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 EndedJune 30, 2001Commission File Number0-21762                              
                        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.
                                                  YESX      NO
                                                             Number of Units
     Title of Each Class                                     June 30, 2001  Units of Limited Partnership
  Interest:  $1,000 per unit                                      33,799

DOCUMENTS INCORPORATED BY REFERENCE
Parts I and II, 2000 Form 10-K, filed with the
Securities and Exchange Commission on July 14, 2001
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,
2001
-------
(Unaudited)                                                                                                                                                                                                                       | MARCH 31,
2001
-------
(Audited)                                                                                                                                                                                                                       
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ASSETS
Current Assets:
Cash and Cash Equivalents
 Investments in Securities
  Total Current Assets
 Investments in Securities
 Investments in Project Partnerships, Net
    Total Assets
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners
  Total Current Liabilities
Long-Term Liabilities:
 Payable to General Partners
Partners' Equity (Deficit):
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, 2001 and March 31, 2001)
General Partners
  Total Partners' Equity
    Total Liabilities and Partners' Equity | $   355,205 
57,749 
-----------
   412,954 
331,467 
1,682,863 
-----------
$ 2,427,284 
===========
$    58,432 
-----------
58,432 
-----------
376,865 
-----------
2,063,345 
(71,358)
-----------
1,991,987 
-----------
$ 2,427,284 
=========== | $  353,838 
56,801 
 -----------
410,639 
    325,585 
1,773,751 
-----------
$2,509,975 
===========
$   57,117 
-----------
57,117 
-----------
356,584 
-----------
  2,166,589 
(70,315)
-----------
2,096,274 
-----------
$2,509,975 
===========



See accompanying notes to financial statements.

---

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

|SERIES 8                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | JUNE 30,
2001
-------
(Unaudited)                                                                                                                                                                                                               | MARCH 31,
2001
-------
(Audited)                                                                                                                                                                                                                    
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ASSETS
Current Assets:
Cash and Cash Equivalents
 Investments in Securities
  Total Current Assets
 Investments in Securities
 Investments in Project Partnerships, Net
    Total Assets
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners
  Total Current Liabilities
Long-Term Liabilities:
 Payable to General Partners
Partners' Equity (Deficit):
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, 2001 and March 31, 2001)
General Partners
  Total Partners' Equity
    Total Liabilities and Partners' Equity | $  446,471 
53,010 
-----------
499,481 
315,217 
834,594 
-----------
$1,649,292 
===========

$   49,743 
-----------
49,743 
-----------
433,688 
-----------
1,241,827 
(75,966)
-----------
1,165,861 
-----------
$1,649,292 
=========== | $  447,343 
52,185 
----------
499,528 
    309,940 
940,463 
----------
$1,749,931 
 ==========

$   48,367 
----------
48,367 
----------
 412,655 
----------
  1,363,645 
(74,736)
-----------
1,288,909 
-----------
 $1,749,931 
  ===========



See accompanying notes to financial statements.

---

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

|SERIES 9                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | JUNE 30,
2001
-------
(Unaudited)                                                                                                                                                                                                                | MARCH 31,
2001
-------
(Audited)                                                                                                                                                                                                                
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ASSETS
Current Assets:
Cash and Cash Equivalents
 Investments in Securities
  Total Current Assets
 Investments in Securities
 Investments in Project Partnerships, Net
    Total Assets
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners
    Total Current Liabilities
Long-Term Liabilities:
 Payable to General Partners
Partners' Equity (Deficit):
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,
2001 and March 31, 2001)
General Partners
  Total Partners' Equity
    Total Liabilities and Partners' Equity | $  234,695 
32,877 
-----------
267,572 
214,873 
1,792,352 
-----------
$2,274,797 
===========
$   28,465 
-----------
28,465 
-----------
258,768 
-----------
2,022,525 
(34,961)
-----------
1,987,564 
-----------
$2,274,797 
=========== | $  232,688 
32,416 
----------
265,104 
 211,626 
1,874,596 
-----------
$2,351,326 
=========== $   27,514 
-----------
27,514 
-----------
247,323 
-----------
2,110,561 
(34,072)
-----------
2,076,489 
-----------
$2,351,326 
===========



See accompanying notes to financial statements.

---

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

|SERIES 10                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | JUNE 30,
2001
-------
(Unaudited)                                                                                                                                                                                                                | MARCH 31,
2001
-------
(Audited)                                                                                                                                                                                                             
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ASSETS
Current Assets:
Cash and Cash Equivalents
 Investments in Securities
  Total Current Assets
 Investments in Securities
 Investments in Project Partnerships, Net
    Total Assets
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners
    Total Current Liabilities
Long-Term Liabilities:
 Payable to General Partners
Partners' Equity (Deficit):
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, 2001 and March 31, 2001)
General Partners
  Total Partners' Equity
    Total Liabilities and Partners' Equity | $  238,357 
25,131 
-----------
263,488 
180,008 
2,381,108 
-----------
$2,824,604 
===========
$   30,338 
-----------
30,338 
-----------
 72,385 
-----------
2,738,842 
(16,961)
-----------
2,721,881 
-----------
$2,824,604 
=========== | 236,522 
24,731 
-----------
261,253 
176,929 
 2,451,287 
-----------
$2,889,469 
===========
$   30,195 
-----------
30,195 
-----------
64,462 
-----------
2,811,044 
(16,232)
-----------
2,794,812 
-----------
$2,889,469 
===========



See accompanying notes to financial statements.

---

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

|SERIES 11                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | JUNE 30,
2001
-------
(Unaudited)                                                                                                                                                                                                                 | MARCH 31,
2001
-------
(Audited)                                                                                                                                                                                                                
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ASSETS
Current Assets:
Cash and Cash Equivalents
 Investments in Securities
  Total Current Assets
 Investments in Securities
 Investments in Project Partnerships, Net
    Total Assets
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners
  Total Current Liabilities
Long-Term Liabilities:
 Payable to General Partners
Partners' Equity (Deficit):
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, 2001 and March 31, 2001)
General Partners
  Total Partners' Equity
    Total Liabilities and Partners' Equity | $  252,824 
26,886 
-----------
279,710 
201,440 
3,293,925 
-----------
$3,775,075 
===========

$   29,342 
-----------
29,342 
-----------
 26,264 
-----------
3,728,265 
 (8,796)
-----------
3,719,469 
-----------
$3,775,075 
=========== | $  244,339 
26,421 
-----------
270,760 
197,772 
3,328,681 
-----------
$3,797,213 
============
$   29,452 
-----------
29,452 
-----------
19,496 
-----------
3,756,773 
(8,508)
-----------
3,748,265 
-----------
$3,797,213 
============



See accompanying notes to financial statements.

---

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

|TOTAL SERIES 7 - 11                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | JUNE 30,
2001
-------
(Unaudited)                                                                                                                                                                                                                               | MARCH 31,
2001
-------
(Audited)                                                                                                                                                                                                                                      
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ASSETS
Current Assets:
Cash and Cash Equivalents
 Investments in Securities
  Total Current Assets
 Investments in Securities
 Investments in Project Partnerships, Net
    Total Assets
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners
  Total Current Liabilities
Long-Term Liabilities:
 Payable to General Partners
Partners' Equity (Deficit):
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,
2001 and March 31, 2001)
General Partners
  Total Partners' Equity
    Total Liabilities and Partners' Equity | $ 1,527,552 
195,653 
-----------
1,723,205 
1,243,005 
9,984,842 
-----------
$12,951,052 
===========
$   196,320 
-----------
196,320 
-----------
1,167,970 
-----------
11,794,804 
(208,042)
-----------
11,586,762 
-----------
$12,951,052 
=========== | $ 1,514,730 
192,554 
------------
1,707,284 
1,221,852 
10,368,778 
------------
$13,297,914 
============
$   192,645 
-----------
192,645 
-----------
1,100,520 
-----------
12,208,612 
(203,863)
------------
12,004,749 
------------
$13,297,914 
============



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                                                                                                                                                                                                                                                                                                                                                                                                                                 | 2001
----                                                                                                                                                                                                                                          | 2000
----                                                                                                                                                                                                                                           
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
Interest Income
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Losses
 of Project Partnerships
Equity in Losses of Project
  Partnerships
Net Loss
Allocation of Net Loss:
 Limited Partners
 General Partners


Net Loss Per Number of Limited Partnership
Units
Number of Limited Partnership Units
Outstanding | $   10,331 
-----------
21,921 
4,701 
 5,679 
 1,606 
-----------
33,907 
-----------
(23,576)
(80,711)
----------
$  (104,287)
===========
$  (103,244)
(1,043)
-----------
$  (104,287)
===========
$    (9.93)
===========
10,395 
=========== | $   11,720 
-----------
21,988 
3,257 
 3,255 
 3,549 
-----------
32,049 
-----------
(20,329)
(160,031)
-----------
$  (180,360)
===========
$  (178,556)
(1,804)
-----------
$  (180,360)
===========
$   (17.18)
===========
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                                                                                                                                                                                                                                                                                                                                                                                                                                | 2001
----                                                                                                                                                                                                                                | 2000
----                                                                                                                                                                                                                              
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
Interest Income
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Losses
 of Project Partnerships
Equity in Losses of Project
 Partnerships
Net Loss
Allocation of Net Loss:
 Limited Partners
 General Partners


Net Loss Per Number of Limited
Partnership Units
Number of Limited Partnership Units
Outstanding | $ 10,503 
----------
22,841 
5,183 
 6,195 
 1,847 
-----------
36,066 
-----------
(25,563)
(97,485)
----------
$(123,048)
===========
$(121,818)
(1,230)
-----------
$(123,048)
===========
$  (12.21)
===========
 9,980 
=========== | $ 12,359 
----------
22,914 
3,591 
 3,343 
 2,264 
----------
32,112 
----------
(19,753)
(148,295)
----------
$(168,048)
===========
$(166,368)
(1,680)
-----------
$(168,048)
===========
$  (16.67)
===========
 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                                                                                                                                                                                                                                                                                                                                                                                                                                | 2001
----                                                                                                                                                                                                                              | 2000
----                                                                                                                                                                                                                          
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
Interest Income
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Losses
 of Project Partnerships
Equity in Losses of Project
 Partnerships
Net Loss
Allocation of Net Loss:
 Limited Partners
 General Partners


Net Loss Per Number of Limited Partnership
Units
Number of Limited Partnership Units
Outstanding | $   6,012 
----------
12,545 
2,893 
 3,602 
 1,138 
----------
20,178 
----------
(14,166)
(74,759)
----------
$   (88,925)
==========
$   (88,036)
(889)
----------
$   (88,925)
==========
$  (14.08)
==========
 6,254 
========== | $   6,832 
----------
12,580 
2,004 
 2,166 
 1,430 
----------
18,180 
----------
(11,348)
(145,803)
----------
$(157,151)
==========
$(155,579)
(1,572)
----------
$(157,151)
==========
$  (24.88)
==========
 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                                                                                                                                                                                                                                                                                                                                                                                                                               | 2001
----                                                                                                                                                                                                                             | 2000
----                                                                                                                                                                                                                       
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
Interest Income
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Losses
 of Project Partnerships
Equity in Losses of Project
 Partnerships
Net Loss
Allocation of Net Loss:
 Limited Partners
 General Partners


Net Loss Per Number of Limited Partnership
Units
Number of Limited Partnership Units
Outstanding | $   5,814 
----------
 8,553 
1,808 
 2,356 
 1,405 
----------
14,122 
----------
(8,308)
(64,623)
----------
$   (72,931)
==========
$   (72,202)
(729)
----------
$   (72,931)
==========
$  (14.32)
==========
 5,043 
========== | $   6,779 
----------
 8,577 
1,253 
 1,555 
 1,405 
----------
12,790 
----------
(6,011)
(96,387)
---------
$(102,398)
==========
$(101,374)
(1,024)
----------
$(102,398)
==========
$  (20.10)
==========
 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                                                                                                                                                                                                                                                                                                                                                                                                                               | 2001
----                                                                                                                                                                                                                    | 2000
----                                                                                                                                                                                                                  
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
Interest Income
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Losses
 of Project Partnerships
Equity in Losses of Project
 Partnerships
Net Loss
Allocation of Net Loss:
 Limited Partners
 General Partners


Net Loss Per Number of Limited Partnership
Units
Number of Limited Partnership Units
Outstanding | $  6,582 
----------
 7,272 
1,446 
1,957 
2,073 
----------
12,748 
----------
(6,166)
(22,630)
----------
$(28,796)
==========
$(28,508)
(288)
-----------
$(28,796)
===========
$  (5.56)
===========
 5,127 
=========== | $  7,456 
----------
 7,116 
1,002 
1,564 
2,073 
----------
11,755 
----------
(4,299)
(61,533)
----------
$(65,832)
==========
$(65,174)
(658)
----------
$(65,832)
==========
$    (12.71)
==========
 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                                                                                                                                                                                                                                                                                                                  | 2001
----                                                                                                                                                                                     | 2000
----                                                                                                                                                                            
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
Interest Income
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Losses
 of Project Partnerships
Equity in Losses of Project
 Partnerships
Net Loss
Allocation of Net Loss:
 Limited Partners
 General Partners | $ 39,242 
----------
73,132 
16,031 
19,789 
8,069 
----------
117,021 
----------
(77,779)
(340,208)
----------
$(417,987)
===========
$(413,808)
(4,179)
-----------
$(417,987)
=========== | $    45,146
---------
73,175
11,107
11,883
10,721
---------
106,886
---------
(61,740)
(612,049)
--------
$(673,789)
==========
$(667,051)
(6,738)
-----------
$(673,789)
===========



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, 2001 AND 2000:

|SERIES 7                                                                                                                | Limited
Partners
---------                                                                                                | General
Partners
--------                                                                                                   | Total
-----                                                                                                               
|----------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 2000
Net Loss
Balance at June 30, 2000
Balance at March 31, 2001
Net Loss
Balance at June 30, 2001 | $ 2,670,270 
(178,556)
-----------
$ 2,491,714 
============
$ 2,166,589 
(103,244)
-----------
$ 2,063,345 
============ | $   (65,227)
  (1,804)
-----------
 $   (67,031)
============
$   (70,315)
  (1,043)
-----------
 $   (71,358)
============ | $ 2,605,043 
(180,360)
-----------
$ 2,424,683 
============

$ 2,096,274 
(104,287)
-----------
$ 1,991,987 
============



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, 2001 AND 2000:

|SERIES 8                                                                                                                | Limited
Partners
---------                                                                                                   | General
Partners
--------                                                                                               | Total
-----                                                                                                        
|----------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 2000
Net Loss
Balance at June 30, 2000
Balance at March 31, 2001
Net Loss
Balance at June 30, 2001 | $ 1,898,013 
(166,368)
-----------
$  1,731,645  ============
$ 1,363,645 
(121,818)
-----------
$  1,241,827 
 ============ | $   (69,338)
  (1,680)
-----------
$   (71,018)
===========
$   (74,736)
  (1,230)
-----------
$   (75,966)
=========== | $ 1,828,675
(168,048)
-----------
$ 1,660,627
===========
$ 1,288,909
(123,048)
-----------
$ 1,165,861
===========



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, 2001 AND 2000:

|SERIES 9                                                                                                                | Limited
Partners
---------                                                                                             | General
Partners
--------                                                                                             | Total
-----                                                                                                           
|----------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 2000
Net Loss
Balance at June 30, 2000
Balance at March 31, 2001
Net Loss
Balance at June 30, 2001 | $ 2,563,166 
(155,579)
-----------
$ 2,407,587 
===========
$ 2,110,561 
(88,036)
-----------
$ 2,022,525 
=========== | $   (29,500)
  (1,572)
-----------
$   (31,072)
===========
$   (34,072)
  (889)
-----------
$   (34,961)
=========== | $ 2,533,666 
(157,151)
-----------
$ 2,376,515 
===========
$ 2,076,489 
(88,925)
-----------
$ 1,987,564 
===========



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, 2001 AND 2000:

|SERIES 10                                                                                                               | Limited
Partners
---------                                                                                               | General
Partners
--------                                                                                             | Total
-----                                                                                                             
|----------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------ | --------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 2000
Net Loss
Balance at June 30, 2000
Balance at March 31, 2001
Net Loss
Balance at June 30, 2001 | $ 3,128,940 
(101,374)
-----------
$ 3,027,566 
============
$ 2,811,044 
(72,202)
-----------
$ 2,738,842 
============ | $   (13,021)
  (1,024)
-----------
$   (14,045)
===========
$   (16,232)
  (729)
-----------
$   (16,961)
=========== | $ 3,115,919 
(102,398)
-----------
$ 3,013,521 
============
$ 2,794,812 
(72,931)
-----------
$ 2,721,881 
============



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, 2001 AND 2000:

|SERIES 11                                                                                                               | Limited
Partners
---------                                                                                              | General
Partners
--------                                                                                           | Total
-----                                                                                                            
|----------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 2000
Net Loss
Balance at June 30, 2000
Balance at March 31, 2001
Net Loss
Balance at June 30, 2001 | $ 3,957,139 
(65,174)
-----------
$ 3,891,965 
============
$ 3,756,773 
(28,508)
-----------
$ 3,728,265 
============ | $    (6,484)
  (658)
-----------
$    (7,142)
===========
$    (8,508)
  (288)
-----------
$    (8,796)
=========== | $ 3,950,655 
(65,832)
-----------
$ 3,884,823 
============
$ 3,748,265 
(28,796)
-----------
$ 3,719,469 
============



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, 2001 AND 2000:

|TOTAL SERIES 7 - 11                                                                                                     | Limited
Partners
---------                                                                                                | General
Partners
--------                                                                                             | Total
-----                                                                                                            
|----------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 2000
Net Loss
Balance at June 30, 2000
Balance at March 31, 2001
Net Loss
Balance at June 30, 2001 | $14,217,528 
(667,051)
-----------
$13,550,477 
============
$12,208,612 
(413,808)
-----------
$11,794,804 
============ | $  (183,570)
 (6,738)
-----------
$  (190,308)
===========
$  (203,863)
 (4,179)
-----------
$  (208,042)
=========== | $14,033,958 
(673,789)
-----------
$13,360,169 
===========
$12,004,749 
(417,987)
-----------
$11,586,762 
===========



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
--------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | 2001
----                                                                                                                                                       | 2000
----                                                                                                                                                        
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------
|Cash Flows from Operating Activities:
  Net Loss
  Adjustments to Reconcile Net Loss to Net
  Cash Used in Operating Activities:
   Amortization
   Accreted Interest Income on Investments
   in Securities
   Equity in Losses of Project Partnerships
   Changes in Operating Assets and
   Liabilities:
    Increase in Payable to General Partners
     Net Cash Used in Operating Activities
Cash Flows from Investing Activities:
 Distributions Received from Project
 Partnerships
     Net Cash Provided by Investing
     Activities
Increase (Decrease) in Cash and Cash
Equivalents
Cash and Cash Equivalents at Beginning of
Period
Cash and Cash Equivalents at End of Period | $  (104,287)
1,606 
(6,830)
80,711 
21,597 
----------
(7,203)
----------
8,570 
----------
8,570 
----------
1,367 
353,838 
----------
$  355,205 
========== | $  (180,360)
3,549 
(7,235)
160,031 
14,462 
----------
(9,553)
----------
6,002 
----------
6,002 
----------
(3,551)
324,156 
----------
$  320,605 
==========



See accompanying notes to financial statements.

---



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

|SERIES 8
--------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 2001
----                                                                                                                                                       | 2000
----                                                                                                                                                      
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------
|Cash Flows from Operating Activities:
  Net Loss
  Adjustments to Reconcile Net Loss to Net
  Cash Used In Operating Activities:
   Amortization
   Accreted Interest Income on Investments
   in Securities
   Equity in Losses of Project Partnership
   Changes in Operating Assets and
   Liabilities:
    Increase in Payable to General Partners
     Net Cash Used in Operating Activities
Cash Flows from Investing Activities:
 Distributions Received from Project
 Partnerships
     Net Cash Provided by Investing
     Activities
Increase (Decrease) in Cash and Cash
Equivalents
Cash and Cash Equivalents at Beginning of
Period
Cash and Cash Equivalents at End of Period | $  (123,048)
1,847 
(6,104)
97,485 
22,411 
----------
(7,409)
----------
6,537 
----------
6,537 
----------
(872)
447,343 
----------
$   446,471 
========== | $  (168,048)
2,264 
(6,496)
148,295 
14,746 
----------
(9,239)
----------
9,075 
----------
9,075 
----------
(164)
425,447 
----------
$  425,283 
==========



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
--------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 2001
----                                                                                                                                                        | 2000
----                                                                                                                                                      
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------
|Cash Flows from Operating Activities:
  Net Loss
  Adjustments to Reconcile Net Loss to Net
  Cash Used in Operating Activities:
   Amortization
   Accreted Interest Income on Investments
   in Securities
   Equity in Losses of Project Partnerships
   Changes in Operating Assets and
   Liabilities:
    Increase in Payable to General Partners
     Net Cash Used in Operating Activities
Cash Flows from Investing Activities:
  Distributions Received from Project
  Partnerships
     Net Cash Provided by Investing
     Activities
Increase in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of
Period
Cash and Cash Equivalents at End of Period | $   (88,925)
1,138 
(3,708)
74,759 
12,395 
----------
(4,341)
----------
 6,348 
----------
6,348 
----------
2,007 
232,688 
----------
$  234,695 
========== | $  (157,151)
1,430 
(3,912)
145,803 
8,053 
----------
(5,777)
----------
8,045 
----------
8,045 
----------
2,268 
209,964 
----------
$  212,232 
==========



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
--------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 2001
----                                                                                                                                                     | 2000
----                                                                                                                                                    
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------
|Cash Flows from Operating Activities:
  Net Loss
  Adjustments to Reconcile Net Loss to Net
  Cash Used in Operating Activities:
   Amortization
   Accreted Interest Income on Investments
   in Securities
   Equity in Losses of Project Partnerships
   Changes in Operating Assets and
   Liabilities:
    Increase in Payable to General Partners
     Net Cash Used in Operating Activities
Cash Flows from Investing Activities:
  Distributions Received from Project
  Partnerships
     Net Cash Provided by Investing
     Activities
Increase in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of
Period
Cash and Cash Equivalents at End of Period | $  (72,931)
1,405 
(3,477)
64,623 
8,066 
----------
(2,314)
----------
4,149 
----------
4,149 
----------
1,835 
236,522 
----------
$  238,357 
========== | $ (102,398)
1,405 
(3,624)
96,387 
5,485 
----------
(2,745)
----------
4,489 
----------
4,489 
----------
1,744 
226,070 
----------
$  227,814 
==========



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
--------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 2001
----                                                                                                                                                        | 2000
----                                                                                                                                                  
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------
|Cash Flows from Operating Activities:
  Net Loss
  Adjustments to Reconcile Net Loss to Net
  Cash Used in Operating Activities:
   Amortization
   Accreted Interest Income on Investments
   in Securities
   Equity in Losses of Project Partnerships
   Changes in Operating Assets and
   Liabilities:
    Increase in Payable to General Partners
     Net Cash Used in Operating Activities
Cash Flows from Investing Activities:
   Distributions Received from Project
   Partnerships
     Net Cash Provided by Investing
     Activities
Increase (Decrease) in Cash and Cash
Equivalents
Cash and Cash Equivalents at Beginning of
Period
Cash and Cash Equivalents at End of Period | $  (28,796)
2,073 
(4,131)
22,630 
6,658 
----------
(1,566)
----------
10,051 
----------
 10,051 
----------
8,485 
244,339 
----------
$  252,824 
========== | $  (65,832)
2,073 
(4,263)
61,533 
4,505 
----------
(1,984)
----------
180 
----------
 180 
----------
(1,804)
230,874 
----------
$  229,070 
==========



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
-------------------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 2001
----                                                                                                                                                                | 2000
----                                                                                                                                                                
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Cash Flows from Operating Activities:
  Net Loss
  Adjustments to Reconcile Net Loss to Net
  Cash Used in Operating Activities:
   Amortization
   Accreted Interest Income on Investments
   in Securities
   Equity in Losses of Project Partnerships
   Changes in Operating Assets and
   Liabilities:
    Increase in Payable to General Partners
     Net Cash Used in Operating Activities
Cash Flows from Investing Activities:
   Distributions Received from Project
   Partnerships
     Net Cash Provided by Investing
     Activities
Increase (Decrease) in Cash and Cash
Equivalents
Cash and Cash Equivalents at Beginning of
Period
Cash and Cash Equivalents at End of Period | $  (417,987)
8,069 
(24,250)
340,208
71,127 
----------
(22,833)
----------
35,655 
----------
35,655 
----------
12,822 
1,514,730 
-----------
$1,527,552 
=========== | $  (673,789)
10,721 
(25,530)
612,049 
47,251 
----------
(29,298)
----------
27,791 
----------
27,791 
----------
(1,507)
1,416,511 
----------
$1,415,004 
===========



See accompanying notes to financial statements.

---



GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2001

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, 2001, 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 incurred.

Gateway accounts for its investments as the limited partner in Project Partnerships ("Investments in Project Partnerships") using the equity method of accounting, because management believes that Gateway does not have a majority control of the major operating and financial policies of the Project Partnerships in which it invests, and reports the equity in losses of the Project Partnerships on a 3-month lag in the 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, 2001.  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.

Reclassifications

For comparability, the 2000 figures have been reclassified, where appropriate, to conform with the financial statement presentation used in 2001

NOTE 3 - INVESTMENT IN SECURITIES:

The June 30, 2001 Balance Sheet includes Investment in Securities consisting of U.S. Treasury Security Strips which represents their cost, plus accreted interest income of $180,915 for Series 7, $157,449 for Series 8, $91,514 for Series 9, $80,954 for Series 10 and $92,804 for Series 11.

|          | Estimated Market
Value
----------------- | Cost Plus
Accreted Interest
----------------- | Gross Unrealized
Gains and
(Losses)
----------------
|--------- | ---------------------------------------- | --------------------------------------------- | ----------------------------------------------------
|Series 7  | $  421,808                               | $  389,216                                    | $  32,592                                           
|Series 8  | 393,818                                  | 368,227                                       | 25,591                                              
|Series 9  | 259,271                                  | 247,750                                       | 11,521                                              
|Series 10 | 221,209                                  | 205,139                                       | 16,070                                              
|Series 11 | 254,610                                  | 228,326                                       | 26,284                                              



|                                        | Series 7
--------     | Series 8
--------     | Series 9
--------    
|--------------------------------------- | --------------------- | --------------------- | ---------------------
|Due with 1 year                         | $   57,749            | $   53,010            | $   32,877           
|After 1 year through 5 years            | 225,143               | 211,550               | 125,926              
|After 5 years through 10 years          | 106,324               | 103,667               | 88,947               
|                                        | ----------            | ----------            | ----------           
|Total Amount Carried on
  Balance Sheet | $  389,216
========== | $  368,227
========== | $  247,750
==========



|                                        | Series 10
--------    | Series 11
--------    | Total
--------       
|--------------------------------------- | --------------------- | --------------------- | ---------------------
|Due with 1 year                         | $   25,131            | $   26,886            | $  195,653           
|After 1 year through 5 years            | 93,648                | 105,298               | 761,565              
|After 5 years through 10 years          | 86,360                | 96,142                | 481,440              
|                                        | ----------            | ----------            | ----------           
|Total Amount Carried on
  Balance Sheet | $  205,139
========== | $  228,326
========== | $1,438,658
==========



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

For the three months ended June 30 2001 and 2000 the General Partners and affiliates are entitled to compensation and reimbursement for costs and expenses incurred by Gateway as follows:

Asset Management Fee - The Managing General Partner is entitled to 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.

2001             2000
                          -----
            -----
  Series 7              $ 21,921         $ 21,988
  Series 8                22,841           22,914
  Series 9                12,545           12,580
  Series 10                8,553            8,577
  Series 11                7,272
           7,116
                        --------         --------
  Total                 $ 73,132         $ 73,175
                        ========
        ========

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             $   4,701        $   3,257
  Series 8                 5,183            3,591
  Series 9                 2,893            2,004
  Series 10                1,808            1,253
  Series 11                1,446            1,002
                        --------         --------
  Total                 $ 16,031
        $ 11,107
                        ========         ========

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS:

As of June 30, 2001, 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,
2001
-------------                                                                                       | MARCH 31,
2001
----------                                                                                       
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------
|Capital Contributions to Project Partnerships and
purchase price paid for limited partner interests
in Project Partnerships
Cumulative equity in losses of Project Partnerships(1)
Cumulative distributions received from Project
Partnerships
Investment in Project Partnerships before adjustment
Excess of investment cost over the underlying assets
acquired:
 Acquisition fees and expenses
 Accumulated amortization of acquisition
 fees and expenses
Investments in Project Partnerships | $ 7,732,089 
(6,488,540)
(185,881)
-----------
1,057,668 
793,335 
(168,140)
-----------
$ 1,682,863 
=========== | $ 7,732,089 
(6,407,829)
(177,311)
----------
1,146,949 
 793,335 
(166,533)
----------
$ 1,773,751 
===========

1) In accordance with the Partnership's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $1,296,246 for the period ended June 30, 2001 and cumulative suspended losses of $1,220,839 for the year ended March 31, 2001 are not included.

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

As of June 30, 2001, 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,
2001
------------                                                                                     | MARCH 31,
2001
-----------                                                                                     
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------
|Capital Contributions to Project Partnerships and
purchase price paid for limited partner interests
in Project Partnerships
Cumulative equity in losses of Project Partnerships(1)
Cumulative distributions received from Project
Partnerships
Investment in Project Partnerships before adjustment
Excess of investment cost over the underlying assets
acquired:
 Acquisition fees and expenses
 Accumulated amortization of acquisition
 fees and expenses
Investments in Project Partnerships | $ 7,586,105 
(7,046,341)
(149,751)
-----------
390,013 
549,773 
(105,192)
-----------
$  834,594 
=========== | $ 7,586,105
(6,948,856)
(143,214)
-----------
494,035 
549,773 
 
(103,345)
-----------
$  940,463 
===========

1) In accordance with the Partnership's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $1,526,339 for the period ended June 30, 2001 and cumulative suspended losses of $1,367,552 for the year ended March 31, 2001 are not included.

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

As of June 30, 2001, 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,
2001
------------                                                                                         | MARCH 31,
2001
-----------                                                                                     
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------ | ---------------------------------------------------------------------------------------------------------------
|Capital Contributions to Project Partnerships and
purchase price paid for limited partner interests 
 in Project Partnerships
Cumulative equity in losses of Project Partnerships(1)
Cumulative distributions received from Project
Partnerships
Investment in Project Partnerships before adjustment
Excess of investment cost over the underlying assets
acquired:
 Acquisition fees and expenses
 Accumulated amortization of acquisition
 fees and expenses
Investments in Project Partnerships | $ 4,914,116 
(3,210,149)
(107,357)
-----------
 1,596,610 
244,087 
(48,345)
-----------
$ 1,792,352 
============ | $ 4,914,116 
(3,135,390)
(101,009)
-----------
1,677,717 
244,087 
(47,208)
-----------
$1,874,596 
===========

1) In accordance with the Partnership's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $337,079 for the period ended June 30, 2001 and cumulative suspended losses of $279,195 for the year ended March 31, 2001 are not included.

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

As of June 30, 2001, 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,
2001
--------------                                                                                      | MARCH 31,
2001
-----------                                                                                     
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------
|Capital Contributions to Project Partnerships and
purchase price paid for limited partner interests in
Project Partnerships
Cumulative equity in losses of Project Partnerships(1)
Cumulative distributions received from Project
Partnerships
Investment in Project Partnerships before adjustment
Excess of investment cost over the underlying assets
acquired:
 Acquisition fees and expenses
 Accumulated amortization of acquisition
 fees and expenses
Investments in Project Partnerships | $ 3,914,672 
(1,569,130)
(119,507)
-----------
2,226,035 
196,738 
(41,665)
-----------
$ 2,381,108 
============ | $3,914,672 
(1,504,507)
(115,357)
-----------
2,294,808 
196,738 
(40,259)
-----------
$2,451,287 
 ===========

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, 2001 and cumulative suspended losses of $0 for the year ended March 31, 2001 are not included.

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

As of June 30, 2001, 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,
2001
-------------                                                                                    | MARCH 31,
2001
-----------                                                                              
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------
|Capital Contributions to Project Partnerships and
purchase price paid for limited partner interests 
in Project Partnerships
Cumulative equity in losses of Project Partnerships(1)
Cumulative distributions received from Project
Partnerships
Investment in Project Partnerships before adjustment
Excess of investment cost over the underlying assets
acquired:
 Acquisition fees and expenses
 Accumulated amortization of acquisition
 fees and expenses
Investments in Project Partnerships | $ 4,128,042 
(966,061)
(104,974)
-----------
3,057,007 
290,335 
(53,417)
-----------
$ 3,293,925 
=========== | $4,128,042 
(943,431)
(94,923)
----------
3,089,688 
290,335 
(51,342)
----------
$3,328,681 
==========

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, 2001 and cumulative suspended losses of $0 for the year ended March 31, 2001 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,
2001
-------------                                                                                             | MARCH 31,
2001
-----------                                                                                           
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------
|Capital Contributions to Project Partnerships and
purchase price paid for limited partner interests 
 in Project Partnerships
Cumulative equity in losses of Project Partnerships(1)
Cumulative distributions received from Project
Partnerships
Investment in Project Partnerships before adjustment
Excess of investment cost over the underlying assets
acquired:
 Acquisition fees and expenses
 Accumulated amortization of acquisition
 fees and expenses
Investments in Project Partnerships | $28,275,024 
(19,280,221)
(667,470)
------------
8,327,333 
2,074,268 
(416,759)
------------
$ 9,984,842 
============ | $28,275,024 
(18,940,013)
(631,814)
-----------
8,703,197 
2,074,268 
(408,687)
-----------
$10,368,778 
============

---

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:

|SERIES 7                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 2001
----                                                                                                                                                                                                                                                                                                                                                                                                             | 2000
----                                                                                                                                                                                                                                                                                                                                                                                                           
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|SUMMARIZED BALANCE SHEETS
Assets:
  Current assets
  Investment properties, net
  Other assets
    Total assets
Liabilities and Partners' Equity:
  Current liabilities
  Long-term debt
    Total liabilities
Partners' equity
  Limited Partner
  General Partners
    Total Partners' equity
    Total liabilities and partners' equity
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income
Expenses:
  Operating expenses
  Interest expense
  Depreciation and amortization
    Total expenses
      Net loss
Other partners' share of net loss
Partnerships' share of net loss
Suspended losses
Equity in Losses of Project Partnerships | $ 3,386,602 
33,425,584 
 9,765 
-----------
$36,821,951 
===========
$   785,003 
36,457,535 
-----------
37,242,538 
-----------
(306,205)
 (114,382)
-----------
(420,587)
-----------
$36,821,951 
===========
$ 1,143,420 
-----------
726,687 
207,781 
366,647 
-----------
1,301,115 
-----------
$  (157,695)
===========
$    (1,577)
===========
$  (156,118)
75,407 
-----------
$   (80,711)
=========== | $ 3,286,607 
34,766,675 
 28,215 
-----------
$38,081,497 
===========
$   962,471 
36,595,769 
-----------
37,558,240 
-----------
581,482 
 (58,225)
-----------
523,257 
-----------
$38,081,497 
===========
$ 1,102,980 
-----------
722,145 
315,721 
375,674 
-----------
1,413,540 
-----------
$  (310,560)
===========
$    (3,106)
===========
$  (307,454)
147,423 
-----------
$  (160,031)
===========

---

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:

|SERIES 8                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 2001
----                                                                                                                                                                                                                                                                                                                                                                                                                   | 2000
----                                                                                                                                                                                                                                                                                                                                                                                                                 
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|SUMMARIZED BALANCE SHEETS
Assets:
  Current assets
  Investment properties, net
  Other assets
    Total assets
Liabilities and Partners' Equity:
  Current liabilities
  Long-term debt
    Total liabilities
Partners' equity
  Limited Partner
  General Partners
    Total Partners' equity
    Total liabilities and partners' equity
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income
Expenses:
  Operating expenses
  Interest expense
  Depreciation and amortization
    Total expenses
      Net loss
Other partners' share of net loss
Partnerships' share of net loss
Suspended losses
Equity in Losses of Project Partnerships | $ 2,943,506 
35,297,730 
 27,518 
------------
$38,268,754 
============
$ 1,144,763 
38,469,955 
------------
39,614,718 
------------
(925,324)
(420,640)
-----------
(1,345,964)
-----------
$38,268,754 
===========
$ 1,088,785 
-----------
729,335 
225,187 
394,506 
-----------
1,349,028 
-----------
$  (260,243)
===========
$    (3,971)
===========
$ (256,272)
158,787 
-----------
$   (97,485)
=========== | $ 2,805,294 
36,799,203 
 35,540 
------------
$39,640,037 
============
$ 1,174,362 
38,632,651 
------------
39,807,013 
------------
191,888 
(358,864)
-----------
(166,976)
-----------
$39,640,037 
===========
$ 1,084,656 
-----------
718,440 
280,925 
399,364 
-----------
1,398,729 
-----------
$  (314,073)
===========
$    (4,218)
===========
$  (309,855)
161,560 
-----------
$  (148,295)
============

---

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:

|SERIES 9                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 2001
----                                                                                                                                                                                                                                                                                                                                                                                                                | 2000
----                                                                                                                                                                                                                                                                                                                                                                                                               
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|SUMMARIZED BALANCE SHEETS
Assets:
  Current assets
  Investment properties, net
  Other assets
    Total assets
Liabilities and Partners' Equity:
  Current liabilities
  Long-term debt
    Total liabilities
Partners' equity
  Limited Partner
  General Partners
    Total Partners' equity
    Total liabilities and partners' equity
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income
Expenses:
  Operating expenses
  Interest expense
  Depreciation and amortization
    Total expenses
      Net loss
Other partners' share of net loss
Partnerships' share of net loss
Suspended losses
Equity in Losses of Project Partnerships | $ 1,750,167 
19,986,688 
 7,032 
-----------
$21,743,887 
===========
$   308,263 
20,373,321 
-----------
20,681,584 
-----------
1,237,913 
(175,610)
-----------
1,062,303 
-----------
$21,743,887 
===========
$   561,824 
-----------
  370,540 
117,100 
  208,167 
-----------
695,807 
-----------
$  (133,983)
===========
$    (1,340)
===========
$  (132,643)
57,884 
-----------
$   (74,759)
=========== | $ 1,690,741 
20,783,276 
 7,171 
-----------
$22,481,188 
===========
$   345,590 
20,453,083 
-----------
20,798,673 
-----------
1,828,026 
(145,511)
-----------
1,682,515 
-----------
$22,481,188 
===========
$   545,549 
-----------
  353,939 
154,609 
  210,283 
-----------
718,831 
-----------
$  (173,282)
===========
$    (1,733)
===========
$  (171,549)
25,746 
-----------
$  (145,803)
===========

---

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:

|SERIES 10                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 2001
----                                                                                                                                                                                                                                                                                                                                                                                                          | 2000
----                                                                                                                                                                                                                                                                                                                                                                                                     
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|SUMMARIZED BALANCE SHEETS
Assets:
  Current assets
  Investment properties, net
  Other assets
    Total assets
Liabilities and Partners' Equity:
  Current liabilities
  Long-term debt
    Total liabilities
Partners' equity
  Limited Partner
  General Partners
    Total Partners' equity
    Total liabilities and partners' equity
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income
Expenses:
  Operating expenses
  Interest expense
  Depreciation and amortization
    Total expenses
      Net loss
Other partners' share of net loss
Partnerships' share of net loss
Suspended losses
Equity in Losses of Project Partnerships | $ 1,411,007 
14,202,812 
 3,792 
-----------
$15,617,611 
===========
$   284,832 
13,323,414 
-----------
13,608,246 
-----------
2,218,377 
(209,012)
-----------
2,009,365 
-----------
$15,617,611 
===========
$   366,173 
-----------
  242,340 
65,347 
  124,151 
-----------
431,838 
-----------
$   (65,665)
===========
$    (1,042)
===========
$   (64,623)
0 
-----------
$   (64,623)
=========== | $ 1,335,477 
14,640,911 
 3,344 
-----------
$15,979,732 
===========
$   269,297 
13,401,127 
-----------
13,670,424 
-----------
2,504,580 
(195,272)
-----------
2,309,308 
-----------
$15,979,732 
===========
$   355,705 
-----------
  250,645 
78,897 
  123,912 
-----------
453,454 
-----------
$  (97,749)
===========
$   (1,362)
===========
$  (96,387)
0 
-----------
$  (96,387)
===========

---

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:

|SERIES 11                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 2001
----                                                                                                                                                                                                                                                                                                                                                                                                          | 2000
----                                                                                                                                                                                                                                                                                                                                                                                                          
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|SUMMARIZED BALANCE SHEETS
Assets:
  Current assets
  Investment properties, net
  Other assets
    Total assets
Liabilities and Partners' Equity:
  Current liabilities
  Long-term debt
    Total liabilities
Partners' equity
  Limited Partner
  General Partners
    Total Partners' equity
    Total liabilities and partners' equity
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income
Expenses:
  Operating expenses
  Interest expense
  Depreciation and amortization
 
   Total expenses
      Net loss
Other partners' share of net loss
Partnerships' share of net loss
Suspended losses
Equity in Losses of Project Partnerships | $ 1,307,008 
12,484,617 
 12,136 
-----------
$13,803,761 
===========
$   299,685 
10,514,017 
-----------
10,813,702 
-----------
3,076,363 
(86,304)
-----------
2,990,059 
-----------
$13,803,761 
===========
$   408,576 
-----------
  242,597 
61,514 
  129,224 
-----------
433,335 
-----------
$   (24,759)
===========
$    (2,129)
===========
$   (22,630)
0 
-----------
$   (22,630)
=========== | $ 1,185,791 
12,950,062 
 14,574 
-----------
$14,150,427 
===========
$   315,787 
10,626,656 
-----------
10,942,443 
-----------
3,233,666 
(25,682)
-----------
3,207,984 
-----------
$14,150,427 
===========
$   398,064 
-----------
  226,952 
108,112 
  128,922 
-----------
463,986 
-----------
$   (65,922)
===========
$    (4,389)
===========
$   (61,533)
0 
-----------
$   (61,533)
===========

---

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:

|TOTAL SERIES 7 - 11                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 2001
----                                                                                                                                                                                                                                                                                                                                                                                                                                               | 2000
----                                                                                                                                                                                                                                                                                                                                                                                                                                           
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|SUMMARIZED BALANCE SHEETS
Assets:
  Current assets
  Investment properties, net
  Other assets
    Total assets
Liabilities and Partners' Equity:
  Current liabilities
  Long-term debt
    Total liabilities
Partners' equity
  Limited Partner
  General Partners
    Total Partners' equity
    Total liabilities and partners' equity
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income
Expenses:
  Operating expenses
  Interest expense
  Depreciation and amortization
 
   Total expenses
      Net loss
Other partners' share of net loss
Partnerships' share of net loss
Suspended losses
Equity in Losses of Project Partnerships | $ 10,798,290 
115,397,431 
60,243 
------------
$126,255,964 
============
$  2,822,546 
119,138,242 
------------
121,960,788 
------------
5,301,124 
(1,005,948)
------------
4,295,176 
------------
$126,255,964 
============
$  3,568,778 
------------
2,311,499 
676,929 
1,222,695 
------------
4,211,123 
------------
$   (642,345)
============
$    (10,060)
============
$   (632,285)
292,078 
------------
$   (340,207)
============ | $ 10,303,910 
119,940,127 
88,844 
------------
$130,332,881 
============
 $  3,067,507 
119,709,286 
------------
122,776,793 
------------
8,339,642 
(783,554)
-----------
7,556,088 
-----------
$130,332,881 
============
$  3,486,954 
------------
2,272,121 
938,264 
1,238,155 
------------
4,448,540 
------------
$   (961,586)
============
$    (14,809)
============
$   (946,777)
334,729 
------------
$   (612,048)
============

---

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, 2001 and June 30, 2000.  The General and Administrative expenses - General Partner and General and Administrative expenses - Other for the three months ended June 30, 2001 are comparable to June 30, 2000.  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, 2001,decreased from $160,031 for the three months ended June 30, 2000, to $80,711 as a result of a decrease in interest expense at the Project Partnership level due to a change in the way quarterly interest expense is calculated to more accurately reflect a proportionate share of the total yearly expense.  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, 2001, the Series had $355,205 of short-term investments (Cash and Cash Equivalents).  It also had $389,216 in Zero Coupon Treasuries with annual maturities providing $60,000 in fiscal year 2002 increasing to $86,000 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 $104,287 for the three months ended June 30, 2001.  However, after adjusting for Equity in Losses of Project Partnerships of $80,711 and the changes in operating assets and liabilities, net cash used in operating activities was $7,203.  Cash provided by investing activities totaled $8,570 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, 2001, decreased from $148,295 for the three months ended June 30, 2000, to $97,485 as a result of a decrease in interest expense at the Project Partnership level due to a change in the way quarterly interest expense is calculated to more accurately reflect a proportionate share of the total yearly expense.  At June 30, 2001, the Series had $446,471 of short-term investments (Cash and Cash Equivalents).  It also had $368,227 in Zero Coupon Treasuries with annual maturities providing $55,000 in fiscal year 2002 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 $123,048 for the three months ended June 30, 2001.  However, after adjusting for Equity in Losses of Project Partnerships of $97,485 and the changes in operating assets and liabilities, net cash used in operating activities was $7,409.  Cash provided by investing activities totaled $6,537 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, 2001, decreased from $145,803 for the three months ended June 30, 2000, to $74,759 as a result of a decrease in interest expense at the Project Partnership level due to a change in the way quarterly interest expense is calculated to more accurately reflect a proportionate share of the total yearly expense.  At June 30, 2001, the Series had $234,695 of short-term investments (Cash and Cash Equivalents).  It also had $247,750 in Zero Coupon Treasuries with annual maturities providing $34,000 in fiscal year 2002 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 $88,925 for the three months ended June 30, 2001.  However, after adjusting for Equity in Losses of Project Partnerships of $74,759 and the changes in operating assets and liabilities, net cash used in operating activities was $4,341.  Cash provided by investing activities totaled $6,348, consisting of cash distributions from the Project Partnerships.  There were no unusual events or trends to describe.

Series 10 - Gateway closed this Series on January 21, 1994 after receiving $5,043,000 from 325 Limited Partner investors.  Equity in Losses of Project Partnerships for the three months ended June 30, 2001, decreased from $96,387 for the three months ended June 30, 2000, to $64,623 as a result of a decrease in interest expense at the Project Partnership level due to a change in the way quarterly interest expense is calculated to more accurately reflect a proportionate share of the total yearly expense.  At June 30, 2001, the Series had $238,357 of short-term investments (Cash and Cash Equivalents).  It also had $205,139 in Zero Coupon Treasuries with annual maturities providing $26,000 in fiscal year 2002 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 $72,931 for the three months ended June 30, 2001.  However, after
adjusting for Equity in Losses of Project Partnerships of $64,623 and the changes in operating assets and liabilities, net cash used in operating activities was $2,314.  Cash provided by investing activities totaled $4,149, 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, 2001, decreased from $61,533 for the three months ended June 30, 2000, to $22,630 as a result of a decrease in interest expense at the Project Partnership level due to a change in the way quarterly interest expense is calculated to more accurately reflect a proportionate share of the total yearly expense.  At June 30, 2000, the Series had $252,824 of short-term investments (Cash and Cash Equivalents).  It also had $228,326 in Zero Coupon Treasuries with annual maturities providing $28,000 in fiscal year 2002 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 $28,796 for the three months ended June 30, 2001.  However, after adjusting for Equity in Losses of Project Partnerships of $22,630 and the changes in operating assets and liabilities, net cash used in operating activities was $1,566.  Cash provided by investing activities totaled $10,051, 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:8/17/2001                 By:/s/ Ronald M. Diner                                   Ronald M. Diner
                                   President
Date:8/17/2001                 By:/s/ Sandra L. Furey                                   Sandra L. Furey
                                   Secretary and Treasurer