45
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             June 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                          June 30, 2000
Units of Limited Partnership
Interest:  $1,000 per unit                            33,799

                   DOCUMENTS INCORPORATED BY REFERENCE
              Parts I and II, 1999 Form 10-K, filed with the
            Securities and Exchange Commission on July 14, 2000
            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                                         JUNE 30,        MARCH 31,
                                                   2000            2000
                                                 -------         -------
                                               (Unaudited)      (Audited)
ASSETS
Current Assets:
 Cash and Cash Equivalents                     $   320,605     $   324,156
 Investments in Securities                          54,940          54,067
                                               ------------    ------------
  Total Current Assets                             375,545         378,223

 Investments in Securities                         362,610         356,248
 Investments in Project Partnerships, Net        2,068,145       2,237,728
                                               -----------     -----------
    Total Assets                               $ 2,806,300     $ 2,972,199
                                               ===========     ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners                   $    48,334     $    54,468
                                               -----------     -----------
  Total Current Liabilities                         48,334          54,468
                                               -----------     -----------
Long-Term Liabilities:
 Payable to General Partners                       333,283         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 June 30, 2000 and March 31, 2000)          2,491,714       2,670,270
General Partners                                   (67,031)        (65,227)
                                               -----------     -----------
  Total Partners' Equity                         2,424,683       2,605,043
                                               -----------     -----------
    Total Liabilities and Partners' Equity     $ 2,806,300     $ 2,972,199
                                               ===========     ===========

              See accompanying notes to financial statements.

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

SERIES 8                                          JUNE 30,       MARCH 31,
                                                   2000            2000
                                                  -------        -------
                                                (Unaudited)     (Audited)
ASSETS
Current Assets:
 Cash and Cash Equivalents                      $   425,283    $   425,447
 Investments in Securities                           52,115         51,329
                                                ------------    ------------
  Total Current Assets                              477,398        476,776

 Investments in Securities                          344,410        338,702
 Investments in Project Partnerships, Net         1,263,554      1,423,188
                                                -----------    -----------
    Total Assets                                $ 2,085,362    $ 2,238,666
                                                ===========    ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners                    $    38,685    $    45,318
                                                -----------    -----------
  Total Current Liabilities                          38,685         45,318
                                                -----------    -----------
Long-Term Liabilities:
 Payable to General Partners                        386,050        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 June 30, 2000 and March 31, 2000)              1,731,645      1,898,013
General Partners                                    (71,018)       (69,338)
                                                -----------    -----------
  Total Partners' Equity                          1,660,627      1,828,675
                                                -----------    -----------
    Total Liabilities and Partners' Equity      $ 2,085,362    $ 2,238,666
                                                ===========    ===========

              See accompanying notes to financial statements.

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

SERIES 9                                          JUNE 30,        MARCH 31,
                                                    2000            2000
                                                   -------         -------
                                                 (Unaudited)      (Audited)
ASSETS
Current Assets:
 Cash and Cash Equivalents                      $   212,232    $   209,964
 Investments in Securities                           30,982         30,560
                                                ------------    ------------
  Total Current Assets                              243,214        240,524

 Investments in Securities                          233,250        229,761
 Investments in Project Partnerships, Net         2,148,595      2,303,872
                                                -----------    -----------
    Total Assets                                $ 2,625,059    $ 2,774,157
                                                ===========    ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners                    $    22,299    $    25,970
                                                -----------    -----------
    Total Current Liabilities                        22,299         25,970
                                                -----------    -----------
Long-Term Liabilities:
 Payable to General Partners                        226,245        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 June 30, 2000 and March 31, 2000)              2,407,587      2,563,166
General Partners                                    (31,072)       (29,500)
                                                -----------    -----------
  Total Partners' Equity                          2,376,515      2,533,666
                                                -----------    -----------
    Total Liabilities and Partners' Equity      $ 2,625,059    $ 2,774,157
                                                ===========    ===========

              See accompanying notes to financial statements.

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

SERIES 10                                         JUNE 30,        MARCH 31,
                                                    2000            2000
                                                   -------         -------
                                                 (Unaudited)      (Audited)
ASSETS
Current Assets:
 Cash and Cash Equivalents                      $   227,814    $   226,070
 Investments in Securities                           24,162         23,784
                                                 ------------   ------------
  Total Current Assets                              251,976        249,854

 Investments in Securities                          191,507        188,259
 Investments in Project Partnerships, Net         2,662,114      2,764,397
                                                -----------    -----------
    Total Assets                                $ 3,105,597    $ 3,202,510
                                                ===========    ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners                    $    26,559    $    29,116
                                                -----------    -----------
    Total Current Liabilities                        26,559         29,116
                                                -----------    -----------
Long-Term Liabilities:
 Payable to General Partners                         65,517         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 June 30, 2000 and March 31, 2000)              3,027,566      3,128,940
General Partners                                    (14,045)       (13,021)
                                                -----------    -----------
  Total Partners' Equity                          3,013,521      3,115,919
                                                -----------    -----------
    Total Liabilities and Partners' Equity      $ 3,105,597    $ 3,202,510
                                                ===========    ===========

              See accompanying notes to financial statements.

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

SERIES 11                                         JUNE 30,        MARCH 31,
                                                    2000            2000
                                                  -------         -------
                                                (Unaudited)      (Audited)
ASSETS
Current Assets:
 Cash and Cash Equivalents                      $   229,070    $   230,874
 Investments in Securities                           24,994         24,571
                                                 ------------   ------------
  Total Current Assets                              254,064        255,445

 Investments in Securities                          212,247        208,405
 Investments in Project Partnerships, Net         3,471,049      3,534,837
                                                -----------    -----------
    Total Assets                                $ 3,937,360    $ 3,998,687
                                                ===========    ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners                    $    26,660    $    28,842
                                                -----------    -----------
  Total Current Liabilities                          26,660         28,842
                                                -----------    -----------
Long-Term Liabilities:
 Payable to General Partners                         25,877         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 June 30, 2000 and March 31, 2000)              3,891,965      3,957,139
General Partners                                     (7,142)        (6,484)
                                                -----------    -----------
  Total Partners' Equity                          3,884,823      3,950,655
                                                -----------    -----------
    Total Liabilities and Partners' Equity      $ 3,937,360    $ 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                               JUNE 30,        MARCH 31,
                                                    2000            2000
                                                  -------         -------
                                                (Unaudited)      (Audited)
ASSETS
Current Assets:
 Cash and Cash Equivalents                      $ 1,415,004    $ 1,416,511
 Investments in Securities                          187,193        184,311
                                                 ------------   ------------
Total Current Assets                              1,602,197      1,600,822

 Investments in Securities                        1,344,024      1,321,375
 Investments in Project Partnerships, Net        11,613,457     12,264,022
                                                -----------    -----------
    Total Assets                                $14,559,678    $15,186,219
                                                ===========    ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners                    $   162,537    $   183,714
                                                -----------    -----------
  Total Current Liabilities                         162,537        183,714
                                                -----------    -----------
Long-Term Liabilities:
 Payable to General Partners                      1,036,972        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 June 30, 2000 and March 31, 2000)             13,550,477     14,217,528
General Partners                                   (190,308)      (183,570)
                                                -----------    -----------
  Total Partners' Equity                         13,360,169     14,033,958
                                                -----------    -----------
    Total Liabilities and Partners' Equity      $14,559,678    $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 JUNE 30,
                                (Unaudited)

SERIES 7                                             2000           1999
                                                     ----           ----
Revenues:
 Interest Income                               $    11,720    $    10,670
                                               -----------    -----------
Expenses:
 Asset Management Fee-General Partner               21,988         22,052
 General and Administrative:
  General Partner                                    3,257          2,936
  Other                                              3,255          3,038
 Amortization                                        3,549          4,368
                                               -----------    -----------
  Total Expenses                                    32,049         32,394
                                               -----------    -----------
Loss Before Equity in Losses
 of Project Partnerships                           (20,329)       (21,724)
Equity in Losses of Project
 Partnerships                                     (160,031)      (149,531)
                                                ----------     ----------
Net Loss                                       $  (180,360)   $  (171,255)
                                               ===========    ===========
Allocation of Net Loss:
 Limited Partners                              $  (178,556)   $  (169,542)
 General Partners                                   (1,804)        (1,713)
                                               -----------    -----------
                                               $  (180,360)   $  (171,255)
                                               ===========    ===========
Net Loss Per Number of Limited
Partnership Units                              $    (17.18)   $    (16.31)
                                              ============   ============
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 JUNE 30,
                                (Unaudited)
SERIES 8                                            2000            1999
                                                    ----            ----
Revenues:
 Interest Income                               $    12,359    $    11,075
                                               -----------    -----------
Expenses:
 Asset Management Fee-General Partner               22,914         22,983
 General and Administrative:
  General Partner                                    3,591          3,237
  Other                                              3,343          3,369
 Amortization                                        2,264          3,260
                                               -----------    -----------
  Total Expenses                                    32,112         32,849
                                               -----------    -----------
Loss Before Equity in Losses
 of Project Partnerships                           (19,753)       (21,774)
Equity in Losses of Project
 Partnerships                                     (148,295)      (206,077)
                                                ----------     ----------
Net Loss                                       $  (168,048)   $  (227,851)
                                               ===========    ===========
Allocation of Net Loss:
 Limited Partners                              $  (166,368)   $  (225,572)
 General Partners                                   (1,680)        (2,279)
                                               -----------    -----------
                                               $  (168,048)   $  (227,851)
                                               ===========    ===========
Net Loss Per Number of Limited
Partnership Units                              $    (16.67)   $    (22.60)
                                              ============   ============
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 JUNE 30,
                                (Unaudited)

SERIES 9                                              2000          1999
                                                      ----          ----
Revenues:
 Interest Income                                $     6,832   $     6,140
                                                -----------   -----------
Expenses:
 Asset Management Fee-General Partner                12,580        12,615
 General and Administrative:
  General Partner                                     2,004         1,807
  Other                                               2,166         1,911
 Amortization                                         1,430         1,743
                                                -----------   -----------
  Total Expenses                                     18,180        18,076
                                                -----------   -----------
Loss Before Equity in Losses
 of Project Partnerships                            (11,348)      (11,936)
Equity in Losses of Project
 Partnerships                                      (145,803)     (133,500)
                                                 ----------    ----------
Net Loss                                        $  (157,151)  $  (145,436)
                                                ===========   ===========
Allocation of Net Loss:
 Limited Partners                               $  (155,579)  $  (143,982)
 General Partners                                    (1,572)       (1,454)
                                                -----------   -----------
                                                $  (157,151)  $  (145,436)
                                                ===========   ===========
Net Loss Per Number of Limited
Partnership Units                               $    (24.88)  $    (23.02)
                                               ============  ============
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 JUNE 30,
                                (Unaudited)

SERIES 10                                           2000            1999
                                                    ----            ----
Revenues:
 Interest Income                               $     6,779    $     6,009
                                               -----------    -----------
Expenses:
 Asset Management Fee-General Partner                8,577          8,607
 General and Administrative:
  General Partner                                    1,253          1,129
  Other                                              1,555          1,388
 Amortization                                        1,405          1,406
                                               -----------    -----------
  Total Expenses                                    12,790         12,530
                                               -----------    -----------
Loss Before Equity in Losses
 of Project Partnerships                            (6,011)        (6,521)
Equity in Losses of Project
 Partnerships                                      (96,387)       (48,979)
                                                ----------     ----------
Net Loss                                       $  (102,398)   $   (55,500)
                                               ===========    ===========
Allocation of Net Loss:
 Limited Partners                              $  (101,374)   $   (54,945)
 General Partners                                   (1,024)          (555)
                                               -----------    -----------
                                               $  (102,398)   $   (55,500)
                                               ===========    ===========
Net Loss Per Number of Limited
Partnership Units                              $    (20.10)   $    (10.90)
                                              ============   ============
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 JUNE 30,
                                (Unaudited)

SERIES 11                                            2000           1999
                                                     ----           ----
Revenues:
 Interest Income                                $     7,456   $     6,666
                                                -----------   -----------
Expenses:
 Asset Management Fee-General Partner                 7,116         6,930
 General and Administrative:
  General Partner                                     1,002           903
  Other                                               1,564         1,300
 Amortization                                         2,073         2,074
                                                -----------   -----------
  Total Expenses                                     11,755        11,207
                                                -----------   -----------
Loss Before Equity in Losses
 of Project Partnerships                             (4,299)       (4,541)
Equity in Losses of Project
 Partnerships                                       (61,533)      (38,629)
                                                 ----------    ----------
Net Loss                                        $   (65,832)  $   (43,170)
                                                ===========   ===========
Allocation of Net Loss:
 Limited Partners                               $   (65,174)  $   (42,738)
 General Partners                                      (658)         (432)
                                                -----------   -----------
                                                $   (65,832)  $   (43,170)
                                                ===========   ===========
Net Loss Per Number of Limited
Partnership Units                              $     (12.71)  $     (8.34)
                                               ============  ============
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 JUNE 30,
                                (Unaudited)

TOTAL SERIES 7 - 11                                  2000           1999
                                                     ----           ----
Revenues:
 Interest Income                                $    45,146   $    40,560
                                                -----------   -----------
Expenses:
 Asset Management Fee-General Partner                73,175        73,187
 General and Administrative:
  General Partner                                    11,107        10,012
  Other                                              11,883        11,006
 Amortization                                        10,721        12,851
                                                -----------   -----------
  Total Expenses                                    106,886       107,056
                                                -----------   -----------
Loss Before Equity in Losses
 of Project Partnerships                            (61,740)      (66,496)
Equity in Losses of Project
 Partnerships                                      (612,049)     (576,716)
                                                 ----------    ----------
Net Loss                                        $  (673,789)  $  (643,212)
                                                ===========   ===========
Allocation of Net Loss:
 Limited Partners                               $  (667,051)  $  (636,780)
 General Partners                                    (6,738)       (6,432)
                                                -----------   -----------
                                                $  (673,789)  $  (643,212)
                                                ===========   ===========

              See accompanying notes to financial statements.

                     GATEWAY TAX CREDIT FUND III LTD.
                      (A Florida Limited Partnership)
                 STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
            FOR THE THREE MONTHS ENDED JUNE 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                           (169,542)         (1,713)       (171,255)
                                -----------     -----------     -----------

Balance at June 30, 1999        $ 3,050,907    $    (61,383)    $ 2,989,524
                               ============    ============    ============


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

Net Loss                           (178,556)         (1,804)       (180,360)
                                -----------     -----------     -----------

Balance at June 30, 2000        $ 2,491,714     $   (67,031)    $ 2,424,683
                               ============    ============    ============


              See accompanying notes to financial statements.

                     GATEWAY TAX CREDIT FUND III LTD.
                      (A Florida Limited Partnership)
                 STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
            FOR THE THREE MONTHS ENDED JUNE 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                           (225,572)         (2,279)       (227,851)
                                -----------     -----------     -----------

Balance at June 30, 1999        $ 2,907,261    $    (59,145)    $ 2,848,116
                               ============    ============    ============


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

Net Loss                           (166,368)         (1,680)       (168,048)
                                -----------     -----------     -----------

Balance at June 30, 2000       $  1,731,645    $    (71,018)    $ 1,660,627
                               ============    ============    ============


              See accompanying notes to financial statements.


                     GATEWAY TAX CREDIT FUND III LTD.
                      (A Florida Limited Partnership)
                 STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
            FOR THE THREE MONTHS ENDED JUNE 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                           (143,982)         (1,454)       (145,436)
                                -----------     -----------     -----------

Balance at June 30, 1999        $ 2,961,629    $    (25,475)    $ 2,936,154
                               ============    ============    ============


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

Net Loss                           (155,579)         (1,572)       (157,151)
                                -----------     -----------     -----------

Balance at June 30, 2000        $ 2,407,587    $    (31,072)    $ 2,376,515
                               ============    ============    ============


              See accompanying notes to financial statements.


                     GATEWAY TAX CREDIT FUND III LTD.
                      (A Florida Limited Partnership)
                 STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
            FOR THE THREE MONTHS ENDED JUNE 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                            (54,945)           (555)        (55,500)
                                -----------     -----------     -----------

Balance at June 30, 1999        $ 3,399,120    $    (10,292)    $ 3,388,828
                               ============    ============    ============


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

Net Loss                           (101,374)         (1,024)       (102,398)
                                -----------     -----------     -----------

Balance at June 30, 2000        $ 3,027,566    $    (14,045)    $ 3,013,521
                               ============    ============    ============


              See accompanying notes to financial statements.


                     GATEWAY TAX CREDIT FUND III LTD.
                      (A Florida Limited Partnership)
                 STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
            FOR THE THREE MONTHS ENDED JUNE 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                            (42,738)           (432)        (43,170)
                                -----------     -----------     -----------

Balance at June 30, 1999        $ 4,077,368    $     (5,270)    $ 4,072,098
                               ============    ============    ============


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

Net Loss                            (65,174)           (658)        (65,832)
                                -----------     -----------     -----------

Balance at June 30, 2000        $ 3,891,965    $     (7,142)    $ 3,884,823
                               ============    ============    ============


              See accompanying notes to financial statements.


                     GATEWAY TAX CREDIT FUND III LTD.
                      (A Florida Limited Partnership)
                 STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
            FOR THE THREE MONTHS ENDED JUNE 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                           (636,780)         (6,432)       (643,212)
                                -----------     -----------     -----------

Balance at June 30, 1999        $16,396,284    $   (161,564)    $16,234,720
                               ============    ============    ============


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

Net Loss                           (667,051)         (6,738)       (673,789)
                                -----------     -----------     -----------

Balance at June 30, 2000        $13,550,477    $   (190,308)    $13,360,169
                               ============    ============    ============


              See accompanying notes to financial statements.



                      GATEWAY TAX CREDIT FUND III LTD.
                      (A Florida Limited Partnership)
                         STATEMENTS OF CASH FLOWS
                    FOR THE THREE MONTHS ENDED JUNE 30,
                                (Unaudited)

SERIES 7                                              2000           1999
--------                                              ----           ----
Cash Flows from Operating Activities:
  Net Loss                                     $   (180,360)  $  (171,255)
  Adjustments to Reconcile Net Loss to Net
Cash Used in Operating Activities:
   Amortization                                       3,549         4,368
   Accreted Interest Income on Investments
   in Securities                                     (7,235)       (7,517)
   Equity in Losses of Project Partnerships         160,031       149,531
   Changes in Operating Assets and
Liabilities:
    Increase in Payable to General Partners          14,462        22,018
                                                -----------   -----------
     Net Cash Used in Operating Activities           (9,553)       (2,855)
                                                -----------   -----------
Cash Flows from Investing Activities:
 Distributions Received from Project
 Partnerships                                         6,002         8,993
                                                -----------   -----------
     Net Cash Provided by Investing
     Activities                                       6,002         8,993
                                                -----------   -----------
Increase (Decrease) in Cash and Cash
Equivalents                                          (3,551)        6,138

Cash and Cash Equivalents at Beginning of
Year                                                324,156       299,313
                                                -----------   -----------
Cash and Cash Equivalents at End of Year        $   320,605   $   305,451
                                                ===========   ===========


              See accompanying notes to financial statements.


                      GATEWAY TAX CREDIT FUND III LTD.
                      (A Florida Limited Partnership)
                         STATEMENTS OF CASH FLOWS
                    FOR THE THREE MONTHS ENDED JUNE 30,
                                (Unaudited)

SERIES 8                                             2000           1999
--------                                             ----           ----
Cash Flows from Operating Activities:
  Net Loss                                      $  (168,048)  $  (227,851)
  Adjustments to Reconcile Net Loss to Net
Cash Used In Operating Activities:
   Amortization                                       2,264         3,260
   Accreted Interest Income on Investments
   in Securities                                     (6,496)       (6,751)
   Equity in Losses of Project Partnership          148,295       206,077
   Changes in Operating Assets and
   Liabilities:
    Increase in Payable to General Partners          14,746        23,061
                                                -----------   -----------
     Net Cash Used in Operating Activities           (9,239)       (2,204)
                                                -----------   -----------
Cash Flows from Investing Activities:
 Distributions Received from Project
 Partnerships                                         9,075        12,745
                                                -----------   -----------
     Net Cash Provided by Investing
     Activities                                       9,075        12,745
                                                -----------   -----------
Increase (Decrease) in Cash and Cash
Equivalents                                            (164)       10,541

Cash and Cash Equivalents at Beginning of
Year                                                425,447       411,602
                                                -----------   -----------
Cash and Cash Equivalents at End of Year        $   425,283   $   422,143
                                                ===========   ===========


              See accompanying notes to financial statements.

                      GATEWAY TAX CREDIT FUND III LTD.
                      (A Florida Limited Partnership)
                         STATEMENTS OF CASH FLOWS
                    FOR THE THREE MONTHS ENDED JUNE 30,
                                (Unaudited)

SERIES 9                                             2000           1999
--------                                             ----           ----
Cash Flows from Operating Activities:
  Net Loss                                      $  (157,151)  $  (145,436)
  Adjustments to Reconcile Net Loss to Net
Cash Used in Operating Activities:
   Amortization                                       1,430         1,743
   Accreted Interest Income on Investments
   in Securities                                     (3,912)       (4,079)
   Equity in Losses of Project Partnerships         145,803       133,500
   Changes in Operating Assets and
   Liabilities:
    Increase in Payable to General Partners           8,053        12,481
                                                -----------   -----------
     Net Cash Used in Operating Activities           (5,777)       (1,791)
                                                -----------   -----------
Cash Flows from Investing Activities:
  Increase in Receivable from Other Series                0        (2,208)
  Decrease in Receivable from Project
  Partnerships                                            0         2,208
  Distributions Received from Project
  Partnerships                                        8,045         5,846
  Increase (Decrease) in Payable -
    Other Series                                          0         1,003
    Project Partnerships - Capital
    Contributions                                         0        (1,003)
                                                -----------   -----------
     Net Cash Provided by Investing
     Activities                                       8,045         5,846
                                                -----------   -----------
Increase in Cash and Cash Equivalents                 2,268         4,055

Cash and Cash Equivalents at Beginning of
Year                                                209,964       195,618
                                                -----------   -----------
Cash and Cash Equivalents at End of Year        $   212,232   $   199,673
                                                ===========   ===========

               See accompanying notes to financial statements.

                      GATEWAY TAX CREDIT FUND III LTD.
                      (A Florida Limited Partnership)
                         STATEMENTS OF CASH FLOWS
                    FOR THE THREE MONTHS ENDED JUNE 30,
                                (Unaudited)

SERIES 10                                            2000           1999
--------                                             ----           ----
Cash Flows from Operating Activities:
  Net Loss                                       $ (102,398)  $   (55,500)
  Adjustments to Reconcile Net Loss to Net
Cash Used in Operating Activities:
   Amortization                                       1,405         1,406
   Accreted Interest Income on Investments
   in Securities                                     (3,624)       (3,735)
   Equity in Losses of Project Partnerships          96,387        48,979
   Changes in Operating Assets and
   Liabilities:
    Increase in Payable to General Partners           5,485         8,610
                                                -----------   -----------
     Net Cash Used in Operating Activities           (2,745)         (240)
                                                -----------   -----------
Cash Flows from Investing Activities:
 Increase in Receivable from Other Series                 0        (1,003)
  Decrease in Receivable from Project
  Partnerships                                            0           253
  Distributions Received from Project
  Partnerships                                        4,489         4,489
  Increase (Decrease) in Payable -
    Other Series                                          0         2,208
    Project Partnerships - Capital
    Contributions                                         0        (2,208)
                                                -----------   -----------
     Net Cash Provided by Investing
     Activities                                       4,489         3,739
                                                -----------   -----------
Increase in Cash and Cash Equivalents                 1,744         3,499

Cash and Cash Equivalents at Beginning of
Year                                                226,070       216,566
                                                -----------   -----------
Cash and Cash Equivalents at End of Year        $   227,814   $   220,065
                                                ===========   ===========


              See accompanying notes to financial statements.

                      GATEWAY TAX CREDIT FUND III LTD.
                      (A Florida Limited Partnership)
                         STATEMENTS OF CASH FLOWS
                    FOR THE THREE MONTHS ENDED JUNE 30,
                                (Unaudited)

SERIES 11                                            2000           1999
--------                                             ----           ----
Cash Flows from Operating Activities:
  Net Loss                                       $  (65,832)  $   (43,170)
  Adjustments to Reconcile Net Loss to Net
Cash Used in Operating Activities:
   Amortization                                       2,073         2,074
   Accreted Interest Income on Investments
   in Securities                                     (4,263)       (4,347)
   Equity in Losses of Project Partnerships          61,533        38,629
   Changes in Operating Assets and
   Liabilities:
    Increase in Payable to General Partners           4,505         6,940
                                                -----------   -----------
     Net Cash Provided by (Used in)
     Operating Activities                            (1,984)          126
                                                -----------   -----------
Cash Flows from Investing Activities:
   Distributions Received from Project
   Partnerships                                         180             0
                                                -----------   -----------
     Net Cash Provided by Investing
     Activities                                         180             0
                                                -----------   -----------
Increase (Decrease) in Cash and Cash
Equivalents                                          (1,804)          126

Cash and Cash Equivalents at Beginning of
Year                                                230,874       223,024
                                                -----------   -----------
Cash and Cash Equivalents at End of Year        $   229,070   $   223,150
                                                ===========   ===========


              See accompanying notes to financial statements.


                      GATEWAY TAX CREDIT FUND III LTD.
                      (A Florida Limited Partnership)
                         STATEMENTS OF CASH FLOWS
                    FOR THE THREE MONTHS ENDED JUNE 30,
                                (Unaudited)

TOTAL SERIES 7 - 11                                  2000           1999
-------------------                                  ----           ----
Cash Flows from Operating Activities:
  Net Loss                                      $  (673,789)  $  (643,212)
  Adjustments to Reconcile Net Loss to Net
Cash Used in Operating Activities:
   Amortization                                      10,721        12,851
   Accreted Interest Income on Investments
   in Securities                                    (25,530)      (26,429)
   Equity in Losses of Project Partnerships         612,049       576,716
   Changes in Operating Assets and
   Liabilities:
    Increase in Payable to General Partners          47,251        73,110
                                                -----------   -----------
     Net Cash Used in Operating Activities          (29,298)       (6,964)
                                                -----------   -----------
Cash Flows from Investing Activities:
 Increase in Receivable from Other Series                 0        (3,211)
 Decrease in Receivable from Project
 Partnerships                                             0         2,461
  Distributions Received from Project
  Partnerships                                       27,791        32,073
  Increase (Decrease) in Payable -
    Other Series                                          0         3,211
    Project Partnerships - Capital
    Contributions                                         0        (3,211)
                                                -----------   -----------
     Net Cash Provided by Investing
     Activities                                      27,791        31,323
                                                -----------   -----------
Increase (Decrease) in Cash and Cash
Equivalents                                          (1,507)       24,359

Cash and Cash Equivalents at Beginning of
Year                                              1,416,511     1,346,123
                                                -----------   -----------
Cash and Cash Equivalents at End of Year        $ 1,415,004   $ 1,370,482
                                                ===========   ===========

              See accompanying notes to financial statements.


                     GATEWAY TAX CREDIT FUND III LTD.
                      (A Florida Limited Partnership)
                       NOTES TO FINANCIAL STATEMENTS
                               JUNE 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 June 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
  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  June  30,  2000  Balance  Sheet includes  Investment  in  Securities
consisting  of U.S. Treasury Security Strips which represents  their  cost,
plus accreted interest income of $175,979 for Series 7, $152,414 for Series
8, $86,473 for Series 9, $75,274 for Series 10 and $85,289 for Series 11.

                                                            Gross Unrealized
                      Estimated Market       Cost Plus          Gains and
                            Value        Accreted Interest       (Losses)
                     -----------------  -----------------   ----------------
Series 7                  $  435,474         $  417,550           $  17,924
Series 8                     407,274            396,525              10,749
Series 9                     264,349            264,232                 117
Series 10                    223,053            215,669               7,384
Series 11                    252,420            237,241              15,179

    As of June 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                    $   54,940     $   52,115     $   30,982
After 1 year through 5 years          212,583        198,639        120,629
After 5 years through 10 years        150,027        145,771        112,621
Over 10 years                               0              0              0
                                   ----------     ----------     ----------
  Total Amount Carried on
  Balance Sheet                    $  417,550     $  396,525     $  264,232
                                   ==========     ==========     ==========

                                    Series 10      Series 11        Total
                                     --------       --------       --------
Due with 1 year                    $   24,162     $   24,994     $  187,193
After 1 year through 5 years           89,853         99,147        720,851
After 5 years through 10 years        101,654        113,100        623,173
Over 10 years                               0              0              0
                                   ----------     ----------     ----------
  Total Amount Carried on
  Balance Sheet                    $  215,669     $  237,241     $1,531,217
                                   ==========     ==========     ==========

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 three months ended June 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            $ 21,988       $ 22,052
 Series 8              22,914         22,983
 Series 9              12,580         12,615
 Series 10              8,577          8,607
 Series 11              7,116          6,930
                     --------       --------
 Total               $ 73,175       $ 73,187
                     ========       ========

    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           $   3,257      $   2,936
 Series 8               3,591          3,237
 Series 9               2,004          1,807
 Series 10              1,253          1,129
 Series 11              1,002            903
                     --------       --------
 Total               $ 11,107       $ 10,012
                     ========       ========

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS:

    As  of June 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                                           JUNE 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)                                 (6,133,399)     (5,973,368)

Cumulative distributions received from
Project Partnerships                               (163,553)       (157,551)
                                                -----------     -----------
Investment in Project Partnerships before
adjustment                                        1,435,137       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                                 (160,327)       (156,777)
                                               ------------    ------------

Investments in Project Partnerships             $ 2,068,145     $ 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  $797,990  for  the period ended June 30, 2000 and cumulative  suspended
losses of $650,567 for the year ended March 31, 2000 are not included.

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (CONTINUED):

   As  of June 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                                          JUNE 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)                                 (6,639,422)     (6,491,127)

Cumulative distributions received from
Project Partnerships                               (134,679)       (125,604)
                                                -----------     -----------
Investment in Project Partnerships before
adjustment                                          812,004         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                                  (98,223)        (95,959)
                                               ------------    ------------

Investments in Project Partnerships             $ 1,263,554     $ 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  $840,015  for  the period ended June 30, 2000 and cumulative  suspended
losses of $678,455 for the year ended March 31, 2000 are not included.

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (CONTINUED):

    As  of June 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                                           JUNE 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)                                 (2,871,743)     (2,725,940)

Cumulative distributions received from
Project Partnerships                                (93,781)        (85,736)
                                                -----------      ----------
Investment in Project Partnerships before
adjustment                                        1,948,592       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                                   (44,084)        (42,655)
                                               ------------    ------------

Investments in Project Partnerships             $ 2,148,595     $ 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  $104,334  for  the period ended June 30, 2000 and cumulative  suspended
losses of $78,588 for the year ended March 31, 2000 are not included.

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (CONTINUED):

    As  of June 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                                          JUNE 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)                                 (1,308,147)     (1,211,760)

Cumulative distributions received from
Project Partnerships                               (105,106)       (100,617)
                                                -----------      ----------
Investment in Project Partnerships before
adjustment                                        2,501,419       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                                  (36,043)        (34,636)
                                              -------------    ------------

Investments in Project Partnerships             $ 2,662,114     $ 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 June 30, 2000 and cumulative suspended losses of
$0 for the year ended March 31, 2000 are not included.

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (CONTINUED):

    As  of June 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                                          JUNE 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)                                   (823,559)       (762,026)

Cumulative distributions received from
Project Partnerships                                (78,646)        (78,466)
                                                -----------     -----------
Investment in Project Partnerships before
adjustment                                        3,225,837       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                                  (45,123)        (43,048)
                                               ------------     -----------

Investments in Project Partnerships             $ 3,471,049     $ 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 June 30, 2000 and cumulative suspended losses of  $0
for the year ended March 31, 2000 are not included.

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (CONTINUED):

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

TOTAL SERIES 7 - 11                                JUNE 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)                                (17,776,270)    (17,164,221)

Cumulative distributions received from
Project Partnerships                               (575,765)       (547,974)
                                               ------------     -----------
Investment in Project Partnerships before
adjustment                                        9,922,989      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                                 (383,800)       (373,075)
                                               ------------    ------------

Investments in Project Partnerships             $11,613,457     $12,264,022
                                               ============   =============

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (CONTINUED):

    In  accordance with the Partnership's policy of presenting the financial
information of the Project Partnerships on a three month lag, below is  the
summarized financial information for the Series' Project Partnerships as of
March 31, of each year:
                                                      2000          1999
SERIES 7                                              ----          ----
SUMMARIZED BALANCE SHEETS
Assets:
  Current assets                                $ 3,286,607   $ 2,946,638
  Investment properties, net                     34,766,675    36,185,284
  Other assets                                       28,215        24,358
                                               ------------  ------------
    Total assets                                $38,081,497   $39,156,280
                                               ============  ============
Liabilities and Partners' Equity:
  Current liabilities                           $   962,471   $   877,536
  Long-term debt                                 36,595,769    36,724,911
                                               ------------  ------------
    Total liabilities                            37,558,240    37,602,447
                                               ------------  ------------
Partners' equity
  Limited Partner                                   581,482     1,579,997
  General Partners                                 (58,225)      (26,164)
                                                -----------   -----------
    Total Partners' equity                          523,257     1,553,833
                                                -----------   -----------
    Total liabilities and partners' equity      $38,081,497   $39,156,280
                                               ============  ============
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income                         $ 1,102,980   $ 1,134,117
Expenses:                                      ------------  ------------
  Operating expenses                                722,145       650,599
  Interest expense                                  315,721       329,624
  Depreciation and amortization                     375,674       381,100
                                               ------------  ------------
    Total expenses                                1,413,540     1,361,323
                                               ------------  ------------
      Net loss                                  $  (310,560)  $  (227,206)
                                               ============  ============
Other partners' share of net loss               $    (3,106)  $    (2,272)
                                               ============  ============
Partnerships' share of net loss                 $  (307,454)  $  (224,934)
Suspended losses                                    147,423        75,403
                                               ------------  ------------
Equity in Losses of Project Partnerships        $  (160,031)  $  (149,531)
                                               ============  ============

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (CONTINUED):

   In  accordance with the Partnership's policy of presenting the financial
information of the Project Partnerships on a three month lag, below is  the
summarized financial information for the Series' Project Partnerships as of
March 31, of each year:
                                                      2000          1999
SERIES 8                                              ----          ----
SUMMARIZED BALANCE SHEETS
Assets:
  Current assets                                $ 2,805,294   $ 2,586,755
  Investment properties, net                     36,799,203    38,841,818
  Other assets                                       35,540        44,825
                                               ------------  ------------
    Total assets                                $39,640,037   $41,473,398
                                               ============  ============
Liabilities and Partners' Equity:
  Current liabilities                           $ 1,174,362   $ 1,177,277
  Long-term debt                                 38,632,651    38,748,083
                                               ------------  ------------
    Total liabilities                            39,807,013    39,925,360
                                               ------------  ------------
Partners' equity
  Limited Partner                                   191,888     1,687,033
  General Partners                                 (358,864)     (138,995)
                                                -----------   -----------
    Total Partners' equity                         (166,976)    1,548,038
                                                -----------   -----------
    Total liabilities and partners' equity      $39,640,037   $41,473,398
                                               ============  ============
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income                         $ 1,084,656   $ 1,053,058
Expenses:                                      ------------  ------------
  Operating expenses                                718,440       640,304
  Interest expense                                  280,925       267,569
  Depreciation and amortization                     399,364       401,700
                                               ------------  ------------
    Total expenses                                1,398,729     1,309,573
                                               ------------  ------------
      Net loss                                  $  (314,073)  $  (256,515)
                                               ============  ============
Other partners' share of net loss               $    (4,218)  $    (2,565)
                                               ============  ============
Partnerships' share of net loss                 $  (309,855)  $  (253,950)
Suspended losses                                    161,560        47,873
                                               ------------  ------------
Equity in Losses of Project Partnerships        $  (148,295)  $  (206,077)
                                               ============  ============

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (CONTINUED):

   In  accordance with the Partnership's policy of presenting the financial
information of the Project Partnerships on a three month lag, below is  the
summarized financial information for the Series' Project Partnerships as of
March 31, of each year:
                                                      2000          1999
SERIES 9                                              ----          ----
SUMMARIZED BALANCE SHEETS
Assets:
  Current assets                                $ 1,690,741   $ 1,653,121
  Investment properties, net                     20,783,276    21,578,510
  Other assets                                        7,171         5,434
                                               ------------  ------------
    Total assets                                $22,481,188   $23,237,065
                                               ============  ============
Liabilities and Partners' Equity:
  Current liabilities                           $   345,590   $   354,208
  Long-term debt                                 20,453,083    20,522,119
                                               ------------  ------------
    Total liabilities                            20,798,673    20,876,327
                                               ------------  ------------
Partners' equity
  Limited Partner                                 1,828,026     2,467,825
  General Partners                                 (145,511)     (107,087)
                                                -----------   -----------
    Total Partners' equity                        1,682,515     2,360,738
                                                -----------   -----------
    Total liabilities and partners' equity      $22,481,188   $23,237,065
                                               ============  ============
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income                         $   545,549   $   554,665
Expenses:                                      ------------  ------------
  Operating expenses                                353,939       317,369
  Interest expense                                  154,609       150,571
  Depreciation and amortization                     210,283       221,573
                                               ------------  ------------
    Total expenses                                  718,831       689,513
                                               ------------  ------------
      Net loss                                  $  (173,282)  $  (134,848)
                                               ============  ============
Other partners' share of net los s              $    (1,733)  $    (1,348)
                                               ============  ============
Partnerships' share of net loss                 $  (171,549)  $  (133,500)
Suspended losses                                     25,746             0
                                               ------------  ------------
Equity in Losses of Project Partnerships        $  (145,803)  $  (133,500)
                                               ============  ============

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (CONTINUED):

   In  accordance with the Partnership's policy of presenting the financial
information of the Project Partnerships on a three month lag, below is  the
summarized financial information for the Series' Project Partnerships as of
March 31, of each year:
                                                      2000          1999
SERIES 10                                             ----          ----
SUMMARIZED BALANCE SHEETS
Assets:
  Current assets                                $ 1,335,477   $ 1,328,224
  Investment properties, net                     14,640,911    15,093,954
  Other assets                                        3,344         7,179
                                               ------------  ------------
    Total assets                                $15,979,732   $16,429,357
                                               ============  ============
Liabilities and Partners' Equity:
  Current liabilities                           $   269,297   $   234,746
  Long-term debt                                 13,401,127    13,434,411
                                               ------------  ------------
    Total liabilities                            13,670,424    13,669,157
                                               ------------  ------------
Partners' equity
  Limited Partner                                 2,504,580     2,880,006
  General Partners                                 (195,272)     (119,806)
                                                -----------   -----------
    Total Partners' equity                        2,309,308     2,760,200
                                                -----------   -----------
    Total liabilities and partners' equity      $15,979,732   $16,429,357
                                               ============  ============
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income                         $   355,705   $   391,315
Expenses:                                      ------------  ------------
  Operating expenses                                250,645       221,226
  Interest expense                                   78,897        91,366
  Depreciation and amortization                     123,912       128,197
                                               ------------  ------------
    Total expenses                                  453,454       440,789
                                               ------------  ------------
      Net loss                                  $   (97,749)  $   (49,474)
                                               ============  ============
Other partners' share of net loss               $    (1,362)  $      (495)
                                               ============  ============
Partnerships' share of net loss                 $   (96,387)  $   (48,979)
Suspended losses                                          0             0
                                               ------------  ------------
Equity in Losses of Project Partnerships        $   (96,387)  $   (48,979)
                                               ============  ============

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (CONTINUED):

   In  accordance with the Partnership's policy of presenting the financial
information of the Project Partnerships on a three month lag, below is  the
summarized financial information for the Series' Project Partnerships as of
March 31, of each year:
                                                      2000          1999
SERIES 11                                             ----          ----
SUMMARIZED BALANCE SHEETS
Assets:
  Current assets                                $ 1,185,791   $ 1,093,783
  Investment properties, net                     12,950,062    13,401,509
  Other assets                                       14,574         7,113
                                               ------------  ------------
    Total assets                                $14,150,427   $14,502,405
                                               ============  ============
Liabilities and Partners' Equity:
  Current liabilities                           $   315,787   $   308,954
  Long-term debt                                 10,626,656    10,736,223
                                               ------------  ------------
    Total liabilities                            10,942,443    11,045,177
                                               ------------  ------------
Partners' equity
  Limited Partner                                 3,233,666     3,416,236
  General Partners                                  (25,682)       40,992
                                                -----------   -----------
    Total Partners' equity                        3,207,984     3,457,228
                                                -----------   -----------
    Total liabilities and partners' equity      $14,150,427   $14,502,405
                                               ============  ============
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income                         $   398,064   $   384,790
Expenses:                                      ------------  ------------
  Operating expenses                                226,952       189,341
  Interest expense                                  108,112       107,063
  Depreciation and amortization                     128,922       127,405
                                               ------------  ------------
    Total expenses                                  463,986       423,809
                                               ------------  ------------
      Net loss                                  $   (65,922)  $   (39,019)
                                               ============  ============
Other partners' share of net loss               $    (4,389)  $      (390)
                                               ============  ============
Partnerships' share of net loss                 $   (61,533)  $   (38,629)
Suspended losses                                          0             0
                                               ------------  ------------
Equity in Losses of Project Partnerships        $   (61,533)  $   (38,629)
                                               ============  ============

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (CONTINUED):

   In  accordance with the Partnership's policy of presenting the financial
information of the Project Partnerships on a three month lag, below is  the
summarized financial information for the Series' Project Partnerships as of
March 31, of each year:
                                                    2000            1999
TOTAL SERIES 7 - 11                                 ----            ----
SUMMARIZED BALANCE SHEETS
Assets:
  Current assets                              $ 10,303,910   $  9,608,521
  Investment properties, net                   119,940,127    125,101,075
  Other assets                                      88,844         88,909
                                              ------------   ------------
    Total assets                              $130,332,881   $134,798,505
                                              ============   ============
Liabilities and Partners' Equity:
  Current liabilities                         $  3,067,507   $  2,952,721
  Long-term debt                               119,709,286    120,165,747
                                              ------------   ------------
    Total liabilities                          122,776,793    123,118,468
                                              ------------   ------------
Partners' equity
  Limited Partner                                8,339,642     12,031,097
  General Partners                                (783,554)      (351,060)
                                               -----------    -----------
    Total Partners' equity                       7,556,088     11,680,037
                                               -----------    -----------
    Total liabilities and partners' equity    $130,332,881   $134,798,505
                                              ============   ============
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income                       $  3,486,954   $  3,517,945
Expenses:                                     ------------   ------------
  Operating expenses                             2,272,121      2,018,839
  Interest expense                                 938,264        946,193
  Depreciation and amortization                  1,238,155      1,259,975
                                              ------------   ------------
    Total expenses                               4,448,540      4,225,007
                                              ------------   ------------
      Net loss                                $   (961,586)  $   (707,062)
                                              ============   ============
Other partners' share of net loss             $    (14,809)  $     (7,071)
                                              ============   ============
Partnerships' share of net loss               $   (946,777)  $   (699,992)
Suspended losses                                   334,729        123,276
                                              ------------   ------------
Equity in Losses of Project Partnerships      $   (612,048)  $   (576,716)
                                              ============   ============

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

Results of Operations, Liquidity and Capital Resources

    The  proceeds  from  Limited  Partner investors'  capital  contributions
available  for  investment  are  used  to  acquire  interests  in   Project
Partnerships.

    As  disclosed on the statement of operations for each Series,  except  as
described  below, interest income is comparable for the three months  ended
June 30, 2000 and June 30, 1999.  The General and Administrative expenses -
General  Partner and General and Administrative expenses -  Other  for  the
three  months ended June 30, 2000 are comparable to June 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  three months  ended  June  30,  1999  were
comparable  for  the three months ended June 30, 2000.  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 June 30, 1999, the Series had $320,605 of short-term investments (Cash
and Cash Equivalents).  It also had $417,550 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
$180,360  for  the  three  months  ended June  30,  2000.   However,  after
adjusting for Equity in Losses of Project Partnerships of $160,031 and  the
changes  in  operating assets and liabilities, net cash used  in  operating
activities  was  $9,553.   Cash  provided by investing  activities  totaled
$6,002 consisting  of cash distributions from the Project Partnerships.

  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 three months ended June 30, 2000 decreased
from  $206,077  for the three months ended June 30, 1999 to $148,295  as  a
result  of not including losses of $161,560 in 2000 as compared to  $47,873
in  1999,  as  these losses would reduce the investment in certain  Project
Partnerships  below  zero.  At June 30, 2000, the Series  had  $425,283  of
short-term  investments (Cash and Cash Equivalents).  It also had  $396,525
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
$168,048  for  the  three  months  ended June  30,  2000.   However,  after
adjusting for Equity in Losses of Project Partnerships of $148,295 and  the
changes  in  operating assets and liabilities, net cash used  in  operating
activities  was  $9,239.   Cash  provided by investing  activities  totaled
$9,075,  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 three months ended June 30, 1999 were comparable  for
the  three  months ended June 30, 2000  At June 30, 2000,  the  Series  had
$212,232  of short-term investments (Cash and Cash Equivalents).   It  also
had  $264,232  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
$157,151  for  the  three  months  ended June  30,  2000.   However,  after
adjusting for Equity in Losses of Project Partnerships of $145,803 and  the
changes  in  operating assets and liabilities, net cash used  in  operating
activities  was  $5,777.   Cash  provided by investing  activities  totaled
$8,045,  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  increased from $48,979 for the three months  ended  June  30,
1999  to  $96,387 as a result of lower occupancy rates in the three  months
ending  June 30, 2000 as compared to June 30, 1999.  At June 30, 2000,  the
Series  had $227,814 of short-term investments (Cash and Cash Equivalents).
It  also  had  $215,669  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
$102,398  for  the  three  months  ended June  30,  2000.   However,  after
adjusting for Equity in Losses of Project Partnerships of $96,387  and  the
changes  in   operating assets and liabilities, net cash used in  operating
activities  was  $2,745.   Cash  provided by investing  activities  totaled
$4,489,  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 three months ended June 30, 1999 were comparable  for
the  three  months ended June 30, 2000.  At June 30, 1999, the  Series  had
$229,070  of short-term investments (Cash and Cash Equivalents).   It  also
had  $237,241  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
$65,832 for the three months ended June 30, 2000.  However, after adjusting
for Equity in Losses of Project Partnerships of $61,533 and the changes  in
operating assets and liabilities, net cash used in operating activities was
$1,984.  Cash provided by investing activities totaled $180, 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:    8/15/2000         By:/s/ Ronald M. Diner
                           Ronald M. Diner
                           President



Date:    8/15/2000         By:/s/ Sandra L. Furey
                           Sandra L. Furey
                           Secretary and Treasurer