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 EndedDECEMBER 31, 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.
                            YES X       NO 
                                                     Number of Units
  Title of Each Class                              December 31, 2001Units of Limited Partnership 
Interest:  $1,000 per unit                                33,799

DOCUMENTS INCORPORATED BY REFERENCEParts I and II, 2001 Form 10-K, filed with the
Securities and Exchange Commission on August 1, 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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | DECEMBER 31,
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:
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 December 31, 2001 and March 31,2001)
General Partners
  Total Partners' Equity
   Total Liabilities and Partners' Equity | $   306,987 
59,691 
----------- 
366,678 
343,553 
1,494,929 
----------- 
$ 2,205,160 
=========== 
$    54,899 
----------- 
54,899 
----------- 
377,220 
----------- 
1,846,588 
(73,547)
----------- 
1,773,041 
----------- 
$ 2,205,160 
=========== | $   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.

---



|SERIES 8                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | DECEMBER 31,
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:
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 December 31, 2001 and March 31, 2001)
General Partners
  Total Partners' Equity
   Total Liabilities and Partners' Equity | $   388,038 
54,697 
----------- 
442,735 
326,049 
645,026 
----------- 
$ 1,413,810 
=========== 
$    45,775 
----------- 
45,775 
----------- 
438,528 
----------- 
1,007,837 
(78,330)
----------- 
929,507 
----------- 
$ 1,413,810 
=========== | $   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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | DECEMBER 31,
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:
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 December 31, 2001 and March 31, 2001)
General Partners
  Total Partners' Equity
   Total Liabilities and Partners' Equity | $   210,337 
33,818 
----------- 
244,155 
221,517 
1,566,657 
----------- 
$ 2,032,329 
=========== 
$    26,150 
----------- 
26,150 
----------- 
268,303 
----------- 
1,775,334 
(37,458)
----------- 
1,737,876 
----------- 
$ 2,032,329 
=========== | $   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.

---



|SERIES 10                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | DECEMBER 31,
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:
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 December 31, 2001 and March 31, 2001)
General Partners
  Total Partners' Equity
   Total Liabilities and Partners' Equity | $   209,903 
25,960 
----------- 
235,863 
186,393 
2,250,023 
----------- 
$ 2,672,279 
=========== 
$    29,117 
----------- 
29,117 
----------- 
64,649 
----------- 
2,596,908 
(18,395)
----------- 
2,578,513 
----------- 
$ 2,672,279 
=========== | $   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.

---



|SERIES 11                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | DECEMBER 31,
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:
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 December 31, 2001 and March 31, 2001)
General Partners
  Total Partners' Equity
   Total Liabilities and Partners' Equity | $   221,718 
27,841 
----------- 
249,559 
208,976 
3,185,288 
----------- 
$ 3,643,823 
=========== 
$    28,562 
----------- 
28,562 
----------- 
10,732 
----------- 
3,614,474 
(9,945)
----------- 
3,604,529 
----------- 
$ 3,643,823 
=========== | $   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.

---



|TOTAL SERIES 7 - 11                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | DECEMBER 31,
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:
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 December 31, 2001 and March 31, 2001)
General Partners
  Total Partners' Equity
   Total Liabilities and Partners' Equity | $ 1,336,983 
202,007 
----------- 
1,538,990 
1,286,488 
9,141,923 
----------- 
$11,967,401 
=========== 
$   184,503 
----------- 
184,503 
----------- 
1,159,432 
----------- 
10,841,141 
(217,675)
----------- 
10,623,466 
----------- 
$11,967,401 
=========== | $ 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 DECEMBER 31,
(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 | $     8,589 
----------- 
21,920 
5,427 
1,718 
9,756 
----------- 
38,821 
----------- 
(30,232)
(73,896)
----------- 
$  (104,128)
=========== 
$  (103,087)
(1,041)
----------- 
$  (104,128)
=========== 
$     (9.92)
=========== 
10,395 
=========== | $    11,622 
----------- 
21,988 
2,628 
2,818 
3,549 
----------- 
30,983 
----------- 
(19,361)
(13,266)
----------- 
$   (32,627)
=========== 
$   (32,301)
(326)
----------- 
$   (32,627)
=========== 
$     (3.11)
=========== 
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 DECEMBER 31,
(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 | $     8,227 
----------- 
22,841 
5,984 
1,798 
1,847 
----------- 
32,470 
----------- 
(24,243)
(95,547)
---------- 
$  (119,790)
=========== 
$  (118,592)
(1,198)
----------- 
$  (119,790)
=========== 
$    (11.88)
=========== 
9,980 
=========== | $    12,236 
----------- 
22,914 
2,898 
3,103 
2,264 
----------- 
31,179 
----------- 
(18,943)
(28,222)
---------- 
$   (47,165)
=========== 
$   (46,693)
(472)
----------- 
$   (47,165)
=========== 
$     (4.68)
=========== 
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 DECEMBER 31,
(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 | $     4,861 
----------- 
12,544 
3,340 
1,099 
1,138 
----------- 
18,121 
----------- 
(13,260)
(130,294)
---------- 
$  (143,554)
=========== 
$  (142,118)
(1,436)
----------- 
$  (143,554)
=========== 
$    (22.72)
=========== 
6,254 
=========== | $     6,869 
----------- 
12,580 
1,617 
1,870 
1,430 
----------- 
17,497 
----------- 
(10,628)
(87,687)
---------- 
$   (98,315)
=========== 
$   (97,332)
(983)
----------- 
$   (98,315)
=========== 
$    (15.56)
=========== 
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 DECEMBER 31,
(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 Gain / Loss
Allocation of Net Gain / Loss:
 Limited Partners
 General Partners
Net Gain / Loss Per Number of
Limited Partnership Units
Number of Limited Partnership Units
Outstanding | $     4,671 
----------- 
8,553 
2,087 
881 
1,406 
----------- 
12,927 
----------- 
(8,256)
(67,811)
----------- 
$   (76,067)
=========== 
$   (75,306)
(761)
----------- 
$   (76,067)
=========== 
$    (14.93)
=========== 
5,043 
=========== | $     6,721 
----------- 
8,577 
1,011 
1,429 
1,405 
----------- 
12,422 
----------- 
(5,701)
6,615 
----------- 
$       914 
=========== 
$       905 
9 
----------- 
$       914 
=========== 
$      0.18 
=========== 
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 DECEMBER 31,
(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 Gain / Loss
Allocation of Net Gain / Loss:
 Limited Partners
 General Partners
Net Gain / Loss Per Number of
Limited Partnership Units
Number of Limited Partnership Units
Outstanding | $     5,375 
----------- 
7,271 
1,670 
894 
2,074 
----------- 
11,909 
----------- 
(6,534)
(40,403)
---------- 
$   (46,937)
=========== 
$   (46,468)
(469)
----------- 
$   (46,937)
=========== 
$     (9.06)
=========== 
5,127 
=========== | $     7,404 
----------- 
7,116 
809 
1,343 
2,073 
----------- 
11,341 
----------- 
(3,937)
32,921 
---------- 
$    28,984 
=========== 
$    28,694 
290 
----------- 
$    28,984 
=========== 
$      5.60 
=========== 
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 DECEMBER 31,
(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 | $    31,723 
----------- 
73,129 
18,508 
6,390 
16,221 
----------- 
114,248 
----------- 
(82,525)
(407,951)
----------- 
$  (490,476)
=========== 
$  (485,572)
(4,904)
----------- 
$  (490,476)
=========== | $    44,852 
----------- 
73,175 
8,963 
10,563 
10,721 
----------- 
103,422 
----------- 
(58,570)
(89,639)
----------- 
$  (148,209)
=========== 
$  (146,727)
(1,482)
----------- 
$  (148,209)
===========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED DECEMBER 31,
(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 | $    28,508 
----------- 
65,761 
16,281 
11,946 
21,118 
----------- 
115,106 
----------- 
(86,598)
(236,635)
----------- 
$  (323,233)
=========== 
$  (320,001)
(3,232)
----------- 
$  (323,233)
=========== 
$    (30.78)
=========== 
10,395 
=========== | $    35,276 
----------- 
65,964 
11,747 
14,112 
10,647 
----------- 
102,470 
----------- 
(67,194)
(371,290)
----------- 
$  (438,484)
=========== 
$  (434,099)
(4,385)
----------- 
$  (438,484)
=========== 
$    (41.76)
=========== 
10,395 
===========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED DECEMBER 31,
(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 | $    28,219 
---------- 
68,523 
17,951 
12,885 
5,541 
---------- 
104,900 
---------- 
(76,681)
(282,721)
---------- 
$  (359,402)
=========== 
$  (355,808)
(3,594)
----------- 
$  (359,402)
=========== 
$    (35.65)
=========== 
9,980 
=========== | $    37,245 
---------- 
68,742 
12,952 
14,968 
6,792 
---------- 
103,454 
---------- 
(66,209)
(304,647)
---------- 
$  (370,856)
=========== 
$  (367,147)
(3,709)
----------- 
$  (370,856)
=========== 
$    (36.79)
=========== 
9,980 
===========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED DECEMBER 31,
(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 Partnership
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 | $    16,373 
---------- 
37,633 
10,019 
7,568 
3,414 
---------- 
58,634 
---------- 
(42,261)
(296,352)
---------- 
$  (338,613)
=========== 
$  (335,227)
(3,386)
----------- 
$  (338,613)
=========== 
$    (53.60)
=========== 
6,254 
=========== | $    20,716 
---------- 
37,740 
7,229 
8,561 
4,290 
---------- 
57,820 
---------- 
(37,104)
(370,641)
---------- 
$  (407,745)
=========== 
$  (403,668)
(4,077)
----------- 
$  (407,745)
=========== 
$    (64.55)
=========== 
6,254 
===========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED DECEMBER 31,
(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 | $    15,817 
---------- 
25,659 
6,262 
5,267 
4,217 
---------- 
41,405 
---------- 
(25,588)
(190,711)
---------- 
$  (216,299)
=========== 
$  (214,136)
(2,163)
----------- 
$  (216,299)
=========== 
$    (42.46)
=========== 
5,043 
=========== | $    20,447 
---------- 
25,731 
4,518 
6,292 
4,215 
---------- 
40,756 
---------- 
(20,309)
(204,006)
---------- 
$  (224,315)
=========== 
$  (222,072)
(2,243)
----------- 
$  (224,315)
=========== 
$    (44.04)
=========== 
5,043 
===========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED DECEMBER 31,
(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 | $    18,035 
---------- 
21,814 
5,009 
4,700 
6,221 
---------- 
37,744 
---------- 
(19,709)
(124,027)
---------- 
$  (143,736)
=========== 
$  (142,299)
(1,437)
----------- 
$  (143,736)
=========== 
$    (27.75)
=========== 
5,127 
=========== | $    22,465 
---------- 
21,348 
3,615 
5,670 
6,219 
---------- 
36,852 
---------- 
(14,387)
(116,208)
---------- 
$  (130,595)
=========== 
$  (129,289)
(1,306)
----------- 
$  (130,595)
=========== 
$    (25.22)
=========== 
5,127 
===========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED DECEMBER 31,
(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 | $   106,952 
---------- 
219,390 
55,522 
42,366 
40,511 
---------- 
357,789 
---------- 
(250,837)
(1,130,446)
---------- 
$(1,381,283)
=========== 
$(1,367,471)
(13,812)
----------- 
$(1,381,283)
=========== | $   136,149 
---------- 
219,525 
40,061 
49,603 
32,163 
---------- 
341,352 
---------- 
(205,203)
(1,366,792)
---------- 
$(1,571,995)
=========== 
$(1,556,275)
(15,720)
----------- 
$(1,571,995)
===========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)STATEMENTS OF PARTNERS' EQUITY (Deficit)
FOR THE NINE MONTHS ENDED DECEMBER 31, 2001 AND 2000:

|SERIES 7                                                                                                                        | Limited 
Partners 
---------                                                                                               | General 
Partners 
(Deficit)
--------                                                                                  | Total 
-----                                                                                                              
|------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 2000
Net Loss
Balance at December 31, 2000
Balance at March 31, 2001
Net Loss
Balance at December 31, 2001 | $ 2,670,270 
(434,099)
----------- 
$ 2,236,171 
=========== 
$ 2,166,589 
(320,001)
----------- 
$ 1,846,588 
=========== | $   (65,227)
(4,385)
----------- 
$   (69,612)
=========== 
$   (70,315)
(3,232)
----------- 
$   (73,547)
=========== | $ 2,605,043 
(438,484)
----------- 
$ 2,166,559 
=========== 
$ 2,096,274 
(323,233)
----------- 
$ 1,773,041 
===========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)STATEMENTS OF PARTNERS' EQUITY (Deficit)
FOR THE NINE MONTHS ENDED DECEMBER 31, 2001 AND 2000:

|SERIES 8                                                                                                                        | Limited 
Partners 
---------                                                                                               | General 
Partners 
(Deficit) 
--------                                                                                 | Total 
-----                                                                                                              
|------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 2000
Net Loss
Balance at December 31, 2000
Balance at March 31, 2001
Net Loss
Balance at December 31, 2001 | $ 1,898,013 
(367,147)
----------- 
$ 1,530,866 
=========== 
$ 1,363,645 
(355,808)
----------- 
$ 1,007,837 
=========== | $   (69,338)
(3,709)
----------- 
$   (73,047)
=========== 
$   (74,736)
(3,594)
----------- 
$   (78,330)
=========== | $ 1,828,675 
(370,856)
----------- 
$ 1,457,819 
=========== 
$ 1,288,909 
(359,402)
----------- 
$   929,507 
===========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)STATEMENTS OF PARTNERS' EQUITY (Deficit)
FOR THE NINE MONTHS ENDED DECEMBER 31, 2001 AND 2000:

|SERIES 9                                                                                                                        | Limited 
Partners 
---------                                                                                               | General 
Partners 
(Deficit) 
--------                                                                                 | Total 
-----                                                                                                              
|------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 2000
Net Loss
Balance at December 31, 2000
Balance at March 31, 2001
Net Loss
Balance at December 31, 2001 | $ 2,563,166 
(403,668)
----------- 
$ 2,159,498 
=========== 
$ 2,110,561 
(335,227)
----------- 
$ 1,775,334 
=========== | $   (29,500)
(4,077)
----------- 
$   (33,577)
=========== 
$   (34,072)
(3,386)
----------- 
$   (37,458)
=========== | $ 2,533,666 
(407,745)
----------- 
$ 2,125,921 
=========== 
$ 2,076,489 
(338,613)
----------- 
$ 1,737,876 
===========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)STATEMENTS OF PARTNERS' EQUITY (Deficit)
FOR THE NINE MONTHS ENDED DECEMBER 31, 2001 AND 2000:

|SERIES 10                                                                                                                       | Limited 
Partners 
---------                                                                                               | General 
Partners 
(Deficit) 
--------                                                                                 | Total 
-----                                                                                                              
|------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 2000
Net Loss
Balance at December 31, 2000
Balance at March 31, 2001
Net Loss
Balance at December 31, 2001 | $ 3,128,940 
(222,072)
----------- 
$ 2,906,868 
=========== 
$ 2,811,044 
(214,136)
----------- 
$ 2,596,908 
=========== | $   (13,021)
(2,243)
----------- 
$   (15,264)
=========== 
$   (16,232)
(2,163)
----------- 
$   (18,395)
=========== | $ 3,115,919 
(224,315)
----------- 
$ 2,891,604 
=========== 
$ 2,794,812 
(216,299)
----------- 
$ 2,578,513 
===========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)STATEMENTS OF PARTNERS' EQUITY (Deficit)
FOR THE NINE MONTHS ENDED DECEMBER 31, 2001 AND 2000:

|SERIES 11                                                                                                                       | Limited 
Partners 
---------                                                                                               | General 
Partners 
(Deficit) 
--------                                                                                 | Total 
-----                                                                                                              
|------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 2000
Net Loss
Balance at December 31, 2000
Balance at March 31, 2001
Net Loss
Balance at December 31, 2001 | $ 3,957,139 
(129,289)
----------- 
$ 3,827,850 
=========== 
$ 3,756,773 
(142,299)
----------- 
$ 3,614,474 
=========== | $    (6,484)
(1,306)
----------- 
$    (7,790)
=========== 
$    (8,508)
(1,437)
----------- 
$    (9,945)
=========== | $ 3,950,655 
(130,595)
----------- 
$ 3,820,060 
=========== 
$ 3,748,265 
(143,736)
----------- 
$ 3,604,529 
===========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)STATEMENTS OF PARTNERS' EQUITY (Deficit)
FOR THE NINE MONTHS ENDED DECEMBER 31, 2001 AND 2000:

|TOTAL SERIES 7 - 11                                                                                                             | Limited 
Partners 
---------                                                                                                   | General 
Partners 
(Deficit) 
--------                                                                                   | Total 
-----                                                                                                                  
|------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 2000
Net Loss
Balance at December 31, 2000
Balance at March 31, 2001
Net Loss
Balance at December 31, 2001 | $14,217,528 
(1,556,275)
----------- 
$12,661,253 
=========== 
$12,208,612 
(1,367,471)
----------- 
$10,841,141 
=========== | $  (183,570)
(15,720)
----------- 
$  (199,290)
=========== 
$  (203,863)
(13,812)
----------- 
$  (217,675)
=========== | $14,033,958 
(1,571,995)
----------- 
$12,461,963 
=========== 
$12,004,749 
(1,381,283)
----------- 
$10,623,466 
===========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED DECEMBER 31,
(Unaudited)

|SERIES 7
--------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 2001 
----                                                                                                                                                                  | 2000 
----                                                                                                                                                                 
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Cash Flows from Operating Activities:
  Net Loss
  Adjustments to Reconcile Net Loss to
  Net Cash Provided by (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 Year
Cash and Cash Equivalents at End of Year | $ (323,233)
21,118 
(20,857)
236,635 
18,418 
---------- 
(67,919)
---------- 
21,068 
---------- 
21,068 
---------- 
(46,851)
353,838 
---------- 
$  306,987 
========== | $ (438,484)
10,647 
(22,090)
371,290 
19,699 
---------- 
(58,938)
---------- 
19,246 
---------- 
19,246 
---------- 
(39,692)
324,156 
---------- 
$  284,464 
==========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWSFOR THE NINE MONTHS ENDED DECEMBER 31,
(Unaudited)

|SERIES 8
--------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 2001 
----                                                                                                                                                        | 2000 
----                                                                                                                                                         
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Cash Flows from Operating Activities:
  Net Loss
  Adjustments to Reconcile Net Loss to
  Net Cash Provided by (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 Year
Cash and Cash Equivalents at End of Year | $ (359,402)
5,541 
(18,624)
282,721 
23,284 
--------- 
(66,480)
--------- 
7,175 
--------- 
7,175 
--------- 
(59,305)
447,343 
--------- 
$ 388,038 
========= | $ (370,856)
6,792 
(19,814)
304,647 
22,795 
--------- 
(56,436)
--------- 
10,854 
--------- 
10,854 
--------- 
(45,582)
425,447 
--------- 
$ 379,865 
=========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED DECEMBER 31,
(Unaudited)

|SERIES 9
--------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 2001 
----                                                                                                                                                             | 2000 
----                                                                                                                                                              
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Cash Flows from Operating Activities:
  Net Loss
  Adjustments to Reconcile Net Loss to
  Net Cash Provided by (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 Year
Cash and Cash Equivalents at End of Year | $ (338,613)
3,414 
(11,293)
296,352 
19,615 
---------- 
(30,525)
---------- 
8,174 
--------- 
8,174 
--------- 
(22,351)
232,688 
---------- 
$  210,337 
========== | $ (407,745)
4,290 
(11,913)
370,641 
18,794 
---------- 
(25,933)
---------- 
12,465 
--------- 
12,465 
--------- 
(13,468)
209,964 
---------- 
$  196,496 
==========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED DECEMBER 31,
(Unaudited)

|SERIES 10
--------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 2001 
----                                                                                                                                                             | 2000 
----                                                                                                                                                         
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Cash Flows from Operating Activities:
  Net Loss
  Adjustments to Reconcile Net Loss to
  Net Cash Provided by (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 Year
Cash and Cash Equivalents at End of Year | $ (216,299)
4,217 
(10,693)
190,711 
(889)
---------- 
(32,953)
---------- 
6,334 
---------- 
6,334 
---------- 
(26,619)
236,522 
---------- 
$  209,903 
========== | $ (224,315)
4,215 
(11,142)
204,006 
(2,733)
--------- 
(29,969)
--------- 
5,860 
--------- 
5,860 
--------- 
(24,109)
226,070 
--------- 
$  201,961 
==========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED DECEMBER 31,
(Unaudited)

|SERIES 11
--------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 2001 
----                                                                                                                                                                       | 2000 
----                                                                                                                                                               
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Cash Flows from Operating Activities:
  Net Loss
  Adjustments to Reconcile Net Loss to
  Net Cash Provided by (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 Year
Cash and Cash Equivalents at End of Year | $ (143,736)
6,221 
(12,622)
124,027 
(9,654)
----------- 
(35,764)
----------- 
13,143 
----------- 
13,143 
----------- 
(22,621)
244,339 
----------- 
$  221,718 
=========== | $ (130,595)
6,219 
(13,023)
116,208 
(8,706)
---------- 
(29,897)
---------- 
5,758 
---------- 
5,758 
---------- 
(24,139)
230,874 
---------- 
$  206,735 
===========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED DECEMBER 31,
(Unaudited)

|TOTAL SERIES 7 - 11
-------------------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 2001 
----                                                                                                                                                                          | 2000 
----                                                                                                                                                                         
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Cash Flows from Operating Activities:
  Net Loss
  Adjustments to Reconcile Net Loss to
  Net Cash Provided by (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 Year
Cash and Cash Equivalents at End of Year | $(1,381,283)
40,511 
(74,089)
1,130,446 
50,774 
---------- 
(233,641)
---------- 
55,894 
---------- 
55,894 
---------- 
(177,747)
1,514,730 
---------- 
$ 1,336,983 
========== | $(1,571,995)
32,163 
(77,982)
1,366,792 
49,849 
---------- 
(201,173)
---------- 
54,183 
---------- 
54,183 
---------- 
(146,990)
1,416,511 
---------- 
$ 1,269,521 
==========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 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 December 31, 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 in selecting properties for acquisition, and
   3) Acquisition expenses including legal fees, travel and other       miscellaneous costs relating to acquiring properties.
Quarterly the Investments in Project Partnerships are increased or decreased as follows:
   1) Increased for equity in income or decreased for equity in losses
      of the Project Partnerships,
   2) Decreased for cash distributions received from the Project       Partnerships, and
   3) Decreased for the amortization of the acquisition fees and
      expenses.
    Amortization is calculated on a straight line basis over 35 years, as this is the average estimated useful life of the underlying assets.  The  amortization is shown as amortization expense on the Statements of Operations.
    Pursuant to the limited partnership agreements for the Project Partnerships, cash losses generated by the Project Partnerships are allocated to the general partners of those partnerships.  In subsequent years, cash profits, if any, are first allocated to the general partners to the extent of the allocation of prior years' cash losses.
   Since Gateway invests as a limited partner, and therefore is not obligated to fund losses or make additional capital contributions, it does not recognize losses from individual Project Partnerships to the extent that these losses would reduce the investment in those Project Partnerships below zero.  The suspended losses will be used to offset future income from the individual Project Partnerships.
   Gateway recognizes a decline in the carrying value of its investment in the Project Partnerships when there is evidence of a non-temporary decline in the recoverable amount of the investment.  There is a possibility that the estimates relating to reserves for non-temporary declines in carrying value of the investments in Project Partnerships may be subject to material near term adjustments.
   Gateway, as a limited partner in the Project Partnerships, is subject to risks inherent in the ownership of property which are beyond its control, such as fluctuations in occupancy rates and operating expenses, variations in rental schedules, proper maintenance and continued eligibility of tax credits.  If the cost of operating a property exceeds the rental income earned thereon, Gateway may deem it in its best interest to voluntarily provide funds in order to protect its investment.Cash and Cash Equivalents   It is Gateway's policy to include short-term investments with an original maturity of three months or less in Cash and Cash Equivalents.  Short-term investments are comprised of money market mutual funds.Concentrations of Credit Risk   Financial instruments which potentially subject Gateway to concentrations of credit risk consist of cash investments in a money market mutual fund that is a wholly-owned subsidiary of Raymond James Financial, Inc.Use of Estimates in the Preparation of Financial Statements
   The preparation of financial statements in conformity with generally accepted accounting principles requires the use of estimates that affect certain reported amounts and disclosures.  These estimates are based on management's knowledge and experience.  Accordingly, actual results could differ from these estimates.Investment in Securities   Effective April 1, 1994, Gateway adopted Statement of Financial Accounting Standards No. 115, Accounting for Certain Investments in Debt and Equity Securities ("FAS 115").  Under FAS 115, Gateway is required to categorize its debt securities as held-to-maturity, available-for-sale or trading securities, dependent upon Gateway's intent in holding the securities.  Gateway's intent is to hold all of its debt securities (U. S. Treasury Security Strips) until maturity and to use these reserves to fund Gateway's ongoing operations.  Interest income is recognized ratably on the U.S. Treasury Strips using the effective yield to maturity.Receivable from Project Partnerships   Receivable from Project Partnerships represents amounts due from the Project Partnerships due to a change in the amount Gateway agreed to pay the Project Partnerships and is secured with cash in restricted escrow accounts.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.NOTE 3 - INVESTMENT IN SECURITIES:   The December 31, 2001 Balance Sheet includes Investment in Securities consisting of U.S. Treasury Security Strips which represents their cost, plus accreted interest income of $194,943 for Series 7, $169,968 for Series 8, $99,099 for Series 9, $88,168 for Series 10 and $101,295 for Series 11.

|          | Estimated
Market
 Value
----------- | Cost Plus
Accreted
 Interest
----------- | Gross
 Unrealized
Gains and
 (Losses)
----------
|--------- | ----------------------------------- | ---------------------------------------- | ------------------------------------------------
|Series 7  | $442,549                            | $403,244                                 | $39,305                                         
|Series 8  | 413,229                             | 380,746                                  | 32,483                                          
|Series 9  | 271,924                             | 255,335                                  | 16,589                                          
|Series 10 | 231,935                             | 212,353                                  | 19,582                                          
|Series 11 | 265,325                             | 236,817                                  | 28,508                                          

As of December 31, 2001, the cost and accreted interest of debt securities by contractual maturities is as follows:

|                                            | Series 7
--------     | Series 8
--------     | Series 9
--------    
|------------------------------------------- | --------------------- | --------------------- | ---------------------
|Due within 1 year                           | $   59,691            | $   54,697            | $   33,818           
|After 1 year through 5 years                | 233,221               | 218,693               | 129,731              
|After 5 years through 10 years              | 110,332               | 107,356               | 91,786               
|Over 10 years                               | 0
----------          | 0
----------          | 0
----------         
|Total Amount Carried on
      Balance Sheet | $  403,244
========== | $  380,746
========== | $  255,335
==========
|                                            | Series 10
--------    | Series 11
--------    | Total
--------       
|Due within 1 year                           | $   25,960            | $   27,841            | $  202,007           
|After 1 year through 5 years                | 96,894                | 109,164               | 787,703              
|After 5 years through 10 years              | 89,499                | 99,812                | 498,785              
|Over 10 years                               | 0
----------          | 0
----------          | 0
----------         
|Total Amount Carried on
      Balance Sheet | $  212,353
========== | $  236,817
========== | $1,488,495
==========

NOTE 4 - RELATED PARTY TRANSACTIONS:

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS:   As of December 31, 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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | DECEMBER 31,
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 
(6,644,464)
(198,379)
-----------
889,246 
793,335 
(187,652)
------------
$ 1,494,929 
============ | $ 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 $1,698,584 for the period ended December 31, 2001 and cumulative suspended losses of $1,220,839 for the year ended March 31, 2001 are not included.

---

As of December 31, 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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | DECEMBER 31,
2001
------------                                                                                    | MARCH 31,
2001
-----------                                                                                       
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------
|Capital Contributions to Project Partner- ships and purchase price paid for limited partner interests in Project Partnerships
Cumulative equity in losses of Project Partnerships (1)
Cumulative distributions received from Project Partnerships
Investment in Project Partnerships before adjustment
Excess of investment cost over the underlying assets acquired:
 Acquisition fees and expenses
 Accumulated amortization of acquisition fees and expenses
Investments in Project Partnerships | $ 7,586,105 
(7,231,577)
(150,389)
-----------
204,139 
549,773 
(108,886)
------------
$   645,026 
============ | $ 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 $1,858,660 for the period ended December 31, 2001 and cumulative suspended losses of $1,367,552 for the year ended March 31, 2001 are not included.

---

As of December 31, 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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | DECEMBER 31,
2001
------------                                                                                     | MARCH 31,
2001
-----------                                                                                       
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------ | -----------------------------------------------------------------------------------------------------------------
|Capital Contributions to Project Partner- ships and purchase price paid for limited partner interests in Project Partnerships
Cumulative equity in losses of Project Partnerships (1)
Cumulative distributions received from Project Partnerships
Investment in Project Partnerships before adjustment
Excess of investment cost over the underlying assets acquired:
 Acquisition fees and expenses
 Accumulated amortization of acquisition fees and expenses
Investments in Project Partnerships | $ 4,914,116 
(3,431,742)
(109,183)
-----------
1,373,191 
244,087 
(50,621)
------------
$ 1,566,657 
============ | $ 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 $425,374 for the period ended December 31, 2001 and cumulative suspended losses of $279,195 for the year ended March 31, 2001 are not included.

---

As of December 31, 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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | DECEMBER 31,
2001
------------                                                                                       | MARCH 31,
2001
-----------                                                                                       
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------
|Capital Contributions to Project Partner- ships and purchase price paid for limited partner interests in Project Partnerships
Cumulative equity in losses of Project Partnerships (1)
Cumulative distributions received from Project Partnerships
Investment in Project Partnerships before adjustment
Excess of investment cost over the underlying assets acquired:
 Acquisition fees and expenses
 Accumulated amortization of acquisition fees and expenses
Investments in Project Partnerships | $ 3,914,672 
(1,695,218)
(121,692)
-----------
2,097,762 
196,738 
(44,477)
-------------
$ 2,250,023 
============= | $ 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 December 31, 2001 and cumulative suspended losses of $0 for the year ended March 31, 2001 are not included.

---

As of December 31, 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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | DECEMBER 31,
2001
-----------                                                                                     | MARCH 31,
2001
-----------                                                                                    
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------
|Capital Contributions to Project Partner- ships and purchase price paid for limited partner interests in Project Partnerships
Cumulative equity in losses of Project Partnerships (1)
Cumulative distributions received from Project Partnerships
Investment in Project Partnerships before adjustment
Excess of investment cost over the underlying assets acquired:
 Acquisition fees and expenses
 Accumulated amortization of acquisition fees and expenses
Investments in Project Partnerships | $ 4,128,042 
(1,067,458)
(108,066)
-----------
2,952,518 
290,335 
(57,565)
-----------
$ 3,185,288 
============ | $ 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 December 31, 2001 and cumulative suspended losses of $0 for the year ended March 31, 2001 are not included.

---

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

|TOTAL SERIES 7 - 11                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | DECEMBER 31,
2001
-------------                                                                                         | MARCH 31,
2001
-----------                                                                                            
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------
|Capital Contributions to Project Partner- ships and purchase price paid for limited partner interests in Project Partnerships
Cumulative equity in losses of Project Partnerships (1)
Cumulative distributions received from Project Partnerships
Investment in Project Partnerships before adjustment
Excess of investment cost over the underlying assets acquired:
 Acquisition fees and expenses
 Accumulated amortization of acquisition fees and expenses
Investments in Project Partnerships | $28,275,024 
(20,070,459)
(687,709)
------------
7,516,856 
2,074,268 
(449,201)
------------
$ 9,141,923 
============ | $28,275,024 
(18,940,013)
(631,814)
-----------
8,703,197 
2,074,268 
(408,687)
------------
$10,368,778 
============

---

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 September 30, 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 (deficit)
  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 | $ 3,511,102 
32,702,296 
15,858 
------------
$36,229,256 
============
$   795,416 
36,417,355 
------------
37,212,771 
------------
(863,067)
(120,448)
-----------
(983,515)
-----------
$36,229,256 
============
$ 3,232,386 
------------
2,230,697 
623,343 
1,099,942 
------------
3,953,982 
------------
$  (721,596)
============
$    (7,216)
============
$  (714,380)
477,745 
------------
$  (236,635)
============ | $ 3,452,461 
34,039,544 
31,108 
------------
$37,523,113 
============
$   860,321 
36,579,443 
------------
37,439,764 
------------
145,973 
(62,624)
-----------
83,349 
-----------
$37,523,113 
============
$ 3,141,569 
------------
2,142,186 
622,829 
1,127,022 
------------
3,892,037 
------------
$  (750,468)
============
$    (7,505)
============
$  (742,963)
371,673 
------------
$  (371,290)
============

---



|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 (deficit)
  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 | $ 3,137,355 
34,515,530 
34,059 
------------
$37,686,944 
============
$ 1,135,324 
38,438,530 
------------
39,573,854 
------------
(1,439,175)
(447,735)
-----------
(1,886,910)
-----------
$37,686,944 
============
$ 3,274,411 
------------
2,202,053 
675,559 
1,183,520 
------------
4,061,132 
------------
$  (786,721)
============
$   (12,892)
============
$  (773,829)
491,108 
------------
$  (282,721)
============ | $ 3,048,032 
36,033,335 
31,914 
------------
$39,113,281 
============
$ 1,083,812 
38,620,980 
------------
39,704,792 
------------
(226,580)
(364,931)
-----------
(591,511)
-----------
$39,113,281 
============
$ 3,269,838 
------------ 
2,142,487 
668,271 
1,197,688 
------------
4,008,446 
------------
$  (738,608)
============
$   (10,285)
============
$  (728,323)
423,676 
------------
$  (304,647)
============

---



|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 (deficit)
  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 | $ 1,820,210 
19,569,320 
7,823 
------------
$21,397,353 
============
$   284,807 
20,368,291 
------------
20,653,098 
------------
928,025 
(183,770)
-----------
744,255 
-----------
$21,397,353 
============
$ 1,641,453 
------------
1,112,654 
351,301 
624,500 
------------
2,088,455 
------------
$  (447,002)
============
$    (4,471)
============
$  (442,531)
146,179 
------------
$  (296,352)
============ | $ 1,772,930 
20,376,191 
5,459 
------------
$22,154,580 
============
$   300,241 
20,445,841 
------------
20,746,082 
------------
1,556,749 
(148,251)
-----------
1,408,498 
-----------
$22,154,580 
============
$ 1,591,004 
------------
1,052,261 
355,193 
630,849 
------------
2,038,303 
------------
$  (447,299)
============
$    (4,473)
============
$  (442,826)
72,185 
------------
$  (370,641)
============

---

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 September 30, 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 (deficit)
  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 | $ 1,506,060 
13,954,594 
4,009 
------------
$15,464,663 
============
$   267,489 
13,320,516 
------------
13,588,005 
------------
2,103,842 
(227,184)
-----------
1,876,658 
-----------
$15,464,663 
============
$ 1,107,895 
------------
733,421 
196,040 
372,413 
------------
1,301,874 
------------
$  (193,979)
============
$    (3,268)
============
$  (190,711)
0 
------------
$  (190,711)
============ | $ 1,403,755 
14,400,767 
4,495 
------------
$15,809,017 
============
$   241,581 
13,393,689 
------------
13,635,270 
------------
2,370,961 
(197,214)
-----------
2,173,747 
-----------
$15,809,017 
============
$ 1,079,464 
------------
727,588 
187,450 
371,736 
------------
1,286,774 
------------
$  (207,310)
============
$    (3,304)
============
$  (204,006)
0 
------------
$  (204,006)
============

---



|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 (deficit)
  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 | $ 1,346,521 
12,238,538 
1,857 
------------
$13,586,916 
============
$   210,768 
10,504,711 
------------
10,715,479 
------------
2,974,963 
(103,526)
-----------
2,871,437 
-----------
$13,586,916 
============
$ 1,128,592 
------------
697,878 
184,542 
386,900 
------------
1,269,320 
------------
$  (140,728)
============
$   (16,701)
============
$  (124,027)
0 
------------
$  (124,027)
============ | $ 1,276,409 
12,697,898 
13,921 
------------
$13,988,228 
============
$   233,424 
10,608,709 
------------
10,842,133 
------------
3,178,991 
(32,896)
-----------
3,146,095 
-----------
$13,988,228 
============
$ 1,071,555 
------------
640,532 
172,064 
386,770 
------------
1,199,366 
------------
$  (127,811)
============
$   (11,603)
============
$  (116,208)
0 
------------
$  (116,208)
============

---



|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 (deficit)
  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 | $ 11,321,248 
112,980,278 
63,606 
------------
$124,365,132 
============
$  2,693,804 
119,049,403 
------------
121,743,207 
------------
3,704,588 
(1,082,663)
-----------
2,621,925 
-----------
$124,365,132 
============
$ 10,384,737 
------------
6,976,703 
2,030,785 
3,667,275 
------------
12,674,763 
------------
$ (2,290,026)
============
$    (44,548)
============
$ (2,245,478)
1,115,032 
------------
$ (1,130,446)
============ | $ 10,953,587 
117,547,735 
86,897 
------------
$128,588,219 
============
$  2,719,379 
119,648,662 
------------
122,368,041 
------------
7,026,094 
(805,916)
-----------
6,220,178 
-----------
$128,588,219 
============
$ 10,153,430 
------------
6,705,054 
2,005,807 
3,714,065 
------------
12,424,926 
------------
$ (2,271,496)
============
$    (37,170)
============
$ (2,234,326)
867,534 
------------
$ (1,366,792)
============

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Item 7.  Management's Discussion and Analysis of Financial Condition and Results of Operations
Results of Operations, Liquidity and Capital Resources
   As disclosed on the statement of operations for each Series, except as described below, interest income is comparable for the nine and three months ended December 31, 2001 and December 31, 2000.  The General and Administrative expenses - General Partner and General and Administrative expenses - Other for the three and nine months ended December 31, 2001 are comparable to December 31, 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 nine months ended December 31, 2001 decreased from $371,290 for the nine months ended December 31, 2000 to $236,635 as a result of not including losses of $371,673 in 2000 as compared to $477,745 in 2001, as these losses would reduce the investment in certain Project Partnerships below zero.  In general, it is common in the real estate industry to experience losses for financial and tax reporting purposes because of the non-cash expenses of depreciation and amortization. As a result, management expects that this Series, as well as those described below, will report its equity in Project Partnerships as a loss for tax and financial reporting purposes.  Overall, management believes the Project Partnerships are operating as expected and are generating tax credits which meet projections.
   At December 31, 2001, the Series had $306,987 of short-term investments (Cash and Cash Equivalents).  It also had $403,244 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 $323,233 for the nine months ended December 31, 2001.  However, after adjusting for Equity in Losses of Project Partnerships of $236,635 and the changes in operating assets and liabilities, net cash used in operating activities was $67,919. Cash provided by investing activities totaled $21,068 consisting of cash distributions from the Project Partnerships.  There were no unusual events or trends to describe.
   Series 8 - Gateway closed this Series on September 28, 1993 after receiving $9,980,000 from 664 Limited Partner investors.  Equity in Losses of Project Partnerships for the nine months ended December 31, 2001 decreased from $304,647 for the nine months ended December 31, 2000 to $282,721 as a result of not including losses of $423,676 in 2000 as compared to $491,108 in 2001, as these losses would reduce the investment in certain Project Partnerships below zero.  At December 31, 2001, the Series had $388,038 of short-term investments (Cash and Cash Equivalents). It also had $380,746 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 $359,402 for the nine months ended December 31, 2001.  However, after adjusting for Equity in Losses of Project Partnerships of $282,721 and the changes in operating assets and liabilities, net cash used in operating activities was $66,480.  Cash provided by investing activities totaled $7,175, 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 nine months ended December 31, 2001 decreased from $370,641 for the nine months ended December 31, 2000 to $296,352 as a result of not including losses of $72,185 in 2000 as compared to $146,179 in 2001, as these losses would reduce the investments in certain Project Partnerships below zero.  At December 31, 2001, the Series had $210,337 of short-term investments (Cash and Cash Equivalents). It also had $255,335 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 $338,613 for the nine months ended December 31, 2001.  However, after adjusting for Equity in Losses of Project Partnerships of $296,352 and the changes in operating assets and liabilities, net cash used in operating activities was $30,525.  Cash provided by investing activities totaled $8,174, 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 nine months ended December 31, 2001 decreased from $204,006 for the nine months ended December 31, 2000 to $190,711 as a result of an increase in rental revenue due to higher occupancy.  At December 31, 2001, the Series had $209,903 of short-term investments (Cash and Cash Equivalents).  It also had $212,353 in Zero

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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: March 7, 2002               By:/s/Ronald M. Diner                                        Ronald M. Diner
                                        President
Date: March 7, 2002               By:/s/Sandra L. Furey                                        Sandra L. Furey
                                        Secretary and Treasurer