UNITED STATES
                    SECURITIES AND EXCHANGE COMMISSION
                           WASHINGTON, DC  20549

                                 FORM 10-Q

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

For The Quarterly Period Ended          SEPTEMBER 30, 1999

Commission File Number                      0-21762

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

            Florida                              59-3090386
(State or other jurisdiction of            ( I.R.S. Employer No.)
incorporation or organization)

     880 Carillon Parkway,   St. Petersburg,  Florida      33716
       (Address of principal executive offices)          (Zip Code)

Registrant's Telephone Number, Including Area Code:      (727)573-3800

Indicate  by  check mark whether the Registrant: (1) has filed all  reports
required to be filed by Section 13 or 15(d) of the Securities Exchange  Act
of 1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject  to
such filing requirements for the past 90 days.

                      YES     X                NO

                                                 Number of Units
     Title of Each Class                        September 30, 1999
Units of Limited Partnership
Interest:  $1,000 per unit                            33,799

DOCUMENTS INCORPORATED BY REFERENCE

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

PART I - Financial Information
 Item 1.  Financial Statements
                     GATEWAY TAX CREDIT FUND III LTD.
                      (A Florida Limited Partnership)
                              BALANCE SHEETS

SERIES 7                                    SEPTEMBER 30,     MARCH 31,
                                                1999            1999
                                               -------         -------
                                             (Unaudited)      (Audited)
ASSETS
Current Assets:
 Cash and Cash Equivalents                     $   261,927     $   299,313
 Investments in Securities                          51,970          50,412
                                               ------------    ------------
  Total Current Assets                             313,897         349,725

 Investments in Securities                         396,221         382,611
 Investments in Project Partnerships, Net        2,319,008       2,749,505
                                               -----------     -----------
    Total Assets                               $ 3,029,126     $ 3,481,841
                                               ===========     ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners                   $    51,893     $    52,109
                                               -----------     -----------
  Total Current Liabilities                         51,893          52,109
                                               -----------     -----------
Long-Term Liabilities:
 Payable to General Partners                       272,050         268,953
                                               -----------     -----------
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 September 30,1999 and March 31,1999)       2,769,409       3,220,449
General Partners                                   (64,226)        (59,670)
                                               -----------     -----------
  Total Partners' Equity                       $ 2,705,183     $ 3,160,779
                                               -----------     -----------
    Total Liabilities and Partners' Equity     $ 3,029,126     $ 3,481,841
                                               ===========     ===========



              See accompanying notes to financial statements.


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

SERIES 8                                     SEPTEMBER 30,    MARCH 31,
                                                 1999            1999
                                                -------        -------
                                              (Unaudited)     (Audited)
ASSETS
Current Assets:
 Cash and Cash Equivalents                      $   372,398    $   411,602
 Investments in Securities                           47,086         45,734
                                                ------------    ------------
  Total Current Assets                              419,484        457,336

 Investments in Securities                          377,359        365,098
 Investments in Project Partnerships, Net         2,153,603      2,612,574
                                                -----------    -----------
    Total Assets                                $ 2,950,446    $ 3,435,008
                                                ===========    ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners                    $    42,464    $    42,668
                                                -----------    -----------
  Total Current Liabilities                          42,464         42,668
                                                -----------    -----------
Long-Term Liabilities:
 Payable to General Partners                        322,522        316,373
                                                -----------    -----------
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 September 30, 1999 and March 31,1999)          2,647,231      3,132,833
General Partners                                    (61,771)       (56,866)
                                                -----------    -----------
  Total Partners' Equity                        $ 2,585,460    $ 3,075,967
                                                -----------    -----------
    Total Liabilities and Partners' Equity      $ 2,950,446    $ 3,435,008
                                                ===========    ===========



              See accompanying notes to financial statements.


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

SERIES 9                                     SEPTEMBER 30,     MARCH 31,
                                                 1999            1999
                                                -------         -------
                                              (Unaudited)      (Audited)
ASSETS
Current Assets:
 Cash and Cash Equivalents                      $   176,059    $   195,618
 Investments in Securities                           30,457         29,663
                                                ------------    ------------
  Total Current Assets                              206,516        225,281

 Investments in Securities                          252,669        245,245
 Investments in Project Partnerships, Net         2,505,682      2,818,653
                                                -----------    -----------
    Total Assets                                $ 2,964,867    $ 3,289,179
                                                ===========    ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners                    $    24,277    $    24,561
                                                -----------    -----------
    Total Current Liabilities                        24,277         24,561
                                                -----------    -----------
Long-Term Liabilities:
 Payable to General Partners                        191,408        183,028
                                                -----------    -----------
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 September 30, 1999 and March 31,1999)          2,776,527      3,105,611
General Partners                                    (27,345)       (24,021)
                                                -----------    -----------
  Total Partners' Equity                        $ 2,749,182    $ 3,081,590
                                                -----------    -----------
    Total Liabilities and Partners' Equity      $ 2,964,867    $ 3,289,179
                                                ===========    ===========



              See accompanying notes to financial statements.


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

SERIES 10                                    SEPTEMBER 30,     MARCH 31,
                                                 1999            1999
                                                -------         -------
                                              (Unaudited)      (Audited)
ASSETS
Current Assets:
 Cash and Cash Equivalents                      $   190,062    $   216,566
 Investments in Securities                           23,565         22,855
                                                 ------------   ------------
  Total Current Assets                              213,627        239,421

 Investments in Securities                          204,941        198,073
 Investments in Project Partnerships, Net         2,927,887      3,086,492
                                                -----------    -----------
    Total Assets                                $ 3,346,455    $ 3,523,986
                                                ===========    ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners                    $    27,897    $    28,101
                                                -----------    -----------
    Total Current Liabilities                        27,897         28,101
                                                -----------    -----------
Long-Term Liabilities:
 Payable to General Partners                         41,615         51,557
                                                -----------    -----------
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 September 30, 1999 and March 31,1999)          3,288,354      3,454,065
General Partners                                    (11,411)        (9,737)
                                                -----------    -----------
  Total Partners' Equity                        $ 3,276,943    $ 3,444,328
                                                -----------    -----------
    Total Liabilities and Partners' Equity      $ 3,346,455    $ 3,523,986
                                                ===========    ===========



              See accompanying notes to financial statements.


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

SERIES 11                                    SEPTEMBER 30,     MARCH 31,
                                                 1999            1999
                                                -------         -------
                                              (Unaudited)      (Audited)
ASSETS
Current Assets:
 Cash and Cash Equivalents                      $   193,961    $   223,024
 Investments in Securities                           23,486         22,713
                                                 ------------   ------------
  Total Current Assets                              217,447        245,737

 Investments in Securities                          224,681        216,679
 Investments in Project Partnerships, Net         3,625,800      3,701,295
                                                -----------    -----------
    Total Assets                                $ 4,067,928    $ 4,163,711
                                                ===========    ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners                    $    27,552    $    27,805
                                                -----------    -----------
  Total Current Liabilities                          27,552         27,805
                                                -----------    -----------
Long-Term Liabilities:
 Payable to General Partners                          5,572         20,638
                                                -----------    -----------
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 June 30, 1999 and March 31,1999)               4,040,447      4,120,106
General Partners                                     (5,643)        (4,838)
                                                -----------    -----------
  Total Partners' Equity                        $ 4,034,804    $ 4,115,268
                                                -----------    -----------
    Total Liabilities and Partners' Equity      $ 4,067,928    $ 4,163,711
                                                ===========    ===========



              See accompanying notes to financial statements.


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

TOTAL SERIES 7 - 11                          SEPTEMBER 30,     MARCH 31,
                                                 1999            1999
                                                -------         -------
                                              (Unaudited)      (Audited)
ASSETS
Current Assets:
 Cash and Cash Equivalents                      $ 1,194,407    $ 1,346,123
 Investments in Securities                          176,564        171,377
                                                 ------------   ------------
Total Current Assets                              1,370,971      1,517,500

 Investments in Securities                        1,455,871      1,407,706
 Investments in Project Partnerships, Net        13,531,980     14,968,519
                                                -----------    -----------
    Total Assets                                $16,358,822    $17,893,725
                                                ===========    ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners                    $   174,083    $   175,244
                                                -----------    -----------
  Total Current Liabilities                         174,083        175,244
                                                -----------    -----------
Long-Term Liabilities:
 Payable to General Partners                        833,167        840,549
                                                -----------    -----------
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 September 30, 1999 and March 31,1999)         15,521,968     17,033,064
General Partners                                   (170,396)      (155,132)
                                                -----------    -----------
  Total Partners' Equity                        $15,351,572    $16,877,932
                                                -----------    -----------
    Total Liabilities and Partners' Equity      $16,358,822    $17,893,725
                                                ===========    ===========



              See accompanying notes to financial statements.



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

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

SERIES 7                                        1999            1998
                                                ----            ----
Revenues:
 Interest Income                               $    10,835    $    11,391
                                               -----------    -----------
Expenses:
 Asset Management Fee-General Partner               22,052         22,108
 General and Administrative:
  General Partner                                    5,109          4,734
  Other                                              8,969          8,693
 Amortization                                        4,368          5,551
                                               -----------    -----------
  Total Expenses                                    40,498         41,086
                                               -----------    -----------
Loss Before Equity in Losses
 of Project Partnerships                           (29,663)       (29,695)
Equity in Losses of Project
 Partnerships                                     (254,678)      (274,517)
                                                ----------     ----------
Net Loss                                       $  (284,341)   $  (304,212)
                                               ===========    ===========
Allocation of Net Loss:
 Limited Partners                              $  (281,498)   $  (301,170)
 General Partners                                   (2,843)        (3,042)
                                               -----------    -----------
                                               $  (284,341)   $  (304,212)
                                               ===========    ===========
Net Loss Per Number of Limited
Partnership Units                              $    (27.08)   $    (28.97)
                                              ============   ============
Number of Limited Partnership Units
Outstanding                                         10,395         10,395
                                              ============   ============




              See accompanying notes to financial statements.




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

                         STATEMENTS OF OPERATIONS
                 FOR THE THREE MONTHS ENDED SEPTEMBER 30,
                                (Unaudited)
SERIES 8                                        1999            1998
                                                ----            ----
Revenues:
 Interest Income                               $    11,285    $    11,954
                                               -----------    -----------
Expenses:
 Asset Management Fee-General Partner               22,983         23,047
 General and Administrative:
  General Partner                                    5,633          5,220
  Other                                              9,664          9,650
 Amortization                                        3,260          3,853
                                               -----------    -----------
  Total Expenses                                    41,540         41,770
                                               -----------    -----------
Loss Before Equity in Losses
 of Project Partnerships                           (30,255)       (29,816)
Equity in Losses of Project
 Partnerships                                     (232,401)      (264,536)
                                                ----------     ----------
Net Loss                                       $  (262,656)   $  (294,352)
                                               ===========    ===========
Allocation of Net Loss:
 Limited Partners                              $  (260,030)   $  (291,408)
 General Partners                                   (2,626)        (2,944)
                                               -----------    -----------
                                               $  (262,656)   $  (294,352)
                                               ===========    ===========
Net Loss Per Number of Limited
Partnership Units                              $    (26.06)   $    (29.20)
                                              ============   ============
Number of Limited Partnership Units
Outstanding                                          9,980          9,980
                                              ============   ============




              See accompanying notes to financial statements.




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

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

SERIES 9                                        1999            1998
                                                ----            ----
Revenues:
 Interest Income                                $     6,234   $     6,438
                                                -----------   -----------
Expenses:
 Asset Management Fee-General Partner                12,615        12,648
 General and Administrative:
  General Partner                                     3,144         2,913
  Other                                               5,564         5,219
 Amortization                                         1,743         1,743
                                                -----------   -----------
  Total Expenses                                     23,066        22,523
                                                -----------   -----------
Loss Before Equity in Losses
 of Project Partnerships                            (16,832)      (16,085)
Equity in Losses of Project
 Partnerships                                      (170,140)     (124,372)
                                                 ----------    ----------
Net Loss                                        $  (186,972)  $  (140,457)
                                                ===========   ===========
Allocation of Net Loss:
 Limited Partners                               $  (185,102)  $  (139,052)
 General Partners                                    (1,870)       (1,405)
                                                -----------   -----------
                                                $  (186,972)  $  (140,457)
                                                ===========   ===========
Net Loss Per Number of Limited
Partnership Units                               $    (29.60)  $    (22.23)
                                               ============  ============
Number of Limited Partnership Units
Outstanding                                           6,254         6,254
                                               ============  ============




              See accompanying notes to financial statements.




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

                         STATEMENTS OF OPERATIONS
                 FOR THE THREE MONTHS ENDED SEPTEMBER 30,
                                (Unaudited)
SERIES 10                                       1999            1998
                                                ----            ----
Revenues:
 Interest Income                               $     6,119    $     6,407
                                               -----------    -----------
Expenses:
 Asset Management Fee-General Partner                8,607          8,525
 General and Administrative:
  General Partner                                    1,965          1,821
  Other                                              3,703          3,529
 Amortization                                        1,406          1,406
                                               -----------    -----------
  Total Expenses                                    15,681         15,281
                                               -----------    -----------
Loss Before Equity in Losses
 of Project Partnerships                            (9,562)        (8,874)
Equity in Losses of Project
 Partnerships                                     (102,323)       (64,109)
                                                ----------     ----------
Net Loss                                       $  (111,885)   $   (72,983)
                                               ===========    ===========
Allocation of Net Loss:
 Limited Partners                              $  (110,766)   $   (72,253)
 General Partners                                   (1,119)          (730)
                                               -----------    -----------
                                               $  (111,885)   $   (72,983)
                                               ===========    ===========
Net Loss Per Number of Limited
Partnership Units                              $    (21.96)   $    (14.33)
                                              ============   ============
Number of Limited Partnership Units
Outstanding                                          5,043          5,043
                                              ============   ============




              See accompanying notes to financial statements.




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

                         STATEMENTS OF OPERATIONS
                 FOR THE THREE MONTHS ENDED SEPTEMBER 30,
                                (Unaudited)
SERIES 11                                       1999            1998
                                                ----            ----
Revenues:
 Interest Income                                $     6,752   $     6,990
                                                -----------   -----------
Expenses:
 Asset Management Fee-General Partner                 6,930         6,820
 General and Administrative:
  General Partner                                     1,572         1,456
  Other                                               3,246         3,192
 Amortization                                         2,074         2,074
                                                -----------   -----------
  Total Expenses                                     13,822        13,542
                                                -----------   -----------
Loss Before Equity in Losses
 of Project Partnerships                             (7,070)       (6,552)
Equity in Losses of Project
 Partnerships                                       (30,224)        17,656
                                                 ----------    ----------
Net Loss                                        $   (37,294)    $   11,104
                                                ===========   ===========
Allocation of Net Loss:
 Limited Partners                               $   (36,921)    $   10,993
 General Partners                                      (373)           111
                                                -----------   -----------
                                                $   (37,294)    $   11,104
                                                ===========   ===========
Net Loss Per Number of Limited
Partnership Units                               $     (7.20)    $     2.14
                                               ============  ============
Number of Limited Partnership Units
Outstanding                                           5,127         5,127
                                               ============  ============




              See accompanying notes to financial statements.




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

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

TOTAL SERIES 7 - 11                             1999            1998
                                                ----            ----
Revenues:
 Interest Income                                $    41,225   $    43,180
                                                -----------   -----------
Expenses:
 Asset Management Fee-General Partner                73,187        73,148
 General and Administrative:
  General Partner                                    17,423        16,144
  Other                                              31,146        30,283
 Amortization                                        12,851        14,627
                                                -----------   -----------
  Total Expenses                                    134,607       134,202
                                                -----------   -----------
Loss Before Equity in Losses
 of Project Partnerships                            (93,382)      (91,022)
Equity in Losses of Project
 Partnerships                                      (789,766)     (709,878)
                                                 ----------    ----------
Net Loss                                        $  (883,148)  $  (800,900)
                                                ===========   ===========
Allocation of Net Loss:
 Limited Partners                               $  (874,316)  $  (792,891)
 General Partners                                    (8,832)       (8,009)
                                                -----------   -----------
                                                $  (883,148)  $  (800,900)
                                                ===========   ===========




              See accompanying notes to financial statements.

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

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

SERIES 7                                        1999            1998
                                                ----            ----
Revenues:
 Interest Income                               $    21,505    $    22,571
                                               -----------    -----------
Expenses:
 Asset Management Fee-General Partner               44,104         44,216
 General and Administrative:
  General Partner                                    8,045          8,016
  Other                                             12,007         11,520
 Amortization                                        8,736         11,102
                                               -----------    -----------
  Total Expenses                                    72,892         74,854
                                               -----------    -----------
Loss Before Equity in Losses
 of Project Partnerships                           (51,387)       (52,283)
Equity in Losses of Project
 Partnerships                                     (404,209)      (492,501)
                                                ----------     ----------
Net Loss                                       $  (455,596)   $  (544,784)
                                               ===========    ===========
Allocation of Net Loss:
 Limited Partners                              $  (451,040)   $  (539,336)
 General Partners                                   (4,556)        (5,448)
                                               -----------    -----------
                                               $  (455,596)   $  (544,784)
                                               ===========    ===========
Net Loss Per Number of Limited
Partnership Units                              $    (43.39)   $    (51.88)
                                              ============   ============
Number of Limited Partnership Units
Outstanding                                         10,395         10,395
                                              ============   ============


              See accompanying notes to financial statements.

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

                         STATEMENTS OF OPERATIONS
                  FOR THE SIX MONTHS ENDED SEPTEMBER 30,
                                (Unaudited)
SERIES 8                                        1999            1998
                                                ----            ----
Revenues:
 Interest Income                               $    22,360    $    23,842
                                               -----------    -----------
Expenses:
 Asset Management Fee-General Partner               45,966         46,094
 General and Administrative:
  General Partner                                    8,870          8,838
  Other                                             13,033         12,969
 Amortization                                        6,520          6,345
                                               -----------    -----------
  Total Expenses                                    74,389         74,246
                                               -----------    -----------
Loss Before Equity in Losses
 of Project Partnerships                           (52,029)       (50,404)
Equity in Losses of Project
 Partnerships                                     (438,478)      (530,733)
                                                ----------     ----------
Net Loss                                       $  (490,507)   $  (581,137)
                                               ===========    ===========
Allocation of Net Loss:
 Limited Partners                              $  (485,602)   $  (575,326)
 General Partners                                   (4,905)        (5,811)
                                               -----------    -----------
                                               $  (490,507)   $  (581,137)
                                               ===========    ===========
Net Loss Per Number of Limited
Partnership Units                              $    (48.66)   $    (57.65)
                                              ============   ============
Number of Limited Partnership Units
Outstanding                                          9,980          9,980
                                              ============   ============



              See accompanying notes to financial statements.

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

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

SERIES 9                                        1999            1998
                                                ----            ----
Revenues:
 Interest Income                                $    12,374   $    12,826
                                                -----------   -----------
Expenses:
 Asset Management Fee-General Partner                25,230        25,296
 General and Administrative:
  General Partner                                     4,951         4,933
  Other                                               7,475         7,121
 Amortization                                         3,486         3,486
                                                -----------   -----------
  Total Expenses                                     41,142        40,836
                                                -----------   -----------
Loss Before Equity in Losses
 of Project Partnerships                            (28,768)      (28,010)
Equity in Losses of Project
 Partnerships                                      (303,640)     (258,084)
                                                 ----------    ----------
Net Loss                                        $  (332,408)  $  (286,094)
                                                ===========   ===========
Allocation of Net Loss:
 Limited Partners                               $  (329,084)  $  (283,233)
 General Partners                                    (3,324)       (2,861)
                                                -----------   -----------
                                                $  (332,408)  $  (286,094)
                                                ===========   ===========
Net Loss Per Number of Limited
Partnership Units                               $    (52.62)  $    (45.29)
                                               ============  ============
Number of Limited Partnership Units
Outstanding                                           6,254         6,254
                                               ============  ============


              See accompanying notes to financial statements.

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

                         STATEMENTS OF OPERATIONS
                  FOR THE SIX MONTHS ENDED SEPTEMBER 30,
                                (Unaudited)
SERIES 10                                       1999            1998
                                                ----            ----
Revenues:
 Interest Income                               $    12,128    $    12,702
                                               -----------    -----------
Expenses:
 Asset Management Fee-General Partner               17,214         17,050
 General and Administrative:
  General Partner                                    3,094          3,083
  Other                                              5,091          4,974
 Amortization                                        2,812          2,812
                                               -----------    -----------
  Total Expenses                                    28,211         27,919
                                               -----------    -----------
Loss Before Equity in Losses
 of Project Partnerships                           (16,083)       (15,217)
Equity in Losses of Project
 Partnerships                                     (151,302)      (120,252)
                                                ----------     ----------
Net Loss                                       $  (167,385)   $  (135,469)
                                               ===========    ===========
Allocation of Net Loss:
 Limited Partners                              $  (165,711)   $  (134,114)
 General Partners                                   (1,674)        (1,355)
                                               -----------    -----------
                                               $  (167,385)   $  (135,469)
                                               ===========    ===========
Net Loss Per Number of Limited
Partnership Units                              $    (32.86)   $    (26.59)
                                              ============   ============
Number of Limited Partnership Units
Outstanding                                          5,043          5,043
                                              ============   ============

              See accompanying notes to financial statements.

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

                         STATEMENTS OF OPERATIONS
                  FOR THE SIX MONTHS ENDED SEPTEMBER 30,
                                (Unaudited)
SERIES 11                                       1999            1998
                                                ----            ----
Revenues:
 Interest Income                                $    13,418   $    13,904
                                                -----------   -----------
Expenses:
 Asset Management Fee-General Partner                13,860        13,640
 General and Administrative:
  General Partner                                     2,475         2,466
  Other                                               4,546         4,365
 Amortization                                         4,148         4,148
                                                -----------   -----------
  Total Expenses                                     25,029        24,619
                                                -----------   -----------
Loss Before Equity in Losses
 of Project Partnerships                            (11,611)      (10,715)
Equity in Losses of Project
 Partnerships                                       (68,853)      (42,086)
                                                 ----------    ----------
Net Loss                                        $   (80,464)  $   (52,801)
                                                ===========   ===========
Allocation of Net Loss:
 Limited Partners                               $   (79,659)  $   (52,273)
 General Partners                                      (805)         (528)
                                                -----------   -----------
                                                $   (80,464)  $   (52,801)
                                                ===========   ===========
Net Loss Per Number of Limited
Partnership Units                               $    (15.54)  $    (10.20)
                                               ============  ============
Number of Limited Partnership Units
Outstanding                                           5,127         5,127
                                               ============  ============

              See accompanying notes to financial statements.

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

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

TOTAL SERIES 7 - 11                             1999            1998
                                                ----            ----
Revenues:
 Interest Income                                $    81,785   $    85,845
                                                -----------   -----------
Expenses:
 Asset Management Fee-General Partner               146,374       146,296
 General and Administrative:
  General Partner                                    27,435        27,336
  Other                                              42,152        40,949
 Amortization                                        25,702        27,893
                                                -----------   -----------
  Total Expenses                                    241,663       242,474
                                                -----------   -----------
Loss Before Equity in Losses
 of Project Partnerships                           (159,878)     (156,629)
Equity in Losses of Project
 Partnerships                                    (1,366,482)   (1,443,656)
                                                 ----------    ----------
Net Loss                                        $(1,526,360)  $(1,600,285)
                                                ===========   ===========
Allocation of Net Loss:
 Limited Partners                               $(1,511,096)  $(1,584,282)
 General Partners                                   (15,264)      (16,003)
                                                -----------   -----------
                                                $(1,526,360)  $(1,600,285)
                                                ===========   ===========

              See accompanying notes to financial statements.

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

                      STATEMENTS OF PARTNERS' EQUITY

           FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1999 AND 1998:



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


Balance at March 31, 1998       $ 4,024,753    $   (51,546)     $ 3,973,207

Net Loss                           (539,336)        (5,448)        (544,784)
                                -----------     -----------     -----------

Balance at September 30,1998    $ 3,485,417    $   (56,994)     $ 3,428,423
                               ============    ============    ============


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

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

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


              See accompanying notes to financial statements.


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

                      STATEMENTS OF PARTNERS' EQUITY

           FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1999 AND 1998:



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


Balance at March 31, 1998       $ 4,177,520    $   (46,313)     $ 4,131,207

Net Loss                           (575,326)        (5,811)        (581,137)
                                -----------     -----------     -----------

Balance at September 30,1998    $ 3,602,194    $   (52,124)     $ 3,550,070
                               ============    ============    ============


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

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

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


              See accompanying notes to financial statements.


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

                      STATEMENTS OF PARTNERS' EQUITY

           FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1999 AND 1998:



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


Balance at March 31, 1998       $ 3,670,140    $   (18,319)     $ 3,651,821

Net Loss                           (283,233)        (2,861)        (286,094)
                                -----------     -----------     -----------

Balance at September 30,1998    $ 3,386,907    $   (21,180)     $ 3,365,727
                               ============    ============    ============


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

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

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


              See accompanying notes to financial statements.


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

                      STATEMENTS OF PARTNERS' EQUITY

           FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1999 AND 1998:



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


Balance at March 31, 1998       $ 3,716,198    $    (7,089)     $ 3,709,109

Net Loss                           (134,114)        (1,355)        (135,469)
                                -----------     -----------     -----------

Balance at September 30,1998    $ 3,582,084    $    (8,444)     $ 3,573,640
                               ============    ============    ============


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

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

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


              See accompanying notes to financial statements.


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

                      STATEMENTS OF PARTNERS' EQUITY

           FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1999 AND 1998:



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


Balance at March 31, 1998       $ 4,271,126    $    (3,313)     $ 4,267,813

Net Loss                            (52,273)          (528)         (52,801)
                                -----------     -----------     -----------

Balance at September 30,1998    $ 4,218,853    $    (3,841)     $ 4,215,012
                               ============    ============    ============


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

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

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


              See accompanying notes to financial statements.


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

                      STATEMENTS OF PARTNERS' EQUITY

           FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1999 AND 1998:



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


Balance at March 31, 1998       $19,859,737    $  (126,580)     $19,733,157

Net Loss                         (1,584,282)       (16,003)      (1,600,285)
                                -----------     -----------     -----------

Balance at September 30,1998    $18,275,455    $  (142,583)     $18,132,872
                               ============    ============    ============


Balance at March 31, 19999      $17,033,064    $  (155,132)     $16,877,932

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

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


              See accompanying notes to financial statements.

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

SERIES 7                                         1999           1998
--------                                         ----           ----
Cash Flows from Operating Activities:
  Net Loss                                      $  (455,596)  $  (544,784)
  Adjustments to Reconcile Net Loss to Net
  Cash Provided by (Used in) Operating
  Activities:
   Amortization                                       8,736        11,102
   Accreted Interest Income on Investments
   in Securities                                    (15,167)      (15,586)
   Equity in Losses of Project Partnerships         404,209       492,501
   Changes in Operating Assets and
   Liabilities:
    Increase in Payable to General Partners           2,881        (1,886)
                                                -----------   -----------
     Net Cash Used in Operating Activities          (54,937)      (58,653)
                                                -----------   -----------
Cash Flows from Investing Activities:
   Distributions Received from Project
   Partnerships                                      17,551        17,019
                                                -----------   -----------
     Net Cash Provided by (Used in)
     Investing Activities                            17,551        17,019
                                                -----------   -----------
Increase (Decrease) in Cash and Cash
Equivalents                                         (37,386)      (41,634)
Cash and Cash Equivalents at Beginning of
Year                                                299,313       286,106
                                                -----------   -----------
Cash and Cash Equivalents at End of Year        $   261,927   $   244,472
                                                ===========   ===========

              See accompanying notes to financial statements.

                      GATEWAY TAX CREDIT FUND III LTD.
                      (A Florida Limited Partnership)
                         STATEMENTS OF CASH FLOWS
                  FOR THE SIX MONTHS ENDED SEPTEMBER 30,
                                (Unaudited)
SERIES 8                                         1999           1998
--------                                         ----           ----
Cash Flows from Operating Activities:
  Net Loss                                      $  (490,507)  $  (581,137)
  Adjustments to Reconcile Net Loss to Net
  Cash Provided by (Used in) Operating
  Activities:
   Amortization                                       6,520         6,345
   Accreted Interest Income on Investments
   in Securities                                    (13,612)      (13,971)
   Equity in Losses of Project Partnership          438,478       530,733
   Changes in Operating Assets and
   Liabilities:
    Increase in Payable to General Partners           5,944         1,868
                                                -----------   -----------
     Net Cash Used in Operating Activities          (53,177)      (56,162)
                                                -----------   -----------
Cash Flows from Investing Activities:
   Distributions Received from Project
   Partnerships                                      13,973         8,138
                                                -----------   -----------
     Net Cash Provided by (Used in)
     Investing Activities                            13,973         8,138
                                                -----------   -----------
Increase (Decrease) in Cash and Cash
Equivalents                                         (39,204)      (48,024)
Cash and Cash Equivalents at Beginning of
Year                                                411,602       410,727
                                                -----------   -----------
Cash and Cash Equivalents at End of Year         $  372,398    $  362,703
                                                ===========   ===========

              See accompanying notes to financial statements.

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

                         STATEMENTS OF CASH FLOWS
                  FOR THE SIX MONTHS ENDED SEPTEMBER 30,
                                (Unaudited)
SERIES 9                                         1999           1998
--------                                         ----           ----
Cash Flows from Operating Activities:
  Net Loss                                      $  (332,408)  $  (286,094)
  Adjustments to Reconcile Net Loss to Net
  Cash Provided by (Used in) Operating
  Activities:
   Amortization                                       3,486         3,486
   Accreted Interest Income on Investments
   in Securities                                     (8,219)       (8,463)
   Equity in Losses of Project Partnerships         303,640       258,084
   Changes in Operating Assets and
   Liabilities:
    Increase in Payable to General Partners           8,096         5,917
                                                -----------   -----------
     Net Cash Used in Operating Activities          (25,405)      (27,070)
                                                -----------   -----------
Cash Flows from Investing Activities:
  Distributions Received from Project
  Partnerships                                        5,846         7,364
                                                -----------   -----------
     Net Cash Provided by (Used in)
     Investing Activities                             5,846         7,364
                                                -----------   -----------
Increase (Decrease) in Cash and Cash
Equivalents                                         (19,559)      (19,706)
Cash and Cash Equivalents at Beginning of
Year                                                195,618       180,104
                                                -----------   -----------
Cash and Cash Equivalents at End of Year        $   176,059   $   160,398
                                                ===========   ===========

              See accompanying notes to financial statements.

                      GATEWAY TAX CREDIT FUND III LTD.
                      (A Florida Limited Partnership)
                         STATEMENTS OF CASH FLOWS
                  FOR THE SIX MONTHS ENDED SEPTEMBER 30,
                                (Unaudited)
SERIES 10                                        1999           1998
--------                                         ----           ----
Cash Flows from Operating Activities:
  Net Loss                                      $  (167,385)  $  (135,469)
  Adjustments to Reconcile Net Loss to Net
  Cash Provided by (Used in) Operating
  Activities:
   Amortization                                       2,812         2,812
   Accreted Interest Income on Investments
   in Securities                                     (7,576)       (7,775)
   Equity in Losses of Project Partnerships         151,302       120,252
   Changes in Operating Assets and
   Liabilities:
    Increase in Payable to General Partners         (10,146)      (11,783)
                                                -----------   -----------
     Net Cash Used in Operating Activities          (30,993)      (31,963)
                                                -----------   -----------
Cash Flows from Investing Activities:
   Distributions Received from Project
   Partnerships                                       4,489         6,545
                                                -----------   -----------
     Net Cash Provided by (Used in)
     Investing Activities                             4,489         6,545
                                                -----------   -----------
Increase (Decrease) in Cash and Cash
Equivalents                                         (26,504)      (25,418)
Cash and Cash Equivalents at Beginning of
Year                                                216,566       202,435
                                                -----------   -----------
Cash and Cash Equivalents at End of Year        $   190,062   $   177,017
                                                ===========   ===========

              See accompanying notes to financial statements.


                      GATEWAY TAX CREDIT FUND III LTD.
                      (A Florida Limited Partnership)
                         STATEMENTS OF CASH FLOWS
                  FOR THE SIX MONTHS ENDED SEPTEMBER 30,
                                (Unaudited)
SERIES 11                                        1999           1998
--------                                         ----           ----
Cash Flows from Operating Activities:
  Net Loss                                       $  (80,464)  $   (52,801)
  Adjustments to Reconcile Net Loss to Net
  Cash Provided by (Used in) Operating
  Activities:
   Amortization                                       4,148         4,148
   Accreted Interest Income on Investments
   in Securities                                     (8,774)       (8,891)
   Equity in Losses of Project Partnerships          68,853        42,086
   Changes in Operating Assets and
   Liabilities:
    Increase in Payable to General Partners         (15,318)      (11,244)
                                                -----------   -----------
     Net Cash Used in Operating Activities          (31,555)      (26,702)
                                                -----------   -----------
Cash Flows from Investing Activities:
   Distributions Received from Project
   Partnerships                                       2,492         2,182
                                                -----------   -----------
     Net Cash Provided by (Used in)
     Investing Activities                             2,492         2,182
                                                -----------   -----------
Increase (Decrease) in Cash and Cash
Equivalents                                         (29,063)      (24,520)
Cash and Cash Equivalents at Beginning of
Year                                                223,024       208,198
                                                -----------   -----------
Cash and Cash Equivalents at End of Year        $   193,961   $   183,678
                                                ===========   ===========

              See accompanying notes to financial statements.

                      GATEWAY TAX CREDIT FUND III LTD.
                      (A Florida Limited Partnership)
                         STATEMENTS OF CASH FLOWS
                  FOR THE SIX MONTHS ENDED SEPTEMBER 30,
                                (Unaudited)
TOTAL SERIES 7 - 11                              1999           1998
-------------------                              ----           ----
Cash Flows from Operating Activities:
  Net Loss                                      $(1,526,360)  $(1,600,285)
  Adjustments to Reconcile Net Loss to Net
  Cash Provided by (Used in) Operating
  Activities:
   Amortization                                      25,702        27,893
   Accreted Interest Income on Investments
   in Securities                                    (53,348)      (54,686)
   Equity in Losses of Project Partnerships       1,366,482     1,443,656
   Changes in Operating Assets and
   Liabilities:
    Increase in Payable to General Partners          (8,543)      (17,128)
                                                -----------   -----------
     Net Cash Used in Operating Activities         (196,067)     (200,550)
                                                -----------   -----------
Cash Flows from Investing Activities:
   Distributions Received from Project
   Partnerships                                      44,351        41,248
                                                -----------   -----------
     Net Cash Provided by (Used in)
     Investing Activities                            44,351        41,248
                                                -----------   -----------
Increase (Decrease) in Cash and Cash
Equivalents                                        (151,716)     (159,302)
Cash and Cash Equivalents at Beginning of
Year                                              1,346,123     1,287,570
                                                -----------   -----------
Cash and Cash Equivalents at End of Year        $ 1,194,407   $ 1,128,268
                                                ===========   ===========
              See accompanying notes to financial statements.

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

                       NOTES TO FINANCIAL STATEMENTS

                            SEPTEMBER 30, 1999

NOTE 1 - ORGANIZATION:

   Gateway  Tax  Credit  Fund  III  Ltd.  ("Gateway"),  a  Florida  Limited
Partnership,  was  formed  October 17, 1991  under  the  laws  of  Florida.
Gateway  offered  its limited partnership interests in Series.   The  first
Series for Gateway is Series 7.  Operations commenced on July 16, 1992  for
Series  7,  January 4, 1993 for Series 8, September 30, 1993 for Series  9,
January  21,  1994 for Series 10 and April 29, 1994 for  Series  11.   Each
Series  invests,  as  a  limited  partner, in  other  limited  partnerships
("Project  Partnerships"),  each  of  which  owns  and  operates  apartment
complexes  eligible  for  Low-Income Housing Tax Credits  ("Tax  Credits"),
provided  for in Section 42 of the Internal Revenue Code of 1986.   Gateway
will terminate on December 31, 2040 or sooner, in accordance with the terms
of  the  Limited Partnership Agreement.  As of September 30, 1999,  Gateway
had  received capital contributions of $1,000 from the General Partners and
$36,799,000 from the investor Limited Partners.

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

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

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

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES:

Basis of Accounting

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

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

  1)  Gateway's capital contribution,
  2)  Acquisition fees paid to the General Partner for services rendered in
selecting properties for acquisition, and
    3)   Acquisition  expenses  including  legal  fees,  travel  and  other
miscellaneous costs relating to acquiring properties.

Quarterly  the  Investments  in  Project  Partnerships  are  increased   or
decreased as follows:

  1)   Increased for equity in income or decreased for equity in losses  of
  the Project Partnerships,
  2)    Decreased  for  cash  distributions  received  from   the   Project
  Partnerships, and
  3)  Decreased for the amortization of the acquisition fees and expenses.

   Amortization is calculated on a straight line basis over  35  years,  as
this  is  the average estimated useful life of the underlying assets.   The
amortization  is  shown  as  amortization  expense  on  the  Statements  of
Operations.

    Pursuant  to  the  limited  partnership  agreements  for  the   Project
Partnerships,  cash  losses  generated  by  the  Project  Partnerships  are
allocated  to  the general partners of those partnerships.   In  subsequent
years, cash profits, if any, are first allocated to the general partners to
the extent of the allocation of prior years' cash losses.

   Since  Gateway  invests  as  a limited partner,  and  therefore  is  not
obligated to fund losses or make additional capital contributions, it  does
not  recognize  losses from individual Project Partnerships to  the  extent
that these losses would reduce the investment in those Project Partnerships
below zero.  The suspended losses will be used to offset future income from
the individual Project Partnerships.

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

 Gateway, as a limited partner in the Project Partnerships, is subject to
risks inherent in the ownership of property which are beyond its control,
such as fluctuations in occupancy rates and operating expenses, variations
in rental schedules, proper maintenance and continued eligibility of tax
credits.  If the cost of operating a property exceeds the rental income
earned thereon, Gateway may deem it in its best interest to voluntarily
provide funds in order to protect its investment.

Cash and Cash Equivalents

    It  is  Gateway's  policy  to include short-term  investments  with  an
original  maturity  of three months or less in Cash and  Cash  Equivalents.
Short-term investments are comprised of money market mutual funds.

Concentrations of Credit Risk

     Financial   instruments   which   potentially   subject   Gateway   to
concentrations of credit risk consist of cash investments in a money market
mutual  fund that is a wholly-owned subsidiary of Raymond James  Financial,
Inc.

Use of Estimates in the Preparation of Financial Statements

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

Investment in Securities

    Effective  April  1,  1994,  Gateway  adopted  Statement  of  Financial
Accounting  Standards No. 115, Accounting for Certain Investments  in  Debt
and  Equity Securities ("FAS 115").  Under FAS 115, Gateway is required  to
categorize  its debt securities as held-to-maturity, available-for-sale  or
trading  securities,  dependent  upon  Gateway's  intent  in  holding   the
securities.  Gateway's intent is to hold all of its debt securities (U.  S.
Treasury Security Strips) until maturity and to use these reserves to  fund
Gateway's ongoing operations.  Interest income is recognized ratably on the
U.S. Treasury Strips using the effective yield to maturity.

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, 1999.  In the opinion of management these
financial  statements  include  adjustments,  consisting  only  of   normal
recurring  adjustments,  necessary to fairly  summarize  the  Partnership's
financial  position and results of operations.  The results  of  operations
for the periods may not be indicative of the results to be expected for the
year.

NOTE 3 - INVESTMENT IN SECURITIES:

  The  September 30, 1999 Balance Sheet includes Investment  in  Securities
consisting  of U.S. Treasury Security Strips which represents  their  cost,
plus accreted interest income of $172,847 for Series 7, $148,273 for Series
8, $83,061 for Series 9, $71,338 for Series 10 and $79,846 for Series 11.

                                                          Gross Unrealized
                   Estimated Market       Cost Plus          Gains and
                         Value        Accreted Interest       (Losses)
                   -----------------  -----------------   ----------------
Series 7                  $  469,530         $  448,191           $  21,339
Series 8                     437,559            424,445              13,114
Series 9                     283,563            283,126                 437
Series 10                    236,789            228,506               8,283
Series 11                    264,847            248,167              16,680

  As  of  September  30,  1999,  the cost and  accreted  interest  of  debt
securities by contractual maturities is as follows:

                                  Series 7       Series 8       Series 9
                                  --------       --------       --------
Due with 1 year                    $   51,970     $   47,086     $   30,457
After 1 year through 5 years          205,022        192,172        116,975
After 5 years through 10 years        191,199        185,187        135,694
Over 10 years                               0              0              0
                                   ----------     ----------     ----------
  Total Amount Carried on
Balance Sheet                      $  448,191     $  424,445     $  283,126
                                   ==========     ==========     ==========


                                 Series 10      Series 11        Total
                                  --------       --------       --------
Due with 1 year                    $   23,565     $   23,486     $  176,564
After 1 year through 5 years           88,270         94,648        697,087
After 5 years through 10 years         97,417        109,933        719,430
Over 10 years                          19,254         20,100         39,354
                                   ----------     ----------     ----------
  Total Amount Carried on
Balance Sheet                      $  228,506     $  248,167     $1,632,435
                                   ==========     ==========     ==========

NOTE 4 - RELATED PARTY TRANSACTIONS:

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

   The   Payable   to  Project  Partnerships  represents   unpaid   capital
contributions  to the Project Partnerships and will be paid  after  certain
performance  criteria are met.  Such contributions are in turn  payable  to
the general partners of the Project Partnerships.

  For  the six months ended September 30 1999 and 1998 the General Partners
and affiliates are entitled to compensation and reimbursement for costs and
expenses incurred by Gateway as follows:

 Asset Management Fee - The Managing General Partner is entitled to receive
an  annual asset management fee equal to the greater of (i) $2,000 for each
limited  partnership in which Gateway invests, or (ii) 0.275% of  Gateway's
gross  proceeds from the sale of limited partnership interests.  In  either
event  (i) or (ii), the maximum amount may not exceed 0.2% of the aggregate
cost   (Gateway's  capital  contribution  plus  Gateway's  share   of   the
Properties'  mortgage)  of Gateway's interest in properties  owned  by  the
Project Partnerships.  The asset management fee will be paid only after all
other  expenses of Gateway have been paid.  These fees are included in  the
Statement of Operations.

                         1999           1998
                        -----          -----
 Series 7            $ 44,104       $ 44,216
 Series 8              45,966         46,094
 Series 9              25,230         25,296
 Series 10             17,214         17,050
 Series 11             13,860         13,640
                     --------       --------
 Total               $146,374       $146,296
                     ========       ========

  General  and Administrative Expenses -  The Managing General  Partner  is
reimbursed  for  general  and administrative  expenses  of  Gateway  on  an
accountable   basis.   This  expense  is  included  in  the  Statement   of
Operations.

 Series 7           $   8,045      $   8,016
 Series 8               8,870          8,838
 Series 9               4,951          4,933
 Series 10              3,094          3,083
 Series 11              2,475          2,466
                     --------       --------
 Total               $ 27,435       $ 27,336
                     ========       ========

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS:

   As of September 30, 1999, the Partnership had acquired a 99% interest in
the  profits,  losses and tax credits as a limited partner  in  39  Project
Partnerships which own and operate government assisted multi-family housing
complexes.   Cash  flows from operations are allocated  according  to  each
Partnership  agreement.   Upon  dissolution proceeds  will  be  distributed
according to each Partnership agreement.

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

SERIES 7                                     SEPTEMBER 30,     MARCH 31,
                                                  1999           1999
                                             --------------   -----------
Capital Contributions to Project Partner-
ships and purchase price paid for limited
partner interests in Project Partnerships       $ 7,732,089     $ 7,732,089

Cumulative equity in losses of Project
Partnerships (1)                                 (5,651,178)     (5,501,647)

Cumulative distributions received from
Project Partnerships                               (140,684)       (131,691)
                                                -----------     -----------
Investment in Project Partnerships before
adjustment                                        1,940,227       2,098,751


Excess of investment cost over the
underlying assets acquired:
 Acquisition fees and expenses                      793,335         793,335
 Accumulated amortization of acquisition
fees and expenses                                  (146,950)       (142,581)
                                               ------------    ------------

Investments in Project Partnerships             $ 2,586,612     $ 2,749,505
                                               ============    ============


(1)  In  accordance with the Partnership's accounting policy to  not  carry
Investments in Project Partnerships below zero, cumulative suspended losses
of  $396,826  for  the  period  ended September  30,  1999  and  cumulative
suspended  losses  of $253,692 for the year ended March 31,  1999  are  not
included.

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

   As of September 30, 1999, the Partnership had acquired a 99% interest in
the  profits,  losses and tax credits as a limited partner  in  43  Project
Partnerships which own and operate government assisted multi-family housing
complexes.   Cash  flows from operations are allocated  according  to  each
Partnership  agreement.   Upon  dissolution proceeds  will  be  distributed
according to each Partnership agreement.

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

SERIES 8                                     SEPTEMBER 30,     MARCH 31,
                                                  1999           1999
                                             --------------   -----------
Capital Contributions to Project Partner-
ships and purchase price paid for limited
partner interests in Project Partnerships       $ 7,586,105     $ 7,586,105

Cumulative equity in losses of Project
Partnerships (1)                                 (5,538,272)     (5,332,195)

Cumulative distributions received from
Project Partnerships                               (116,950)       (104,205)
                                                -----------     -----------
Investment in Project Partnerships before
adjustment                                        1,930,883       2,149,705


Excess of investment cost over the
underlying assets acquired:
 Acquisition fees and expenses                      549,773         549,773
 Accumulated amortization of acquisition
fees and expenses                                   (90,164)        (86,904)
                                               ------------    ------------

Investments in Project Partnerships             $ 2,390,492     $ 2,612,574
                                               ============    ============


(1)  In  accordance with the Partnership's accounting policy to  not  carry
Investments in Project Partnerships below zero, cumulative suspended losses
of  $346,137  for  the  period  ended September  30,  1999  and  cumulative
suspended  losses  of $248,712 for the year ended March 31,  1999  are  not
included.

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

   As of September 30, 1999, the Partnership had acquired a 99% interest in
the  profits,  losses and tax credits as a limited partner  in  24  Project
Partnerships which own and operate government assisted multi-family housing
complexes.   Cash  flows from operations are allocated  according  to  each
Partnership  agreement.   Upon  dissolution proceeds  will  be  distributed
according to each Partnership agreement.

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

SERIES 9                                     SEPTEMBER 30,     MARCH 31,
                                                  1999           1999
                                             --------------   -----------
Capital Contributions to Project Partner-
ships and purchase price paid for limited
partner interests in Project Partnerships       $ 4,914,116     $ 4,914,116

Cumulative equity in losses of Project
Partnerships (1)                                 (2,362,675)     (2,229,175)

Cumulative distributions received from
Project Partnerships                                (79,285)        (73,439)
                                                -----------      ----------
Investment in Project Partnerships before
adjustment                                        2,472,156       2,611,502

Excess of investment cost over the
underlying assets acquired:
 Acquisition fees and expenses                      244,086         244,087
 Accumulated amortization of acquisition
fees and expenses                                   (38,678)        (36,936)
                                               ------------    ------------

Investments in Project Partnerships             $ 2,677,564     $ 2,818,653
                                               ============    ============


(1)  In  accordance with the Partnership's accounting policy to  not  carry
Investments in Project Partnerships below zero, cumulative suspended losses
of  $0  for  the  period ended September 30, 1999 and cumulative  suspended
losses of $0 for the year ended March 31, 1999 are not included.

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

   As of September 30, 1999, the Partnership had acquired a 99% interest in
the  profits,  losses and tax credits as a limited partner  in  15  Project
Partnerships which own and operate government assisted multi-family housing
complexes.   Cash  flows from operations are allocated  according  to  each
Partnership  agreement.   Upon  dissolution proceeds  will  be  distributed
according to each Partnership agreement.

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

SERIES 10                                    SEPTEMBER 30,     MARCH 31,
                                                  1999           1999
                                             --------------   -----------
Capital Contributions to Project Partner-
ships and purchase price paid for limited
partner interests in Project Partnerships       $ 3,914,672     $ 3,914,672

Cumulative equity in losses of Project
Partnerships (1)                                   (961,557)       (912,578)

Cumulative distributions received from
Project Partnerships                                (87,815)        (83,326)
                                                -----------      ----------
Investment in Project Partnerships before
adjustment                                        2,865,300       2,918,768


Excess of investment cost over the
underlying assets acquired:
 Acquisition fees and expenses                      196,738         196,738
 Accumulated amortization of acquisition
fees and expenses                                   (30,422)        (29,014)
                                              -------------    ------------

Investments in Project Partnerships             $ 3,031,616     $ 3,086,492
                                              =============    ============

(1)  In  accordance with the Partnership's accounting policy to  not  carry
Investments in Project Partnerships below zero, cumulative suspended losses
of  $0  for  the  period ended September 30, 1999 and cumulative  suspended
losses of $0 for the year ended March 31, 1999 are not included.

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

   As of September 30, 1999, the Partnership had acquired a 99% interest in
the  profits,  losses and tax credits as a limited partner  in  12  Project
Partnerships which own and operate government assisted multi-family housing
complexes.   Cash  flows from operations are allocated  according  to  each
Partnership  agreement.   Upon  dissolution proceeds  will  be  distributed
according to each Partnership agreement.

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

SERIES 11                                    SEPTEMBER 30,     MARCH 31,
                                                  1999           1999
                                             --------------   -----------
Capital Contributions to Project Partner-
ships and purchase price paid for limited
partner interests in Project Partnerships       $ 4,128,042     $ 4,128,042

Cumulative equity in losses of Project
Partnerships (1)                                   (657,474)       (618,845)

Cumulative distributions received from
Project Partnerships                                (63,483)        (63,483)
                                                -----------     -----------
Investment in Project Partnerships before
adjustment                                        3,407,085       3,445,714

Excess of investment cost over the
underlying assets acquired:
 Acquisition fees and expenses                      290,335         290,335
 Accumulated amortization of acquisition
fees and expenses                                   (36,830)        (34,754)
                                               ------------     -----------

Investments in Project Partnerships             $ 3,660,590     $ 3,701,295
                                              =============   =============

(1)  In  accordance with the Partnership's accounting policy to  not  carry
Investments in Project Partnerships below zero, cumulative suspended losses
of  $0 for the period September 30, 1999 and cumulative suspended losses of
$0 for the year ended March 31, 1999 are not included.

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):



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

TOTAL SERIES 7 - 11                          SEPTEMBER 30,     MARCH 31,
                                                  1999           1999
                                             --------------   -----------
Capital Contributions to Project Partner-
ships and purchase price paid for limited
partner interests in Project Partnerships       $28,275,024     $28,275,024

Cumulative equity in losses of Project
Partnerships (1)                                (15,171,156)    (14,594,440)

Cumulative distributions received from
Project Partnerships                               (488,217)       (456,144)
                                               ------------     -----------
Investment in Project Partnerships before
adjustment                                       12,615,651      13,224,440

Excess of investment cost over the
underlying assets acquired:
 Acquisition fees and expenses                    2,074,267       2,074,268
 Accumulated amortization of acquisition
fees and expenses                                  (343,044)       (330,189)
                                               ------------    ------------

Investments in Project Partnerships             $14,346,874     $14,968,519
                                               ============   =============

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

   In  accordance with the Partnership's policy of presenting the financial
information of the Project Partnerships on a three month lag, below is  the
summarized financial information for the Series' Project Partnerships as of
June 30, of each year:
                                                  1999          1998
SERIES 7                                          ----          ----
SUMMARIZED BALANCE SHEETS
Assets:
  Current assets                                $ 3,093,395   $ 2,745,205
  Investment properties, net                     35,859,651    37,221,049
  Other assets                                       27,467        61,340
                                               ------------  ------------
    Total assets                                $38,980,513   $40,027,594
                                               ============  ============
Liabilities and Partners' Equity:
  Current liabilities                           $ 1,080,885   $   976,252
  Long-term debt                                 36,700,244    36,837,474
                                               ------------  ------------
    Total liabilities                            37,781,129    37,813,726
                                               ------------  ------------
Partners' equity
  Limited Partner                                 1,243,935     2,209,833
  General Partners                                  (44,551)        4,035
                                                -----------   -----------
    Total Partners' equity                        1,199,384     2,213,868
                                                -----------   -----------
    Total liabilities and partners' equity      $38,980,513   $40,027,594
                                               ============  ============
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income                         $ 2,085,302   $ 2,092,878
Expenses:                                      ------------  ------------
  Operating expenses                              1,358,836     1,298,459
  Interest expense                                  517,626       531,994
  Depreciation and amortization                     761,712       780,508
                                               ------------  ------------
    Total expenses                                2,638,174     2,610,961
                                               ------------  ------------
      Net loss                                  $  (552,872)  $  (518,083)
                                               ============  ============
Other partners' share of net loss               $    (5,529)  $    (5,181)
                                               ============  ============
Partnerships' share of net loss                 $  (547,343)  $  (512,902)
Suspended losses                                    143,134        20,401
                                               ------------  ------------
Equity in Losses of Project Partnerships        $  (404,209)  $  (492,501)
                                               ============  ============

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

   In  accordance with the Partnership's policy of presenting the financial
information of the Project Partnerships on a three month lag, below is  the
summarized financial information for the Series' Project Partnerships as of
June 30, of each year:
                                                  1999          1998
SERIES 8                                          ----          ----
SUMMARIZED BALANCE SHEETS
Assets:
  Current assets                                $ 2,621,048   $ 2,396,895
  Investment properties, net                     38,449,419    40,001,426
  Other assets                                       49,851        48,690
                                               ------------  ------------
    Total assets                                $41,120,318   $42,447,011
                                               ============  ============
Liabilities and Partners' Equity:
  Current liabilities                           $ 1,156,406   $ 1,187,110
  Long-term debt                                 38,706,743    38,850,768
                                               ------------  ------------
    Total liabilities                            39,863,149    40,037,878
                                               ------------  ------------
Partners' equity
  Limited Partner                                 1,402,952     2,533,962
  General Partners                                 (145,783)     (124,829)
                                                -----------   -----------
    Total Partners' equity                        1,257,169     2,409,133
                                                -----------   -----------
    Total liabilities and partners' equity      $41,120,318   $42,447,011
                                               ============  ============
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income                         $ 2,065,901   $ 2,008,626
Expenses:                                      ------------  ------------
  Operating expenses                              1,298,284     1,270,406
  Interest expense                                  506,385       490,747
  Depreciation and amortization                     803,400       813,403
                                               ------------  ------------
    Total expenses                                2,608,069     2,574,556
                                               ------------  ------------
      Net loss                                  $  (542,168)  $  (565,930)
                                               ============  ============
Other partners' share of net loss               $    (6,265)  $    (5,659)
                                               ============  ============
Partnerships' share of net loss                 $  (535,903)  $  (560,271)
Suspended losses                                     97,425        29,538
                                               ------------  ------------
Equity in Losses of Project Partnerships        $  (438,478)  $  (530,733)
                                               ============  ============

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

   In  accordance with the Partnership's policy of presenting the financial
information of the Project Partnerships on a three month lag, below is  the
summarized financial information for the Series' Project Partnerships as of
June 30, of each year:
                                                  1999          1998
SERIES 9                                          ----          ----
SUMMARIZED BALANCE SHEETS
Assets:
  Current assets                                $ 1,670,589   $ 1,479,412
  Investment properties, net                     21,361,541    22,202,473
  Other assets                                        6,568        82,523
                                               ------------  ------------
    Total assets                                $23,038,698   $23,764,408
                                               ============  ============
Liabilities and Partners' Equity:
  Current liabilities                           $   362,788   $   392,488
  Long-term debt                                 20,504,253    20,576,103
                                               ------------  ------------
    Total liabilities                            20,867,041    20,968,591
                                               ------------  ------------
Partners' equity
  Limited Partner                                 2,291,805     2,875,492
  General Partners                                 (120,148)      (79,675)
                                                -----------   -----------
    Total Partners' equity                        2,171,657     2,795,817
                                                -----------   -----------
    Total liabilities and partners' equity      $23,038,698   $23,764,408
                                               ============  ============
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income                         $ 1,043,098   $ 1,063,142
Expenses:                                      ------------  ------------
  Operating expenses                                651,637       624,728
  Interest expense                                  255,022       248,345
  Depreciation and amortization                     443,146       450,760
                                               ------------  ------------
    Total expenses                                1,349,805     1,323,833
                                               ------------  ------------
      Net loss                                  $  (306,707)  $  (260,691)
                                               ============  ============
Other partners' share of net loss               $    (3,067)  $    (2,607)
                                               ============  ============
Partnerships' share of net loss                 $  (303,640)  $  (258,084)
Suspended losses                                          0             0
                                               ------------  ------------
Equity in Losses of Project Partnerships        $  (303,640)  $  (258,084)
                                               ============  ============

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

   In  accordance with the Partnership's policy of presenting the financial
information of the Project Partnerships on a three month lag, below is  the
summarized financial information for the Series' Project Partnerships as of
June 30, of each year:
                                                  1999          1998
SERIES 10                                         ----          ----
SUMMARIZED BALANCE SHEETS
Assets:
  Current assets                                $ 1,345,308   $ 1,217,315
  Investment properties, net                     15,003,743    15,467,235
  Other assets                                        5,989        22,594
                                               ------------  ------------
    Total assets                                $16,355,040   $16,707,144
                                               ============  ============
Liabilities and Partners' Equity:
  Current liabilities                           $   289,352   $   240,542
  Long-term debt                                 13,418,579    13,486,584
                                               ------------  ------------
    Total liabilities                            13,707,931    13,727,126
                                               ------------  ------------
Partners' equity
  Limited Partner                                 2,773,494     3,062,329
  General Partners                                 (126,385)      (82,311)
                                                -----------   -----------
    Total Partners' equity                        2,647,109     2,980,018
                                                -----------   -----------
    Total liabilities and partners' equity      $16,355,040   $16,707,144
                                               ============  ============
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income                         $   710,112   $   699,651
Expenses:                                      ------------  ------------
  Operating expenses                                453,078       423,532
  Interest expense                                  162,461       142,440
  Depreciation and amortization                     248,280       255,146
                                               ------------  ------------
    Total expenses                                  863,819       821,118
                                               ------------  ------------
      Net loss                                  $  (153,707)  $  (121,467)
                                               ============  ============
Other partners' share of net loss               $    (2,405)  $    (1,215)
                                               ============  ============
Partnerships' share of net loss                 $  (151,302)  $  (120,252)
Suspended losses                                          0             0
                                               ------------  ------------
Equity in Losses of Project Partnerships        $  (151,302)  $  (120,252)
                                               ============  ============

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

   In  accordance with the Partnership's policy of presenting the financial
information of the Project Partnerships on a three month lag, below is  the
summarized financial information for the Series' Project Partnerships as of
June 30, of each year:
                                                  1999          1998
SERIES 11                                         ----          ----
SUMMARIZED BALANCE SHEETS
Assets:
  Current assets                                $ 1,093,783   $ 1,026,381
  Investment properties, net                     13,401,509    13,743,508
  Other assets                                        7,113        11,223
                                               ------------  ------------
    Total assets                                $14,502,405   $14,781,112
                                               ============  ============
Liabilities and Partners' Equity:
  Current liabilities                           $   308,954   $   345,386
  Long-term debt                                 10,736,223    10,802,181
                                               ------------  ------------
    Total liabilities                            11,045,177    11,147,567
                                               ------------  ------------
Partners' equity
  Limited Partner                                 3,416,236     3,561,589
  General Partners                                   40,992        71,956
                                                -----------   -----------
    Total Partners' equity                        3,457,228     3,633,545
                                                -----------   -----------
    Total liabilities and partners' equity      $14,502,405   $14,781,112
                                               ============  ============
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income                         $   781,733   $   732,320
Expenses:                                      ------------  ------------
  Operating expenses                                387,736       365,963
  Interest expense                                  214,950       156,798
  Depreciation and amortization                     254,810       252,070
                                               ------------  ------------
    Total expenses                                  857,496       774,831
                                               ------------  ------------
      Net loss                                  $   (75,763)  $   (42,511)
                                               ============  ============
Other partners' share of net loss               $    (6,910)  $      (425)
                                               ============  ============
Partnerships' share of net loss                 $   (68,853)  $   (42,086)
Suspended losses                                          0             0
                                               ------------  ------------
Equity in Losses of Project Partnerships        $   (68,853)  $   (42,086)
                                               ============  ============

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

   In  accordance with the Partnership's policy of presenting the financial
information of the Project Partnerships on a three month lag, below is  the
summarized financial information for the Series' Project Partnerships as of
June 30, of each year:
                                                1999            1998
TOTAL SERIES 7 - 11                             ----            ----
SUMMARIZED BALANCE SHEETS
Assets:
  Current assets                              $  9,824,123   $  8,865,208
  Investment properties, net                   124,075,863    128,635,691
  Other assets                                      96,988        226,370
                                              ------------   ------------
    Total assets                              $133,996,974   $137,727,269
                                              ============   ============
Liabilities and Partners' Equity:
  Current liabilities                         $  3,198,385   $  3,141,778
  Long-term debt                               120,066,042    120,553,110
                                              ------------   ------------
    Total liabilities                          123,264,427    123,694,888
                                              ------------   ------------
Partners' equity
  Limited Partner                               11,128,422     14,243,205
  General Partners                                (395,875)      (210,824)
                                               -----------    -----------
    Total Partners' equity                      10,732,547     14,032,381
                                               -----------    -----------
    Total liabilities and partners' equity    $133,996,974   $137,727,269
                                              ============   ============
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income                       $  6,686,146   $  6,596,617
Expenses:                                     ------------   ------------
  Operating expenses                             4,149,571      3,983,088
  Interest expense                               1,656,444      1,570,324
  Depreciation and amortization                  2,511,348      2,551,887
                                              ------------   ------------
    Total expenses                               8,317,363      8,105,299
                                              ------------   ------------
      Net loss                                $ (1,631,217)  $ (1,508,682)
                                              ============   ============
Other partners' share of net loss             $    (24,177)  $    (15,087)
                                              ============   ============
Partnerships' share of net loss               $ (1,607,040)  $ (1,493,595)
Suspended losses                                   240,559         49,939
                                              ------------   ------------
Equity in Losses of Project Partnerships      $ (1,366,481)  $ (1,443,656)
                                              ============   ============

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

Results of Operations, Liquidity and Capital Resources

  As  disclosed on the statement of operations for each Series,  except  as
described below, interest income is comparable for the six and three months
ended  September  30,  1999  and  September  30,  1998.   The  General  and
Administrative  expenses - General Partner and General  and  Administrative
expenses - Other for the three and six months ended September 30, 1999  are
comparable to September 30, 1998.  There were no unusual variations in  the
operating results between these two periods.

   The  capital  resources  of each Series are  used  to  pay  General  and
Administrative   operating  costs  including  personnel,   supplies,   data
processing,   travel   and  legal  and  accounting  associated   with   the
administration and monitoring of Gateway and the Project Partnerships.  The
capital  resources are also used to pay the Asset Management  Fee  due  the
Managing  General Partner, but only to the extent that Gateway's  remaining
resources are sufficient to fund Gateway's ongoing needs.  (Payment of  any
Asset Management Fee unpaid at the time Gateway sells its interests in  the
Project  Partnerships  is subordinated to the investors'  return  of  their
original capital contribution.)

  The sources of funds to pay the operating costs of each Series are short-
term investments and interest earned thereon, the maturity of U.S. Treasury
Security Strips ("Zero Coupon Treasuries") which were purchased with  funds
set  aside  for this purpose, and cash distributed to the Series  from  the
operations of the Project Partnerships.

  Series 7 - Gateway closed this series on October 16, 1992 after receiving
$10,395,000  from  635  Limited Partner investors.   Equity  in  Losses  of
Project  Partnerships for the six months ended September 30, 1999 decreased
from $492,501 for the six months ended September 30, 1998 to $404,209 as  a
result  of not including losses of $143,134 in 1999 as compared to  $20,401
in  1998,  as  these losses would reduce the investment in certain  Project
Partnerships  below  zero.  In general, it is common  in  the  real  estate
industry  to  experience  losses for financial and tax  reporting  purposes
because  of  the non-cash expenses of depreciation and amortization.  As  a
result,  management  expects that this Series, as well as  those  described
below, will report its equity in Project Partnerships as a loss for tax and
financial  reporting  purposes.  Overall, management believes  the  Project
Partnerships are operating as expected and are generating tax credits which
meet projections.

  At  September 30, 1999, the Series had $261,927 of short-term investments
(Cash  and  Cash  Equivalents).   It  also  had  $448,191  in  Zero  Coupon
Treasuries  with  annual maturities providing $53,000 in fiscal  year  2000
increasing to $80,000 in fiscal year 2008.  Management believes the sources
of funds are sufficient to meet current and ongoing operating costs for the
foreseeable future, and to pay part of the Asset Management Fee.

  As disclosed on the statement of cash flows, the Series had a net loss of
$455,596  for  the  six  months ended September 30, 1999.   However,  after
adjusting for Equity in Losses of Project Partnerships of $404,209 and  the
changes  in  operating assets and liabilities, net cash used  in  operating
activities  was  $54,937.  Cash  provided by investing  activities  totaled
$17,551  consisting   of cash distributions from the Project  Partnerships.
There were no unusual events or trends to describe.

  Series  8  -  Gateway  closed this Series on  September  28,  1993  after
receiving $9,980,000 from 664 Limited Partner investors.  Equity in  Losses
of  Project  Partnerships  for  the six months  ended  September  30,  1999
decreased  from  $530,733 for the six months ended September  30,  1998  to
$438,478 as a result of not including losses of $97,425 in 1999 as compared
to  $29,538 in 1998, as these losses would reduce the investment in certain
Project  Partnerships below zero.  At September 30, 1999,  the  Series  had
$372,398  of short-term investments (Cash and Cash Equivalents).   It  also
had  $424,445  in  Zero Coupon Treasuries with annual maturities  providing
$48,000  in  fiscal  year 2000 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
$490,507  for  the  six  months ended September 30, 1999.   However,  after
adjusting for Equity in Losses of Project Partnerships of $438,478 and  the
changes  in  operating assets and liabilities, net cash used  in  operating
activities  was  $53,177.   Cash provided by investing  activities  totaled
$13,973,  consisting  of cash distributions from the Project  Partnerships.
There were no unusual events or trends to describe.

 Series 9 - Gateway closed this Series on December 31, 1993 after receiving
$6,254,000 from 406 Limited Partner investors.  Equity in Losses of Project
Partnerships  for the six months ended September 30, 1998  were  comparable
for  the  six months ended September 30, 1999.  At September 30, 1999,  the
Series  had $176,059 of short-term investments (Cash and Cash Equivalents).
It  also  had  $283,126  in Zero Coupon Treasuries with  annual  maturities
providing $31,000 in fiscal year 2000 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
$332,408  for  the  six  months ended September 30, 1999.   However,  after
adjusting for Equity in Losses of Project Partnerships of $303,640 and  the
changes  in  operating assets and liabilities, net cash used  in  operating
activities  was  $25,405.   Cash provided by investing  activities  totaled
$5,846,  consisting  of  cash distributions from the Project  Partnerships.
There were no unusual events or trends to describe.

 Series 10 - Gateway closed this Series on January 21, 1994 after receiving
$5,043,000 from 325 Limited Partner investors.  Equity in Losses of Project
Partnerships  for the six months ended September 30, 1998  were  comparable
for  the  six months ended September 30, 1999.  At September 30, 1999,  the
Series  had $190,062 of short-term investments (Cash and Cash Equivalents).
It  also  had  $228,506  in Zero Coupon Treasuries with  annual  maturities
providing $24,000 in fiscal year 2000 increasing to $40,000 in fiscal  year
2010.   Management  believes the sources of funds are  sufficient  to  meet
current and ongoing operating costs for the foreseeable future, and to  pay
part of the Asset Management Fee.

  As disclosed on the statement of cash flows, the Series had a net loss of
$167,385  for  the  six  months ended September 30, 1999.   However,  after
adjusting for Equity in Losses of Project Partnerships of $151,302 and  the
changes  in   operating assets and liabilities, net cash used in  operating
activities  was  $30,993.   Cash provided by investing  activities  totaled
$4,489,  consisting  of  cash distributions from the Project  Partnerships.
There were no unusual events or trends to describe.

  Series  11 - Gateway closed this Series on April 29, 1994 after receiving
$5,127,000  from  330  Limited  investors.  Equity  in  losses  of  Project
Partnerships  for the six months ended September 30, 1998  were  comparable
for  the  six months ended September 30, 1999.  At September 30, 1999,  the
Series  had $193,961 of short-term investments (Cash and Cash Equivalents).
It  also  had  $248,167  in Zero Coupon Treasuries with  annual  maturities
providing $24,000 in fiscal year 2000 increasing to $44,000 in fiscal  year
2010.   Management  believes the sources of funds are  sufficient  to  meet
current and ongoing operating costs for the foreseeable future, and to  pay
part of the Asset Management Fee.

  As disclosed on the statement of cash flows, the Series had a net loss of
$80,464  for  the  six  months ended September 30,  1999.   However,  after
adjusting for Equity in Losses of Project Partnerships of $68,853  and  the
changes  in  operating assets and liabilities, net cash used  in  operating
activities was $31,555.  Cash provided by investing activities totaled
$2,492, consisting of cash distributions from Project Partnerships.   There
were no unusual events or trends to describe.



                           SIGNATURES


  Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed by the following persons on behalf of the Registrant
and in the capacities and on the dates indicated.


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





Date: October 29, 1999     By:/s/ Ronald M. Diner
                           Ronald M. Diner
                           President



Date: October 29, 1999     By:/s/ Sandra L. Furey
                           Sandra L. Furey
                           Secretary and Treasurer