------------------

To The Partners
Wallis Housing, Ltd. - (A Texas Limited Partnership)
Burnet, Texas

We have audited the accompanying balance sheets of Wallis Housing, Ltd. - (A Texas Limited Partnership) as of December 31, 2001 and 2000, and the related statements of income (loss), partners' equity (deficit), and cash flows for the years then ended.  These financial statements are the responsibility of the Partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with Generally Accepted Auditing Standards and Government Auditing Standards as issued by the Comptroller General of the United States and the U.S. Department of Agriculture, Farmers Home Administration Audit Program.  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above presents fairly, in all material respects, the financial position of Wallis Housing, Ltd. - (A Texas Limited Partnership) as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with Generally Accepted Accounting Principles.

In accordance with Government Auditing Standards, we have also issued a report dated January 23, 2002, on our consideration of the internal control structure of Wallis Housing, Ltd. - (A Texas Limited Partnership) and a report dated January 23, 2002, on its compliance with laws and regulations.

Lou Ann Montey and Associates, P.C.
Certified Public Accountants
Austin, Texas
January 23, 2002

---

Lou Ann Montey and Associates, P.C.
8400 N. Mopac Expressway, Suite 304
Austin,  TX  78759
PHONE  512-338-0044
FAX  512-338-5395

INDEPENDENT AUDITORS' REPORT
                            ------------------------------

To The Partners
Menard Retirement, Ltd. - (A Texas Limited Partnership)
Burnet,  Texas

We have audited the accompanying balance sheets of Menard Retirement, Ltd. - (A Texas Limited Partnership) as of December 31, 2001 and 2000 and the related statements of income (loss), partners' equity and cash flows for the years then ended.  These financial statements are the responsibility of the Partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audits in accordance with Generally Accepted Auditing Standards and Government Auditing Standards as issued by the Comptroller General of the United States and the U.S. Department of Agriculture, Farmers Home Administration Audit Program.  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above presents fairly, in all material respects, the financial position of Menard Retirement, Ltd. - (A Texas Limited Partnership) as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with Generally Accepted Accounting Principles.

In accordance with Government Auditing Standards, we have also issued a report dated January 22, 2002, on our consideration of the internal control structure of Menard Retirement, Ltd. - (A Texas Limited Partnership) and a report dated January 22, 2002, on its compliance with laws and regulations.

Lou Ann Montey and Associates, P.C.
Certified Public Accountants  
Austin,  Texas
January 22, 2002

---

Lou Ann Montey and Associates, P.C.
8400 N. Mopac Expressway, Suite 304
Austin,  TX   78759
PHONE  512-338-0044
FAX  512-338-5395

INDEPENDENT AUDITORS' REPORT
                            -------------------------------

To The Partners
Sinton Retirement, Ltd. - (A Texas Limited Partnership)
Burnet,  Texas

We have audited the accompanying balance sheets of Sinton Retirement, Ltd. - (A Texas Limited Partnership) as of December 31, 2001 and 2000 and the related statements of income (loss), partners' equity and cash flows for the years then ended.  These financial statements are the responsibility of the Partnership's management.  Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audits in accordance with Generally Accepted Auditing Standards and Government Auditing Standards as issued by the Comptroller General of the United States and the U.S. Department of Agriculture, Farmers Home Administration Audit Program.  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above presents fairly, in all material respects, the financial position of Sinton Retirement, Ltd. - (A Texas Limited Partnership) as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with Generally Accepted Accounting Principles.

In accordance with Government Auditing Standards, we have also issued a report dated January 19, 2002, on our consideration of the internal control structure of Sinton Retirement, Ltd. - (A Texas Limited Partnership) and a report dated January 19, 2002, on its compliance with laws and regulations.

Lou Ann Montey and Associates, P.C.
Certified Public Accountants  
Austin,  Texas
January 19, 2002

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Item 9.   Disagreements on Accounting and Financial Disclosures          None.

PART III

Item 10.  Directors and Executive Officers of Gateway  Gateway has no directors or executive officers.  Gateway's affairs are managed and controlled by the Managing General Partner.  Certain information concerning the directors and officers of the Managing General Partner are set forth below.
Raymond James Tax Credit Funds, Inc. - Managing General Partner
  Raymond James Tax Credit Funds, Inc. is the Managing General Partner and is responsible for decisions pertaining to the acquisition and sale of Gateway's interests in the Project Partnerships and other matters related to the business operations of Gateway.  The officers and directors of the Managing General Partner are as follows:

Ronald M. Diner, age 58, is President and a Director.  He is a Senior Vice President of Raymond James & Associates, Inc., with whom he has been employed since June 1983.  Mr. Diner received an MBA degree from Columbia University (1968) and a BS degree from Trinity College (1966).  Prior to joining Raymond James & Associates, Inc., he managed the broker-dealer activities of Pittway Real Estate, Inc., a real estate development firm. He was previously a loan officer at Marine Midland Realty Credit Corp., and spent three years with Common, Dann & Co., a New York regional investment firm.  He has served as a member of the Board of Directors of the Council for Rural Housing and Development, a national organization of developers, managers and syndicators of properties developed under the RECD Section 515 program, and is a member of the Board of Directors of the Florida Council for Rural Housing and Development.  Mr. Diner  has been a speaker and panel member at state and national seminars relating to the low-income housing credit.
J. Davenport Mosby, age 46, is a Vice President and a Director.  He is a Senior Vice President of Raymond James & Associates, Inc. which he joined in 1982.  Mr. Mosby received an MBA from the Harvard Business School (1982).  He graduated magna cum laude with a BA from Vanderbilt University where he was elected to Phi Beta Kappa.
Sandra L. Furey, age 40, is Secretary, Treasurer.  Ms. Furey has been employed by Raymond James & Associates, Inc. since 1980 and currently serves as Closing Administrator for the Gateway Tax Credit Funds.

Raymond James Partners, Inc. -
   Raymond James Partners, Inc. has been formed to act as the general partner, with affiliated corporations, in limited partnerships sponsored by Raymond James Financial, Inc.  Raymond James Partners, Inc. is a general partner for purposes of assuring that Gateway and other partnerships sponsored by affiliates have sufficient net worth to meet the minimum net worth requirements of state securities administrators.

Information regarding the officers and directors of Raymond James Partners, Inc. is included on pages 58 and 59 of the Prospectus under the section captioned "Management" (consisting of pages 56 through 59 of the Prospectus) which is incorporated herein by reference.

---

Item 11.  Executive Compensation  Gateway has no directors or officers.
Item 12.  Security Ownership of Certain Beneficial Owners and Management  Neither of the General Partners nor their directors and officers own any units of the outstanding securities of Gateway as of March 31, 2002.
  Gateway is a Limited Partnership and therefore does not have voting shares of stock.  To the knowledge of Gateway, no person owns of record or beneficially, more than 5% of Gateway's outstanding units.
Item 13.  Certain Relationships and Related Transactions  Gateway has no officers or directors.  However, various kinds of compensation and fees are payable to the General Partners and their affiliates during the organization and operations of Gateway.  Additionally, the General Partners will receive distributions from Gateway if there is cash available for distribution or residual proceeds as defined in the Partnership Agreement.  The amounts and kinds of compensation and fees are described on pages 15 to 18 of the Prospectus under the caption "Management Compensation", which is incorporated herein by reference.
  The Payable to General Partners primarily represents the asset management fees owed to the General Partners at the end of the period.  It is unsecured, due on demand and, in accordance with the limited partnership agreement, non-interest bearing.  Within the next 12 months, the Managing General Partner does not intend to demand payment on the portion of Asset Management Fees payable classified as long-term on the Balance Sheet.
  The Payable to Project Partnerships represents unpaid capital contributions to the Project Partnerships and will be paid after certain performance criteria are met.  Such contributions are in turn payable to the general partner of the Project Partnerships.
  For the years ended March 31, 2002, 2001 and 2000 the General Partners and affiliates are entitled to compensation and reimbursement for costs and expenses incurred by Gateway as follows:

---

Asset Management Fee - The Managing General Partner is entitled to be paid an annual asset management fee equal to 0.25% of the aggregate cost of Gateway's interest in the projects owned by the Project Partnerships.  The asset management fee will be paid only after all other expenses of Gateway have been paid.  These fees are included in the Statements of Operations.

|         | 2002
----              | 2001
----              | 2000
----             
|-------- | ---------------------- | ---------------------- | ----------------------
|Series 2 | $   68,197             | $   68,361             | $   68,511            
|Series 3 | 62,892                 | 63,104                 | 63,301                
|Series 4 | 77,474                 | 77,661                 | 77,832                
|Series 5 | 95,755                 | 96,008                 | 96,241                
|Series 6 | 105,753
-----------    | 106,125
-----------    | 106,486
-----------   
|Total    | $  410,071
=========== | $  411,259
=========== | $  412,371
===========
|         |                        |                        |                       

General and Administrative Expenses - The Managing General Partner is reimbursed for general and administrative expenses of Gateway on an accountable basis.  This expense is included in the Statements of Operations.

|         | 2002
----        | 2001
----        | 2000
----       
|-------- | ---------------- | ---------------- | ----------------
|Series 2 | $  11,737        | $   9,149        | $   8,181       
|Series 3 | 12,271           | 9,565            | 8,552           
|Series 4 | 15,471           | 12,060           | 10,779          
|Series 5 | 19,205           | 14,972           | 13,386          
|Series 6 | 20,272
--------- | 15,803
--------- | 14,130
---------
|         | $  78,956        | $  61,549        | $  55,028       
|Total    | =========        | =========        | =========       

---

PART IV

Item 14. Exhibits, Financial Statement Schedules and Reports on Form 8-Ka.(1) Financial Statements 
  (2) Financial Statement Schedules - 
  Schedule III - Real Estate and Accumulated Depreciation of Property Owned by Project Partnerships
  All other schedules are omitted because they are not applicable or not required, or because the required information is shown either in the financial statements or in the notes thereto.
  (3) Exhibit Index -
  The following are included with Form S-11, Registration No. 33-31821 and amendments and supplements thereto previously filed with the Securities and Exchange Commission.

TableNumber

1.1 Form of Dealer Manager Agreement, including Soliciting Dealer
                    Agreement

1.2 Escrow Agreement between Gateway Tax Credit Fund II Ltd. and
                    Southeast
Bank, NA

3.1 The form of Partnership Agreement of the Partnership is
                   
included as Exhibit "A" to the Prospectus

3.1.1 Certificate of Limited Partnership of Gateway Tax Credit
                   
Fund II Ltd.

3.1.2 Amendment to Certificate of Limited Partnership of Gateway
                   
Tax Credit Fund II Ltd.

3.2		Articles of Incorporation of Raymond James Partners, Inc.

3.2.1	Bylaws of Raymond James Partners, Inc.

3.3		Articles of Incorporation of Raymond James Tax Credit Funds, Inc.

3.3.1	Bylaws of Raymond James Tax Credit Funds, Inc.

3.4		Amended and Restated Agreement of Limited Partnership of Nowata Properties, An Oklahoma Limited Partnership

3.5		Amended and Restated Agreement of Limited Partnership of Poteau Properties II, An Oklahoma Limited Partnership

3.6		Amended and Restated Agreement of Limited Partnership of Sallisaw Properties, An Oklahoma Limited Partnership

3.7		Amended and Restated Agreement of Limited Partnership of Waldron Properties, An Arkansas Limited Partnership

3.8		Amended and Restated Agreement of Limited Partnership of Roland Properties II, An Oklahoma Limited Partnership

3.9		Amended and Restated Agreement of Limited Partnership of Stilwell Properties, An Oklahoma Limited Partnership

3.10		Amended and Restated Agreement of Limited Partnership of Birchwood Apartments Limited Partnership

3.11		Amended and Restated Agreement of Limited Partnership of Sunchase II, Ltd.

3.12		Amended and Restated Agreement of Limited Partnership of Hornellsville Apartments

3.13		Amended and Restated Agreement of Limited Partnership of CE McKinley II Limited Partnership

3.14		Amended and Restated Agreement of Limited Partnership of Hartwell Family, Ltd., L.P.

3.15		Amended and Restated Agreement of Limited Partnership of Deerfield II Ltd., L.P.

3.16		Amended and Restated Agreement of Limited Partnership of Claxton Elderly, Ltd., L.P.

3.17		Amended and Restated Agreement of Limited Partnership of Inverness Club, Ltd., L.P.

3.18		Amended and Restated Agreement of Limited Partnership of Lake Park Ltd., L.P.

3.19		Amended and Restated Agreement of Limited Partnership of Lakeland Elderly Apartments, Ltd., L.P.

3.20		Amended and Restated Agreement of Limited Partnership of Mt. Vernon Elderly Housing, Ltd., L.P.

3.21		Amended and Restated Agreement of Limited Partnership of Pearson Elderly Housing, Ltd., L.P.

3.22		Amended and Restated Agreement of Limited Partnership of Woodland Terrace Apartments, Ltd., L.P.

3.23		Amended and Restated Agreement of Limited Partnership of Richland Elderly Housing, Ltd., L.P.

3.24		Amended and Restated Agreement of Limited Partnership of Lakeshore Apartments Limited Partnership

3.25		Amended and Restated Agreement of Limited Partnership of Lewiston Limited Partnership

3.26		Amended and Restated Agreement of Limited Partnership of Springwood Apartments Limited Partnership

3.27		Amended and Restated Agreement of Limited Partnership of Cherrytree Apartments Limited Partnership

3.28		Amended and Restated Agreement of Limited Partnership of Charleston Properties, An Arkansas Limited Partnership

3.29		Amended and Restated Agreement of Limited Partnership of Sallisaw Properties II, An Oklahoma Limited Partnership

3.30		Amended and Restated Agreement of Limited Partnership of Pocola Properties, An Oklahoma Limited Partnership

3.31		Amended and Restated Agreement of Limited Partnership of Prairie Apartments Limited Partnership

3.32		Amended and Restated Agreement of Limited Partnership of Manchester Housing, Ltd., L.P.

3.33		Amended and Restated Agreement of Limited Partnership of Sylacauga Heritage Apartments, Ltd.

3.34		Amended and Restated Agreement of Limited Partnership of Durango C.W.W. Limited Partnership

3.35		Amended and Restated Agreement of Limited Partnership of Alsace Village Limited Partnership

3.36		Amended and Restated Agreement of Limited Partnership of Seneca Apartments, L.P.

3.37		Amended and Restated Agreement of Limited Partnership of Westville Properties, a Limited Partnership

3.38		Amended and Restated Agreement of Limited Partnership of Stilwell Properties II, Limited Partnership

3.39		Amended and Restated Agreement of Limited Partnership of  Wellsville Senior Housing, L.P.

3.40		Amended and Restated Agreement of Limited Partnership of Spring Hill Senior Housing, L.P.

3.41		Amended and Restated Agreement of Limited Partnership of Eudora Senior Housing, L.P.

3.42		Amended and Restated Agreement of Limited Partnership of Smithfield Greenbriar Limited Partnership

3.43		Amended and Restated Agreement of Limited Partnership of Tarpon Heights Apartments, A Louisiana Partnership in Commendam

3.44		Amended and Restated Agreement of Limited Partnership of Oaks Apartments, A Louisiana Partnership in Commendam

3.45		Amended and Restated Agreement of Limited Partnership of Countrywood Apartments, Limited

3.46		Amended and Restated Agreement of Limited Partnership of Weston Apartments

3.47		Amended and Restated Agreement of Limited Partnership of Wildwood Apartments, Limited

3.48		Amended and Restated Agreement of Limited Partnership of Hopkins Properties, Limited

3.49		Amended and Restated Agreement of Limited Partnership of Hancock Properties, Limited

3.50		Amended and Restated Agreement of Limited Partnership of Southwood, L.P.

3.51		Amended and Restated Agreement of Limited Partnership of Belmont Senior Apts., Ltd.

3.52		Amended and Restated Agreement of Limited Partnership of Elkhart Apts., Ltd.

3.53		Amended and Restated Agreement of Limited Partnership of Bryan Senior Village Limited Partnership

3.54		Amended and Restated Agreement of Limited Partnership of Brubaker Square Limited Partnership

3.55		Amended and Restated Agreement of Limited Partnership of Villa Allegra Limited Partnership

3.56		Amended and Restated Agreement of Limited Partnership of Heritage Villas, L.P.

3.57		Amended and Restated Agreement of Limited Partnership of Logansport Seniors Apts., a Louisiana Partnership Commendam

3.58		Amended and Restated Agreement of Limited Partnership of Wynnwood Common Associates

3.59		Amended and Restated Agreement of Limited Partnership of Piedmont Development Company of Lamar County, Ltd., (L.P.)

3.60		Amended and Restated Agreement of Limited Partnership of Sonora Seniors Apts., Ltd.

3.61		Amended and Restated Agreement of Limited Partnership of Fredericksburg Seniors, Ltd.

3.62		Amended and Restated Agreement of Limited Partnership of Ozona Seniors, Ltd.

3.63		Amended and Restated Agreement of Limited Partnership of Brackettville Seniors, Ltd.

3.64		Amended and Restated Agreement of Limited Partnership of Timpson Seniors Apartments, Ltd.

3.65		Amended and Restated Agreement of Limited Partnership of Chestnut Apartments Limited Partnership

3.66		Amended and Restated Agreement of Limited Partnership of Jasper Villas Apartments Limited Partnership

3.67		Amended and Restated Agreement of Limited Partnership of Norton Green Limited Partnership

3.68		Amended and Restated Agreement of Limited Partnership of Jonesville Manor Limited Partnership

3.69		Amended and Restated Agreement of Limited Partnership of Edmonton Senior, Ltd.

3.70		Amended and Restated Agreement of Limited Partnership of Owingsville Senior, Ltd.

3.71		Amended and Restated Agreement of Limited Partnership of Courtyard, Ltd.

3.72		Amended and Restated Agreement of Limited Partnership of Rural Development Group

3.73		Amended and Restated Agreement of Limited Partnership of Williston Properties, A Limited Partnership

3.74		Amended and Restated Agreement of Limited Partnership of  St. George Properties, A Limited Partnership

3.75		Amended and Restated Agreement of Limited Partnership of Village Apartments of St. Joseph II Limited Partnership

3.76		Amended and Restated Agreement of Limited Partnership of  Village Apartments of Effingham Limited Partnership

3.77		Amended and Restated Agreement of Limited Partnership of Village Apartments of Seymour II, L.P.

3.78		Amended and Restated Agreement of Limited Partnership of Country Place Apartments - Portland II, Ltd.

3.79		Amended and Restated Agreement of Limited Partnership of Country Place Apartments - Georgetown Limited Partnership

3.80		Amended and Restated Agreement of Limited Partnership of South Timber Ridge Apts., Ltd.

3.81		Amended and Restated Agreement of Limited Partnership of Cloverdale RRH Assoc.

3.82		Amended and Restated Agreement of Limited Partnership of Shannon Apartments Limited Partnership

3.83		Amended and Restated Agreement of Limited Partnership of Spruce Apartments Limited Partnership

3.84		Amended and Restated Agreement of Limited Partnership of Carthage Senior, L.P.

3.85		Amended and Restated Agreement of Limited Partnership of Ehrhardt Place Limited Partnership

3.86		Amended and Restated Agreement of Limited Partnership of Country Place Apartments - Coal City, Limited Partnership

5.1O		Opinion regarding legality of Honigman Miller Schwartz and Cohn

5.1.1	Opinion regarding legality of Riden, Earle & Kiefner, PA

8.1		Tax opinion and consent of Honigman Miller Schwartz and Cohn

8.1.1	Tax opinion and consent of Riden, Earle & Kiefner, PA

24.1		The consent of Spence, Marston & Bunch

24.2		The consent of Spence, Marston, Bunch, Morris Co. appears on page II-7

24.3		The consent of Goddard, Henderson, Godbee & Nichols, PC with respect to the financial statements of Lake Park Apartments, Ltd.

24.4		The consent of Goddard, Henderson, Godbee & Nichols, PC with respect to the financial statements of Richland Elderly Housing, Ltd.

24.5		The consent of Goddard, Henderson, Godbee & Nichols, PC with respect to the financial statements of Pearson Elderly Housing, Ltd.

24.6		The consent of Goddard, Henderson, Godbee & Nichols, PC with respect to Mt. Vernon Elderly Housing, Ltd.

24.7		The consent of Goddard, Henderson, Godbee & Nichols, PC with respect to the financial statements of Woodland Terrace Apartments, Ltd.

24.8		The consent of Goddard, Henderson, Godbee & Nichols, PC with respect to the financial statements of Lakeland Elderly Housing, Ltd.

24.9		The consent of Grana & Teibel, PC with respect to Lewiston LP

24.10	The consent of Beall & Company with respect to Nowata Properties

24.11	The consent of Beall & Company with respect to Sallisaw Properties

24.12	The consent of Beall & Company with respect to Poteau Properties II

24.13	The consent of Beall & Company with respect to Charleston Properties

24.14	The consent of Beall & Company with respect to Roland Properties II

24.15	The consent of Beall & Company with respect to Stilwell Properties

24.16	The consent of Donald W. Causey, CPA, PC

24.17	The consent of Charles Bailly & Company, CPA

24.18	The consent of Honigman Miller Schwartz and Cohn to all references made to them in the Prospectus included as a part of the Registration Statement of Gateway Tax Credit Fund II Ltd., and all amendments thereto

24.18.1	The consent of Riden, Earle, & Kiefner, PA to all references made to them in the Prospectus included as a part of the Registration Statement of Gateway Tax Credit Fund II Ltd., and all amendments thereto is included in Exhibit 8.1.1.

28.1		Table VI (Acquisition of Properties by Program) of Appendix II to Industry Guide 5, Preparation of Registration Statements Relating to Interests in Real Estate Limited Partnerships

b.	Reports filed on Form 8-K - NONE

---

GATEWAY TAX CREDIT FUND II LTD.
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
OF PROPERTY OWNED BY PROJECT PARTNERSHIPS INVESTED IN
AS OF DECEMBER 31, 2001
SERIES 2

|Apartment Properties
Partnership
-----------                                                                                                                                                                                                                                                                                              | Location
--------                                                                                                                                                                                                                                                                                    | # of Units
----------                                             | Mortgage
Loan Balance
-------------                                                                                                                                                              
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Claxton Elderly
Deerfield II
Hartwell Family
Cherrytree Apts.
Springwood Apts.
Lakeshore Apts.
Lewiston
Charleston
Sallisaw II
Pocola
Inverness Club
Pearson Elderly
Richland Elderly
Lake Park
Woodland Terrace
Mt. Vernon Elderly
Lakeland Elderly
Prairie Apartments
Sylacauga Heritage
Manchester Housing
Durango C.W.W.
Columbus Sr. | Claxton, GA
Douglas, GA
Hartwell, GA
Albion, PA
Westfield, NY
Tuskegee, AL
Lewiston, NY
Charleston, AR
Sallisaw, OK
Pocola, OK
Inverness, FL
Pearson, GA
Richland, GA
Lake Park, GA
Waynesboro, GA
Mt. Vernon, GA
Lakeland, GA
Eagle Butte, SD
Sylacauga, AL
Manchester, GA
Durango, CO
Columbus, KS | 24
24
24
33
32
34
25
32
47
36
72
25
33
48
30
21
29
21
44
49
24
16 | $654,836698,317
701,746
1,193,657
1,246,373
1,048,424
994,851
838,904
1,191,103
982,353
2,972,269
625,595
863,115
1,478,242
883,129
571,164
776,790
971,154
1,378,671
1,449,516
1,029,067
434,660
|                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                      |                                                                   | ------------                                                                                                                                                                                     
|                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                      |                                                                   | $22,983,936                                                                                                                                                                                      
|                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                      |                                                                   | ============                                                                                                                                                                                     

---

GATEWAY TAX CREDIT FUND II LTD.
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
OF PROPERTY OWNED BY PROJECT PARTNERSHIPS INVESTED IN
AS OF DECEMBER 31, 2001
SERIES 2

|Apartment Properties                                                                                                                                                                                                                                                                                                                      | Cost At Acquisition
--------------------                                                                                                                        |                                                                                                                                                                                                                  
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Partnership
-----------                                                                                                                                                                                                                                                                                                                   | Land
----                                                                                                                                                       | Buildings,
Improvements
and Equipment
-------------                                                                                                                                                              
|Claxton Elderly
Deerfield II
Hartwell Family
Cherrytree Apts.
Springwood Apts.
Lakeshore Apts.
Lewiston
Charleston
Sallisaw II
Pocola
Inverness Club
Pearson Elderly
Richland Elderly
Lake Park
Woodland Terrace
Mt. Vernon Elderly
Lakeland Elderly
Prairie Apartments
Sylacauga Heritage
Manchester Housing
Durango C.W.W.
Columbus Sr. | $   33,400
33,600
22,700
62,000
21,500
28,600
38,400
16,000
37,500
22,500
205,500
15,000
31,500
88,000
36,400
21,750
28,000
66,500
66,080
36,000
140,250
64,373 | $   766,138
820,962
836,998
1,376,297
1,451,283
1,238,749
1,178,185
1,060,098
1,480,089
1,223,370
3,111,565
767,590
1,027,512
1,710,725
1,047,107
680,437
930,574
1,150,214
1,648,081
1,746,076
1,123,454
444,257
|                                                                                                                                                                                                                                                                                                                                          | -----------                                                                                                                                                     | ------------                                                                                                                                                                                                     
|                                                                                                                                                                                                                                                                                                                                          | $1,115,553                                                                                                                                                      | $26,819,761                                                                                                                                                                                                      
|                                                                                                                                                                                                                                                                                                                                          | ===========                                                                                                                                                     | ============                                                                                                                                                                                                     

---

GATEWAY TAX CREDIT FUND II LTD.
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
OF PROPERTY OWNED BY PROJECT PARTNERSHIPS INVESTED IN
AS OF DECEMBER 31, 2001
SERIES 2

|Apartment Properties                                                                                                                                                                                                                                                                                                                      | Gross Amount At Which Carried At December 31, 2001
--------------------                                                                                        
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------
|Partnership
-----------                                                                                                                                                                                                                                                                                                                   | Land
----                                                                                                                                                      
|Claxton Elderly
Deerfield II
Hartwell Family
Cherrytree Apts.
Springwood Apts.
Lakeshore Apts.
Lewiston
Charleston
Sallisaw II
Pocola
Inverness Club
Pearson Elderly
Richland Elderly
Lake Park
Woodland Terrace
Mt. Vernon Elderly
Lakeland Elderly
Prairie Apartments
Sylacauga Heritage
Manchester Housing
Durango C.W.W.
Columbus Sr. | $    33,40033,600
22,700
62,000
24,017
28,600
38,400
16,000
37,500
22,500
205,500
15,000
31,500
88,000
36,400
21,750
28,000
81,240
66,080
36,000
140,250
69,207
|                                                                                                                                                                                                                                                                                                                                          | -----------                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                                                          | $1,137,644                                                                                                                                                     
|                                                                                                                                                                                                                                                                                                                                          | ===========                                                                                                                                                    

---

GATEWAY TAX CREDIT FUND II LTD.
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
OF PROPERTY OWNED BY PROJECT PARTNERSHIPS INVESTED IN
AS OF DECEMBER 31, 2001
SERIES 2

|Apartment Properties
Partnership
-----------                                                                                                                                                                                                                                                                                              | Accumulated Depreciation
------------------------                                                                                                                                   | Depreciable Life
----------------                                                                                          
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------
|Claxton Elderly
Deerfield II
Hartwell Family
Cherrytree Apts.
Springwood Apts.
Lakeshore Apts.
Lewiston
Charleston
Sallisaw II
Pocola
Inverness Club
Pearson Elderly
Richland Elderly
Lake Park
Woodland Terrace
Mt. Vernon Elderly
Lakeland Elderly
Prairie Apartments
Sylacauga Heritage
Manchester Housing
Durango C.W.W.
Columbus Sr. | $  320,807344,621
353,767
403,122
459,762
382,388
337,147
501,703
681,411
516,715
1,300,659
297,053
392,152
687,751
403,019
263,492
356,047
401,579
527,579
659,664
346,629
215,653 | 5-27.5
5-27.5
5-27.5
5-27.5
5-40
5-40
5-40
5-25
5-25
5-27.5
5-27.5
5-30
5-30
5-30
5-30
5-30
5-30
5-40
5-40
5-30
5-40
5-27.5
|                                                                                                                                                                                                                                                                                                                                          | -----------                                                                                                                                                                         |                                                                                                                            
|                                                                                                                                                                                                                                                                                                                                          | $10,152,720                                                                                                                                                                         |                                                                                                                            
|                                                                                                                                                                                                                                                                                                                                          | ===========                                                                                                                                                                         |                                                                                                                            

---

GATEWAY TAX CREDIT FUND II LTD.
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
OF PROPERTY OWNED BY PROJECT PARTNERSHIPS INVESTED IN
AS OF DECEMBER 31, 2001
SERIES 3

|Apartment Properties
Partnership
-----------                                                                                                                                                                                                                                                                                | Location
--------                                                                                                                                                                                                                                                                                           | # of Units
----------                                                | Mortgage
Loan Balance
-------------                                                                                                                                                                          
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Poteau II
Sallisaw
Nowata Properties
Waldron Properties
Roland II
Stilwell
Birchwood Apts.
Hornellsville
Sunchase II
CE McKinley II
Weston Apartments
Countrywood Apts.
Wildwood Apts.
Hancock
Hopkins
Elkhart Apts.
Bryan Senior
Brubaker Square
Southwood
Villa Allegra
Belmont Senior
Heritage Villas
Logansport Seniors | Poteau, OK
Sallisaw, OK
Oolagah, OK
Waldron, AR
Roland, OK
Stilwell, OK
Pierre, SD
Arkport, NY
Watertown, SD
Rising Sun, MD
Weston, AL
Centreville, AL
Pineville, LA
Hawesville, KY
Madisonville, KY
Elkhart, TX
Bryan, OH
New Carlisle, OH
Savannah, TN
Celina, OH
Cynthiana, KY
Helena, GA
Logansport, LA | 52
52
32
24
52
48
24
24
41
16
10
40
28
12
24
54
40
38
44
32
24
25
32 | $  1,295,4951,306,175
853,217
636,736
1,304,922
1,187,075
784,861
890,362
1,186,391
605,878
273,170
1,193,596
845,422
362,196
741,343
1,131,898
1,071,335
1,111,052
1,480,686
893,399
759,179
674,855
893,674
|                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                             |                                                                      | ------------                                                                                                                                                                                                 
|                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                             |                                                                      | $21,482,917                                                                                                                                                                                                  
|                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                             |                                                                      | ============                                                                                                                                                                                                 

---

GATEWAY TAX CREDIT FUND II LTD.
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
OF PROPERTY OWNED BY PROJECT PARTNERSHIPS INVESTED IN
AS OF DECEMBER 31, 2001
SERIES 3

|Apartment Properties                                                                                                                                                                                                                                                                                                        | Cost At Acquisition
--------------------                                                                                                                          |                                                                                                                                                                                                                        
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Partnership
-----------                                                                                                                                                                                                                                                                                                     | Land
----                                                                                                                                                         | Buildings,
Improvements
and Equipment
-------------                                                                                                                                                                    
|Poteau II
Sallisaw
Nowata Properties
Waldron Properties
Roland II
Stilwell
Birchwood Apts.
Hornellsville
Sunchase II
CE McKinley II
Weston Apartments
Countrywood Apts.
Wildwood Apts.
Hancock
Hopkins
Elkhart Apts.
Bryan Senior
Brubaker Square
Southwood
Villa Allegra
Belmont Senior
Heritage Villas
Logansport Seniors | $   76,827
70,000
45,500
26,000
70,000
37,500
116,740
41,225
113,115
11,762
0
55,750
48,000
20,700
43,581
35,985
74,000
75,000
15,000
35,000
43,600
21,840
27,621 | $ 1,712,321
1,674,103
1,102,984
834,273
1,734,010
1,560,201
885,923
1,018,523
1,198,373
745,635
339,144
1,447,439
1,018,897
419,725
885,087
1,361,096
1,102,728
1,376,075
1,769,334
1,097,214
891,543
801,128
1,058,773
|                                                                                                                                                                                                                                                                                                                            | -----------                                                                                                                                                       | ------------                                                                                                                                                                                                           
|                                                                                                                                                                                                                                                                                                                            | $1,104,746                                                                                                                                                        | $26,034,529                                                                                                                                                                                                            
|                                                                                                                                                                                                                                                                                                                            | ===========                                                                                                                                                       | ============                                                                                                                                                                                                           

---

GATEWAY TAX CREDIT FUND II LTD.
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
OF PROPERTY OWNED BY PROJECT PARTNERSHIPS INVESTED IN
AS OF DECEMBER 31, 2001
SERIES 3

|Apartment Properties                                                                                                                                                                                                                                                                                                        | Gross Amount At Which Carried At December 31, 2001
--------------------                                                                                          
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------
|Partnership
-----------                                                                                                                                                                                                                                                                                                     | Land
----                                                                                                                                                        
|Poteau II
Sallisaw
Nowata Properties
Waldron Properties
Roland II
Stilwell
Birchwood Apts.
Hornellsville
Sunchase II
CE McKinley II
Weston Apartments
Countrywood Apts.
Wildwood Apts.
Hancock
Hopkins
Elkhart Apts.
Bryan Senior
Brubaker Square
Southwood
Villa Allegra
Belmont Senior
Heritage Villas
Logansport Seniors | $   76,82770,000
45,500
26,000
70,000
37,500
125,832
41,225
113,115
11,749
0
55,750
48,000
20,700
43,581
159,682
74,000
75,000
15,000
35,000
43,600
21,840
27,621
|                                                                                                                                                                                                                                                                                                                            | -----------                                                                                                                                                      
|                                                                                                                                                                                                                                                                                                                            | $1,237,522                                                                                                                                                       
|                                                                                                                                                                                                                                                                                                                            | ===========                                                                                                                                                      

---

GATEWAY TAX CREDIT FUND II LTD.
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
OF PROPERTY OWNED BY PROJECT PARTNERSHIPS INVESTED IN
AS OF DECEMBER 31, 2001
SERIES 3

|Partnership
-----------                                                                                                                                                                                                                                                                                                     | Accumulated Depreciation
------------------------                                                                                                                                            | Depreciable Life
----------------                                                                                                   
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------
|Poteau II
Sallisaw
Nowata Properties
Waldron Properties
Roland II
Stilwell
Birchwood Apts.
Hornellsville
Sunchase II
CE McKinley II
Weston Apartments
Countrywood Apts.
Wildwood Apts.
Hancock
Hopkins
Elkhart Apts.
Bryan Senior
Brubaker Square
Southwood
Villa Allegra
Belmont Senior
Heritage Villas
Logansport Seniors | $     943,917892,905
579,856
438,232
950,139
846,279
370,117
529,902
496,754
400,649
174,434
732,745
456,641
175,114
368,683
711,408
599,840
674,125
741,962
556,679
266,720
316,101
290,330 | 5-25
5-25
5-25
5-25
5-25
5-25
5-40
5-27.5
5-40
5-27.5
5-27.5
5-27.5
5-30
5-27.5
5-27.5
5-25
5-27.5
5-27.5
5-50
5-27.5
5-40
5-30
5-40
|                                                                                                                                                                                                                                                                                                                            | -----------                                                                                                                                                                                  |                                                                                                                                     
|                                                                                                                                                                                                                                                                                                                            | $12,513,532                                                                                                                                                                                  |                                                                                                                                     
|                                                                                                                                                                                                                                                                                                                            | ===========                                                                                                                                                                                  |                                                                                                                                     

---

GATEWAY TAX CREDIT FUND II LTD.
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
OF PROPERTY OWNED BY PROJECT PARTNERSHIPS INVESTED IN
AS OF DECEMBER 31, 2001
SERIES 4

|Apartment Properties
Partnership
-----------                                                                                                                                                                                                                                                                                                                                                                                                     | Location
--------                                                                                                                                                                                                                                                                                                                                                                                             | # of Units
----------                                                                  | Mortgage
Loan Balance
-------------                                                                                                                                                                                                                          
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Alsace Village
Seneca Apartments
Eudora Senior
Westville
Wellsville Senior
Stilwell II
Spring Hill Senior
Smithfield
Tarpon Heights
Oaks Apartments
Wynnwood Common
Chestnut Apartments
St. George
Williston
Brackettville Sr.
Sonora Seniors
Ozona Seniors
Fredericksburg Sr.
St. Joseph
Courtyard
Rural Development
Jasper Villas
Edmonton Senior
Jonesville Manor
Norton Green
Owingsville Senior
Timpson Seniors
Piedmont
S.F. Arkansas City | Soda Springs, ID
Seneca, MO
Eudora, KS
Westville, OK
Wellsville, KS
Stilwell, OK
Spring Hill, KS
Smithfield, UT
Galliano, LA
Oakdale, LA
Fairchance, PA
Howard, SD
St. George, SC
Williston, SC
Brackettville, TX
Sonora, TX
Ozona, TX
Fredericksburg,TX
St. Joseph, IL
Huron, SD
Ashland, ME
Jasper, AR
Edmonton, KY
Jonesville, VA
Norton, VA
Owingsville, KY
Timpson, TX
Barnesville, GA
Arkansas City, KS | 24
24
36
36
24
52
24
40
48
32
34
24
24
24
32
32
24
48
24
21
25
25
24
40
40
22
28
36
12 | $    634,756606,020
954,617
855,647
645,071
1,283,469
694,131
1,532,714
1,238,455
829,071
1,365,285
851,756
750,867
795,018
818,492
839,747
628,860
1,199,270
824,553
708,517
1,201,402
855,515
752,489
1,345,399
1,336,222
703,467
670,397
1,039,445
339,548
|                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                        | ------------                                                                                                                                                                                                                                                 
|                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                        | $26,300,200                                                                                                                                                                                                                                                  
|                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                        | ============                                                                                                                                                                                                                                                 

---

GATEWAY TAX CREDIT FUND II LTD.
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
OF PROPERTY OWNED BY PROJECT PARTNERSHIPS INVESTED IN
AS OF DECEMBER 31, 2001
SERIES 4

|Apartment Properties                                                                                                                                                                                                                                                                                                                                                                                                                             | Cost At Acquisition
--------------------                                                                                                                                                                        |                                                                                                                                                                                                                                                                    
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Partnership
-----------                                                                                                                                                                                                                                                                                                                                                                                                                          | Land
----                                                                                                                                                                                                       | Buildings,
Improvements
and Equipment
-------------                                                                                                                                                                                                                
|Alsace Village
Seneca Apartments
Eudora Senior
Westville
Wellsville Senior
Stilwell II
Spring Hill Senior
Smithfield
Tarpon Heights
Oaks Apartments
Wynnwood Common
Chestnut Apartments
St. George
Williston
Brackettville Sr.
Sonora Seniors
Ozona Seniors
Fredericksburg Sr.
St. Joseph
Courtyard
Rural Development
Jasper Villas
Edmonton Senior
Jonesville Manor
Norton Green
Owingsville Senior
Timpson Seniors
Piedmont
S.F. Arkansas City | $  15,000
76,212
50,000
27,560
38,000
30,000
49,800
82,500
85,000
42,000
68,000
57,200
22,600
25,000
28,600
51,000
40,000
45,000
28,000
24,500
38,200
27,000
40,000
100,000
120,000
28,000
13,500
29,500
16,800 | $   771,590
640,702
1,207,482
1,074,126
772,971
1,627,974
986,569
1,698,213
1,408,434
989,522
1,578,814
977,493
915,400
959,345
963,366
962,315
719,843
1,357,563
940,580
810,110
1,361,892
1,067,890
866,714
1,578,135
1,535,373
820,044
802,416
1,259,547
395,228
|                                                                                                                                                                                                                                                                                                                                                                                                                                                 | -----------                                                                                                                                                                                                     | ------------                                                                                                                                                                                                                                                       
|                                                                                                                                                                                                                                                                                                                                                                                                                                                 | $1,298,972                                                                                                                                                                                                      | $31,049,651                                                                                                                                                                                                                                                        
|                                                                                                                                                                                                                                                                                                                                                                                                                                                 | ===========                                                                                                                                                                                                     | ============                                                                                                                                                                                                                                                       

---

GATEWAY TAX CREDIT FUND II LTD.
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
OF PROPERTY OWNED BY PROJECT PARTNERSHIPS INVESTED IN
AS OF DECEMBER 31, 2001
SERIES 4

|Apartment Properties                                                                                                                                                                                                                                                                                                                                                                                                                             | Gross Amount At Which Carried At December 31, 2001
--------------------                                                                                                                                        
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Partnership
-----------                                                                                                                                                                                                                                                                                                                                                                                                                          | Land
----                                                                                                                                                                                                      
|Alsace Village
Seneca Apartments
Eudora Senior
Westville
Wellsville Senior
Stilwell II
Spring Hill Senior
Smithfield
Tarpon Heights
Oaks Apartments
Wynnwood Common
Chestnut Apartments
St. George
Williston
Brackettville Sr.
Sonora Seniors
Ozona Seniors
Fredericksburg Sr.
St. Joseph
Courtyard
Rural Development
Jasper Villas
Edmonton Senior
Jonesville Manor
Norton Green
Owingsville Senior
Timpson Seniors
Piedmont
S.F. Arkansas City | $  15,00077,237
50,000
27,560
38,000
30,000
49,800
112,284
85,000
42,000
81,233
63,800
22,600
25,000
28,600
51,000
40,000
45,000
28,000
27,055
38,200
27,000
40,000
100,000
120,000
28,000
13,500
29,500
16,800
|                                                                                                                                                                                                                                                                                                                                                                                                                                                 | -----------                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                                                                                                                                                                 | $1,352,169                                                                                                                                                                                                     
|                                                                                                                                                                                                                                                                                                                                                                                                                                                 | ===========                                                                                                                                                                                                    

---

GATEWAY TAX CREDIT FUND II LTD.
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
OF PROPERTY OWNED BY PROJECT PARTNERSHIPS INVESTED IN
AS OF DECEMBER 31, 2001
SERIES 4

|Apartment Properties
Partnership
-----------                                                                                                                                                                                                                                                                                                                                                                                                     | Accumulated Depreciation
------------------------                                                                                                                                                                                            | Depreciable Life
----------------                                                                                                                                           
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Alsace Village
Seneca Apartments
Eudora Senior
Westville
Wellsville Senior
Stilwell II
Spring Hill Senior
Smithfield
Tarpon Heights
Oaks Apartments
Wynnwood Common
Chestnut Apartments
St. George
Williston
Brackettville Sr.
Sonora Seniors
Ozona Seniors
Fredericksburg Sr.
St. Joseph
Courtyard
Rural Development
Jasper Villas
Edmonton Senior
Jonesville Manor
Norton Green
Owingsville Senior
Timpson Seniors
Piedmont
S.F. Arkansas City | $     348,961348,555
499,867
451,812
329,653
685,567
459,252
488,891
387,926
275,341
475,017
346,188
411,589
422,205
251,239
262,812
191,235
365,324
394,520
323,899
602,327
322,046
254,693
678,537
692,846
238,326
237,897
365,804
164,956 | 5-27.5
5-27.5
5-27.5
5-27.5
5-25
5-27.5
5-25
5-40
5-40
5-40
5-40
5-40
5-27.5
5-27.5
5-40
5-40
5-40
5-40
5-27.5
5-27.5
5-27.5
5-40
5-40
5-27.5
5-27.5
5-40
5-40
5-27.5
5-27.5
|                                                                                                                                                                                                                                                                                                                                                                                                                                                 | -----------                                                                                                                                                                                                                                  |                                                                                                                                                                             
|                                                                                                                                                                                                                                                                                                                                                                                                                                                 | $11,277,285                                                                                                                                                                                                                                  |                                                                                                                                                                             
|                                                                                                                                                                                                                                                                                                                                                                                                                                                 | ===========                                                                                                                                                                                                                                  |                                                                                                                                                                             

---

GATEWAY TAX CREDIT FUND II LTD.
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
OF PROPERTY OWNED BY PROJECT PARTNERSHIPS INVESTED IN
AS OF DECEMBER 31, 2001
SERIES 5

|Apartment Properties
Partnership
-----------                                                                                                                                                                                                                                                                                                                                                                                                                | Location
--------                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | # of Units
----------                                                                                       | Mortgage
Loan Balance
-------------                                                                                                                                                                                                                                                                                    
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ----------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Seymour
Effingham
S.F. Winfield
S.F.Medicine Lodge
S.F. Ottawa
S.F. Concordia
Highland View
Carrollton Club
Scarlett Oaks
Brooks Hill
Greensboro
Greensboro II
Pine Terrace
Shellman
Blackshear
Crisp Properties
Crawford
Yorkshire
Woodcrest
Fox Ridge
Redmont II
Clayton
Alma
Pemberton Village
Magic Circle
Spring Hill
Menard Retirement
Wallis Housing
Zapata Housing
Mill Creek
Portland II
Georgetown
Cloverdale
S. Timber Ridge
Pineville
Ravenwood | Seymour, IN
Effingham, IL
Winfield, KS
Medicine Lodge,KS
Ottawa, KS
Concordia, KS
Elgin, OR
Carrollton, GA
Lexington, SC
Ellijay, GA
Greensboro, GA
Greensboro, GA
Wrightsville, GA
Shellman, GA
Cordele, GA
Cordele, GA
Crawford, GA
Wagoner, OK
South Boston, VA
Russellville, AL
Red Bay, AL
Clayton, OK
Alma, AR
Hiawatha, KS
Eureka, KS
Spring Hill, KS
Menard, TX
Wallis, TX
Zapata, TX
Grove, OK
Portland, IN
Georgetown, OH
Chandler, TX
Cloverdale, IN
Pineville, MO
Americus, GA | 37
24
12
16
24
20
24
78
40
44
24
33
25
27
46
31
25
60
40
24
24
24
24
24
24
36
24
24
40
60
20
24
24
44
12
24 | $    1,234,652800,619
330,924
452,074
569,320
553,238
711,699
2,670,795
1,383,559
1,455,720
729,909
900,078
724,063
736,252
1,314,581
928,081
741,887
2,076,101
1,282,240
733,403
692,394
666,293
730,604
635,530
651,430
1,123,006
625,689
426,623
975,606
1,428,298
580,870
738,200
755,273
1,060,244
318,736
724,266
|                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                             | ------------                                                                                                                                                                                                                                                                                                           
|                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                             | $32,462,257                                                                                                                                                                                                                                                                                                            
|                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                             | ============                                                                                                                                                                                                                                                                                                           

---

GATEWAY TAX CREDIT FUND II LTD.
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
OF PROPERTY OWNED BY PROJECT PARTNERSHIPS INVESTED IN
AS OF DECEMBER 31, 2001
SERIES 5

|Apartment Properties                                                                                                                                                                                                                                                                                                                                                                                                                                        | Cost At Acquisition
-------------------                                                                                                                                                                                                                 |                                                                                                                                                                                                                                                                                                          
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Partnership
-----------                                                                                                                                                                                                                                                                                                                                                                                                                                     | Land
----                                                                                                                                                                                                                                               | Buildings,
Improvements
and Equipment
-------------                                                                                                                                                                                                                                                      
|Seymour
Effingham
S.F. Winfield
S.F.Medicine Lodge
S.F. Ottawa
S.F. Concordia
Highland View
Carrollton Club
Scarlett Oaks
Brooks Hill
Greensboro
Greensboro II
Pine Terrace
Shellman
Blackshear
Crisp Properties
Crawford
Yorkshire
Woodcrest
Fox Ridge
Redmont II
Clayton
Alma
Pemberton Village
Magic Circle
Spring Hill
Menard Retirement
Wallis Housing
Zapata Housing
Mill Creek
Portland II
Georgetown
Cloverdale
S. Timber Ridge
Pineville
Ravenwood | $   59,500
38,500
18,000
21,600
25,200
28,000
16,220
248,067
44,475
0
15,930
21,330
14,700
13,500
60,000
48,000
16,600
100,000
70,000
39,781
25,000
35,600
45,000
12,020
22,660
70,868
21,000
13,900
44,000
28,000
43,102
0
40,000
43,705
59,661
14,300 | $ 1,452,557
940,327
382,920
542,959
687,929
658,961
830,471
722,560
992,158
214,335
61,495
92,063
196,071
512,531
413,143
578,709
187,812
2,212,045
842,335
848,996
814,432
835,930
912,710
767,228
749,504
1,318,926
721,251
553,230
1,120,538
414,429
410,683
149,483
583,115
1,233,570
328,468
873,596
|                                                                                                                                                                                                                                                                                                                                                                                                                                                            | -----------                                                                                                                                                                                                                                             | ------------                                                                                                                                                                                                                                                                                             
|                                                                                                                                                                                                                                                                                                                                                                                                                                                            | $1,418,219                                                                                                                                                                                                                                              | $25,157,470                                                                                                                                                                                                                                                                                              
|                                                                                                                                                                                                                                                                                                                                                                                                                                                            | ===========                                                                                                                                                                                                                                             | ============                                                                                                                                                                                                                                                                                             

---

GATEWAY TAX CREDIT FUND II LTD.
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
OF PROPERTY OWNED BY PROJECT PARTNERSHIPS INVESTED IN
AS OF DECEMBER 31, 2001
SERIES 5

|Apartment Properties                                                                                                                                                                                                                                                                                                                                                                                                                                        | Gross Amount At Which Carried At December 31, 2001
--------------------                                                                                                                                                                                          
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Partnership
-----------                                                                                                                                                                                                                                                                                                                                                                                                                                     | Land
----                                                                                                                                                                                                                                                        
|Seymour
Effingham
S.F. Winfield
S.F.Medicine Lodge
S.F. Ottawa
S.F. Concordia
Highland View
Carrollton Club
Scarlett Oaks
Brooks Hill
Greensboro
Greensboro II
Pine Terrace
Shellman
Blackshear
Crisp Properties
Crawford
Yorkshire
Woodcrest
Fox Ridge
Redmont II
Clayton
Alma
Pemberton Village
Magic Circle
Spring Hill
Menard Retirement
Wallis Housing
Zapata Housing
Mill Creek
Portland II
Georgetown
Cloverdale
S. Timber Ridge
Pineville
Ravenwood | $    59,50038,500
18,000
21,600
25,200
28,000
16,220
248,068
44,475
77,500
15,930
16,845
14,700
13,500
60,000
48,000
16,600
100,788
70,000
39,781
25,000
35,600
45,000
12,020
22,660
70,868
21,000
13,900
46,323
28,000
15,000
50,393
40,000
50,123
66,221
14,300
|                                                                                                                                                                                                                                                                                                                                                                                                                                                            | -----------                                                                                                                                                                                                                                                      
|                                                                                                                                                                                                                                                                                                                                                                                                                                                            | $1,529,615                                                                                                                                                                                                                                                       
|                                                                                                                                                                                                                                                                                                                                                                                                                                                            | ===========                                                                                                                                                                                                                                                      

---

GATEWAY TAX CREDIT FUND II LTD.
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
OF PROPERTY OWNED BY PROJECT PARTNERSHIPS INVESTED IN
AS OF DECEMBER 31, 2001
SERIES 5

|Partnership
-----------                                                                                                                                                                                                                                                                                                                                                                                                                                     | Accumulated Depreciation
------------------------                                                                                                                                                                                                                                                     | Depreciable Life
----------------                                                                                                                                                                                    
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Seymour
Effingham
S.F. Winfield
S.F.Medicine Lodge
S.F. Ottawa
S.F. Concordia
Highland View
Carrollton Club
Scarlett Oaks
Brooks Hill
Greensboro
Greensboro II
Pine Terrace
Shellman
Blackshear
Crisp Properties
Crawford
Yorkshire
Woodcrest
Fox Ridge
Redmont II
Clayton
Alma
Pemberton Village
Magic Circle
Spring Hill
Menard Retirement
Wallis Housing
Zapata Housing
Mill Creek
Portland II
Georgetown
Cloverdale
S. Timber Ridge
Pineville
Ravenwood | $    590,447376,111
161,581
206,004
289,984
276,988
249,803
1,043,454
579,058
565,671
281,273
354,358
296,288
316,372
520,470
377,325
307,813
572,976
432,409
214,512
209,018
331,054
396,822
304,745
309,422
574,973
158,624
206,472
325,730
719,567
238,557
270,563
385,177
539,860
168,150
185,018 | 5-27.5
5-27.5
5-27.5
5-27.5
5-27.5
5-27.5
5-40
5-27.5
5-27.5
5-27.5
5-30
5-30
5-30
5-30
5-30
5-30
5-30
5-50
5-40
5-50
5-50
5-27.5
5-25
5-27.5
5-27.5
5-25
5-30
5-30
5-27.5
5-25
5-27.5
5-50
5-27.5
5-25
5-27.5
5-27.5
|                                                                                                                                                                                                                                                                                                                                                                                                                                                            | -----------                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                      
|                                                                                                                                                                                                                                                                                                                                                                                                                                                            | $13,336,649                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                      
|                                                                                                                                                                                                                                                                                                                                                                                                                                                            | ===========                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                      

---

GATEWAY TAX CREDIT FUND II LTD.
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
OF PROPERTY OWNED BY PROJECT PARTNERSHIPS INVESTED IN
AS OF DECEMBER 31, 2001
SERIES 6

|Apartment Properties
Partnership
-----------                                                                                                                                                                                                                                                                                                                                                                                                  | Location
--------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | # of Units
----------                                                                                             | Mortgage
Loan Balance
-------------                                                                                                                                                                                                                                                                                                             
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Spruce
Shannon Apartments
Carthage
Mt. Crest
Coal City
Blacksburg Terrace
Frazier
Ehrhardt
Sinton
Frankston
Flagler Beach
Oak Ridge
Monett
Arma
Southwest City
Meadowcrest
Parsons
Newport Village
Goodwater Falls
Northfield Station
Pleasant Hill Square
Winter Park
Cornell
Heritage Drive S.
Brodhead
Mt. Vilage
Hazelhurst
Sunrise
Stony Creek
Logan Place
Haines
Maple Wood
Summerhill
Dorchester
Lancaster
Autumn Village
Hardy
Dawson | Pierre, SD
O'Neill, NE
Carthage, MO
Enterprise, OR
Coal City, IL
Blacksburg, SC
Smyrna, DE
Ehrhardt, SC
Sinton, TX
Frankston, TX
Flagler Beach, FL
Williamsburg, KY
Monett, MO
Arma, KS
Southwest City, MO
Luverne, AL
Parsons, KS
Newport, TN
Jenkins, KY
Corbin, KY
Somerset, KY
Mitchell, SD
Watertown, SD
Jacksonville, TX
Brodhead, KY
Mt. Vernon, KY
Hazlehurst, MS
Yankton, SD
Hooversville, PA
Logan, OH
Haines, AK
Barbourville, KY
Gassville, AR
St. George, SC
Mountain View, AR
Harrison, AR
Hardy, AR
Dawson, GA | 24
16
24
39
24
32
30
16
32
24
43
24
32
28
12
32
48
40
36
24
24
24
24
40
24
24
32
33
32
40
32
24
28
12
33
16
24
40 | $     911,469533,586
572,166
1,000,449
975,412
1,082,402
1,468,438
560,494
848,799
558,682
1,380,295
810,686
785,602
716,110
317,948
1,003,983
1,257,415
1,299,289
1,121,045
797,671
786,989
999,849
868,312
979,881
786,015
782,289
971,818
1,157,765
1,340,925
1,250,428
2,379,540
795,658
795,005
462,964
1,110,058
210,049
326,333
1,185,181
|                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                   | ------------                                                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                   | $35,191,000                                                                                                                                                                                                                                                                                                                                     
|                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                   | ============                                                                                                                                                                                                                                                                                                                                    

---

GATEWAY TAX CREDIT FUND II LTD.
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
OF PROPERTY OWNED BY PROJECT PARTNERSHIPS INVESTED IN
AS OF DECEMBER 31, 2001
SERIES 6

|Apartment Properties                                                                                                                                                                                                                                                                                                                                                                                                                          | Cost At Acquisition
--------------------                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                       
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Partnership
-----------                                                                                                                                                                                                                                                                                                                                                                                                                       | Land
----                                                                                                                                                                                                                                                            | Buildings,
Improvements
and Equipment
-------------                                                                                                                                                                                                                                                                                                   
|Spruce
Shannon Apartments
Carthage
Mt. Crest
Coal City
Blacksburg Terrace
Frazier
Ehrhardt
Sinton
Frankston
Flagler Beach
Oak Ridge
Monett
Arma
Southwest City
Meadowcrest
Parsons
Newport Village
Goodwater Falls
Northfield Station
Pleasant Hill Square
Winter Park
Cornell
Heritage Drive S.
Brodhead
Mt. Vilage
Hazelhurst
Sunrise
Stony Creek
Logan Place
Haines
Maple Wood
Summerhill
Dorchester
Lancaster
Autumn Village
Hardy
Dawson | $  60,040
5,000
115,814
64,914
60,055
39,930
51,665
9,020
42,103
30,000
118,575
40,000
170,229
85,512
67,303
72,500
49,780
61,350
32,000
44,250
35,000
95,000
32,000
44,247
21,600
55,000
60,000
90,000
0
39,300
189,323
79,000
23,000
13,000
37,500
20,000
0
40,000 | $   108,772
94,494
578,597
1,143,675
1,121,477
1,278,860
1,619,209
671,750
985,010
639,068
1,534,541
995,782
782,795
771,316
319,272
1,130,651
1,483,188
1,470,505
1,142,517
977,220
893,323
1,121,119
1,017,572
1,151,157
932,468
884,596
1,118,734
1,269,252
1,428,656
1,477,527
2,851,953
924,144
788,157
239,455
1,361,272
595,604
473,695
346,569
|                                                                                                                                                                                                                                                                                                                                                                                                                                              | -----------                                                                                                                                                                                                                                                          | ------------                                                                                                                                                                                                                                                                                                                                          
|                                                                                                                                                                                                                                                                                                                                                                                                                                              | $2,094,010                                                                                                                                                                                                                                                           | $37,723,952                                                                                                                                                                                                                                                                                                                                           
|                                                                                                                                                                                                                                                                                                                                                                                                                                              | ===========                                                                                                                                                                                                                                                          | ============                                                                                                                                                                                                                                                                                                                                          

---

GATEWAY TAX CREDIT FUND II LTD.
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
OF PROPERTY OWNED BY PROJECT PARTNERSHIPS INVESTED IN
AS OF DECEMBER 31, 2001
SERIES 6

|Apartment Properties                                                                                                                                                                                                                                                                                                                                                                                                                          | Gross Amount At Which Carried At December 31, 2001                                                                                                                                                                                                                                
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Partnership
-----------                                                                                                                                                                                                                                                                                                                                                                                                                       | Land
----                                                                                                                                                                                                                                                                         
|Spruce
Shannon Apartments
Carthage
Mt. Crest
Coal City
Blacksburg Terrace
Frazier
Ehrhardt
Sinton
Frankston
Flagler Beach
Oak Ridge
Monett
Arma
Southwest City
Meadowcrest
Parsons
Newport Village
Goodwater Falls
Northfield Station
Pleasant Hill Square
Winter Park
Cornell
Heritage Drive S.
Brodhead
Mt. Vilage
Hazelhurst
Sunrise
Stony Creek
Logan Place
Haines
Maple Wood
Summerhill
Dorchester
Lancaster
Autumn Village
Hardy
Dawson | $    86,30818,406
115,814
64,914
60,055
39,930
51,665
9,020
42,103
30,000
118,575
40,000
173,213
89,512
79,336
72,500
49,780
61,350
32,000
44,250
35,000
95,000
35,592
53,837
21,600
55,000
60,000
112,363
104,800
39,300
189,323
79,000
23,000
13,000
37,500
20,000
21,250
40,000
|                                                                                                                                                                                                                                                                                                                                                                                                                                              | -----------                                                                                                                                                                                                                                                                       
|                                                                                                                                                                                                                                                                                                                                                                                                                                              | $2,314,296                                                                                                                                                                                                                                                                        
|                                                                                                                                                                                                                                                                                                                                                                                                                                              | ===========                                                                                                                                                                                                                                                                       

---

GATEWAY TAX CREDIT FUND II LTD.
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
OF PROPERTY OWNED BY PROJECT PARTNERSHIPS INVESTED IN
AS OF DECEMBER 31, 2001
SERIES 6

|Partnership
-----------                                                                                                                                                                                                                                                                                                                                                                                                                       | Accumulated Depreciation
------------------------                                                                                                                                                                                                                                                                     | Depreciable Life
----------------                                                                                                                                                                                                        
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Spruce
Shannon Apartments
Carthage
Mt. Crest
Coal City
Blacksburg Terrace
Frazier
Ehrhardt
Sinton
Frankston
Flagler Beach
Oak Ridge
Monett
Arma
Southwest City
Meadowcrest
Parsons
Newport Village
Goodwater Falls
Northfield Station
Pleasant Hill Square
Winter Park
Cornell
Heritage Drive S.
Brodhead
Mt. Vilage
Hazelhurst
Sunrise
Stony Creek
Logan Place
Haines
Maple Wood
Summerhill
Dorchester
Lancaster
Autumn Village
Hardy
Dawson | $    351,064169,647
327,853
474,938
312,047
527,849
647,606
242,986
212,463
136,064
416,742
366,701
398,179
380,523
167,252
320,699
588,471
593,970
358,552
260,046
246,700
380,436
278,305
473,355
238,262
229,135
291,971
455,834
401,939
460,241
1,021,086
339,089
304,740
187,926
363,978
155,633
229,189
292,257 | 5-30
5-40
5-27.5
5-27.5
5-27.5
5-27.5
5-27.5
5-27.5
5-50
5-30
5-40
5-27.5
5-27.5
5-27.5
5-27.5
5-40
5-27.5
5-27.5
5-27.5
5-27.5
5-27.5
5-40
5-40
5-25
5-40
5-50
5-40
5-27.5
5-27.5
5-27.5
5-27.5
5-27.5
5-27.5
5-27.5
5-40
5-40
5-40
5-40
|                                                                                                                                                                                                                                                                                                                                                                                                                                              | -----------                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                          
|                                                                                                                                                                                                                                                                                                                                                                                                                                              | $13,603,728                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                          
|                                                                                                                                                                                                                                                                                                                                                                                                                                              | ===========                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                          

---

SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
OF PROPERTY OWNED BY PROJECT PARTNERSHIPS INVESTED IN
AS OF DECEMBER 31, 2001
GATEWAY TAX CREDIT FUND II LTD.
NOTES TO SCHEDULE III
Reconciliation of Land, Building & Improvements current year changes:
SERIES 2

|Balance at beginning of period -
December 31, 2000
 Additions during period:
  Acquisitions through foreclosure
  Other acquisitions
  Improvements, etc.
  Other
 Deductions during period:
  Cost of real estate sold
  Other | 0 
37,474 
0 
0 
---------
0 
0 
--------- | $28,293,026 
37,474 
0 
---------
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------ | ---------------------------------
|Balance at end of period -
December 31, 2001                                                                                                                                                                                    |                                            | $28,330,500 
============        

Reconciliation of Accumulated Depreciation current year changes:

|Balance at beginning of period -
December 31, 2000
  Current year expense
  Less Accumulated Depreciation of real   estate sold
  Other | 865,003 
0 
4 
--------- | $ 9,287,713 
865,007 
----------
|--------------------------------------------------------------------------------------------------------------------------------------- | ------------------------ | --------------------------------
|Balance at end of period -
December 31, 2001                                                                                            |                          | $ 10,152,720 
===========       

---

SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
OF PROPERTY OWNED BY PROJECT PARTNERSHIPS INVESTED IN
AS OF DECEMBER 31, 2001
GATEWAY TAX CREDIT FUND II LTD.
NOTES TO SCHEDULE III
Reconciliation of Land, Building & Improvements current year changes:
SERIES 3

|Balance at beginning of period -
December 31, 2000
 Additions during period:
  Acquisitions through foreclosure
  Other acquisitions
  Improvements, etc.
  Other
 Deductions during period:
  Cost of real estate sold
  Other | 0 
154,310 
0 
0 
---------
4,358 
0 
--------- | $27,620,603 
154,310 
(4,358)
---------
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------- | ---------------------------------------
|Balance at end of period -
December 31, 2001                                                                                                                                                                                    |                                                 | $27,770,555 
===========               

Reconciliation of Accumulated Depreciation current year changes:

|Balance at beginning of period -
December 31, 2000
  Current year expense
  Less Accumulated Depreciation of real   estate sold
  Other | 937,911 
(4,358)
0 
-------- | $11,579,979 
933,553 
----------
|--------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------- | --------------------------------
|Balance at end of period -
December 31, 2001                                                                                            |                              | $12,513,532 
============       

---

SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
OF PROPERTY OWNED BY PROJECT PARTNERSHIPS INVESTED IN
AS OF DECEMBER 31, 2001
GATEWAY TAX CREDIT FUND II LTD.
NOTES TO SCHEDULE III
Reconciliation of Land, Building & Improvements current year changes:
SERIES 4

|Balance at beginning of period -
December 31, 2000
 Additions during period:
  Acquisitions through foreclosure
  Other acquisitions
  Improvements, etc.
  Other
 Deductions during period:
  Cost of real estate sold
  Other | 0 
248,605 
0 
0 
---------
195 
0 
--------- | $32,724,096 
248,605 
(195)
---------
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------- | -------------------------------------
|Balance at end of period -
December 31, 2001                                                                                                                                                                                    |                                               | $32,972,506 
=============           

Reconciliation of Accumulated Depreciation current year changes:

|Balance at beginning of period -
December 31, 2000
  Current year expense
  Less Accumulated Depreciation of real   estate sold
  Other | 979,486 
(195)
0 
--------- | $ 10,297,994 
979,291 
----------
|--------------------------------------------------------------------------------------------------------------------------------------- | --------------------------- | ---------------------------------
|Balance at end of period -
December 31, 2001                                                                                            |                             | $11,277,285 
===========         

---

SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
OF PROPERTY OWNED BY PROJECT PARTNERSHIPS INVESTED IN
AS OF DECEMBER 31, 2001
GATEWAY TAX CREDIT FUND II LTD.
NOTES TO SCHEDULE III
Reconciliation of Land, Building & Improvements current year changes:
SERIES 5

|Balance at beginning of period -
December 31, 2000
 Additions during period:
  Acquisitions through foreclosure
  Other acquisitions
  Improvements, etc.
  Other
 Deductions during period:
  Cost of real estate sold
  Other | 0 
68,935 
0 
0 
---------
6,791 
0 
--------- | $40,148,657 
68,935 
(6,791) 
---------
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------- | ---------------------------------------
|Balance at end of period -
December 31, 2001                                                                                                                                                                                    |                                                | $40,210,801 
============              

Reconciliation of Accumulated Depreciation current year changes:

|Balance at beginning of period -
December 31, 2000
  Current year expense
  Less Accumulated Depreciation of real   estate sold
  Other | 1,294,116 
(6,791) 
0 
-------- | $12,049,324 
1,287,325 
----------
|--------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------- | ----------------------------------
|Balance at end of period -
December 31, 2001                                                                                            |                                 | $13,336,649 
============         

|SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
OF PROPERTY OWNED BY PROJECT PARTNERSHIPS INVESTED IN
AS OF DECEMBER 31, 2001
GATEWAY TAX CREDIT FUND II LTD.
NOTES TO SCHEDULE III
Reconciliation of Land, Building & Improvements current year changes:
SERIES 6
Balance at beginning of period -
December 31, 2000
 Additions during period:
  Acquisitions through foreclosure
  Other acquisitions
  Improvements, etc.
  Other
 Deductions during period:
  Cost of real estate sold
  Other | 0 
129,189 
0 
0 
---------
2,218 
0 
--------- | $44,224,853 
129,189 
(2,218)
----------
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------- | ----------------------------------------
|Balance at end of period -
December 31, 2001                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                 | $44,351,824 
============               

Reconciliation of Accumulated Depreciation current year changes:

|Balance at beginning of period -
December 31, 2000
Current year expense
  Less Accumulated Depreciation of real   estate sold
  Other | 1,347,627 
(2,218)
0 
---------- | $12,258,319 
1,345,409 
----------
|------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------- | ----------------------------------
|Balance at end of period -
December 31, 2001                                                                                          |                                  | $13,603,728 
============         

---

GATEWAY TAX CREDIT FUND II LTD.
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE
AS OF DECEMBER 31, 2001
SERIES 2

|PARTNERSHIP
-----------                                                                                                                                                                                                                                                                                                                   | # OF
UNITS
------                                                 | BALANCE
-------                                                                                                                                                                                              | INTEREST
RATE 
--------                                                                                                             | MONTHLY
DEBT 
SERVICE
--------                                                                                                          | TERM
(YEARS)
------                                              
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ----------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------
|Claxton Elderly
Deerfield II
Hartwell Family
Cherrytree Apts.
Springwood Apts.
Lakeshore Apts.
Lewiston
Charleston
Sallisaw II
Pocola
Inverness Club
Pearson Elderly
Richland Elderly
Lake Park
Woodland Terrace
Mt. Vernon Elderly
Lakeland Elderly
Prairie Apartments
Sylacauga Heritage
Manchester Housing
Durango C.W.W.
Columbus Sr. | 24
24
24
33
32
34
25
32
47
36
72
25
33
48
30
21
29
21
44
49
24
16 | 654,836698,317
701,746
1,193,657
1,246,373
1,048,424
994,851
838,904
1,191,103
982,353
2,972,269
625,595
863,115
1,478,242
883,129
571,164
776,790
971,154
1,378,671
1,449,516
1,029,067
434,660
----------- | 8.75%
8.75%
8.75%
8.75%
8.75%
8.75%
9.00%
8.75%
8.75%
8.75%
8.75%
9.00%
8.75%
9.00%
8.75%
8.75%
8.75%
9.00%
8.75%
8.75%
9.00%
8.25% | 5,883
6,284
5,307
9,011
9,218
7,905
7,720
6,333
8,980
7,407
27,905
4,926
6,517
11,466
6,666
4,309
5,882
7,515
10,536
10,958
7,739
3,102 | 50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
|                                                                                                                                                                                                                                                                                                                                          |                                                                   | $22,983,936
===========                                                                                                                                                                                      |                                                                                                                                     |                                                                                                                                         |                                                                  

---

GATEWAY TAX CREDIT FUND II LTD.
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE
AS OF DECEMBER 31, 2001
SERIES 3

|PARTNERSHIP
-----------                                                                                                                                                                                                                                                                                                     | # OF
UNITS
------                                                    | BALANCE
--------                                                                                                                                                                                                       | INTEREST
RATE 
-------                                                                                                                     | MONTHLY
DEBT 
SERVICE
-------                                                                                                                 | TERM 
(YEARS)
------                                                
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------ | --------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------
|Poteau II
Sallisaw
Nowata Properties
Waldron Properties
Roland II
Stilwell
Birchwood Apts.
Hornellsville
Sunchase II
CE McKinley II
Weston Apartments
Countrywood Apts.
Wildwood Apts.
Hancock
Hopkins
Elkhart Apts.
Bryan Senior
Brubaker Square
Southwood
Villa Allegra
Belmont Senior
Heritage Villas
Logansport Seniors | 52
52
32
24
52
48
24
24
41
16
10
40
28
12
24
54
40
38
44
32
24
25
32 | 1,295,4951,306,175
853,217
636,736
1,304,922
1,187,075
784,861
890,362
1,186,391
605,878
273,170
1,193,596
845,422
362,196
741,343
1,131,898
1,071,335
1,111,052
1,480,686
893,399
759,179
674,855
893,674
----------- | 9.50%
9.50%
9.50%
9.00%
9.50%
9.50%
9.50%
9.00%
9.00%
8.75%
9.00%
9.00%
9.50%
9.50%
8.75%
9.00%
10.00%
9.00%
9.25%
9.00%
9.00%
8.75%
8.75% | 10,682
10,654
6,905
4,950
10,657
9,727
6,410
6,927
9,279
5,146
2,131
9,310
6,906
3,119
5,815
9,198
9,455
8,646
11,752
7,053
6,001
5,110
6,745 | 50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
40
50
50
50
50
50
50
50
|                                                                                                                                                                                                                                                                                                                            |                                                                      | $21,482,917
===========                                                                                                                                                                                                |                                                                                                                                            |                                                                                                                                               |                                                                     

---

GATEWAY TAX CREDIT FUND II LTD.
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE
AS OF DECEMBER 31, 2001
SERIES 4

|PARTNERSHIP
-----------                                                                                                                                                                                                                                                                                                                                                                                                                          | # OF
UNITS
-----                                                                       | BALANCE
-------                                                                                                                                                                                                                                                      | INTEREST
RATE  
-------                                                                                                                                                        | MONTHLY
DEBT 
SERVICE
-------                                                                                                                                                     | TERM 
(YEARS)
------                                                                  
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------
|Alsace Village
Seneca Apartments
Eudora Senior
Westville
Wellsville Senior
Stilwell II
Spring Hill Senior
Smithfield
Tarpon Heights
Oaks Apartments
Wynnwood Common
Chestnut Apartments
St. George
Williston
Brackettville Sr.
Sonora Seniors
Ozona Seniors
Fredericksburg Sr.
St. Joseph
Courtyard
Rural Development
Jasper Villas
Edmonton Senior
Jonesville Manor
Norton Green
Owingsville Senior
Timpson Seniors
Piedmont
S.F. Arkansas City | 24
24
36
36
24
52
24
40
48
32
34
24
24
24
32
32
24
48
24
21
25
25
24
40
40
22
28
36
12 | 634,756606,020
954,617
855,647
645,071
1,283,469
694,131
1,532,714
1,238,455
829,071
1,365,285
851,756
750,867
795,018
818,492
839,747
628,860
1,199,270
824,553
708,517
1,201,402
855,515
752,489
1,345,399
1,336,222
703,467
670,397
1,039,445
339,548
----------- | 9.00%
9.00%
8.75%
8.75%
8.75%
8.75%
8.75%
8.75%
8.75%
9.00%
8.75%
8.75%
8.75%
9.00%
8.75%
8.75%
8.75%
8.75%
9.00%
9.25%
9.25%
8.75%
9.00%
8.75%
8.75%
9.00%
8.75%
8.75%
10.62% | 4,915
4,692
7,269
6,448
4,859
9,672
5,236
11,746
9,347
6,663
10,300
6,419
5,677
6,147
6,172
6,337
4,744
9,050
6,379
5,622
9,539
6,450
5,688
10,159
10,085
5,297
5,058
7,856
3,056 | 50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
|                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                        | $26,300,200
===========                                                                                                                                                                                                                                              |                                                                                                                                                                                |                                                                                                                                                                                   |                                                                                       

---

GATEWAY TAX CREDIT FUND II LTD.
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE
AS OF DECEMBER 31, 2001
SERIES 5

|PARTNERSHIP
-----------                                                                                                                                                                                                                                                                                                                                                                                                                                     | # OF
UNITS
-----                                                                                            | BALANCE
-------                                                                                                                                                                                                                                                                                                                | INTEREST
RATE  
-------                                                                                                                                                                                                     | MONTHLY
DEBT 
SERVICE
-------                                                                                                                                                                                               | TERM 
(YEARS)
------                                                                                       
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------
|Seymour
Effingham
S.F. Winfield
S.F.Medicine Lodge
S.F. Ottawa
S.F. Concordia
Highland View
Carrollton Club
Scarlett Oaks
Brooks Hill
Greensboro
Greensboro II
Pine Terrace
Shellman
Blackshear
Crisp Properties
Crawford
Yorkshire
Woodcrest
Fox Ridge
Redmont II
Clayton
Alma
Pemberton Village
Magic Circle
Spring Hill
Menard Retirement
Wallis Housing
Zapata Housing
Mill Creek
Portland II
Georgetown
Cloverdale
S. Timber Ridge
Pineville
Ravenwood | 37
24
12
16
24
20
24
78
40
44
24
33
25
27
46
31
25
60
40
24
24
24
24
24
24
36
24
24
40
60
20
24
24
44
12
24 | 1,234,652800,619
330,924
452,074
569,320
553,238
711,699
2,670,795
1,383,559
1,455,720
729,909
900,078
724,063
736,252
1,314,581
928,081
741,887
2,076,101
1,282,240
733,403
692,394
666,293
730,604
635,530
651,430
1,123,006
625,689
426,623
975,606
1,428,298
580,870
738,200
755,273
1,060,244
318,736
724,266
----------- | 8.75%
8.75%
11.37%
10.62%
10.62%
11.87%
8.75%
7.75%
8.25%
8.25%
7.75%
7.75%
8.25%
8.25%
8.25%
8.25%
8.25%
8.25%
8.25%
9.00%
8.75%
8.25%
8.75%
8.75%
8.75%
8.25%
8.75%
8.75%
8.75%
8.25%
8.75%
8.25%
8.75%
8.75%
8.25%
7.25% | 9,346
6,032
3,016
4,049
5,126
5,498
5,473
18,064
9,870
10,398
4,937
6,129
5,172
5,264
9,389
6,632
5,302
14,842
9,402
5,673
5,355
4,760
8,018
4,782
4,913
8,018
4,715
3,688
7,377
10,192
4,388
5,265
5,693
7,986
2,318
4,595 | 50
50
50
50
50
50
40
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
|                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                             | $32,462,257
===========                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                             |                                                                                                                                                                                                                             |                                                                                                            

---

GATEWAY TAX CREDIT FUND II LTD.
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE
AS OF DECEMBER 31, 2001
SERIES 6

|PARTNERSHIP
-----------                                                                                                                                                                                                                                                                                                                                                                                                                       | # OF
UNITS
-----                                                                                                  | BALANCE
-------                                                                                                                                                                                                                                                                                                                                        | INTEREST
RATE  
-------                                                                                                                                                                                                             | MONTHLY
DEBT 
SERVICE
-------                                                                                                                                                                                                         | TERM 
(YEARS)
------                                                                                             
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------
|Spruce
Shannon Apartments
Carthage
Mt. Crest
Coal City
Blacksburg Terrace
Frazier
Ehrhardt
Sinton
Frankston
Flagler Beach
Oak Ridge
Monett
Arma
Southwest City
Meadowcrest
Parsons
Newport Village
Goodwater Falls
Northfield Station
Pleasant Hill Square
Winter Park
Cornell
Heritage Drive S.
Brodhead
Mt. Vilage
Hazelhurst
Sunrise
Stony Creek
Logan Place
Haines
Maple Wood
Summerhill
Dorchester
Lancaster
Autumn Village
Hardy
Dawson | 24
16
24
39
24
32
30
16
32
24
43
24
32
28
12
32
48
40
36
24
24
24
24
40
24
24
32
33
32
40
32
24
28
12
33
16
24
40 | 911,469533,586
572,166
1,000,449
975,412
1,082,402
1,468,438
560,494
848,799
558,682
1,380,295
810,686
785,602
716,110
317,948
1,003,983
1,257,415
1,299,289
1,121,045
797,671
786,989
999,849
868,312
979,881
786,015
782,289
971,818
1,157,765
1,340,925
1,250,428
2,379,540
795,658
795,005
462,964
1,110,058
210,049
326,333
1,185,181
----------- | 8.75%
8.75%
8.75%
8.25%
7.75%
8.25%
8.25%
7.75%
8.25%
8.75%
8.25%
8.25%
8.25%
8.75%
8.25%
8.25%
7.75%
7.75%
7.75%
7.75%
7.75%
8.25%
8.25%
8.25%
7.75%
8.25%
8.25%
8.75%
8.75%
8.25%
8.25%
7.75%
8.25%
7.75%
7.75%
7.00%
6.00%
7.25% | 6,857
4,014
4,371
7,150
6,578
7,738
10,470
3,791
6,063
4,207
9,864
5,800
5,598
5,388
2,271
7,160
8,485
8,798
7,980
5,379
5,315
7,131
6,193
6,990
5,303
5,574
7,105
8,711
9,065
8,909
16,950
5,381
5,911
3,118
7,775
2,608
3,639
7,524 | 50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
18
50
|                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                   | $35,191,000
===========                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                       |                                                                                                                  

---

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
                                       GATEWAY TAX CREDIT FUND II LTD.
                                       (A Florida Limited Partnership)
                                       By:  Raymond James Tax Credit
Funds, Inc.
                                       Raymond James Tax Credit Funds, Inc.
Date:July 9, 2002                     By:/s/ Ronald M. Diner                                       Ronald M. Diner
                                       President
Date:July 9, 2002                     By:/s/ Sandra L. Furey                                       Sandra L. Furey
                                       Secretary and Treasurer

---

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused to be signed on its behalf by the undersigned hereunto duly authorized.
                                       GATEWAY TAX CREDIT FUND II LTD.
                                       (A Florida Limited Partnership)
                                       By:  Raymond James Tax Credit
Funds, Inc.
                                       Managing General Partner
Date:July 9, 2002                     By:/s/ Ronald M. Diner                                       Ronald M. Diner
                                       President
Date:July 9, 2002                     By:/s/ Sandra L. Furey                                       Sandra L. Furey
                                       Secretary and Treasurer