SUMMARY OF DISPOSITION ACTIVITIES

6 Months Ended

Sep. 30, 2011

SUMMARY OF DISPOSITION ACTIVITIES [Abstract]

NOTE 5 - SUMMARY OF DISPOSITION ACTIVITIES:

Gateway at one time held investments in 148 Project Partnerships (22 in Series 2, 23 in Series 3, 29 in Series 4, 36 in Series 5, and 38 in Series 6). As of September 30, 2011, Gateway has sold or otherwise disposed of its interest in 116 Project Partnerships (22 in Series 2, 23 in Series 3, 25 in Series 4, 29 in Series 5 and 17 in Series 6). A summary of the sale or disposition transactions for the Project Partnerships disposed during the current fiscal year-to-date and the previous fiscal year are summarized herein:

Distribution Payable

Distribution Payable represents net proceeds from the sale of Project Partnership interests. Certain state tax jurisdictions impose a capital gains tax on the taxable gains associated with the sale of investments in partnerships. Gateway is obligated to calculate and withhold the applicable state taxes that are payable by the Partners of Gateway when Project Partnerships are sold or otherwise disposed by Gateway. In most cases, the state taxes are due regardless if proceeds are received from the sale of Project Partnerships. Therefore, Gateway has estimated the withholding taxes payable and the amount is included in Distribution Payable on the Balance Sheet. State withholding taxes paid during the period ended September 30, 2011 totaled $421,753 ($129,564 for Series 2, $167,698 for Series 3, $18,958 for Series 4, $104,718 for Series 5 and $815 for Series 6). These payments reduce the amount available to pay as distributions. Remaining net proceeds will be distributed to the Assignees in a subsequent period at such time that further state withholding tax liabilities have been settled. During the period ended September 30, 2011, Gateway distributed the remaining net proceeds from the sale of the Project Partnership interests in Series 2 and 3.

Fiscal Year 2012 Disposition Activity:

Series 2

Transaction		Net		Net Proceeds		Gain (Loss)
Month / Year	Project Partnership	Proceeds		Per BAC		on Disposal
September 2011	Other, net (see below)	$	-	$	-	$	1,000
						$	1,000

Gateway recognized an additional gain on sale of Project Partnerships in the amount of $1,000 resulting from the true-up of certain legal and other sale transaction closing expenses arising from a Project Partnership sale transaction which closed in the prior fiscal year. This amount was included in the distribution to Series 2 Assignees during the period ended September 30, 2011.

Series 4

Transaction		Net		Net Proceeds		Gain (Loss)		Deferred Gain
Month / Year	Project Partnership	Proceeds		Per BAC		on Disposal		on Disposal
September 2011	SF Apartments of Arkansas City	$	1,909	$	0.28	$	-	$	1,909
September 2011	Wellsville Senior Housing		18,759		2.71		-		18,759
						$	-	$	20,668

In accordance with GAAP, although the sales of SF Apartments of Arkansas City and Wellsville Senior Housing were consummated on or prior to September 30, 2011, the gain on the sales is being deferred on the Balance Sheet and not recognized on the Statement of Operations until the period that the net sales proceeds are received. Gateway recorded a receivable for the gross proceeds from these sales totaling $20,850 which is included in Receivable - Other on the Balance Sheet and has been subsequently received in October 2011. These net proceeds, less the applicable state tax withholding, will be distributed to the Series 4 Assignees in a subsequent period at such time that state withholding tax liabilities have been settled. The deferred gain of $20,668 will be recognized on the fiscal year 2012 third quarter Statement of Operations.

Series 5

Transaction		Net		Net Proceeds		Gain (Loss)		Deferred Gain
Month / Year	Project Partnership	Proceeds		Per BAC		on Disposal		on Disposal
August 2011	Yorkshire Retirement Village	$	7,465	$	0.87	$	7,465	$	-
September 2011	SF Apartments of Concordia		42,259		4.90		-		42,259
September 2011	SF Apartments of Medicine Lodge		20,212		2.35		-		20,212
September 2011	SF Apartments of Ottawa II		31,927		3.71		-		31,927
September 2011	SF Apartments of Winfield		8,383		0.97		-		8,383
September 2011	Other, net (see below)		-		-		2,000		-
						$	9,465	$	102,781

The net proceeds per BAC from the sale of Yorkshire Retirement Village are a component of the Distribution Payable on the Balance Sheet as of September 30, 2011. These net proceeds, less the applicable state tax withholding, will be distributed to the Series 5 Assignees in a subsequent period at such time that state withholding tax liabilities have been settled.

In accordance with GAAP, although the sales of SF Apartments of Concordia, SF Apartments of Medicine Lodge, SF Apartments of Ottawa II and SF Apartments of Winfield were consummated on or prior to September 30, 2011, the gain on the sales is being deferred on the Balance Sheet and not recognized on the Statement of Operations until the period that the net sales proceeds are received. Gateway recorded a receivable for the gross proceeds from these sales totaling $104,150 which is included in Receivable - Other on the Balance Sheet and has been subsequently received in October 2011. These net proceeds, less the applicable state tax withholding, will be distributed to the Series 5 Assignees in a subsequent period at such time that state withholding tax liabilities have been settled. The deferred gain of $102,781 will be recognized on the fiscal year 2012 third quarter Statement of Operations.

Gateway recognized an additional gain on sale of Project Partnerships in the amount of $2,000 resulting from the true-up of certain legal and other sale transaction closing expenses arising from Project Partnership sale transactions which closed in the prior fiscal year. This amount, less the applicable state tax withholding, will be distributed to the Series 5 Assignees in a subsequent period at such time that state withholding tax liabilities have been settled.

Series 6

Transaction				Net Proceeds		Gain (Loss)
Month / Year	Project Partnership	Net Proceeds		Per BAC		on Disposal
April 2011	Dawson Elderly	$	31,875	$	3.15	$	31,875
September 2011	Ehrhardt Place Apartments		1,421		0.14		1,421
September 2011	Oak Ridge Apartments		23,151		2.29		23,151
September 2011	Country Place Apartments		22,985		2.27		22,985
September 2011	Other, net (see below)		-		-		4,000
						$	83,432

The net proceeds per BAC from the sale of Dawson Elderly, Ehrhardt Place Apartments, Oak Ridge Apartments and Country Place Apartments are a component of the Distribution Payable on the Balance Sheet as of September 30, 2011. These net proceeds, less the applicable state tax withholding, will be distributed to the Series 6 Assignees in a subsequent period at such time that state withholding tax liabilities have been settled.

Gateway recognized an additional gain on sale of Project Partnerships in the amount of $4,000 resulting from the true-up of certain legal and other sale transaction closing expenses arising from Project Partnership sale transactions which closed in the prior fiscal year. This amount, less the applicable state tax withholding, will be distributed to the Series 6 Assignees in a subsequent period at such time that state withholding tax liabilities have been settled.

Fiscal Year 2011 Disposition Activity:

Series 2

Transaction				Net Proceeds		Gain (Loss)
Month / Year	Project Partnership	Net Proceeds		Per BAC		on Disposal
August 2010	Richland Elderly	$	27,075	$	4.41	$	27,075
August 2010	Pearson Elderly		19,874		3.24		19,874
August 2010	Mount Vernon Elderly		16,675		2.72		16,675
August 2010	Lakeland Elderly		23,075		3.76		23,075
September 2010	Hartwell Family		1,500		0.24		1,500
September 2010	Deerfield II		1,975		0.32		1,975
November 2010	Cherrytree Apartments		23,769		3.87		23,769
November 2010	Springwood Apartments		36,676		5.98		36,676
December 2010	Manchester Housing		9,387		1.53		9,387
December 2010	Heritage Village Apartments		23,296		3.80		23,296
December 2010	Woodland Terrace Apartments		9,375		1.53		9,375
December 2010	Park Place Apartments		-		-		-
	Other, net (see below)		-		-		163
						$	192,840

The net proceeds per BAC from the sales of Richland Elderly, Pearson Elderly, Mount Vernon Elderly, Lakeland Elderly, Hartwell Family, Deerfield II, Cherrytree Apartments, Springwood Apartments, Manchester Housing, Heritage Village Apartments, Woodland Terrace Apartments and Park Place Apartments are a component of the Distribution Payable on the Balance Sheet as of March 31, 2011. These net proceeds, net of any true-up adjustments, were distributed to the Series 2 Assignees in September 2011.

Gateway recognized an additional gain on sale of Project Partnerships in the amount of $163 resulting from the true-up of certain legal and other sale transaction closing expenses arising from Project Partnership sale transactions which closed in the prior fiscal year. This amount was distributed to the Series 2 Assignees in September 2011.

Series 3

Transaction				Net Proceeds		Gain (Loss)
Month / Year	Project Partnership	Net Proceeds		Per BAC		on Disposal
August 2010	Heritage Villas	$	19,875	$	3.64	$	19,875
September 2010	Nowata Properties		87,294		16.00		87,294
September 2010	Poteau Properties II		142,615		26.14		142,615
September 2010	Roland Properties II		142,615		26.14		142,615
September 2010	Sallisaw Properties		142,615		26.14		142,615
September 2010	Stilwell Properties		131,551		24.11		131,551
September 2010	Waldron Properties		65,162		11.94		65,162
November 2010	Mill Run Apartments		2,538		0.47		2,538
December 2010	Countrywood Apartments		14,650		2.69		14,650
December 2010	Weston Apartments		1,650		0.30		1,650
December 2010	McKinley II Apartments		7,387		1.35		7,387
December 2010	Hornellsville Apartments		7,644		1.40		7,644
December 2010	Wildwood Apartments		27,145		4.98		27,145
December 2010	Hancock Manor Apartments		13,537		2.48		13,537
December 2010	Shiloh Apartments		27,337		5.01		27,337
	Other, net (see below)		-		-		(522	)
						$	833,093

The net proceeds per BAC from the sale of Heritage Villas, Nowata Properties, Poteau Properties II, Roland Properties II, Sallisaw Properties, Stilwell Properties, Waldron Properties, Mill Run Apartments, Countrywood Apartments, Weston Apartments, McKinley II Apartments, Hornellsville Apartments, Wildwood Apartments, Hancock Manor Apartments and Shiloh Apartments are a component of the Distribution Payable on the Balance Sheet as of March 31, 2011. These net proceeds, net of any true-up adjustments, were distributed to the Series 3 Assignees in September 2011.

Gateway recognized a reduction with respect to the gain on sale of Project Partnerships in the amount of $522 resulting from the true-up of certain legal and other sale transaction closing expenses arising from a Project Partnership sale transaction which closed in the prior fiscal year. This adjustment reduced the amount distributed to the Series 3 Assignees in September 2011.

Series 4

Transaction				Net Proceeds		Gain (Loss)
Month / Year	Project Partnership	Net Proceeds		Per BAC		on Disposal
September 2010	Stilwell Properties II	$	142,615	$	20.62	$	142,615
September 2010	Westville Properties		98,356		14.22		98,356
September 2010	Spring Hill Senior Housing		65,365		9.45		65,365
	Other, net (see below)		-		-		1,000
						$	307,336

The net proceeds per BAC from the sale of Stilwell Properties II, Westville Properties and Spring Hill Senior Housing are a component of the Distribution Payable on the Balance Sheet as of March 31, 2011. These net proceeds, less the applicable state tax withholding, will be distributed to the Series 4 Assignees in a subsequent period at such time that state withholding tax liabilities have been settled.

Gateway recognized an additional gain on sale of Project Partnerships in the amount of $1,000 resulting from the true-up of certain legal and other sale transaction closing expenses arising from a Project Partnership sale transaction which closed in the prior fiscal year. This amount, less the applicable state tax withholding, will be distributed to the Series 4 Assignees in a subsequent period at such time that state withholding tax liabilities have been settled.

Series 5

Transaction				Net Proceeds		Gain (Loss)
Month / Year	Project Partnership	Net Proceeds		Per BAC		on Disposal
April 2010	Alma Properties	$	65,230	$	7.54	$	65,230
July 2010	Carrollton Club		106,140		12.32		106,140
August 2010	Crawford Rental Housing		19,875		2.31		19,875
August 2010	Greensboro Properties I		19,075		2.21		19,075
August 2010	Greensboro Properties II		25,475		2.96		25,475
December 2010	Heritage Square Apartments		99,389		11.54		99,389
December 2010	Savannah Park of Grove		164,712		19.12		164,712
December 2010	Savannah Park of Spring Hill		98,526		11.44		98,526
December 2010	Savannah Park of Clayton		65,128		7.56		65,128
	Gain deferred at March 31, 2010		-		-		151,377
	Other, net (see below)		-		-		5,932
						$	820,859

The net proceeds per BAC from the sales of Alma Properties, Blackshear Apartments II, Carrollton Club, Crawford Rental Housing, Greensboro Properties I, Greensboro Properties II, Heritage Square Apartments, Savannah Park of Grove, Savannah Park of Spring Hill and Savannah Park of Clayton are a component of the Distribution Payable on the Balance Sheet as of March 31, 2011. These net proceeds, less the applicable state tax withholding, will be distributed to the Series 5 Assignees in a subsequent period at such time that state withholding tax liabilities have been settled.

Gateway recognized an additional gain on sale of Project Partnerships in the amount of $5,932 resulting from the true-up of certain legal and other sale transaction closing expenses arising from Project Partnership sale transactions which closed in the prior fiscal year. This amount, less the applicable state tax withholding, will be distributed to the Series 5 Assignees in a subsequent period at such time that state withholding tax liabilities have been settled.

Series 6

Transaction				Net Proceeds		Gain (Loss)
Month / Year	Project Partnership	Net Proceeds		Per BAC		on Disposal
April 2010	Logan Place L.P.	$	63,038	$	6.24	$	62,250
August 2010	Lancaster House		110,000		10.89		110,000
December 2010	Maple Wood Apartments.		105,356		10.43		105,356
December 2010	Savannah Park of Parsons		131,508		13.01		131,509
						$	409,115

The net proceeds per BAC from the sales of Logan Place L.P., Lancaster House, Maple Wood Apartments and Savannah Park of Parsons are a component of the Distribution Payable on the Balance Sheet as of March 31, 2011. These net proceeds, less the applicable state tax withholding, will be distributed to the Series 6 Assignees in a subsequent period at such time that state withholding tax liabilities have been settled.

- Definition

The entire disclosure for the facts and circumstances leading to the completed or expected disposal, manner and timing of disposal, the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the segment in which the disposal group was reported, and the classification (whether sold or classified as held for sale) and carrying value of the assets and liabilities comprising the disposal group. Includes all disposal groups, including those classified as components of the entity (discontinued operations).

+ References

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