GTWY3
                               UNITED STATES
                    SECURITIES AND EXCHANGE COMMISSION
                           WASHINGTON, DC  20549
                                 FORM 10-Q

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

For The Quarterly Period Ended          SEPTEMBER 30, 2000

Commission File Number                      0-21762

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

            Florida                              59-3090386
(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 Number, Including Area Code:      (727)573-3800

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.

                      YES     X                NO

                                                  Number of Units
     Title of Each Class                        September 30, 2000
Units of Limited Partnership
Interest:  $1,000 per unit                            36,799


                   DOCUMENTS INCORPORATED BY REFERENCE
              Parts I and II, 1998 Form 10-K, filed with the
            Securities and Exchange Commission on July 14, 1999
            Parts III and IV - Form S-11 Registration Statement
                and all amendments and supplements thereto
                             File No. 33-44238


PART I - Financial Information
 Item 1.  Financial Statements

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

SERIES 7                                       SEPTEMBER 30,     MARCH 31,
                                                   2000            2000
                                                 -------         -------
                                               (Unaudited)      (Audited)
ASSETS
Current Assets:
 Cash and Cash Equivalents                     $   287,029     $   324,156
 Investments in Securities                          55,827          54,067
                                               -----------     -----------
  Total Current Assets                             342,856         378,223

 Investments in Securities                         369,085         356,248
 Investments in Project Partnerships, Net        1,855,145       2,237,728
                                               -----------     -----------
    Total Assets                               $ 2,567,086     $ 2,972,199
                                               ===========     ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners                   $    52,072     $    54,468
                                               -----------     -----------
  Total Current Liabilities                         52,072          54,468
                                               -----------     -----------
Long-Term Liabilities:
 Payable to General Partners                       315,828         312,688
                                               -----------     -----------
Partners' Equity (Deficit):
Limited Partners (10,395 units for Series
7, 9,980 for Series 8, 6,254 for Series 9,
5,043 for Series 10 and 5,127 for Series
11 at September 30, 2000 and March 31,
2000)                                            2,268,472       2,670,270
General Partners                                   (69,286)        (65,227)
                                               -----------     -----------
  Total Partners' Equity                         2,199,186       2,605,043
                                               -----------     -----------
    Total Liabilities and Partners' Equity     $ 2,567,086     $ 2,972,199
                                               ===========     ===========

              See accompanying notes to financial statements.


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

SERIES 8                                        SEPTEMBER 30,    MARCH 31,
                                                    2000            2000
                                                  -------        -------
                                                 (Unaudited)     (Audited)
ASSETS
Current Assets:
 Cash and Cash Equivalents                      $   382,678    $   425,447
 Investments in Securities                           52,914         51,329
                                                -----------    -----------
  Total Current Assets                              435,592        476,776

 Investments in Securities                          350,216        338,702
 Investments in Project Partnerships, Net         1,132,019      1,423,188
                                                -----------    -----------
    Total Assets                                $ 1,917,827    $ 2,238,666
                                                ===========    ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners                    $    42,470    $    45,318
                                                -----------    -----------
  Total Current Liabilities                          42,470         45,318
                                                -----------    -----------
Long-Term Liabilities:
 Payable to General Partners                        370,373        364,673
                                                -----------    -----------
Partners' Equity (Deficit):
Limited Partners (10,395 units for Series
7, 9,980 for Series 8, 6,254 for Series 9,
5,043 for Series 10 and 5,127 for Series 11
at September 30, 2000 and March 31, 2000)         1,577,559      1,898,013
General Partners                                    (72,575)       (69,338)
                                                -----------    -----------
  Total Partners' Equity                          1,504,984      1,828,675
                                                -----------    -----------
    Total Liabilities and Partners' Equity      $ 1,917,827    $ 2,238,666
                                                ===========    ===========

              See accompanying notes to financial statements.


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

SERIES 9                                        SEPTEMBER 30,     MARCH 31,
                                                    2000            2000
                                                  -------         -------
                                                 (Unaudited)      (Audited)
ASSETS
Current Assets:
 Cash and Cash Equivalents                      $   196,103    $   209,964
 Investments in Securities                           31,409         30,560
                                                -----------    -----------
  Total Current Assets                              227,512        240,524

 Investments in Securities                          236,794        229,761
 Investments in Project Partnerships, Net         2,008,289      2,303,872
                                                -----------    -----------
    Total Assets                                $ 2,472,595    $ 2,774,157
                                                ===========    ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners                    $    24,236    $    25,970
                                                -----------    -----------
    Total Current Liabilities                        24,236         25,970
                                                -----------    -----------
Long-Term Liabilities:
 Payable to General Partners                        224,123        214,521
                                                -----------    -----------
Partners' Equity (Deficit):
Limited Partners (10,395 units for Series
7, 9,980 for Series 8, 6,254 for Series 9,
5,043 for Series 10 and 5,127 for Series 11
at September 30, 2000 and March 31, 2000)         2,256,830      2,563,166
General Partners                                    (32,594)       (29,500)
                                                -----------    -----------
  Total Partners' Equity                          2,224,236      2,533,666
                                                -----------    -----------
    Total Liabilities and Partners' Equity      $ 2,472,595    $ 2,774,157
                                                ===========    ===========

              See accompanying notes to financial statements.


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

SERIES 10                                       SEPTEMBER 30,     MARCH 31,
                                                    2000            2000
                                                  -------         -------
                                                 (Unaudited)      (Audited)
ASSETS
Current Assets:
 Cash and Cash Equivalents                      $   201,834    $   226,070
 Investments in Securities                           24,550         23,784
                                                -----------    -----------
  Total Current Assets                              226,384        249,854

 Investments in Securities                          194,846        188,259
 Investments in Project Partnerships, Net         2,545,803      2,764,397
                                                -----------    -----------
    Total Assets                                $ 2,967,033    $ 3,202,510
                                                ===========    ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners                    $    27,804    $    29,116
                                                -----------    -----------
    Total Current Liabilities                        27,804         29,116
                                                -----------    -----------
Long-Term Liabilities:
 Payable to General Partners                         48,539         57,475
                                                -----------    -----------
Partners' Equity (Deficit):
Limited Partners (10,395 units for Series
7, 9,980 for Series 8, 6,254 for Series 9,
5,043 for Series 10 and 5,127 for Series 11
at September 30, 2000 and March 31, 2000)         2,905,963      3,128,940
General Partners                                    (15,273)       (13,021)
                                                -----------    -----------
  Total Partners' Equity                          2,890,690      3,115,919
                                                -----------    -----------
    Total Liabilities and Partners' Equity      $ 2,967,033    $ 3,202,510
                                                ===========    ===========

              See accompanying notes to financial statements.


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

SERIES 11                                       SEPTEMBER 30,     MARCH 31,
                                                    2000            2000
                                                  -------         -------
                                                 (Unaudited)      (Audited)
ASSETS
Current Assets:
 Cash and Cash Equivalents                      $   205,064    $   230,874
 Investments in Securities                           25,424         24,571
                                                -----------    -----------
  Total Current Assets                              230,488        255,445

 Investments in Securities                          216,157        208,405
 Investments in Project Partnerships, Net         3,377,388      3,534,837
                                                -----------    -----------
    Total Assets                                $ 3,824,033    $ 3,998,687
                                                ===========    ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners                    $    27,408    $    28,842
                                                -----------    -----------
  Total Current Liabilities                          27,408         28,842
                                                -----------    -----------
Long-Term Liabilities:
 Payable to General Partners                          5,549         19,190
                                                -----------    -----------
Partners' Equity (Deficit):
Limited Partners (10,395 units for Series
7, 9,980 for Series 8, 6,254 for Series 9,
5,043 for Series 10 and 5,127 for Series 11
at September 30, 2000 and March 31, 2000)         3,799,156      3,957,139
General Partners                                     (8,080)        (6,484)
                                                -----------    -----------
  Total Partners' Equity                          3,791,076      3,950,655
                                                -----------    -----------
    Total Liabilities and Partners' Equity      $ 3,824,033    $ 3,998,687
                                                ===========    ===========

              See accompanying notes to financial statements.


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

TOTAL SERIES 7 - 11                             SEPTEMBER 30,     MARCH 31,
                                                    2000            2000
                                                  -------         -------
                                                 (Unaudited)      (Audited)
ASSETS
Current Assets:
 Cash and Cash Equivalents                      $ 1,272,708    $ 1,416,511
 Investments in Securities                          190,124        184,311
                                                 ----------    -----------
Total Current Assets                              1,462,832      1,600,822

 Investments in Securities                        1,367,098      1,321,375
 Investments in Project Partnerships, Net        10,918,644     12,264,022
                                                -----------    -----------
    Total Assets                                $13,748,574    $15,186,219
                                                ===========    ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners                    $   173,990    $   183,714
                                                -----------    -----------
  Total Current Liabilities                         173,990        183,714
                                                -----------    -----------
Long-Term Liabilities:
 Payable to General Partners                        964,412        968,547
                                                -----------    -----------
Partners' Equity (Deficit):
Limited Partners (10,395 units for Series
7, 9,980 for Series 8, 6,254 for Series 9,
5,043 for Series 10 and 5,127 for Series 11
at September 30, 2000 and March 31, 2000)        12,807,980     14,217,528
General Partners                                   (197,808)      (183,570)
                                                -----------    -----------
  Total Partners' Equity                         12,610,172     14,033,958
                                                -----------    -----------
    Total Liabilities and Partners' Equity      $13,748,574    $15,186,219
                                                ===========    ===========

              See accompanying notes to financial statements.


                     GATEWAY TAX CREDIT FUND III LTD.
                      (A Florida Limited Partnership)

                         STATEMENTS OF OPERATIONS
                 FOR THE THREE MONTHS ENDED SEPTEMBER 30,
                                (Unaudited)

SERIES 7                                            2000            1999
                                                    ----            ----
Revenues:
 Interest Income                               $    11,934    $    10,835
                                               -----------    -----------
Expenses:
 Asset Management Fee-General Partner               21,988         22,052
 General and Administrative:
  General Partner                                    5,862          5,109
  Other                                              8,039          8,969
 Amortization                                        3,549          4,368
                                               -----------    -----------
  Total Expenses                                    39,438         40,498
                                               -----------    -----------
Loss Before Equity in Losses
 of Project Partnerships                           (27,504)       (29,663)
Equity in Losses of Project
 Partnerships                                     (197,993)      (254,678)
                                                ----------     ----------
Net Loss                                       $  (225,497)   $  (284,341)
                                               ===========    ===========
Allocation of Net Loss:
 Limited Partners                              $  (223,242)   $  (281,498)
 General Partners                                   (2,255)        (2,843)
                                               -----------    -----------
                                               $  (225,497)   $  (284,341)
                                               ===========    ===========
Net Loss Per Number of Limited
Partnership Units                              $    (21.47)   $    (27.08)
                                              ============   ============
Number of Limited Partnership Units
Outstanding                                         10,395         10,395
                                              ============   ============

              See accompanying notes to financial statements.


                     GATEWAY TAX CREDIT FUND III LTD.
                      (A Florida Limited Partnership)

                         STATEMENTS OF OPERATIONS
                 FOR THE THREE MONTHS ENDED SEPTEMBER 30,
                                (Unaudited)
SERIES 8                                            2000            1999
                                                    ----            ----
Revenues:
 Interest Income                               $    12,650    $    11,285
                                               -----------    -----------
Expenses:
 Asset Management Fee-General Partner               22,914         22,983
 General and Administrative:
  General Partner                                    6,463          5,633
  Other                                              8,522          9,664
 Amortization                                        2,264          3,260
                                               -----------    -----------
  Total Expenses                                    40,163         41,540
                                               -----------    -----------
Loss Before Equity in Losses
 of Project Partnerships                           (27,513)       (30,255)
Equity in Losses of Project
 Partnerships                                     (128,130)      (232,401)
                                                ----------     ----------
Net Loss                                       $  (155,643)   $  (262,656)
                                               ===========    ===========
Allocation of Net Loss:
 Limited Partners                              $  (154,086)   $  (260,030)
 General Partners                                   (1,557)        (2,626)
                                               -----------    -----------
                                               $  (155,643)   $  (262,656)
                                               ===========    ===========
Net Loss Per Number of Limited
Partnership Units                              $    (15.44)   $    (26.06)
                                               ============   ============
Number of Limited Partnership Units
Outstanding                                          9,980          9,980
                                               ============   ============

              See accompanying notes to financial statements.


                     GATEWAY TAX CREDIT FUND III LTD.
                      (A Florida Limited Partnership)

                         STATEMENTS OF OPERATIONS
                 FOR THE THREE MONTHS ENDED SEPTEMBER 30,
                                (Unaudited)

SERIES 9                                            2000            1999
                                                    ----            ----
Revenues:
 Interest Income                                $     7,015   $     6,234
                                                -----------   -----------
Expenses:
 Asset Management Fee-General Partner                12,580        12,615
 General and Administrative:
  General Partner                                     3,608         3,144
  Other                                               4,525         5,564
 Amortization                                         1,430         1,743
                                                -----------   -----------
  Total Expenses                                     22,143        23,066
                                                -----------   -----------
Loss Before Equity in Losses
 of Project Partnerships                            (15,128)      (16,832)
Equity in Losses of Project
 Partnerships                                      (137,151)     (170,140)
                                                 ----------    ----------
Net Loss                                        $  (152,279)  $  (186,972)
                                                ===========   ===========
Allocation of Net Loss:
 Limited Partners                               $  (150,757)  $  (185,102)
 General Partners                                    (1,522)       (1,870)
                                                -----------   -----------
                                                $  (152,279)  $  (186,972)
                                                ===========   ===========
Net Loss Per Number of Limited
Partnership Units                               $    (24.10)  $    (29.60)
                                               ============  ============
Number of Limited Partnership Units
Outstanding                                           6,254         6,254
                                               ============  ============

              See accompanying notes to financial statements.


                     GATEWAY TAX CREDIT FUND III LTD.
                      (A Florida Limited Partnership)

                         STATEMENTS OF OPERATIONS
                 FOR THE THREE MONTHS ENDED SEPTEMBER 30,
                                (Unaudited)
SERIES 10                                           2000            1999
                                                    ----            ----
Revenues:
 Interest Income                               $     6,947    $     6,119
                                               -----------    -----------
Expenses:
 Asset Management Fee-General Partner                8,577          8,607
 General and Administrative:
  General Partner                                    2,254          1,965
  Other                                              3,308          3,703
 Amortization                                        1,405          1,406
                                               -----------    -----------
  Total Expenses                                    15,544         15,681
                                               -----------    -----------
Loss Before Equity in Losses
 of Project Partnerships                            (8,597)        (9,562)
Equity in Losses of Project
 Partnerships                                     (114,234)      (102,323)
                                                ----------     ----------
Net Loss                                       $  (122,831)   $  (111,885)
                                               ===========    ===========
Allocation of Net Loss:
 Limited Partners                              $  (121,603)   $  (110,766)
 General Partners                                   (1,228)        (1,119)
                                               -----------    -----------
                                               $  (122,831)   $  (111,885)
                                               ===========    ===========
Net Loss Per Number of Limited
Partnership Units                              $    (24.12)   $    (21.96)
                                              ============   ============
Number of Limited Partnership Units
Outstanding                                          5,043          5,043
                                              ============   ============

              See accompanying notes to financial statements.

                     GATEWAY TAX CREDIT FUND III LTD.
                      (A Florida Limited Partnership)

                         STATEMENTS OF OPERATIONS
                 FOR THE THREE MONTHS ENDED SEPTEMBER 30,
                                (Unaudited)
SERIES 11                                           2000            1999
                                                    ----            ----
Revenues:
 Interest Income                                $     7,605   $     6,752
                                                -----------   -----------
Expenses:
 Asset Management Fee-General Partner                 7,116         6,930
 General and Administrative:
  General Partner                                     1,804         1,572
  Other                                               2,763         3,246
 Amortization                                         2,073         2,074
                                                -----------   -----------
  Total Expenses                                     13,756        13,822
                                                -----------   -----------
Loss Before Equity in Losses
 of Project Partnerships                             (6,151)       (7,070)
Equity in Losses of Project
 Partnerships                                       (87,596)      (30,224)
                                                 ----------    ----------
Net Loss                                        $   (93,747)   $  (37,294)
                                                ===========   ===========
Allocation of Net Loss:
 Limited Partners                               $   (92,809)   $  (36,921)
 General Partners                                      (938)         (373)
                                                -----------   -----------
                                                $   (93,747)   $  (37,294)
                                                ===========   ===========
Net Loss Per Number of Limited
Partnership Units                               $    (18.10)   $    (7.20)
                                               ============  ============
Number of Limited Partnership Units
Outstanding                                           5,127         5,127
                                               ============  ============

              See accompanying notes to financial statements.


                     GATEWAY TAX CREDIT FUND III LTD.
                      (A Florida Limited Partnership)

                         STATEMENTS OF OPERATIONS
                 FOR THE THREE MONTHS ENDED SEPTEMBER 30,
                                (Unaudited)

TOTAL SERIES 7 - 11                                 2000            1999
                                                    ----            ----
Revenues:
 Interest Income                                $    46,151   $    41,225
                                                -----------   -----------
Expenses:
 Asset Management Fee-General Partner                73,175        73,187
 General and Administrative:
  General Partner                                    19,991        17,423
  Other                                              27,157        31,146
 Amortization                                        10,721        12,851
                                                -----------   -----------
  Total Expenses                                    131,044       134,607
                                                -----------   -----------
Loss Before Equity in Losses
 of Project Partnerships                            (84,893)      (93,382)
Equity in Losses of Project
 Partnerships                                      (665,104)     (789,766)
                                                 ----------    ----------
Net Loss                                        $  (749,997)  $  (883,148)
                                                ===========   ===========
Allocation of Net Loss:
 Limited Partners                               $  (742,497)  $  (874,316)
 General Partners                                    (7,500)       (8,832)
                                                -----------   -----------
                                                $  (749,997)  $  (883,148)
                                                ===========   ===========

              See accompanying notes to financial statements.

                     GATEWAY TAX CREDIT FUND III LTD.
                      (A Florida Limited Partnership)

                         STATEMENTS OF OPERATIONS
                  FOR THE SIX MONTHS ENDED SEPTEMBER 30,
                                (Unaudited)

SERIES 7                                            2000            1999
                                                    ----            ----
Revenues:
 Interest Income                               $    23,654    $    21,505
                                               -----------    -----------
Expenses:
 Asset Management Fee-General Partner               43,976         44,104
 General and Administrative:
  General Partner                                    9,119          8,045
  Other                                             11,294         12,007
 Amortization                                        7,098          8,736
                                               -----------    -----------
  Total Expenses                                    71,487         72,892
                                               -----------    -----------
Loss Before Equity in Losses
 of Project Partnerships                           (47,833)       (51,387)
Equity in Losses of Project
 Partnerships                                     (358,024)      (404,209)
                                                ----------     ----------
Net Loss                                       $  (405,857)   $  (455,596)
                                               ===========    ===========
Allocation of Net Loss:
 Limited Partners                              $  (401,798)   $  (451,040)
 General Partners                                   (4,059)        (4,556)
                                               -----------    -----------
                                               $  (405,857)   $  (455,596)
                                               ===========    ===========
Net Loss Per Number of Limited
Partnership Units                              $    (38.65)   $    (43.39)
                                              ============   ============
Number of Limited Partnership Units
Outstanding                                         10,395         10,395
                                              ============   ============

              See accompanying notes to financial statements.

                     GATEWAY TAX CREDIT FUND III LTD.
                      (A Florida Limited Partnership)

                         STATEMENTS OF OPERATIONS
                  FOR THE SIX MONTHS ENDED SEPTEMBER 30,
                                (Unaudited)
SERIES 8                                            2000            1999
                                                    ----            ----
Revenues:
 Interest Income                               $    25,009    $    22,360
                                               -----------    -----------
Expenses:
 Asset Management Fee-General Partner               45,828         45,966
 General and Administrative:
  General Partner                                   10,054          8,870
  Other                                             11,865         13,033
 Amortization                                        4,528          6,520
                                               -----------    -----------
  Total Expenses                                    72,275         74,389
                                               -----------    -----------
Loss Before Equity in Losses
 of Project Partnerships                           (47,266)       (52,029)
Equity in Losses of Project
 Partnerships                                     (276,425)      (438,478)
                                                ----------     ----------
Net Loss                                       $  (323,691)   $  (490,507)
                                               ===========    ===========
Allocation of Net Loss:
 Limited Partners                              $  (320,454)   $  (485,602)
 General Partners                                   (3,237)        (4,905)
                                               -----------    -----------
                                               $  (323,691)   $  (490,507)
                                               ===========    ===========
Net Loss Per Number of Limited
Partnership Units                              $    (32.11)   $    (48.66)
                                              ============   ============
Number of Limited Partnership Units
Outstanding                                          9,980          9,980
                                              ============   ============

              See accompanying notes to financial statements.

                     GATEWAY TAX CREDIT FUND III LTD.
                      (A Florida Limited Partnership)

                         STATEMENTS OF OPERATIONS
                  FOR THE SIX MONTHS ENDED SEPTEMBER 30,
                                (Unaudited)

SERIES 9                                            2000            1999
                                                    ----            ----
Revenues:
 Interest Income                                $    13,847   $    12,374
                                                -----------   -----------
Expenses:
 Asset Management Fee-General Partner                25,160        25,230
 General and Administrative:
  General Partner                                     5,612         4,951
  Other                                               6,691         7,475
 Amortization                                         2,860         3,486
                                                -----------   -----------
  Total Expenses                                     40,323        41,142
                                                -----------   -----------
Loss Before Equity in Losses
 of Project Partnerships                            (26,476)      (28,768)
Equity in Losses of Project
 Partnerships                                      (282,954)     (303,640)
                                                 ----------    ----------
Net Loss                                        $  (309,430)  $  (332,408)
                                                ===========   ===========
Allocation of Net Loss:
 Limited Partners                               $  (306,336)  $  (329,084)
 General Partners                                    (3,094)       (3,324)
                                                -----------   -----------
                                                $  (309,430)  $  (332,408)
                                                ===========   ===========
Net Loss Per Number of Limited
Partnership Units                               $    (48.98)  $    (52.62)
                                               ============  ============
Number of Limited Partnership Units
Outstanding                                           6,254         6,254
                                               ============  ============

              See accompanying notes to financial statements.


                     GATEWAY TAX CREDIT FUND III LTD.
                      (A Florida Limited Partnership)

                         STATEMENTS OF OPERATIONS
                  FOR THE SIX MONTHS ENDED SEPTEMBER 30,
                                (Unaudited)
SERIES 10                                           2000            1999
                                                    ----            ----
Revenues:
 Interest Income                               $    13,726    $    12,128
                                               -----------    -----------
Expenses:
 Asset Management Fee-General Partner               17,154         17,214
 General and Administrative:
  General Partner                                    3,507          3,094
  Other                                              4,863          5,091
 Amortization                                        2,810          2,812
                                               -----------    -----------
  Total Expenses                                    28,334         28,211
                                               -----------    -----------
Loss Before Equity in Losses
 of Project Partnerships                           (14,608)       (16,083)
Equity in Losses of Project
 Partnerships                                     (210,621)      (151,302)
                                                ----------     ----------
Net Loss                                       $  (225,229)   $  (167,385)
                                               ===========    ===========
Allocation of Net Loss:
 Limited Partners                              $  (222,977)   $  (165,711)
 General Partners                                   (2,252)        (1,674)
                                               -----------    -----------
                                               $  (225,229)   $  (167,385)
                                               ===========    ===========
Net Loss Per Number of Limited
Partnership Units                              $    (44.22)   $    (32.86)
                                              ============   ============
Number of Limited Partnership Units
Outstanding                                          5,043          5,043
                                              ============   ============

              See accompanying notes to financial statements.

                     GATEWAY TAX CREDIT FUND III LTD.
                      (A Florida Limited Partnership)

                         STATEMENTS OF OPERATIONS
                  FOR THE SIX MONTHS ENDED SEPTEMBER 30,
                                (Unaudited)
SERIES 11                                           2000            1999
                                                    ----            ----
Revenues:
 Interest Income                                $    15,061   $    13,418
                                                -----------   -----------
Expenses:
 Asset Management Fee-General Partner                14,232        13,860
 General and Administrative:
  General Partner                                     2,806         2,475
  Other                                               4,327         4,546
 Amortization                                         4,146         4,148
                                                -----------   -----------
  Total Expenses                                     25,511        25,029
                                                -----------   -----------
Loss Before Equity in Losses
 of Project Partnerships                            (10,450)      (11,611)
Equity in Losses of Project
 Partnerships                                      (149,129)      (68,853)
                                                 ----------    ----------
Net Loss                                        $  (159,579)  $   (80,464)
                                                ===========   ===========
Allocation of Net Loss:
 Limited Partners                               $  (157,983)  $   (79,659)
 General Partners                                    (1,596)         (805)
                                                -----------   -----------
                                                $  (159,579)  $   (80,464)
                                                ===========   ===========
Net Loss Per Number of Limited
Partnership Units                               $    (30.81)  $    (15.54)
                                               ============  ============
Number of Limited Partnership Units
Outstanding                                           5,127         5,127
                                               ============  ============

              See accompanying notes to financial statements.

                     GATEWAY TAX CREDIT FUND III LTD.
                      (A Florida Limited Partnership)

                         STATEMENTS OF OPERATIONS
                  FOR THE SIX MONTHS ENDED SEPTEMBER 30,
                                (Unaudited)

TOTAL SERIES 7 - 11                                 2000            1999
                                                    ----            ----
Revenues:
 Interest Income                                $    91,297   $    81,785
                                                -----------   -----------
Expenses:
 Asset Management Fee-General Partner               146,350       146,374
 General and Administrative:
  General Partner                                    31,098        27,435
  Other                                              39,040        42,152
 Amortization                                        21,442        25,702
                                                -----------   -----------
  Total Expenses                                    237,930       241,663
                                                -----------   -----------
Loss Before Equity in Losses
 of Project Partnerships                           (146,633)     (159,878)
Equity in Losses of Project
 Partnerships                                    (1,277,153)   (1,366,482)
                                                 ----------    ----------
Net Loss                                        $(1,423,786)  $(1,526,360)
                                                ===========   ===========
Allocation of Net Loss:
 Limited Partners                               $(1,409,548)  $(1,511,096)
 General Partners                                   (14,238)      (15,264)
                                                -----------   -----------
                                                $(1,423,786)  $(1,526,360)
                                                ===========   ===========

              See accompanying notes to financial statements.

                     GATEWAY TAX CREDIT FUND III LTD.
                      (A Florida Limited Partnership)

                 STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
           FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2000 AND 1999:


                                   Limited         General
SERIES 7                           Partners        Partners         Total
                                  ---------        --------         -----

Balance at March 31, 1999       $ 3,220,449     $   (59,670)    $ 3,160,779

Net Loss                           (451,040)         (4,556)       (455,596)
                                -----------     -----------     -----------

Balance at September 30,1999    $ 2,769,409     $   (64,226)    $ 2,705,183
                               ============    ============    ============


Balance at March 31, 2000       $ 2,670,270     $   (65,227)    $ 2,605,043

Net Loss                           (401,798)         (4,059)       (405,857)
                                -----------     -----------     -----------

Balance at September 30,2000    $ 2,268,472     $   (69,286)    $ 2,199,186
                               ============    ============    ============


              See accompanying notes to financial statements.


                     GATEWAY TAX CREDIT FUND III LTD.
                      (A Florida Limited Partnership)

                 STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
           FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2000 AND 1999:


                                   Limited         General
SERIES 8                           Partners        Partners         Total
                                  ---------        --------         -----

Balance at March 31, 1999       $ 3,132,833     $   (56,866)    $ 3,075,967

Net Loss                           (485,602)         (4,905)       (490,507)
                                -----------     -----------     -----------

Balance at September 30,1999    $ 2,647,231     $   (61,771)    $ 2,585,460
                               ============    ============    ============


Balance at March 31, 2000       $ 1,898,013     $   (69,338)    $ 1,828,675

Net Loss                           (320,454)         (3,237)       (323,691)
                                -----------     -----------     -----------

Balance at September 30,2000    $ 1,577,559     $   (72,575)    $ 1,504,984
                               ============    ============    ============

              See accompanying notes to financial statements.


                     GATEWAY TAX CREDIT FUND III LTD.
                      (A Florida Limited Partnership)

                 STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
           FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2000 AND 1999:


                                   Limited         General
SERIES 9                           Partners        Partners         Total
                                  ---------        --------         -----

Balance at March 31, 1999       $ 3,105,611     $   (24,021)    $ 3,081,590

Net Loss                           (329,084)         (3,324)       (332,408)
                                -----------     -----------     -----------

Balance at September 30,1999    $ 2,776,527     $   (27,345)    $ 2,749,182
                               ============    ============    ============


Balance at March 31, 2000       $ 2,563,166     $   (29,500)    $ 2,533,666

Net Loss                           (306,336)         (3,094)       (309,430)
                                -----------     -----------     -----------

Balance at September 30,2000    $ 2,256,830     $   (32,594)    $ 2,224,236
                               ============    ============    ============

              See accompanying notes to financial statements.


                     GATEWAY TAX CREDIT FUND III LTD.
                      (A Florida Limited Partnership)

                 STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
           FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2000 AND 1999:


                                   Limited         General
SERIES 10                          Partners        Partners         Total
                                  ---------        --------         -----

Balance at March 31, 1999       $ 3,454,065     $    (9,737)    $ 3,444,328

Net Loss                           (165,711)         (1,674)       (167,385)
                                -----------     -----------     -----------

Balance at September 30,1999    $ 3,288,354     $   (11,411)    $ 3,276,943
                               ============    ============    ============


Balance at March 31, 2000       $ 3,128,940     $   (13,021)    $ 3,115,919

Net Loss                           (222,977)         (2,252)       (225,229)
                                -----------     -----------     -----------

Balance at September 30,2000    $ 2,905,963     $   (15,273)    $ 2,890,690
                               ============    ============    ============

              See accompanying notes to financial statements.


                     GATEWAY TAX CREDIT FUND III LTD.
                      (A Florida Limited Partnership)

                 STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
           FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2000 AND 1999:


                                   Limited         General
SERIES 11                          Partners        Partners         Total
                                  ---------        --------         -----

Balance at March 31, 1999       $ 4,120,106     $    (4,838)    $ 4,115,268

Net Loss                            (79,659)           (805)        (80,464)
                                -----------     -----------     -----------

Balance at September 30,1999    $ 4,040,447     $    (5,643)    $ 4,034,804
                               ============    ============    ============


Balance at March 31, 2000       $ 3,957,139     $    (6,484)    $ 3,950,655

Net Loss                           (157,983)         (1,596)       (159,579)
                                -----------     -----------     -----------

Balance at September 30,2000    $ 3,799,156     $    (8,080)    $ 3,791,076
                               ============    ============    ============

              See accompanying notes to financial statements.



                     GATEWAY TAX CREDIT FUND III LTD.
                      (A Florida Limited Partnership)

                 STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
           FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2000 AND 1999:


                                   Limited         General
TOTAL SERIES 7 - 11                Partners        Partners         Total
                                  ---------        --------         -----

Balance at March 31, 1999       $17,033,064     $  (155,132)    $16,877,932

Net Loss                         (1,511,096)        (15,264)     (1,526,360)
                                -----------     -----------     -----------

Balance at September 30,1999    $15,521,968     $  (170,396)    $15,351,572
                               ============    ============    ============


Balance at March 31, 2000       $14,217,528     $  (183,570)    $14,033,958

Net Loss                         (1,409,548)        (14,238)     (1,423,786)
                                -----------     -----------     -----------

Balance at September 30,2000    $12,807,980     $  (197,808)    $12,610,172
                               ============    ============    ============

              See accompanying notes to financial statements.


                     GATEWAY TAX CREDIT FUND III LTD.
                      (A Florida Limited Partnership)

                         STATEMENTS OF CASH FLOWS
                  FOR THE SIX MONTHS ENDED SEPTEMBER 30,
                                (Unaudited)

SERIES 7                                             2000           1999
--------                                             ----           ----
Cash Flows from Operating Activities:
  Net Loss                                      $  (405,857)  $  (455,596)
  Adjustments to Reconcile Net Loss to Net
  Cash Used in Operating Activities:
   Amortization                                       7,098         8,736
   Accreted Interest Income on Investments
   in Securities                                    (14,597)      (15,167)
   Equity in Losses of Project Partnerships         358,024       404,209
   Changes in Operating Assets and
   Liabilities:
    Increase in Payable to General Partners             745         2,881
                                                -----------   -----------
     Net Cash Used in Operating Activities          (54,587)      (54,937)
                                                -----------   -----------
Cash Flows from Investing Activities:
 Distributions Received from Project
 Partnerships                                        17,460        17,551
                                                -----------   -----------
     Net Cash Provided by Investing
     Activities                                      17,460        17,551
                                                -----------   -----------
Decrease in Cash and Cash Equivalents               (37,127)      (37,386)
Cash and Cash Equivalents at Beginning of
Year                                                324,156       299,313
                                                -----------   -----------
Cash and Cash Equivalents at End of Year        $   287,029   $   261,927
                                                ===========   ===========

              See accompanying notes to financial statements.


                     GATEWAY TAX CREDIT FUND III LTD.
                      (A Florida Limited Partnership)

                         STATEMENTS OF CASH FLOWS
                  FOR THE SIX MONTHS ENDED SEPTEMBER 30,
                                (Unaudited)

SERIES 8                                             2000           1999
--------                                             ----           ----
Cash Flows from Operating Activities:
  Net Loss                                      $  (323,691)  $  (490,507)
  Adjustments to Reconcile Net Loss to Net
  Cash Used in Operating Activities:
   Amortization                                       4,528         6,520
   Accreted Interest Income on Investments
   in Securities                                    (13,100)      (13,612)
   Equity in Losses of Project Partnership          276,425       438,478
   Changes in Operating Assets and
   Liabilities:
    Increase in Payable to General Partners           2,853         5,944
                                                -----------   -----------
     Net Cash Used in Operating Activities          (52,985)      (53,177)
                                                -----------   -----------
Cash Flows from Investing Activities:
 Distributions Received from Project
 Partnerships                                        10,216        13,973
                                                -----------   -----------
     Net Cash Provided by Investing
     Activities                                      10,216        13,973
                                                -----------   -----------
Decrease in Cash and Cash Equivalents               (42,769)      (39,204)
Cash and Cash Equivalents at Beginning of
Year                                                425,447       411,602
                                                -----------   -----------
Cash and Cash Equivalents at End of Year         $  382,678    $  372,398
                                                ===========   ===========

              See accompanying notes to financial statements.


                     GATEWAY TAX CREDIT FUND III LTD.
                      (A Florida Limited Partnership)

                         STATEMENTS OF CASH FLOWS
                  FOR THE SIX MONTHS ENDED SEPTEMBER 30,
                                (Unaudited)

SERIES 9                                             2000           1999
--------                                             ----           ----
Cash Flows from Operating Activities:
  Net Loss                                      $  (309,430)  $  (332,408)
  Adjustments to Reconcile Net Loss to Net
  Cash Used in Operating Activities:
   Amortization                                       2,860         3,486
   Accreted Interest Income on Investments
   in Securities                                     (7,883)       (8,219)
   Equity in Losses of Project Partnerships         282,954       303,640
   Changes in Operating Assets and
   Liabilities:
    Increase in Payable to General Partners           7,868         8,096
                                                -----------   -----------
     Net Cash Used in Operating Activities          (23,631)      (25,405)
                                                -----------   -----------
Cash Flows from Investing Activities:
 Distributions Received from Project
 Partnerships                                         9,770         5,846
                                                -----------   -----------
     Net Cash Provided by Investing
     Activities                                       9,770         5,846
                                                -----------   -----------
Decrease in Cash and Cash Equivalents               (13,861)      (19,559)
Cash and Cash Equivalents at Beginning of
Year                                                209,964       195,618
                                                -----------   -----------
Cash and Cash Equivalents at End of Year        $   196,103   $   176,059
                                                ===========   ===========

              See accompanying notes to financial statements.



                     GATEWAY TAX CREDIT FUND III LTD.
                      (A Florida Limited Partnership)

                         STATEMENTS OF CASH FLOWS
                  FOR THE SIX MONTHS ENDED SEPTEMBER 30,
                                (Unaudited)

SERIES 10                                            2000           1999
--------                                             ----           ----
Cash Flows from Operating Activities:
  Net Loss                                      $  (225,229)  $  (167,385)
  Adjustments to Reconcile Net Loss to Net
  Cash Used in Operating Activities:
   Amortization                                       2,810         2,812
   Accreted Interest Income on Investments
   in Securities                                     (7,351)       (7,576)
   Equity in Losses of Project Partnerships         210,621       151,302
   Changes in Operating Assets and
   Liabilities:
    Decrease in Payable to General Partners         (10,248)      (10,146)
                                                -----------   -----------
     Net Cash Used in Operating Activities          (29,397)      (30,993)
                                                -----------   -----------
Cash Flows from Investing Activities:
 Distributions Received from Project
 Partnerships                                         5,161         4,489
                                                -----------   -----------
     Net Cash Provided by Investing
     Activities                                       5,161         4,489
                                                -----------   -----------
Decrease in Cash and Cash Equivalents               (24,236)      (26,504)
Cash and Cash Equivalents at Beginning of
Year                                                226,070       216,566
                                                -----------   -----------
Cash and Cash Equivalents at End of Year        $   201,834   $   190,062
                                                ===========   ===========

              See accompanying notes to financial statements.


                     GATEWAY TAX CREDIT FUND III LTD.
                      (A Florida Limited Partnership)

                         STATEMENTS OF CASH FLOWS
                  FOR THE SIX MONTHS ENDED SEPTEMBER 30,
                                (Unaudited)

SERIES 11                                            2000           1999
--------                                             ----           ----
Cash Flows from Operating Activities:
  Net Loss                                       $ (159,579)  $   (80,464)
  Adjustments to Reconcile Net Loss to Net
  Cash Used in Operating Activities:
   Amortization                                       4,146         4,148
   Accreted Interest Income on Investments
   in Securities                                     (8,603)       (8,774)
   Equity in Losses of Project Partnerships         149,129        68,853
   Changes in Operating Assets and
   Liabilities:
    Decrease in Payable to General Partners         (15,075)      (15,318)
                                                -----------   -----------
     Net Cash Used in Operating Activities          (29,982)      (31,555)
                                                -----------   -----------
Cash Flows from Investing Activities:
 Distributions Received from Project
 Partnerships                                         4,172         2,492
                                                -----------   -----------
     Net Cash Provided by Investing
     Activities                                       4,172         2,492
                                                -----------   -----------
Decrease in Cash and Cash Equivalents               (25,810)      (29,063)
Cash and Cash Equivalents at Beginning of
Year                                                230,874       223,024
                                                -----------   -----------
Cash and Cash Equivalents at End of Year        $   205,064   $   193,961
                                                ===========   ===========

              See accompanying notes to financial statements.


                     GATEWAY TAX CREDIT FUND III LTD.
                      (A Florida Limited Partnership)

                         STATEMENTS OF CASH FLOWS
                  FOR THE SIX MONTHS ENDED SEPTEMBER 30,
                                (Unaudited)

TOTAL SERIES 7 - 11                                  2000           1999
-------------------                                  ----           ----
Cash Flows from Operating Activities:
  Net Loss                                      $(1,423,786)  $(1,526,360)
  Adjustments to Reconcile Net Loss to Net
  Cash Used in Operating Activities:
   Amortization                                      21,442        25,702
   Accreted Interest Income on Investments
   in Securities                                    (51,534)      (53,348)
   Equity in Losses of Project Partnerships       1,277,153     1,366,482
   Changes in Operating Assets and
   Liabilities:
    Decrease in Payable to General Partners         (13,857)       (8,543)
                                                -----------   -----------
     Net Cash Used in Operating Activities         (190,582)     (196,067)
                                                -----------   -----------
Cash Flows from Investing Activities:
 Distributions Received from Project
 Partnerships                                        46,779        44,351
                                                -----------   -----------
     Net Cash Provided by Investing
Activities                                           46,779        44,351
                                                -----------   -----------
Decrease in Cash and Cash Equivalents              (143,803)     (151,716)
Cash and Cash Equivalents at Beginning of
Year                                              1,416,511     1,346,123
                                                -----------   -----------
Cash and Cash Equivalents at End of Year        $ 1,272,708   $ 1,194,407
                                                ===========   ===========


              See accompanying notes to financial statements.


                     GATEWAY TAX CREDIT FUND III LTD.
                      (A Florida Limited Partnership)

                       NOTES TO FINANCIAL STATEMENTS
                            SEPTEMBER 30, 2000

NOTE 1 - ORGANIZATION:

   Gateway  Tax  Credit  Fund  III  Ltd.  ("Gateway"),  a  Florida  Limited
Partnership,  was  formed  October 17, 1991  under  the  laws  of  Florida.
Gateway  offered  its limited partnership interests in Series.   The  first
Series for Gateway is Series 7.  Operations commenced on July 16, 1992  for
Series  7,  January 4, 1993 for Series 8, September 30, 1993 for Series  9,
January  21,  1994 for Series 10 and April 29, 1994 for  Series  11.   Each
Series  invests,  as  a  limited  partner, in  other  limited  partnerships
("Project  Partnerships"),  each  of  which  owns  and  operates  apartment
complexes  eligible  for  Low-Income Housing Tax Credits  ("Tax  Credits"),
provided  for in Section 42 of the Internal Revenue Code of 1986.   Gateway
will terminate on December 31, 2040 or sooner, in accordance with the terms
of  the  Limited Partnership Agreement.  As of September 30, 2000,  Gateway
had  received capital contributions of $1,000 from the General Partners and
$36,799,000 from the investor Limited Partners.

   Raymond  James Partners, Inc. and Raymond James Tax Credit Funds,  Inc.,
wholly-owned subsidiaries of Raymond James Financial, Inc., are the General
Partner  and Managing General Partner, respectively.  The Managing  General
Partner manages and controls the business of Gateway.

   Gateway  received  capital  contributions  of  $10,395,000,  $9,980,000,
$6,254,000, $5,043,000 and $5,127,000 from the investor Limited Partners in
Series  7,  8, 9, 10 and 11, respectively.  Each Series will be treated  as
though it were a separate partnership, investing in a separate and distinct
pool  of  Project Partnerships.  Income or loss and all tax items from  the
Project Partnerships acquired by each Series will be specifically allocated
among the limited partners of such Series.

   Operating profits and losses, cash distributions from operations and Tax
Credits  from  each  Series  are generally allocated  99%  to  the  Limited
Partners in that Series and 1% to the General Partners.  Profit or loss and
cash  distributions from sales of property by each Series are allocated  as
formulated in the Limited Partnership Agreement.

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES:

Basis of Accounting

   Gateway  utilizes  an accrual basis of accounting whereby  revenues  are
recognized  as  earned and expenses are recognized as  obligations  are  in
curred.

   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 Statement 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  is  shown  as  amortization  expense  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.

  Gateway  recognizes a decline in the carrying value of its investment  in
the  Project Partnerships when there is evidence of a non-temporary decline
in  the recoverable amount of the investment.  There is a possibility  that
the  estimates relating to reserves for non-temporary declines in  carrying
value of the investments in Project Partnerships may be subject to material
near term adjustments.

  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.

Concentrations 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  generally
accepted  accounting principles requires the use of estimates  that  affect
certain  reported amounts and disclosures.  These estimates  are  based  on
management's  knowledge and experience.  Accordingly, actual results  could
differ from these estimates.

Investment in Securities

    Effective  April  1,  1994,  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.
Treasury Security Strips) until maturity and to use these reserves to  fund
Gateway's ongoing operations.  Interest income is recognized ratably on the
U.S. Treasury Strips using the effective yield to maturity.

Offering and Commission Costs

    Offering  and  commission costs are charged against  Limited  Partners'
Equity upon 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.

Basis of Preparation

  The unaudited financial statements presented herein have been prepared in
accordance with the instructions to Form 10-Q and do not include all of the
information and note disclosures required by generally accepted  accounting
principles.   These  statements  should be read  in  conjunction  with  the
financial statements and notes thereto included with the Partnership's Form
10-K for the year ended March 31, 2000.  In the opinion of management these
financial  statements  include  adjustments,  consisting  only  of   normal
recurring  adjustments,  necessary to fairly  summarize  the  Partnership's
financial  position and results of operations.  The results  of  operations
for the periods may not be indicative of the results to be expected for the
year.

NOTE 3 - INVESTMENT IN SECURITIES:

  The  September 30, 2000 Balance Sheet includes Investment  in  Securities
consisting  of U.S. Treasury Security Strips which represents  their  cost,
plus accreted interest income of $183,342 for Series 7, $159,019 for Series
8, $90,443 for Series 9, $79,002 for Series 10 and $89,629 for Series 11.

                                                            Gross Unrealized
                     Estimated Market       Cost Plus          Gains and
                           Value        Accreted Interest       (Losses)
                   -----------------  -----------------   ----------------
Series 7                  $  446,101         $  424,912           $  21,189
Series 8                     417,221            403,130              14,091
Series 9                     270,953            268,203               2,750
Series 10                    228,790            219,396               9,394
Series 11                    258,968            241,581              17,387

  As  of  September  30,  2000,  the cost and  accreted  interest  of  debt
securities by contractual maturities is as follows:

                                    Series 7       Series 8       Series 9
                                    --------       --------       --------
Due with 1 year                    $   55,827     $   52,914     $   31,409
After 1 year through 5 years          216,274        201,894        122,401
After 5 years through 10 years        152,811        148,322        114,393
Over 10 years                               0              0              0
                                   ----------     ----------     ----------
  Total Amount Carried on
   Balance Sheet                   $  424,912     $  403,130     $  268,203
                                   ==========     ==========     ==========


                                   Series 10      Series 11        Total
                                    --------       --------       --------
Due with 1 year                    $   24,550     $   25,424     $  190,124
After 1 year through 5 years           91,369        100,929        732,867
After 5 years through 10 years         82,786        115,228        613,540
Over 10 years                          20,691              0         20,691
                                   ----------     ----------     ----------
  Total Amount Carried on
   Balance Sheet                   $  219,396     $  241,581     $1,557,222
                                   ==========     ==========     ==========

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.

   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 partners of the Project Partnerships.

  For the six months ended September 30, 2000 and 1999 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 receive
an  annual asset management fee equal to the greater of (i) $2,000 for each
limited  partnership in which Gateway invests, or (ii) 0.275% of  Gateway's
gross  proceeds from the sale of limited partnership interests.  In  either
event  (i) or (ii), the maximum amount may not exceed 0.2% of the aggregate
cost   (Gateway's  capital  contribution  plus  Gateway's  share   of   the
Properties'  mortgage)  of Gateway's interest in properties  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
Statement of Operations.

                         2000           1999
                        -----          -----
 Series 7            $ 43,976       $ 44,104
 Series 8              45,828         45,966
 Series 9              25,160         25,230
 Series 10             17,154         17,214
 Series 11             14,232         13,860
                     --------       --------
 Total               $146,350       $146,374
                     ========       ========

  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  Statement   of
Operations.

 Series 7           $   9,119      $   8,045
 Series 8              10,054          8,870
 Series 9               5,612          4,951
 Series 10              3,507          3,094
 Series 11              2,806          2,475
                     --------       --------
 Total               $ 31,098       $ 27,435
                     ========       ========

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS:

   As of September 30, 2000, the Partnership had acquired a 99% interest in
the  profits,  losses and tax credits as a limited partner  in  39  Project
Partnerships which own and operate government assisted multi-family housing
complexes.   Cash  flows from operations are allocated  according  to  each
Partnership  agreement.   Upon  dissolution proceeds  will  be  distributed
according to each Partnership agreement.


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

SERIES 7                                        SEPTEMBER 30,     MARCH 31,
                                                     2000           2000
                                                --------------   -----------
Capital Contributions to Project Partner-
ships and purchase price paid for limited
partner interests in Project Partnerships       $ 7,732,089     $ 7,732,089

Cumulative equity in losses of Project
Partnerships (1)                                 (6,331,392)     (5,973,368)

Cumulative distributions received from
Project Partnerships                               (175,011)       (157,551)
                                                -----------     -----------
Investment in Project Partnerships before
adjustment                                        1,225,686       1,601,170

Excess of investment cost over the
underlying assets acquired:
 Acquisition fees and expenses                      793,335         793,335
 Accumulated amortization of acquisition
 fees and expenses                                 (163,876)       (156,777)
                                               ------------    ------------

Investments in Project Partnerships             $ 1,855,145     $ 2,237,728
                                               ============    ============

(1)  In  accordance with the Partnership's accounting policy to  not  carry
Investments in Project Partnerships below zero, cumulative suspended losses
of  $942,371  for  the  period  ended September  30,  2000  and  cumulative
suspended  losses  of $650,567 for the year ended March 31,  2000  are  not
included.


   As of September 30, 2000, the Partnership had acquired a 99% interest in
the  profits,  losses and tax credits as a limited partner  in  43  Project
Partnerships which own and operate government assisted multi-family housing
complexes.   Cash  flows from operations are allocated  according  to  each
Partnership  agreement.   Upon  dissolution proceeds  will  be  distributed
according to each Partnership agreement.

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

SERIES 8                                         SEPTEMBER 30,     MARCH 31,
                                                      2000           2000
                                                --------------   -----------
Capital Contributions to Project Partner-
ships and purchase price paid for limited
partner interests in Project Partnerships       $ 7,586,105     $ 7,586,105

Cumulative equity in losses of Project
Partnerships (1)                                 (6,767,552)     (6,491,127)

Cumulative distributions received from
Project Partnerships                               (135,820)       (125,604)
                                                -----------     -----------
Investment in Project Partnerships before
adjustment                                          682,733         969,374

Excess of investment cost over the
underlying assets acquired:
 Acquisition fees and expenses                      549,773         549,773
 Accumulated amortization of acquisition
 fees and expenses                                 (100,487)        (95,959)
                                               ------------    ------------

Investments in Project Partnerships             $ 1,132,019     $ 1,423,188
                                               ============    ============

(1)  In  accordance with the Partnership's accounting policy to  not  carry
Investments in Project Partnerships below zero, cumulative suspended losses
of  $996,257  for  the  period  ended September  30,  2000  and  cumulative
suspended  losses  of $678,455 for the year ended March 31,  2000  are  not
included.


   As of September 30, 2000, the Partnership had acquired a 99% interest in
the  profits,  losses and tax credits as a limited partner  in  24  Project
Partnerships which own and operate government assisted multi-family housing
complexes.   Cash  flows from operations are allocated  according  to  each
Partnership  agreement.   Upon  dissolution proceeds  will  be  distributed
according to each Partnership agreement.

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

SERIES 9                                         SEPTEMBER 30,     MARCH 31,
                                                      2000           2000
                                                 --------------   -----------
Capital Contributions to Project Partner-
ships and purchase price paid for limited
partner interests in Project Partnerships       $ 4,914,116     $ 4,914,116

Cumulative equity in losses of Project
Partnerships (1)                                 (3,008,894)     (2,725,940)

Cumulative distributions received from
Project Partnerships                                (95,506)        (85,736)
                                                -----------      ----------
Investment in Project Partnerships before
adjustment                                        1,809,716       2,102,440

Excess of investment cost over the
underlying assets acquired:
 Acquisition fees and expenses                      244,087         244,087
 Accumulated amortization of acquisition
 fees and expenses                                  (45,514)        (42,655)
                                               ------------    ------------

Investments in Project Partnerships             $ 2,008,289     $ 2,303,872
                                               ============    ============

(1)  In  accordance with the Partnership's accounting policy to  not  carry
Investments in Project Partnerships below zero, cumulative suspended losses
of  $135,106  for  the  period  ended September  30,  2000  and  cumulative
suspended  losses  of $78,588 for the year ended March  31,  2000  are  not
included.


   As of September 30, 2000, the Partnership had acquired a 99% interest in
the  profits,  losses and tax credits as a limited partner  in  15  Project
Partnerships which own and operate government assisted multi-family housing
complexes.   Cash  flows from operations are allocated  according  to  each
Partnership  agreement.   Upon  dissolution proceeds  will  be  distributed
according to each Partnership agreement.

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

SERIES 10                                        SEPTEMBER 30,     MARCH 31,
                                                     2000           2000
                                             --------------   -----------
Capital Contributions to Project Partner-
ships and purchase price paid for limited
partner interests in Project Partnerships       $ 3,914,672     $ 3,914,672

Cumulative equity in losses of Project
Partnerships (1)                                 (1,422,381)     (1,211,760)

Cumulative distributions received from
Project Partnerships                               (105,778)       (100,617)
                                                -----------      ----------
Investment in Project Partnerships before
adjustment                                        2,386,513       2,602,295

Excess of investment cost over the
underlying assets acquired:
 Acquisition fees and expenses                      196,738         196,738
 Accumulated amortization of acquisition
 fees and expenses                                  (37,448)        (34,636)
                                              -------------    ------------

Investments in Project Partnerships             $ 2,545,803     $ 2,764,397
                                              =============    ============

(1)  In  accordance with the Partnership's accounting policy to  not  carry
Investments in Project Partnerships below zero, cumulative suspended losses
of  $0  for  the  period ended September 30, 2000 and cumulative  suspended
losses of $0 for the year ended March 31, 2000 are not included.


   As of September 30, 2000, the Partnership had acquired a 99% interest in
the  profits,  losses and tax credits as a limited partner  in  12  Project
Partnerships which own and operate government assisted multi-family housing
complexes.   Cash  flows from operations are allocated  according  to  each
Partnership  agreement.   Upon  dissolution proceeds  will  be  distributed
according to each Partnership agreement.

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

SERIES 11                                       SEPTEMBER 30,     MARCH 31,
                                                     2000           2000
                                                --------------   -----------
Capital Contributions to Project Partner-
ships and purchase price paid for limited
partner interests in Project Partnerships       $ 4,128,042     $ 4,128,042

Cumulative equity in losses of Project
Partnerships (1)                                   (911,155)       (762,026)

Cumulative distributions received from
Project Partnerships                                (82,638)        (78,466)
                                                -----------     -----------
Investment in Project Partnerships before
adjustment                                        3,134,249       3,287,550

Excess of investment cost over the
underlying assets acquired:
 Acquisition fees and expenses                      290,335         290,335
 Accumulated amortization of acquisition
 fees and expenses                                  (47,196)        (43,048)
                                               ------------     -----------

Investments in Project Partnerships             $ 3,377,388     $ 3,534,837
                                              =============   =============

(1)  In  accordance with the Partnership's accounting policy to  not  carry
Investments in Project Partnerships below zero, cumulative suspended losses
of  $0 for the period September 30, 2000 and cumulative suspended losses of
$0 for the year ended March 31, 2000 are not included.


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

TOTAL SERIES 7 - 11                             SEPTEMBER 30,     MARCH 31,
                                                     2000           2000
                                                --------------   -----------
Capital Contributions to Project Partner-
ships and purchase price paid for limited
partner interests in Project Partnerships       $28,275,024     $28,275,024

Cumulative equity in losses of Project
Partnerships (1)                                (18,441,374)    (17,164,221)

Cumulative distributions received from
Project Partnerships                               (594,753)       (547,974)
                                               ------------     -----------
Investment in Project Partnerships before
adjustment                                        9,238,897      10,562,829

Excess of investment cost over the
underlying assets acquired:
 Acquisition fees and expenses                    2,074,268       2,074,268
 Accumulated amortization of acquisition
 fees and expenses                                 (394,521)       (373,075)
                                               ------------    ------------

Investments in Project Partnerships             $10,918,644     $12,264,022
                                               ============   =============


   In  accordance with the Partnership's policy of presenting the financial
information of the Project Partnerships on a three month lag, below is  the
summarized financial information for the Series' Project Partnerships as of
June 30, of each year:

                                                     2000          1999
SERIES 7                                             ----          ----
SUMMARIZED BALANCE SHEETS
Assets:
  Current assets                                $ 3,294,232   $ 3,093,395
  Investment properties, net                     34,400,647    35,859,651
  Other assets                                       35,594        27,467
                                               ------------  ------------
    Total assets                                $37,730,473   $38,980,513
                                               ============  ============
Liabilities and Partners' Equity:
  Current liabilities                           $   973,606   $ 1,080,885
  Long-term debt                                 36,579,442    36,700,244
                                               ------------  ------------
    Total liabilities                            37,553,048    37,781,129
                                               ------------  ------------
Partners' equity (deficit)
  Limited Partner                                   239,108     1,243,935
  General Partners                                  (61,683)      (44,551)
                                                -----------   -----------
    Total Partners' equity                          177,425     1,199,384
                                                -----------   -----------
    Total liabilities and partners' equity      $37,730,473   $38,980,513
                                               ============  ============
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income                         $ 2,165,438   $ 2,085,302
Expenses:                                      ------------  ------------
  Operating expenses                              1,439,252     1,358,836
  Interest expense                                  631,230       517,626
  Depreciation and amortization                     751,348       761,712
                                               ------------  ------------
    Total expenses                                2,821,830     2,638,174
                                               ------------  ------------
      Net loss                                  $  (656,392)  $  (552,872)
                                               ============  ============
Other partners' share of net loss               $    (6,564)  $    (5,529)
                                               ============  ============
Partnerships' share of net loss                 $  (649,828)  $  (547,343)
Suspended losses                                    291,804       143,134
                                               ------------  ------------
Equity in Losses of Project Partnerships        $  (358,024)  $  (404,209)
                                               ============  ============

   In  accordance with the Partnership's policy of presenting the financial
information of the Project Partnerships on a three month lag, below is  the
summarized financial information for the Series' Project Partnerships as of
June 30, of each year:

                                                     2000          1999
SERIES 8                                             ----          ----
SUMMARIZED BALANCE SHEETS
Assets:
  Current assets                                $ 2,853,433   $ 2,621,048
  Investment properties, net                     36,416,155    38,449,419
  Other assets                                       35,313        49,851
                                               ------------  ------------
    Total assets                                $39,304,901   $41,120,318
                                               ============  ============
Liabilities and Partners' Equity:
  Current liabilities                           $ 1,139,316   $ 1,156,406
  Long-term debt                                 38,620,980    38,706,743
                                               ------------  ------------
    Total liabilities                            39,760,296    39,863,149
                                               ------------  ------------
Partners' equity (deficit)
  Limited Partner                                   (92,484)     1,402,952
  General Partners                                 (362,911)     (145,783)
                                                -----------   -----------
    Total Partners' equity (deficit)               (455,395)     1,257,169
                                                -----------   -----------
    Total liabilities and partners' equity      $39,304,901   $41,120,318
                                               ============  ============
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income                         $ 2,186,453   $ 2,065,901
Expenses:                                      ------------  ------------
  Operating expenses                              1,427,613     1,298,284
  Interest expense                                  562,807       506,385
  Depreciation and amortization                     798,526       803,400
                                               ------------  ------------
    Total expenses                                2,788,946     2,608,069
                                               ------------  ------------
      Net loss                                  $  (602,493)  $  (542,168)
                                               ============  ============
Other partners' share of net loss               $    (8,266)  $    (6,265)
                                               ============  ============
Partnerships' share of net loss                 $  (594,227)  $  (535,903)
Suspended losses                                    317,802        97,425
                                               ------------  ------------
Equity in Losses of Project Partnerships        $  (276,425)  $  (438,478)
                                               ============  ============


   In  accordance with the Partnership's policy of presenting the financial
information of the Project Partnerships on a three month lag, below is  the
summarized financial information for the Series' Project Partnerships as of
June 30, of each year:

                                                     2000          1999
SERIES 9                                             ----          ----
SUMMARIZED BALANCE SHEETS
Assets:
  Current assets                                $ 1,733,235   $ 1,670,589
  Investment properties, net                     20,574,469    21,361,541
  Other assets                                        5,611         6,568
                                               ------------  ------------
    Total assets                                $22,313,315   $23,038,698
                                               ============  ============
Liabilities and Partners' Equity:
  Current liabilities                           $   354,578   $   362,788
  Long-term debt                                 20,445,841    20,504,253
                                               ------------  ------------
    Total liabilities                            20,800,419    20,867,041
                                               ------------  ------------
Partners' equity (deficit)
  Limited Partner                                 1,660,103     2,291,805
  General Partners                                 (147,207)     (120,148)
                                                -----------   -----------
    Total Partners' equity                        1,512,896     2,171,657
                                                -----------   -----------
    Total liabilities and partners' equity      $22,313,315   $23,038,698
                                               ============  ============
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income                         $ 1,100,331   $ 1,043,098
Expenses:                                      ------------  ------------
  Operating expenses                                717,304       651,637
  Interest expense                                  305,362       255,022
  Depreciation and amortization                     420,566       443,146
                                               ------------  ------------
    Total expenses                                1,443,232     1,349,805
                                               ------------  ------------
      Net loss                                  $  (342,901)  $  (306,707)
                                               ============  ============
Other partners' share of net loss               $    (3,429)  $    (3,067)
                                               ============  ============
Partnerships' share of net loss                 $  (339,472)  $  (303,640)
Suspended losses                                     56,518             0
                                               ------------  ------------
Equity in Losses of Project Partnerships        $  (282,954)  $  (303,640)
                                               ============  ============


   In  accordance with the Partnership's policy of presenting the financial
information of the Project Partnerships on a three month lag, below is  the
summarized financial information for the Series' Project Partnerships as of
June 30, of each year:

                                                     2000          1999
SERIES 10                                            ----          ----
SUMMARIZED BALANCE SHEETS
Assets:
  Current assets                                $ 1,343,827   $ 1,345,308
  Investment properties, net                     14,519,761    15,003,743
  Other assets                                        3,789         5,989
                                               ------------  ------------
    Total assets                                $15,867,377   $16,355,040
                                               ============  ============
Liabilities and Partners' Equity:
  Current liabilities                           $   280,428   $   289,352
  Long-term debt                                 13,393,689    13,418,579
                                               ------------  ------------
    Total liabilities                            13,674,117    13,707,931
                                               ------------  ------------
Partners' equity (deficit)
  Limited Partner                                 2,390,346     2,773,494
  General Partners                                 (197,086)     (126,385)
                                                -----------   -----------
    Total Partners' equity                        2,193,260     2,647,109
                                                -----------   -----------
    Total liabilities and partners' equity      $15,867,377   $16,355,040
                                               ============  ============
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income                         $   713,644   $   710,112
Expenses:                                      ------------  ------------
  Operating expenses                                527,010       453,078
  Interest expense                                  152,607       162,461
  Depreciation and amortization                     247,824       248,280
                                               ------------  ------------
    Total expenses                                  927,441       863,819
                                               ------------  ------------
      Net loss                                  $  (213,797)  $  (153,707)
                                               ============  ============
Other partners' share of net loss               $    (3,176)  $    (2,405)
                                               ============  ============
Partnerships' share of net loss                 $  (210,621)  $  (151,302)
Suspended losses                                          0             0
                                               ------------  ------------
Equity in Losses of Project Partnerships        $  (210,621)  $  (151,302)
                                               ============  ============

   In  accordance with the Partnership's policy of presenting the financial
information of the Project Partnerships on a three month lag, below is  the
summarized financial information for the Series' Project Partnerships as of
June 30, of each year:

                                                     2000          1999
SERIES 11                                            ----          ----
SUMMARIZED BALANCE SHEETS
Assets:
  Current assets                                $ 1,215,585   $ 1,093,783
  Investment properties, net                     12,825,775    13,401,509
  Other assets                                       14,512         7,113
                                               ------------  ------------
    Total assets                                $14,055,872   $14,502,405
                                               ============  ============
Liabilities and Partners' Equity:
  Current liabilities                           $   331,863   $   308,954
  Long-term debt                                 10,608,709    10,736,223
                                               ------------  ------------
    Total liabilities                            10,940,572    11,045,177
                                               ------------  ------------
Partners' equity (deficit)
  Limited Partner                                 3,146,070     3,416,236
  General Partners                                  (30,770)       40,992
                                                -----------   -----------
    Total Partners' equity                        3,115,300     3,457,228
                                                -----------   -----------
    Total liabilities and partners' equity      $14,055,872   $14,502,405
                                               ============  ============
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income                         $   771,597   $   781,733
Expenses:                                      ------------  ------------
  Operating expenses                                451,090       387,736
  Interest expense                                  221,266       214,950
  Depreciation and amortization                     257,847       254,810
                                               ------------  ------------
    Total expenses                                  930,203       857,496
                                               ------------  ------------
      Net loss                                  $  (158,606)  $   (75,763)
                                               ============  ============
Other partners' share of net loss               $    (9,477)  $    (6,910)
                                               ============  ============
Partnerships' share of net loss                 $  (149,129)  $   (68,853)
Suspended losses                                          0             0
                                               ------------  ------------
Equity in Losses of Project Partnerships        $  (149,129)  $   (68,853)
                                               ============  ============


   In  accordance with the Partnership's policy of presenting the financial
information of the Project Partnerships on a three month lag, below is  the
summarized financial information for the Series' Project Partnerships as of
June 30, of each year:

                                                   2000            1999
TOTAL SERIES 7 - 11                                ----            ----
SUMMARIZED BALANCE SHEETS
Assets:
  Current assets                              $ 10,440,312   $  9,824,123
  Investment properties, net                   118,736,807    124,075,863
  Other assets                                      94,819         96,988
                                              ------------   ------------
    Total assets                              $129,271,938   $133,996,974
                                              ============   ============
Liabilities and Partners' Equity:
  Current liabilities                         $  3,079,791   $  3,198,385
  Long-term debt                               119,648,661    120,066,042
                                              ------------   ------------
    Total liabilities                          122,728,452    123,264,427
                                              ------------   ------------
Partners' equity (deficit)
  Limited Partner                                7,343,143     11,128,422
  General Partners                                (799,657)      (395,875)
                                               -----------    -----------
    Total Partners' equity                       6,543,486     10,732,547
                                               -----------    -----------
    Total liabilities and partners' equity    $129,271,938   $133,996,974
                                              ============   ============
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income                       $  6,937,463   $  6,686,146
Expenses:                                     ------------   ------------
  Operating expenses                             4,562,269      4,149,571
  Interest expense                               1,873,272      1,656,444
  Depreciation and amortization                  2,476,111      2,511,348
                                              ------------   ------------
    Total expenses                               8,911,652      8,317,363
                                              ------------   ------------
      Net loss                                $ (1,974,189)  $ (1,631,217)
                                              ============   ============
Other partners' share of net loss             $    (30,912)  $    (24,177)
                                              ============   ============
Partnerships' share of net loss               $ (1,943,277)  $ (1,607,040)
Suspended losses                                   666,124        240,559
                                              ------------   ------------
Equity in Losses of Project Partnerships      $ (1,277,153)  $ (1,366,481)
                                              ============   ============

  Item 7.  Management's Discussion and Analysis of Financial Condition  and
Results of Operations

Results of Operations, Liquidity and Capital Resources

  As  disclosed on the statement of operations for each Series,  except  as
described below, interest income is comparable for the six and three months
ended  September  30,  2000  and  September  30,  1999.   The  General  and
Administrative  expenses - General Partner and General  and  Administrative
expenses - Other for the three and six months ended September 30, 2000  are
comparable to September 30, 1999.  There were no unusual variations in  the
operating results between these two periods.

   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 investors'  return  of  their
original capital contribution.)

  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.

  Series 7 - Gateway closed this series on October 16, 1992 after receiving
$10,395,000  from  635  Limited Partner investors.   Equity  in  Losses  of
Project  Partnerships for the six months ended September 30, 2000 decreased
from $404,209 for the six months ended September 30, 1999 to $358,024 as  a
result  of not including losses of $291,804 in 2000 as compared to $143,134
in  1999,  as  these losses would reduce the investment in certain  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.  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  September 30, 2000, the Series had $287,029 of short-term investments
(Cash  and  Cash  Equivalents).   It  also  had  $424,912  in  Zero  Coupon
Treasuries  with  annual maturities providing $57,000 in fiscal  year  2001
increasing to $80,000 in fiscal year 2008.  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
$405,857  for  the  six  months ended September 30, 2000.   However,  after
adjusting for Equity in Losses of Project Partnerships of $358,024 and  the
changes  in  operating assets and liabilities, net cash used  in  operating
activities  was  $54,587.  Cash  provided by investing  activities  totaled
$17,460  consisting  of  cash distributions from the Project  Partnerships.
There were no unusual events or trends to describe.

  Series  8  -  Gateway  closed this Series on  September  28,  1993  after
receiving $9,980,000 from 664 Limited Partner investors.  Equity in  Losses
of  Project  Partnerships  for  the six months  ended  September  30,  2000
decreased  from  $438,478 for the six months ended September  30,  1999  to
$276,425  as  a  result  of not including losses of  $317,802  in  2000  as
compared to $97,425 in 1999, as these losses would reduce the investment in
certain Project Partnerships below zero.

  At  September 30, 2000, the Series had $382,678 of short-term investments
(Cash  and  Cash  Equivalents).   It  also  had  $403,130  in  Zero  Coupon
Treasuries  with  annual maturities providing $54,000 in fiscal  year  2001
increasing to $82,000 in fiscal year 2008.  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
$323,691  for  the  six  months ended September 30, 2000.   However,  after
adjusting for Equity in Losses of Project Partnerships of $276,425 and  the
changes  in  operating assets and liabilities, net cash used  in  operating
activities  was  $52,985.   Cash provided by investing  activities  totaled
$10,216,  consisting  of cash distributions from the Project  Partnerships.
There were no unusual events or trends to describe.

 Series 9 - Gateway closed this Series on December 31, 1993 after receiving
$6,254,000 from 406 Limited Partner investors.  Equity in Losses of Project
Partnerships  for the six months ended September 30, 2000  were  comparable
for the six months ended September 30, 1999.

  At  September 30, 2000, the Series had $196,103 of short-term investments
(Cash  and  Cash  Equivalents).   It  also  had  $268,203  in  Zero  Coupon
Treasuries  with  annual maturities providing $32,000 in fiscal  year  2001
increasing to $47,000 in fiscal year 2009.  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
$309,430  for  the  six  months ended September 30, 2000.   However,  after
adjusting for Equity in Losses of Project Partnerships of $282,954 and  the
changes  in  operating assets and liabilities, net cash used  in  operating
activities  was  $23,631.   Cash provided by investing  activities  totaled
$9,770,  consisting  of  cash distributions from the Project  Partnerships.
There were no unusual events or trends to describe.

 Series 10 - Gateway closed this Series on January 21, 1994 after receiving
$5,043,000 from 325 Limited Partner investors.  Equity in Losses of Project
Partnerships  for  the six months ended September 30, 2000  increased  from
$151,302  for  the  six months ended September 30, 1999 to  $210,621  as  a
result of increased repairs and maintenance expense as the buildings age.

  At  September 30, 2000, the Series had $201,834 of short-term investments
(Cash  and  Cash  Equivalents).   It  also  had  $219,396  in  Zero  Coupon
Treasuries  with  annual maturities providing $25,000 in fiscal  year  2001
increasing to $40,000 in fiscal year 2010.  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
$225,229  for  the  six  months ended September 30, 2000.   However,  after
adjusting for Equity in Losses of Project Partnerships of $210,621 and  the
changes  in   operating assets and liabilities, net cash used in  operating
activities  was  $29,397.   Cash provided by investing  activities  totaled
$5,161,  consisting  of  cash distributions from the Project  Partnerships.
There were no unusual events or trends to describe.

  Series  11 - Gateway closed this Series on April 29, 1994 after receiving
$5,127,000  from  330  Limited  investors.  Equity  in  losses  of  Project
Partnerships  for  the six months ended September 30, 2000  increased  from
$68,853 for the six months ended September 30, 1999 to $149,129 as a result
of increased repairs and maintenance expense as the buildings age.

  At  September 30, 2000, the Series had $205,064 of short-term investments
(Cash  and  Cash  Equivalents).   It  also  had  $241,581  in  Zero  Coupon
Treasuries  with  annual maturities providing $26,000 in fiscal  year  2001
increasing to $44,000 in fiscal year 2010.  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
$159,579  for  the  six  months ended September 30, 2000.   However,  after
adjusting for Equity in Losses of Project Partnerships of $149,129 and  the
changes  in  operating assets and liabilities, net cash used  in  operating
activities  was  $29,982.   Cash provided by investing  activities  totaled
$4,172,  consisting of cash distributions from Project Partnerships.  There
were no unusual events or trends to describe.



                           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 III LTD.
                           (A Florida Limited Partnership)
                           By:  Raymond James Tax Credit Funds, Inc.





Date:  November 13, 2000   By:/s/ Ronald M. Diner

                           Ronald M. Diner
                           President



Date:  November 13, 2000   By:/s/ Sandra L. Furey

                           Sandra L. Furey
                           Secretary and Treasurer