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

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

For the quarterly period ended June 30, 2007

OR

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

For the transition period from  to

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                    (IRS 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) 567-1000

Indicate by check mark whether the Registrant: (1) has filed all reports 
required to be filed by Section 13 or 15(d) of the Securities Exchange Act 
of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to 
such filing requirements for the past 90 days.
                                              YESX      NO
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer.  See definition of "accelerated filer and large accelerated filer" in Rule 12b-2 of the Exchange Act.
Large accelerated filer [ ]  Accelerated filer [ ]  Non-accelerated filer [X]
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes [ ]     No [X]

---

PART I - Financial Information

Item 1.  Financial Statements.

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

|SERIES 7                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | JUNE 30,
2007  
----------
(Unaudited)                                                                                                                                                                                            | MARCH 31,
2007  
---------
(Audited)                                                                                                                                                                                              
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ASSETS
Current Assets:
 Cash and Cash Equivalents
 Investments in Securities
  Total Current Assets
 Investments in Project Partnerships, Net
    Total Assets
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners
  Total Current Liabilities
Long-Term Liabilities:
 Payable to General Partners
Partners' Equity (Deficit):
Limited Partners (10,395 units for Series 7 at June 30, 2007 and March 31, 2007)
General Partners
  Total Partners' Equity
    Total Liabilities and Partners' Equity | $  158,622 
288,691 
-----------
447,313 
435,815 
-----------
$  883,128 
===========
$   55,744 
-----------
55,744 
-----------
751,751 
-----------
166,155 
(90,522)
-----------
75,633 
-----------
$  883,128 
=========== | $  179,018 
284,519 
-----------
463,537 
442,787 
-----------
$  906,324 
===========
$   60,257 
-----------
60,257 
-----------
730,352 
-----------
205,836 
(90,121)
-----------
115,715 
-----------
$  906,324 
===========



See accompanying notes to financial statements.

---

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

|SERIES 8                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | JUNE 30,
2007  
---------
(Unaudited)                                                                                                                                                                                                       | MARCH 31,
2007  
--------
(Audited)                                                                                                                                                                                                      
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ASSETS
Current Assets:
 Cash and Cash Equivalents
 Investments in Securities
 Accounts Receivable
  Total Current Assets
 Investments in Project Partnerships, Net
    Total Assets
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners
  Total Current Liabilities
Long-Term Liabilities:
 Payable to General Partners
Partners' Equity (Deficit):
Limited Partners (9,980 units for Series 8 at June 30, 2007 and March 31, 2007)
General Partners
  Total Partners' Deficit
    Total Liabilities and Partners' Deficit | $  106,279 
207,867 
24,220 
-----------
338,366 
377,894 
-----------
$  716,260 
===========
$   46,797 
-----------
46,797 
-----------
795,931 
-----------
(37,578)
(88,890)
-----------
(126,468)
-----------
$  716,260 
=========== | $  135,130 
204,835 
24,220 
-----------
364,185 
377,733 
-----------
$  741,918 
===========
$   51,149 
-----------
51,149 
-----------
773,676 
-----------
5,547 
(88,454)
-----------
(82,907)
-----------
$  741,918 
============



See accompanying notes to financial statements.

---

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

|SERIES 9                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | JUNE 30,
2007  
---------
(Unaudited)                                                                                                                                                                                                      | MARCH 31,
2007  
--------
(Audited)                                                                                                                                                                                                       
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ASSETS
Current Assets:
 Cash and Cash Equivalents
 Investments in Securities
  Total Current Assets
 Investments in Securities
 Investments in Project Partnerships, Net
    Total Assets
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners
    Total Current Liabilities
Long-Term Liabilities:
 Payable to General Partners
Partners' Equity (Deficit):
Limited Partners (6,254 units for Series 9 at June 30, 2007 and March 31, 2007)
General Partners
  Total Partners' Equity
    Total Liabilities and Partners' Equity | $   50,836 
172,571 
-----------
223,407 
42,377 
391,772 
-----------
$  657,556 
===========
$   26,715 
-----------
26,715 
-----------
490,158 
-----------
194,112 
(53,429)
-----------
140,683 
-----------
$  657,556 
=========== | $   70,044 
170,233 
-----------
240,277 
41,709 
412,287 
-----------
$  694,273 
===========
$   29,911 
-----------
29,911 
-----------
477,891 
-----------
239,442 
(52,971)
-----------
186,471 
-----------
$  694,273 
===========



See accompanying notes to financial statements.

---

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

|SERIES 10                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | JUNE 30,
2007  
---------
(Unaudited)                                                                                                                                                                                                           | MARCH 31,
2007  
--------
(Audited)                                                                                                                                                                                                            
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ASSETS
Current Assets:
 Cash and Cash Equivalents
 Investments in Securities
  Total Current Assets
 Investments in Securities
 Investments in Project Partnerships, Net
    Total Assets
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners
    Total Current Liabilities
Long-Term Liabilities:
 Payable to General Partners
Partners' Equity (Deficit):
Limited Partners (5,043 units for Series 10 at June 30, 2007 and March 31, 2007)
General Partners
  Total Partners' Equity (Deficit)
    Total Liabilities and Partners' Equity | $   27,573 
135,760 
-----------
163,333 
66,084 
1,143,309 
-----------
$1,372,726 
===========
$   29,256 
-----------
29,256 
-----------
87,151 
-----------
1,287,934 
(31,615)
-----------
1,256,319 
-----------
$1,372,726 
=========== | $   40,351 
133,864 
-----------
174,215 
64,917 
1,159,544 
-----------
$1,398,676 
===========
$   31,747 
-----------
31,747 
-----------
78,767 
-----------
1,319,459 
(31,297)
-----------
1,288,162 
-----------
$1,398,676 
===========



See accompanying notes to financial statements.

---

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

|SERIES 11                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | JUNE 30,
2007  
---------
(Unaudited)                                                                                                                                                                                       | MARCH 31,
2007  
--------
(Audited)                                                                                                                                                                                        
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ASSETS
Current Assets:
 Cash and Cash Equivalents
 Investments in Securities
  Total Current Assets
 Investments in Securities
 Investments in Project Partnerships, Net
    Total Assets
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners
  Total Current Liabilities
Partners' Equity (Deficit):
Limited Partners (5,127 units for Series 11 at June 30, 2007 and March 31, 2007)
General Partners
  Total Partners' Equity
    Total Liabilities and Partners' Equity | $   43,316 
192,989 
-----------
236,305 
73,343 
1,459,367 
-----------
$1,769,015 
===========
$   38,525 
-----------
38,525 
-----------
1,759,175 
(28,685)
-----------
1,730,490 
-----------
$1,769,015 
=========== | $   53,170 
190,291 
-----------
243,461 
71,973 
1,505,978 
-----------
$1,821,412 
===========
$   34,115 
-----------
34,115 
-----------
1,815,414 
(28,117)
-----------
1,787,297 
-----------
$1,821,412 
===========



See accompanying notes to financial statements.

---

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

|TOTAL SERIES 7 - 11                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | JUNE 30,
2007  
---------
(Unaudited)                                                                                                                                                                                                                                | MARCH 31,
2007  
--------
(Audited)                                                                                                                                                                                                                                
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ASSETS
Current Assets:
 Cash and Cash Equivalents
 Investments in Securities
 Accounts Receivable
  Total Current Assets
 Investments in Securities
 Investments in Project Partnerships, Net
    Total Assets
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners
  Total Current Liabilities
Long-Term Liabilities:
 Payable to General Partners
Partners' Equity (Deficit):
Limited Partners (10,395 units for Series 7, 9,980 for Series 8, 6,254 for Series 9, 5,043 for Series 10 and 5,127 for Series 11 at June 30, 2007 and March 31, 2007)
General Partners
  Total Partners' Equity
    Total Liabilities and Partners' Equity | $   386,626 
997,878 
24,220 
------------
1,408,724 
181,804 
3,808,157 
-----------
$ 5,398,685 
===========
$   197,037 
-----------
197,037 
-----------
2,124,991 
-----------
3,369,798 
(293,141)
-----------
3,076,657 
-----------
$ 5,398,685 
=========== | $   477,713 
983,742 
24,220 
-----------
1,485,675 
178,599 
3,898,329 
-----------
$ 5,562,603 
===========
$   207,179 
-----------
207,179 
-----------
2,060,686 
-----------
3,585,698 
(290,960)
-----------
3,294,738 
-----------
$ 5,562,603 
===========



See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2007 and 2006
(Unaudited)

|SERIES 7                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | 2007
----                                                                                                                                                                                                                                                             | 2006
----                                                                                                                                                                                                                                                             
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Distribution Income
  Total Revenues
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Losses of Project
 Partnerships and Other Income
 Equity in Losses of Project Partnerships
 Interest Income
Net Loss
Allocation of Net Loss:
 Limited Partners
 General Partners
Net Loss Per Number of Limited Partnership
Units
Number of Limited Partnership Units
Outstanding | $   15,500 
-----------
15,500 
-----------
21,399 
28,957 
4,376 
6,535 
-----------
61,267 
-----------
(45,767)
(437)
6,122 
-----------
$  (40,082)
===========
$  (39,681)
(401)
-----------
$  (40,082)
===========
$    (3.82)
===========
10,395 
=========== | $    4,626 
-----------
4,626 
-----------
21,509 
23,938 
2,883 
8,721 
-----------
57,051 
-----------
(52,425)
(8,794)
6,903 
-----------
$  (54,316)
===========
$  (53,773)
(543)
-----------
$  (54,316)
===========
$    (5.17)
===========
10,395 
===========



See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2007 and 2006
(Unaudited)

|SERIES 8                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 2007
----                                                                                                                                                                                                                                                            | 2006
----                                                                                                                                                                                                                                                           
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Distribution Income
 Total Revenues
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Income of Project  Partnerships and Other Income
 Equity in Income of Project Partnerships
 Interest Income
Net Loss
Allocation of Net Loss:
 Limited Partners
 General Partners
Net Loss Per Number of Limited
Partnership Units
Number of Limited Partnership Units
Outstanding | $    8,305 
-----------
8,305 
-----------
22,255 
31,927 
2,357 
3,205 
-----------
59,744 
-----------
(51,439)
3,366 
4,512 
-----------
$  (43,561)
===========
$  (43,125)
(436)
-----------
$  (43,561)
===========
$    (4.32)
===========
9,980 
=========== | $    7,529 
-----------
7,529 
-----------
22,372 
26,393 
2,621 
3,206 
-----------
54,592 
-----------
(47,063)
7,220 
5,727 
-----------
$  (34,116)
===========
$  (33,775)
(341)
-----------
$  (34,116)
===========
$    (3.38)
===========
9,980 
===========



See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2007 and 2006
(Unaudited)

|SERIES 9                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | 2007
----                                                                                                                                                                                                                                                              | 2006
----                                                                                                                                                                                                                                                             
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Distribution Income
  Total Revenues
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Losses of Project
 Partnerships and Other Income
 Equity in Losses of Project Partnerships
 Interest Income
Net Loss
Allocation of Net Loss:
 Limited Partners
 General Partners
Net Loss Per Number of Limited Partnership
Units
Number of Limited Partnership Units
Outstanding | $    4,003 
-----------
4,003 
-----------
12,267 
17,820 
2,934 
3,013 
-----------
36,034 
-----------
(32,031)
(17,502)
3,745 
-----------
$  (45,788)
===========
$  (45,330)
(458)
-----------
$  (45,788)
===========
$    (7.25)
===========
6,254 
=========== | $    4,809 
-----------
4,809 
-----------
12,325 
14,731 
1,220 
3,013 
-----------
31,289 
-----------
(26,480)
(11,605)
4,198 
-----------
$  (33,887)
===========
$  (33,548)
(339)
-----------
$  (33,887)
===========
$    (5.36)
===========
6,254 
===========



See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2007 and 2006
(Unaudited)

|SERIES 10                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 2007
----                                                                                                                                                                                                                                                            | 2006
----                                                                                                                                                                                                                                                          
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Distribution Income
  Total Revenues
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Losses of Project
 Partnerships and Other Income
 Equity in Losses of Project Partnerships
 Interest Income
Net Loss
Allocation of Net Loss:
 Limited Partners
 General Partners
Net Loss Per Number of Limited Partnership
Units
Number of Limited Partnership Units
Outstanding | $    1,380 
-----------
1,380 
-----------
8,384 
11,137 
1,705 
6,026 
-----------
27,252 
-----------
(25,872)
(9,459)
3,488 
-----------
$  (31,843)
===========
$  (31,525)
(318)
-----------
$  (31,843)
===========
$    (6.25)
===========
5,043 
=========== | $    1,381 
-----------
1,381 
-----------
8,420 
9,207 
1,445 
6,027 
-----------
25,099 
-----------
(23,718)
(9,512)
3,690 
-----------
$  (29,540)
===========
$  (29,245)
(295)
-----------
$  (29,540)
===========
$    (5.80)
===========
5,043 
===========



See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2007 and 2006
(Unaudited)

|SERIES 11                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 2007
----                                                                                                                                                                                                                                                            | 2006
----                                                                                                                                                                                                                                                   
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Distribution Income
  Total Revenues
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in (Losses) Income of  Project Partnerships and Other Income
 Equity in (Losses) Income of Project  Partnerships
 Interest Income
Net Loss
Allocation of Net Loss:
 Limited Partners
 General Partners
Net Loss Per Number of Limited Partnership
Units
Number of Limited Partnership Units
Outstanding | $    2,182 
-----------
2,182 
-----------
6,938 
8,910 
1,958 
8,374 
-----------
26,180 
-----------
(23,998)
(37,437)
4,628 
-----------
$  (56,807)
===========
$  (56,239)
(568)
-----------
$  (56,807)
===========
$   (10.97)
===========
5,127 
=========== | $        0 
-----------
0 
-----------
6,938 
7,365 
933 
8,374 
-----------
23,610 
-----------
(23,610)
15,180 
4,680 
-----------
$   (3,750)
===========
$   (3,712)
(38)
-----------
$   (3,750)
===========
$     (.72)
===========
5,127 
===========



See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2007 and 2006
(Unaudited)

|TOTAL SERIES 7 - 11                                                                                                                                                                                                                                                                                                                                                                          | 2007
----                                                                                                                                                                                                                           | 2006
----                                                                                                                                                                                                                        
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Distribution Income
  Total Revenues
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Losses of Project
 Partnerships and Other Income
 Equity in Losses of Project Partnerships
 Interest Income
Net Loss
Allocation of Net Loss:
 Limited Partners
 General Partners | $   31,370 
-----------
31,370 
-----------
71,243 
98,751 
13,330 
27,153 
-----------
210,477 
-----------
(179,107)
(61,469)
22,495 
-----------
$ (218,081)
===========
$ (215,900)
(2,181)
-----------
$ (218,081)
=========== | $   18,345 
-----------
18,345 
-----------
71,564 
81,634 
9,102 
29,341 
-----------
191,641 
-----------
(173,296)
(7,511)
25,198 
-----------
$ (155,609)
===========
$ (154,053)
(1,556)
-----------
$ (155,609)
===========



See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
FOR THE THREE MONTHS ENDED JUNE 30, 2007 AND 2006:
(Unaudited)

|SERIES 7                                                                                                                | Limited
Partners
---------                                                                                                | General
Partners
--------                                                                                     | Total
-----                                                                                                             
|----------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 2006
Net Loss
Balance at June 30, 2006
Balance at March 31, 2007
Net Loss
Balance at June 30, 2007 | $   568,818 
(53,773)
------------
$   515,045 
============
$   205,836 
(39,681)
------------
$   166,155 
============ | $  (86,455)
(543)
-----------
$  (86,998)
===========
$  (90,121)
(401)
------------
$  (90,522)
============ | $   482,363 
(54,316)
-----------
$   428,047 
============
$   115,715 
(40,082)
------------
$    75,633 
============



See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
FOR THE THREE MONTHS ENDED JUNE 30, 2007 AND 2006:
(Unaudited)

|SERIES 8                                                                                                                | Limited
Partners
---------                                                                                                | General
Partners
--------                                                                                   | Total
-----                                                                                                             
|----------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 2006
Net Loss
Balance at June 30, 2006
Balance at March 31, 2007
Net Loss
Balance at June 30, 2007 | $   243,770 
(33,775)
------------
$   209,995 
============
$     5,547 
(43,125)
------------
$   (37,578)
============ | $  (86,048)
(341)
-----------
$  (86,389)
===========
$  (88,454)
(436)
-----------
$  (88,890)
=========== | $   157,722 
(34,116)
-----------
$   123,606 
============
$   (82,907)
(43,561)
------------
$  (126,468)
============



See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
FOR THE THREE MONTHS ENDED JUNE 30, 2007 AND 2006:
(Unaudited)

|SERIES 9                                                                                                                | Limited
Partners
---------                                                                                                | General
Partners
--------                                                                                     | Total
-----                                                                                                          
|----------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 2006
Net Loss
Balance at June 30, 2006
Balance at March 31, 2007
Net Loss
Balance at June 30, 2007 | $   485,089 
(33,548)
------------
$   451,541 
============
$   239,442 
(45,330)
------------
$   194,112 
============ | $  (50,490)
(339)
-----------
$  (50,829)
===========
$  (52,971)
(458)
------------
$  (53,429)
============ | $  434,599 
(33,887)
------------
$  400,712 
============
$  186,471 
(45,788)
------------
$  140,683 
============



See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
FOR THE THREE MONTHS ENDED JUNE 30, 2007 AND 2006:
(Unaudited)

|SERIES 10                                                                                                               | Limited
Partners
---------                                                                                                | General
Partners
--------                                                                                     | Total
-----                                                                                                              
|----------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 2006
Net Loss
Balance at June 30, 2006
Balance at March 31, 2007
Net Loss
Balance at June 30, 2007 | $ 1,578,554 
(29,245)
------------
$ 1,549,309 
============
$ 1,319,459 
(31,525)
------------
$ 1,287,934 
============ | $  (28,680)
(295)
-----------
$  (28,975)
===========
$  (31,297)
(318)
------------
$  (31,615)
============ | $ 1,549,874 
(29,540)
------------
$ 1,520,334 
============
$ 1,288,162 
(31,843)
------------
$ 1,256,319 
============



See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
FOR THE THREE MONTHS ENDED JUNE 30, 2007 AND 2006:
(Unaudited)

|SERIES 11                                                                                                            | Limited
Partners
---------                                                                                              | General
Partners
--------                                                                                    | Total
-----                                                                                                            
|-------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------ | -----------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 2006
Net Loss
Balance at June 30, 2006
Balance March 31, 2007
Net Loss
Balance at June 30, 2007 | $ 2,281,421 
(3,712)
------------
$ 2,277,709 
============
$ 1,815,414 
(56,239)
------------
$1,759,175 
============ | $  (23,410)
(38)
-----------
$  (23,448)
===========
$  (28,117)
(568)
------------
$  (28,685)
============ | $ 2,258,011 
(3,750)
-----------
$ 2,254,261 
============
$ 1,787,297 
(56,807)
------------
$ 1,730,490 
============



See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
FOR THE THREE MONTHS ENDED JUNE 30, 2007 AND 2006:
(Unaudited)

|TOTAL SERIES 7 - 11                                                                                                     | Limited
Partners
---------                                                                                                  | General
Partners
--------                                                                                         | Total
-----                                                                                                               
|----------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 2006
Net Loss
Balance at June 30, 2006
Balance at March 31, 2007
Net Loss
Balance at June 30, 2007 | $ 5,157,652 
(154,053)
------------
$ 5,003,599 
============
$ 3,585,698 
(215,900)
------------
$ 3,369,798 
============ | $ (275,083)
(1,556)
-----------
$ (276,639)
===========
$ (290,960)
(2,181)
------------
$ (293,141)
============ | $ 4,882,569 
(155,609)
-----------
$ 4,726,960 
============
$ 3,294,738 
(218,081)
------------
$ 3,076,657 
============



See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED JUNE 30, 2007 and 2006
(Unaudited)

|SERIES 7
--------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | 2007
----                                                                                                                                                                                | 2006
----                                                                                                                                                                      
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Cash Flows from Operating Activities:
  Net Loss
  Adjustments to Reconcile Net Loss to Net
  Cash Used in Operating Activities:
   Amortization
   Accreted Interest Income on Investments
   in Securities
   Accreted Discount on Investments in    Securities
   Equity in Losses of Project Partnerships
   Distribution Income
   Changes in Operating Assets and Liabilities:
    Increase in Interest Receivable
    Increase in Payable to General Partners
     Net Cash Used in Operating Activities
Cash Flows from Investing Activities:
 Distributions Received from Project
 Partnerships
     Net Cash Provided by Investing
     Activities
Decrease in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of
Year
Cash and Cash Equivalents at End of Period | $  (40,082)
6,535 
(1,516)
(822)
437 
(15,500)
(1,834)
16,886 
----------
(35,896)
----------
15,500 
----------
15,500 
----------
(20,396)
179,018 
----------
$  158,622 
=========== | $  (54,316)
8,721 
(2,821)
0 
8,794 
(4,626)
0 
15,493 
----------
(28,755)
----------
8,812 
----------
8,812 
----------
(19,943)
394,030 
----------
$  374,087 
===========



See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)STATEMENTS OF CASH FLOWSFOR THE THREE MONTHS ENDED JUNE 30, 2007 and 2006
(Unaudited)

|SERIES 8
--------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 2007
----                                                                                                                                                                                 | 2006
----                                                                                                                                                                          
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Cash Flows from Operating Activities:
  Net Loss
  Adjustments to Reconcile Net Loss to Net
  Cash Used In Operating Activities:
   Amortization
   Accreted Interest Income on Investments
   in Securities
   Accreted Discount on Investment in Securities
   Equity in Income of Project Partnerships
   Distribution Income
   Changes in Operating Assets and Liabilities:
    Increase in Interest Receivable
    Increase in Payable to General Partners
     Net Cash Used in Operating Activities
Cash Flows from Investing Activities:
 Distributions Received from Project
 Partnerships
     Net Cash Provided by Investing Activities
Decrease in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of
Year
Cash and Cash Equivalents at End of Period | $  (43,561)
3,205 
(1,369)
(515)
(3,366)
(8,305)
(1,148)
17,903 
----------
(37,156)
----------
8,305 
----------
8,305 
----------
(28,851)
135,130 
-----------
$  106,279 
=========== | $  (34,116)
3,206 
(2,549)
0 
(7,220)
(7,529)
0 
15,753 
----------
(32,455)
----------
10,487 
----------
10,487 
----------
(21,968)
309,318 
-----------
$  287,350 
===========



See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED JUNE 30, 2007 and 2006
(Unaudited)

|SERIES 9
--------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 2007
----                                                                                                                                                                              | 2006
----                                                                                                                                                                      
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Cash Flows from Operating Activities:
  Net Loss
  Adjustments to Reconcile Net Loss to Net
  Cash Used in Operating Activities:
   Amortization
   Accreted Interest Income on Investments
   in Securities
   Accreted Discount on Investments in    Securities
   Equity in Losses of Project Partnerships
   Distribution Income
   Changes in Operating Assets and Liabilities:
    Increase in Interest Receivable
    Increase in Payable to General Partners
     Net Cash Used in Operating Activities
Cash Flows from Investing Activities:
  Distributions Received from Project
  Partnerships
     Net Cash Provided by Investing Activities
Decrease in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of
Year
Cash and Cash Equivalents at End of Period | $  (45,788)
3,013 
(1,344)
(514)
17,502 
(4,003)
(1,148)
9,071 
----------
(23,211)
----------
4,003 
----------
4,003 
----------
(19,208)
70,044 
----------
$   50,836 
=========== | $  (33,887)
3,013 
(1,898)
0 
11,605 
(4,809)
0 
7,991 
----------
(17,985)
----------
5,409 
----------
5,409 
----------
(12,576)
222,993 
----------
$  210,417 
===========



See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED JUNE 30, 2007 and 2006
(Unaudited)

|SERIES 10
--------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 2007
----                                                                                                                                                                           | 2006
----                                                                                                                                                                   
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Cash Flows from Operating Activities:
  Net Loss
  Adjustments to Reconcile Net Loss to Net
  Cash Used in Operating Activities:
   Amortization
   Accreted Interest Income on Investments
   in Securities
   Accreted Discount on Investments in    Securities
   Equity in Losses of Project Partnerships
   Distribution Income
   Changes in Operating Assets and Liabilities:
    Increase in Interest Receivable
    Increase in Payable to General Partners
     Net Cash Used in Operating Activities
Cash Flows from Investing Activities:
  Distributions Received from Project
  Partnerships
     Net Cash Provided by Investing Activities
Decrease in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of
Year
Cash and Cash Equivalents at End of Period | $  (31,843)
6,026 
(1,741)
(409)
9,459 
(1,380)
(913)
5,893 
----------
(14,908)
----------
2,130 
----------
2,130 
----------
(12,778)
40,351 
----------
$   27,573 
=========== | $  (29,540)
6,027 
(2,156)
0 
9,512 
(1,381)
0 
5,217 
----------
(12,321)
---------
8,157 
----------
8,157 
----------
(4,164)
144,697 
----------
$  140,533 
===========



See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED JUNE 30, 2007 and 2006
(Unaudited)

|SERIES 11
--------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 2007
----                                                                                                                                                                             | 2006
----                                                                                                                                                                   
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Cash Flows from Operating Activities:
  Net Loss
  Adjustments to Reconcile Net Loss to Net
  Cash Used in Operating Activities:
   Amortization
   Accreted Interest Income on Investments
   in Securities
   Accreted Discount on Investments in    Securities
   Equity in Losses (Income) of Project
   Partnerships
   Distribution Income
   Changes in Operating Assets and Liabilities:
    Increase in Interest Receivable
    Increase (Decrease) in Payable to General     Partners
     Net Cash Used in Operating Activities
Cash Flows from Investing Activities:
   Distributions Received from Project
   Partnerships
     Net Cash Provided by Investing Activities
Decrease in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of
Year
Cash and Cash Equivalents at End of Period | $  (56,807)
8,374 
(2,079)
(615)
37,437 
(2,182)
(1,374)
4,410 
----------
(12,836)
----------
2,982 
----------
2,982 
----------
(9,854)
53,170 
----------
$   43,316 
=========== | $   (3,750)
8,374 
(2,595)
0 
(15,180)
0 
0 
(3,288)
----------
(16,439)
----------
1,787 
----------
1,787 
----------
(14,652)
207,490 
----------
$  192,838 
===========



See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED JUNE 30, 2007 and 2006
(Unaudited)

|TOTAL SERIES 7 - 11
-------------------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 2007
----                                                                                                                                                                                        | 2006
----                                                                                                                                                                               
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Cash Flows from Operating Activities:
  Net Loss
  Adjustments to Reconcile Net Loss to Net
  Cash Used in Operating Activities:
   Amortization
   Accreted Interest Income on Investments
   in Securities
   Accreted Discount on Investments in    Securities
   Equity in Losses of Project Partnerships
   Distribution Income
   Changes in Operating Assets and Liabilities:
    Increase in Interest Receivable
    Increase in Payable to General Partners
     Net Cash Used in Operating Activities
Cash Flows from Investing Activities:
   Distributions Received from Project
   Partnerships
     Net Cash Provided by Investing Activities
Decrease in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of
Year
Cash and Cash Equivalents at End of Period | $  (218,081)
27,153 
(8,049)
(2,875)
61,469 
(31,370)
(6,417)
54,163 
----------
(124,007)
----------
32,920 
----------
32,920 
----------
(91,087)
477,713 
----------
$  386,626 
=========== | $  (155,609)
29,341 
(12,019)
0 
7,511 
(18,345)
0 
41,166 
----------
(107,955)
----------
34,652 
----------
34,652 
----------
(73,303)
1,278,528 
----------
$1,205,225 
===========



See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2007
(Unaudited)

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 ("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 (the "Agreement").  As of June 30, 2007, 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.
   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 is 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 are 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 Agreement.NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES:
Basis of Accounting   Gateway utilizes an accrual basis of accounting whereby revenues are recognized as earned and expenses are recognized as obligations are incurred.
   Gateway accounts for its investments as the limited partner in Project Partnerships ("Investments in Project Partnerships"), using the equity method of accounting, because management believes that Gateway does not have a majority control of the major operating and financial policies of the Project Partnerships in which it invests, and reports the equity in losses of the Project Partnerships on a 3-month lag in the Statement of Operations.  Under the equity method, the Investments in Project Partnerships initially include:
   1)  Gateway's capital contribution,
   2)  Acquisition fees paid to the General Partner for services rendered in
       selecting properties for acquisition, and
   3)  Acquisition expenses including legal fees, travel and other
       miscellaneous costs relating to acquiring properties.

---

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (Continued):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.
   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.  Any cash distributions received from Project Partnerships which have a zero investment balance are accounted for as distribution income in the period the cash distribution is received by Gateway.
   Gateway reviews its investments in Project Partnerships to determine if there has been any permanent impairment whenever events or changes in circumstances indicate that the carrying amount of the investment may not be recoverable.  If the sum of the expected future cash flows is less than the carrying amount of the investment, Gateway recognizes an impairment loss.  No impairment loss has been recognized in the accompanying financial statements for the three-month period ended June 30, 2007.  For the fiscal year ended March 31, 2007, impairment expense was recognized in the Statement of Operations in the following Series and in the following amounts: Series 7 - $76,196, Series 10 - $46,129, Series 11 - $345,321. The total impairment expense for all Series in Gateway for fiscal year 2007 was $467,646.  Refer to Note 5
- Investment in Project Partnerships for further details regarding the components of the Investment in Project Partnership balance.
   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.  Gateway does not guarantee any of the mortgages or other debt of the Project Partnerships.  No such funding to Project Partnerships occurred during the three months ended June 30, 2007.Cash and Cash Equivalents   Gateway's policy is 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 whose investment advisor 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.

---

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (Continued):Investment in Securities
   Gateway applies 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, which are comprised of U.S. Government Security Strips and U.S. Treasury Notes (collectively the "Gateway Securities"), until maturity and to use these investments to fund Gateway's ongoing operations.  Interest income is recognized ratably on the Gateway Securities using the effective yield to maturity.  The Gateway Securities are carried at amortized cost, which approximates market value, and are adjusted for amortization of premiums and accretion of discounts to maturity.  Such adjustments are included in interest income.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.Variable Interest Entities   In January 2003, the FASB issued FASB Interpretation No. 46 ("FIN46"), "Consolidation of Variable Interest Entities, an Interpretation of ARB No. 51" which was subsequently revised in December 2003.  Gateway has adopted FIN 46 and applied its requirements to all Project Partnerships in which Gateway holds an interest.  Generally, a variable interest entity, or VIE, is an entity with one or more of the following characteristics, (a) the total equity investment at risk is not sufficient to permit the entity to finance its activities without additional subordinated financial support; (b) as a group the holders of the equity investment at risk lack (i) the ability to make decisions about an entity's activities through voting or similar rights, (ii) the obligation to absorb the expected losses of the entity; or (c) the equity investors have voting rights that are not proportional to their economic interests and substantially all of the entity's activities either involve, or are conducted on behalf of, an investor that has disproportionately few voting rights.  FIN 46 requires a VIE to be consolidated in the financial statements of the entity that is determined to be the primary beneficiary of the VIE.  The primary beneficiary, as is applicable to Gateway's circumstances, is the party in the Project Partnership equity group that is most closely associated with the Project Partnership.
   Gateway holds variable interests in 128 VIE's, which consist of Project Partnerships, of which Gateway is not the primary beneficiary.  Five of Gateway's Project Partnership investments were determined not to be VIE's.  Gateway's maximum exposure to loss as a result of its involvement with unconsolidated VIE's is limited to Gateway's recorded investments in and receivables from those VIE's, which is $3,808,157 at June 30, 2007.  Gateway may be subject to additional losses to the extent of any financial support that Gateway voluntarily provides to those Project Partnerships in the future.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 Gateway's report on Form 10-K for the year ended March 31, 2007.  In the opinion of management these financial statements include adjustments, consisting only of normal recurring adjustments, necessary to fairly summarize Gateway's financial position and results of operations.  The results of operations for the periods may not be indicative of the results to be expected for the year.

---

NOTE 3 - INVESTMENT IN SECURITIES:   The June 30, 2007 Balance Sheet includes Gateway Securities at cost, plus accreted interest income or accreted discounts in the case of U.S. Treasury Notes, as applicable, of $61,585 for Series 7, $54,197 for Series 8, $53,813 for Series 9, $64,083 for Series 10 and $75,207 for Series 11.  The Gateway Securities are commonly held in a brokerage account maintained at Raymond James and Associates, Inc., an affiliate of the General Partners.  A separate accounting is maintained for each Series' share of the investments.

|          | Estimated Market
Value
---------------- | Cost Plus Accreted Interest and Accreted Discounts
---------------- | Gross Unrealized
Gains and (Losses)
----------------
|--------- | --------------------------------------- | ------------------------------------------------------------------- | ----------------------------------------------------
|Series 7  | $  286,510                              | $  288,691                                                          | $  (2,181)                                          
|Series 8  | 206,626                                 | 207,867                                                             | (1,241)                                             
|Series 9  | 214,195                                 | 214,948                                                             | (753)                                               
|Series 10 | 202,632                                 | 201,844                                                             | 788                                                 
|Series 11 | 268,541                                 | 266,332                                                             | 2,209                                               

As of June 30, 2007, the cost and accreted interest discount of debt securities by contractual maturities is as follows:

|                                        | Series 7
--------   | Series 8
--------   | Series 9
--------  
|--------------------------------------- | ------------------- | ------------------- | -------------------
|Due within 1 year                       | $ 288,691           | $ 207,867           | $ 172,571          
|After 1 year through 5 years            | 0                   | 0                   | 42,377             
|                                        | ---------           | ---------           | ---------          
|Total Amount Carried on
  Balance Sheet | $ 288,691
========= | $ 207,867
========= | $ 214,948
=========



|                                        | Series 10
--------  | Series 11
--------  | Total
--------       
|--------------------------------------- | ------------------- | ------------------- | ---------------------
|Due within 1 year                       | $ 135,760           | $ 192,989           | $  997,878           
|After 1 year through 5 years            | 66,084              | 73,343              | 181,804              
|                                        | ---------           | ---------           | ---------            
|Total Amount Carried on
  Balance Sheet | $ 201,844
========= | $ 266,332
========= | $1,179,682
==========

---

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.
   Value Partners, Inc., an affiliate of Gateway, acquired the general partner interest in Logan Heights, one of the Project Partnerships in Series 8, in 2003.
   For the three months ended June 30, 2007 and 2006, 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. 
                           2007             2006
                          -----	            -----
  Series 7              $ 21,399         $ 21,509
  Series 8                22,255           22,372
  Series 9                12,267           12,325
  Series 10                8,384            8,420
  Series 11                6,938	            6,938
                        --------         --------
  Total                 $ 71,243         $ 71,564
                        ========	         ========   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.

2007             2006
                           -----            -----
  Series 7             $  28,957        $  23,938
  Series 8                31,927           26,393
  Series 9                17,820           14,731
  Series 10               11,137            9,207
  Series 11                8,910            7,365
                        --------         --------
  Total                 $ 98,751	         $ 81,634
                        ========         ========

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS:SERIES 7   As of June 30, 2007, Gateway 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 the 39 Project Partnerships as of:

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | JUNE 30,
2007
------------                                                                                                 | MARCH 31,
2007
------------                                                                                               
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------
|Capital Contributions to Project Partnerships and purchase price paid for limited partner interests in Project Partnerships
Cumulative equity in losses of Project Partnerships (1)
Cumulative distributions received from Project Partnerships
Investment in Project Partnerships before Adjustment
Excess of investment cost over the underlying assets acquired:
 Acquisition fees and expenses
 Accumulated amortization of acquisition
 fees and expenses
 Reserve for Impairment of Investment in  Project Partnership
Investments in Project Partnerships | $ 7,732,089 
(7,303,455)
(254,317)
-----------
174,317 
793,335 
(262,446)
(269,391)
-----------
$   435,815 
============ | $ 7,732,089 
(7,303,018)
(254,317)
-----------
174,754 
793,335 
(255,911)
(269,391)
-----------
$   442,787 
============

(1) In accordance with Gateway's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $5,458,284 for the period ended June 30, 2007 and cumulative suspended losses of $5,388,453 for the year ended March 31, 2007 are not included.

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

SERIES 8   As of June 30, 2007, Gateway 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 the 43 Project Partnerships as of:

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | JUNE 30,
2007
------------                                                                                       | MARCH 31,
2007
------------                                                                                     
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------
|Capital Contributions to Project Partnerships and purchase price paid for limited partner interests in Project Partnerships
Cumulative equity in losses of Project Partnerships (1)
Cumulative distributions received from Project Partnerships
Investment in Project Partnerships before Adjustment
Excess of investment cost over the underlying assets acquired:
 Acquisition fees and expenses
 Accumulated amortization of acquisition
 fees and expenses
Investments in Project Partnerships | $ 7,586,105 
(7,427,000)
(183,684)
-----------
(24,579)
549,773 
(147,300)
-----------
$   377,894 
============ | $ 7,586,105 
(7,430,366)
(183,684)
-----------
(27,945)
549,773 
(144,095)
-----------
$   377,733 
============

(1) In accordance with Gateway's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $6,282,565 for the period ended June 30, 2007 and cumulative suspended losses of $6,190,831 for the year ended March 31, 2007 are not included.

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):SERIES 9   As of June 30, 2007, Gateway 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 the 24 Project Partnerships as of:

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | JUNE 30,
2007
------------                                                                                                | MARCH 31,
2007
------------                                                                                              
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------
|Capital Contributions to Project Partnerships and purchase price paid for limited partner interests in Project Partnerships
Cumulative equity in losses of Project Partnerships (1)
Cumulative distributions received from Project Partnerships
Investment in Project Partnerships before Adjustment
Excess of investment cost over the underlying assets acquired:
 Acquisition fees and expenses
 Accumulated amortization of acquisition
 fees and expenses
 Reserve for Impairment of Investment in  Project Partnership
Investments in Project Partnerships | $ 4,914,116 
(4,395,493)
(156,970)
-----------
361,653 
244,087 
(86,436)
(127,532)
-----------
$   391,772 
============ | $ 4,914,116 
(4,377,991)
(156,970)
-----------
379,155 
244,087 
(83,423)
(127,532)
-----------
$   412,287 
============

(1) In accordance with Gateway's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $2,093,817 for the period ended June 30, 2007 and cumulative suspended losses of $2,054,048 for the year ended March 31, 2007 are not included.

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):SERIES 10   As of June 30, 2007, Gateway 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 the 15 Project Partnerships as of:

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | JUNE 30,
2007
------------                                                                                                   | MARCH 31,
2007
------------                                                                                                 
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------
|Capital Contributions to Project Partnerships and purchase price paid for limited partner interests in Project Partnerships
Cumulative equity in losses of Project Partnerships (1)
Cumulative distributions received from Project Partnerships
Investment in Project Partnerships before Adjustment
Excess of investment cost over the underlying assets acquired:
 Acquisition fees and expenses
 Accumulated amortization of acquisition
 fees and expenses
 Reserve for Impairment of Investment in  Project Partnership
Investments in Project Partnerships | $ 3,914,672 
(2,441,726)
(210,118)
-----------
1,262,828 
196,738 
(113,434)
(202,823)
-----------
$ 1,143,309 
============ | $ 3,914,672 
(2,432,267)
(209,368)
-----------
1,273,037 
196,738 
(107,408)
(202,823)
-----------
$ 1,159,544 
============

(1) In accordance with Gateway's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $425,392 for the period ended June 30, 2007 and cumulative suspended losses of $421,709 for the year ended March 31, 2007 are not included.

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):SERIES 11   As of June 30, 2007, Gateway 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 the 12 Project Partnerships as of:

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | JUNE 30,
2007
------------                                                                                                   | MARCH 31,
2007
------------                                                                                                 
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------
|Capital Contributions to Project Partnerships and purchase price paid for limited partner interests in Project Partnerships
Cumulative equity in losses of Project Partnerships (1)
Cumulative distributions received from Project Partnerships
Investment in Project Partnerships before Adjustment
Excess of investment cost over the underlying assets acquired:
 Acquisition fees and expenses
 Accumulated amortization of acquisition
 fees and expenses
 Reserve for Impairment of Investment in  Project Partnership
Investments in Project Partnerships | $ 4,128,042 
(1,674,581)
(181,937)
-----------
2,271,524 
290,335 
(156,369)
(946,123)
-----------
$ 1,459,367 
============ | $ 4,128,042 
(1,637,144)
(181,137)
-----------
2,309,761 
290,335 
(147,995)
(946,123)
-----------
$ 1,505,978 
============

(1) In accordance with Gateway's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $978,453 for the period June 30, 2007 and cumulative suspended losses of $941,227 for the year ended March 31, 2007 are not included.

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):TOTAL SERIES 7 - 11   The following is a summary of Investments in Project Partnerships as of:

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | JUNE 30,
2007
------------                                                                                                         | MARCH 31,
2007
------------                                                                                                           
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ---------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------
|Capital Contributions to Project Partnerships and purchase price paid for limited partner interests in Project Partnerships
Cumulative equity in losses of Project Partnerships
Cumulative distributions received from Project Partnerships
Investment in Project Partnerships before Adjustment
Excess of investment cost over the underlying assets acquired:
 Acquisition fees and expenses
 Accumulated amortization of acquisition
 fees and expenses
 Reserve for Impairment of Investment in  Project Partnership
Investments in Project Partnerships | $ 28,275,024 
(23,242,255)
(987,026)
-----------
4,045,743 
2,074,268 
(765,985)
(1,545,869)
-----------
$ 3,808,157 
============ | $ 28,275,024 
(23,180,786)
(985,476)
------------
4,108,762 
2,074,268 
(738,832)
(1,545,869)
------------
$  3,898,329 
=============

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):SERIES 7   In accordance with Gateway's policy of presenting the financial information of the Project Partnerships on a three-month lag, below is the summarized balance sheets for the Series' Project Partnerships as of March 31 and the summarized statements of operations for the three months ended March 31 of each year:

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 2007 
-----                                                                                                                                                                                                                                                                                                                                                                                                                            | 2006 
-----                                                                                                                                                                                                                                                                                                                                                                                                                           
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|SUMMARIZED BALANCE SHEETS
Assets:
  Current assets
  Investment properties, net
  Other assets
    Total assets
Liabilities and Partners' Deficit:
  Current liabilities
  Long-term debt
    Total liabilities
Partners' deficit
  Limited Partner
  General Partners
    Total Partners' deficit
    Total liabilities and partners' deficit
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income
Expenses:
  Operating expenses
  Interest expense
  Depreciation and amortization
    Total expenses
      Net loss
Other partners' share of net loss
Gateway's share of net loss
Suspended losses
Equity in Losses of Project Partnerships | $ 4,611,007 
25,628,761 
27,854 
------------
$30,267,622 
============
$   746,549 
35,419,494 
------------
36,166,043 
------------
(5,488,527)
(409,894)
------------
(5,898,421)
------------
$30,267,622 
============
$ 1,356,343 
------------
869,287 
189,228 
368,806 
------------
1,427,321 
------------
$   (70,978)
============
$      (710)
============
$   (70,268)
69,831 
------------
$      (437)
============ | $ 4,300,344 
26,900,820 
25,042 
------------
$31,226,206 
============
$   768,482 
35,642,423 
------------
36,410,905 
------------
(4,825,013)
(359,686)
------------
(5,184,699)
------------
$31,226,206 
============
$ 1,304,172 
------------
832,477 
190,539 
368,230 
------------
1,391,246 
------------
$   (87,074)
============
$      (871)
============
$   (86,203)
77,409 
------------
$    (8,794)
============

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):SERIES 8 (1)   In accordance with Gateway's policy of presenting the financial information of the Project Partnerships on a three-month lag, below is the summarized balance sheets for the Series' Project Partnerships as of March 31 and the summarized statements of operations for the three months ended March 31 of each year:

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 2007 
-----                                                                                                                                                                                                                                                                                                                                                                                                                            | 2006 
-----                                                                                                                                                                                                                                                                                                                                                                                                                          
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|SUMMARIZED BALANCE SHEETS
Assets:
  Current assets
  Investment properties, net
  Other assets
    Total assets
Liabilities and Partners' Deficit:
  Current liabilities
  Long-term debt
    Total liabilities
Partners' deficit
  Limited Partner
  General Partners
    Total Partners' deficit
    Total liabilities and partners' deficit
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income
Expenses:
  Operating expenses
  Interest expense
  Depreciation and amortization
    Total expenses
      Net loss
Other partners' share of net loss
Gateway's share of net loss
Suspended losses
Equity in Income of Project Partnerships | $ 4,528,600 
26,907,202 
54,160 
------------
$31,489,962 
============
$ 1,132,902 
37,297,268 
------------
38,430,170 
------------
(6,191,107)
(749,101)
------------
(6,940,208)
------------
$31,489,962 
============
$ 1,348,808 
------------
856,150 
203,648 
378,946 
------------
1,438,744 
------------
$   (89,936)
============
$    (1,568)
============
$   (88,368)
91,734 
------------
$     3,366 
============ | $ 4,183,619 
28,271,381 
23,720 
------------
$32,478,720 
============
$ 1,152,589 
37,532,816 
------------
38,685,405 
------------
(5,498,091)
(708,594)
------------
(6,206,685)
------------
$32,478,720 
============
$ 1,319,978 
-----------
819,121 
207,697 
371,398 
------------
1,398,216 
------------
$   (78,238)
============
$    (1,605)
============
$   (76,633)
83,853 
------------
$     7,220 
============

(1)  As discussed in Note 4, an affiliate of the General Partner (Value Partners, Inc.) is the operating general partner in one of the Project Partnerships included above (Logan Heights).  The Logan Heights Project Partnership is not consolidated in Gateway's financial statements as Gateway's investment in Logan Heights is accounted for under the equity method.  The information below is included for related party disclosure purposes.  The Project Partnership's financial information for the periods ending March 2007 and March 2006 is as follows:

|                        | March 2007 | March 2006
|----------------------- | ---------- | ----------
|Total Assets            | $ 525,316  | $ 575,107 
|Total Liabilities       | 811,929    | 821,138   
|Gateway Deficit         | (169,918)  | (129,742) 
|Other Partner's Deficit | (116,695)  | (116,289) 
|Total Revenue           | 26,850     | 28,302    
|Net Loss                | $  (1,369) | $  (3,471)

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):SERIES 9   In accordance with Gateway's policy of presenting the financial information of the Project Partnerships on a three-month lag, below is the summarized balance sheets for the Series' Project Partnerships as of March 31 and the summarized statements of operations for the three months ended March 31 of each year:

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 2007 
-----                                                                                                                                                                                                                                                                                                                                                                                                                         | 2006 
-----                                                                                                                                                                                                                                                                                                                                                                                                                        
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|SUMMARIZED BALANCE SHEETS
Assets:
  Current assets
  Investment properties, net
  Other assets
    Total assets
Liabilities and Partners' Deficit:
  Current liabilities
  Long-term debt
    Total liabilities
Partners' deficit
  Limited Partner
  General Partners
    Total Partners' deficit
    Total liabilities and partners' deficit
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income
Expenses:
  Operating expenses
  Interest expense
  Depreciation and amortization
    Total expenses
      Net loss
Other partners' share of net loss
Gateway's share of net loss
Suspended losses
Equity in Losses of Project Partnerships | $ 2,304,701 
15,606,717 
7,263 
------------
$17,918,681 
============
$   254,953 
19,818,860 
------------
20,073,813 
------------
(1,791,080)
(364,052)
------------
(2,155,132)
------------
$17,918,681 
============
$   681,993 
------------
441,464 
119,369 
193,732 
------------
754,565 
------------
$   (72,572)
============
$   (15,301)
============
$   (57,271)
39,769 
------------
$   (17,502)
============ | $ 2,212,844 
16,277,735 
4,391 
------------
$18,494,970 
============
$   279,015 
19,934,839 
------------
20,213,854 
------------
(1,385,582)
(333,302)
------------
(1,718,884)
------------
$18,494,970 
============
$   661,177 
------------
409,484 
106,263 
191,966 
------------
707,713 
------------
$   (46,536)
============
$      (465)
============
$   (46,071)
34,466 
------------
$   (11,605)
============

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):SERIES 10   In accordance with Gateway's policy of presenting the financial information of the Project Partnerships on a three-month lag, below is the summarized balance sheets for the Series' Project Partnerships as of March 31 and the summarized statements of operations for the three months ended March 31 of each year:

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 2007 
-----                                                                                                                                                                                                                                                                                                                                                                                                                 | 2006 
-----                                                                                                                                                                                                                                                                                                                                                                                                                   
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|SUMMARIZED BALANCE SHEETS
Assets:
  Current assets
  Investment properties, net
  Other assets
    Total assets
Liabilities and Partners' Equity:
  Current liabilities
  Long-term debt
    Total liabilities
Partners' equity (deficit)
  Limited Partner
  General Partners
    Total Partners' equity
    Total liabilities and partners' equity
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income
Expenses:
  Operating expenses
  Interest expense
  Depreciation and amortization
    Total expenses
      Net loss
Other partners' share of net loss
Gateway's share of net loss
Suspended losses
Equity in Losses of Project Partnerships | $ 1,925,016 
11,774,878 
7,600 
------------
$13,707,494 
============
$   321,519 
12,982,207 
------------
13,303,726 
------------
830,704 
(426,936)
------------
403,768 
------------
$13,707,494 
============
$   463,465 
------------
303,387 
56,977 
116,491 
------------
476,855 
------------
$   (13,390)
============
$      (248)
============
$   (13,142)
3,683 
------------
$    (9,459)
============ | $ 1,848,884 
12,147,196 
4,049 
------------
$14,000,129 
============
$   333,271 
13,054,976 
------------
13,388,247 
------------
1,016,372 
(404,490)
------------
611,882 
------------
$14,000,129 
============
$   436,600 
------------
292,519 
57,893 
116,473 
------------
466,885 
------------
$   (30,285)
============
$      (606)
============
$   (29,679)
20,167 
------------
$    (9,512)
============

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):SERIES 11   In accordance with Gateway's policy of presenting the financial information of the Project Partnerships on a three-month lag, below is the summarized balance sheets for the Series' Project Partnerships as of March 31 and the summarized statements of operations for the three months ended March 31 of each year:

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | 2007 
-----                                                                                                                                                                                                                                                                                                                                                                                                                     | 2006 
-----                                                                                                                                                                                                                                                                                                                                                                                                                      
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|SUMMARIZED BALANCE SHEETS
Assets:
  Current assets
  Investment properties, net
  Other assets
    Total assets
Liabilities and Partners' Equity:
  Current liabilities
  Long-term debt
    Total liabilities
Partners' equity (deficit)
  Limited Partner
  General Partners
    Total Partners' equity
    Total liabilities and partners' equity
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income
Expenses:
  Operating expenses
  Interest expense
  Depreciation and amortization
    Total expenses
      Net loss
Other partners' share of net loss
Gateway's share of net loss
Suspended losses
Equity in Income (Losses) of Project
Partnerships | $ 1,141,608 
10,184,191 
269,696 
------------
$11,595,495 
============
$   290,098 
10,310,418 
------------
10,600,516 
------------
1,300,507 
(305,528)
------------
994,979 
------------
$11,595,495 
============
$   410,166 
------------
309,635 
53,194 
124,385 
------------487,214 
------------
$   (77,048)
============
$    (2,385)
============
$   (74,663)
37,226 
------------
$   (37,437)
============ | $ 1,050,607 
10,221,972 
297,731 
------------
$11,570,310 
============
$   212,185 
9,847,071 
------------
10,059,256 
------------
1,793,468 
(282,414)
------------
1,511,054 
------------
$11,570,310 
============
$   433,309 
------------
271,722 
53,089 
126,330 
------------
451,141 
------------
$   (17,832)
============
$    (1,644)
============
$   (16,188)
31,368 
------------
$    15,180 
============

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):TOTAL SERIES 7 - 11   In accordance with Gateway's policy of presenting the financial information of the Project Partnerships on a three-month lag, below is the summarized balance sheets for the Series' Project Partnerships as of March 31 and the summarized statements of operations for the three months ended March 31 of each year:

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 2007 
-----                                                                                                                                                                                                                                                                                                                                                                                                                                                 | 2006 
-----                                                                                                                                                                                                                                                                                                                                                                                                                                              
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|SUMMARIZED BALANCE SHEETS
Assets:
  Current assets
  Investment properties, net
  Other assets
    Total assets
Liabilities and Partners' Deficit:
  Current liabilities
  Long-term debt
    Total liabilities
Partners' deficit
  Limited Partner
  General Partners
    Total Partners' deficit
    Total liabilities and partners' deficit
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income
Expenses:
  Operating expenses
  Interest expense
  Depreciation and amortization
    Total expenses
      Net loss
Other partners' share of net loss
Gateway's share of net loss
Suspended losses
Equity in Losses of Project Partnerships | $ 14,510,932 
90,101,749 
366,573 
------------
$104,979,254 
============
$  2,746,021 
115,828,247 
------------
118,574,268 
------------
(11,339,503)
(2,255,511)
------------
(13,595,014)
------------
$104,979,254 
============
$  4,260,775 
------------
2,779,923 
622,416 
1,182,360 
------------
4,584,699 
------------
$   (323,924)
============
$    (20,212)
============
$   (303,712)
242,243 
------------
$    (61,469)
============ | $ 13,596,298 
93,819,104 
354,933 
------------
$107,770,335 
============
$  2,745,542 
116,012,125 
------------
118,757,667 
------------
(8,898,846)
(2,088,486)
------------
(10,987,332)
------------
$107,770,335 
============
$  4,155,236 
------------
2,625,323 
615,481 
1,174,397 
------------
4,415,201 
------------
$   (259,965)
============
$     (5,191)
============
$   (254,774)
247,263 
------------
$    (7,511)
============

---

Item 2.  Management's Discussion and Analysis of Financial Condition and Results of Operations Results of Operations, Liquidity and Capital Resources
   Operations commenced on July 16, 1992 with the admission of the first Limited Partners in Series 7.  The proceeds from Limited Partner investors' capital contributions available for investment were used to acquire interests in Project Partnerships.
   Gateway - All Series - The following discusses the overall results of operations, liquidity and capital resources for Gateway as a whole.  A summary of the activity within each specific Series of Gateway then follows.
   Distribution income arises from any cash distributions received from Project Partnerships which have a zero investment balance for financial reporting purposes.  Distribution income increased from $18,345 for the three months ended June 30, 2006 to $31,370 for the three months ended June 30, 2007 (an increase of $13,025, or 71%).  Distribution income will increase as more Project Partnership investment balances reach zero on Gateway's books.  Interest income decreased from $25,198 for the three months ended June 30, 2006 to $22,495 for the three months ended June 30, 2007 (a decrease of $2,703, or 11%).  The decrease is a result of the decrease in Cash and Investment in Securities as compared to the prior year quarter.  Equity in Losses of Project Partnerships increased from $7,511 for the three months ended June 30, 2006 to $61,469 for the three months ended June 30, 2007.  The increase in Equity  in Losses of Project Partnerships is a result of a greater increase in operating costs than in rental revenue of the Project Partnerships.
   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.)
   Total expenses of Gateway were $210,477 for the three months ended June 30, 2007, an increase of $18,836 as compared to the three months ended June 30, 2006 total expenses of $191,641.  The increase for the three months ended June 30, 2007 results from increases in the expense of the General Partner in administering the business of Gateway.
   The sources of funds to pay the expenses of Gateway are cash and cash equivalents and short-term investments which are comprised of U.S. Treasury Security Strips ("Zero Coupon Treasuries") and U.S Treasury Notes along with the interest earnings thereon, which were purchased with funds set aside for this purpose, and cash distributed to the Series from the operations of the Project Partnerships.  Due to the rent limitations applicable to the Project Partnerships projects as a result of their qualifying for Low-Income Housing Tax Credits, Gateway does not expect there to be a significant increases in future
rental income of the Project Partnerships.  Therefore, cash distributions from the operations of the Project Partnerships are not expected to increase.  Management believes these 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.
   The financial performance of each respective Series is summarized as follows:
   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 decreased $8,357 to $437 for the three months ended June 30, 2007, as compared to $8,794 for the three months ended June 30, 2006.  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

---

Item 2.  Management's Discussion and Analysis of Financial Condition and Results of Operations (continued):amortization.  (These Project Partnerships reported depreciation and amortization of $368,806 and $368,230 for the three months ended March 31, 2007 and 2006, respectively.)  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 until the year of disposition.  Overall, management believes the Project Partnerships are operating as expected and have generated Tax Credits that meet projections.
   At June 30, 2007, the Series had $158,622 of short-term investments (Cash and Cash Equivalents).  Series 7 also had $82,276 in Zero Coupon Treasuries with annual maturities providing $86,000 in the current fiscal year.  In addition, the Series had $206,415 in U.S. Treasury Notes with a maturity value of $203,000 at June 30, 2007.  Management believes these 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 $40,082 for the three months ended June 30, 2007.  However, after considering the Equity in Losses of Project Partnerships of $437 and the changes in operating assets and liabilities, net cash used in operating activities was $35,896.  Cash provided by investing activities totaled $15,500, consisting of cash distributions from the Project Partnerships.   Series 8 - Gateway closed this Series on June 28, 1993 after receiving $9,980,000 from 664 Limited Partner investors.  Equity in Income of Project Partnerships decreased $3,854 to $3,366 for the three months ended June 30, 2007, as compared to $7,220 for the three months ended June 30, 2006.  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.  (These Project Partnerships reported depreciation and amortization of $378,946 and $371,398 for the three months ended March 31, 2007 and 2006, respectively).  Overall, management believes the Project Partnerships are operating as expected and have generated Tax Credits that met projections.
   At June 30, 2007, the Series had $106,279 of short-term investments (Cash and Cash Equivalents).  Series 8 also had $78,565 in Zero Coupon Treasuries with annual maturities providing $82,000 in the current fiscal year.  In addition, the Series had $129,302 in U.S. Treasury Notes with a maturity value of $127,000 at June 30, 2007.  Management believes the sources of funds are sufficient to meet the 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 $43,561 for the three months ended June 30, 2007.  However, after considering the Equity in Income of Project Partnerships of $3,366 and the changes in operating assets and liabilities, net cash used in operating activities was $37,156.  Cash provided by investing activities totaled $8,305, consisting of cash distributions from the Project Partnerships.   Series 9 - Gateway closed this Series on September 30, 1993 after receiving $6,254,000 from 406 Limited Partner investors.  Equity in Losses of Project Partnerships increased $5,879 to $17,502 for the three months ended June 30, 2007, as compared to $11,605 for the three months ended June 30, 2006.  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.  (These Project Partnerships reported depreciation and amortization of $193,732 and $191,966 for the three months ended March 31, 2007 and 2006, respectively.)  Overall, management believes the Project Partnerships are operating as expected and have generated Tax Credits that met projections.
   At June 30, 2007, the Series had $50,836 of short-term investments (Cash and Cash Equivalents).  Series 9 also had $85,646 in Zero Coupon Treasuries with annual maturities providing $45,000 in the current fiscal year and $47,000 in fiscal year 2009.  In addition, the Series had $129,302 in U.S. Treasury Notes with a maturity value of $127,000 at June 30, 2007.  Management believes the

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Item 2.  Management's Discussion and Analysis of Financial Condition and Results of Operations (continued):sources of funds are sufficient to meet the 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 $45,788 for the three months ended June 30, 2007.  However, after considering the Equity in Losses of Project Partnerships of $17,502 and the changes in operating assets and liabilities, net cash used in operating activities was $23,211.  Cash provided by investing activities totaled $4,003, consisting of cash distributions from the Project Partnerships.
   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 decreased $53 to $9,459 for the three months ended June 30, 2007, as compared to $9,512 for the three months ended June 30, 2006.  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.  (These Project Partnerships reported depreciation and amortization of $116,491 and $116,473 for the three months ended March 31, 2007 and 2006, respectively.)  Overall, management believes the Project Partnerships are operating as expected and have generated Tax Credits that met projections.
   At June 30, 2007, the Series had $27,573 of short-term investments (Cash and Cash Equivalents).  Series 10 also had $99,013 in Zero Coupon Treasuries with annual maturities providing $34,000 in the current fiscal year, $36,000 in fiscal year 2009, and $40,000 in fiscal year 2010.  In addition, the Series had $102,831 in U.S. Treasury Notes with a maturity value of $101,000 at June 30, 2007.  Management believes the sources of funds are sufficient to meet the 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 $31,843 for the three months ended June 30, 2007.  However, after considering the Equity in Losses of Project Partnerships of $9,459 and the changes in operating assets and liabilities, net cash used in operating activities was $14,908.  Cash provided by investing activities totaled $2,130, consisting of cash distributions from the Project Partnerships.
   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 increased $52,617 to $37,437 for the three months ended June 30, 2007, as compared to income of $15,180 for the three months ended June 30, 2006.  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.  (These Project Partnerships reported depreciation and amortization of $124,385 and $126,330 for the three months ended March 31, 2007 and 2006, respectively.)  Overall, management believes the Project Partnerships are operating as expected and have generated Tax Credits that met projections.
   At June 30, 2007, the Series had $43,316 of short-term investments (Cash and Cash Equivalents).  Series 11 also had $111,577 in Zero Coupon Treasuries with annual maturities providing $40,000 in the current fiscal year, $42,000 in fiscal year 2009, $44,000 in fiscal year 2010.  In addition, the Series had $154,755 in U.S. Treasury Notes with a maturity value of $152,000 at June 30, 2007.  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 $56,807 for the three months ended June 30, 2007.  However, after considering the Equity in Losses of Project Partnerships of $37,437 and the changes in operating assets and liabilities, net cash used in operating activities was $12,836.  Cash provided by investing activities totaled $2,982, consisting of cash distributions from Project Partnerships.

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Item 2.  Management's Discussion and Analysis of Financial Condition and Results of Operations (continued):
Exit Strategy Upon Expiration of the Project Partnership Tax Credit Compliance Period   The IRS compliance period for low-income housing tax credit properties is generally 15 years from occupancy following construction or rehabilitation completion.
   As of December 31, 2006, only one of the Project Partnerships had reached the end of its tax credit compliance period.  However, all of the other 132 Project Partnerships will reach the end of the tax credit compliance period during one of the years ending December 31, 2007 through December 31, 2010.
   When Project Partnerships reach the end of their tax credit compliance period, Gateway initiates a process of disposing of its investment in the Project Partnership, the objective of the process is to sell Gateway's interest in the properties for fair market value and ultimately, when Gateway's last Project Partnership Investment is sold, liquidate Gateway.
Item 3.  Quantitative and Qualitative Disclosure About Market Risk:
   As a small business issuer, no information is required.
Item 4.  Controls and Procedures:
   Within 90 days prior to the filing of this report, under the supervision and with the participation of Gateway's management, including the Managing General Partner's chief executive and chief financial officers, an evaluation of the effectiveness of Gateway's disclosure controls and procedures (as defined in Rule 13a-14(c) under the Securities Exchange Act of 1934) was performed.  Based on this evaluation, such officers have concluded that Gateway's disclosure controls and procedures were effective as of the date of that evaluation in alerting them in a timely manner to material information relating to Gateway required to be included in this report and Gateway's other reports that it files or submits under the Securities Exchange Act of 1934.  There were no significant changes in the Partnership's internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation.
Item 4T.  Controls and Procedures:
   Not applicable to Gateway.

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PART II - Other Information

Item 1.  Legal Proceedings:
   None.
Item 1A.  Risk Factors:
   No material changes for those previously reported on Gateway's March 31, 2007    Form 10-K.
Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds:
   None.
Item 3.  Defaults upon Senior Securities:
   None.
Item 4.  Submission of Matters to a Vote of Security Holders:
   None.
Item 5.  Other Information:
   None.
Item 6.  Exhibits:
   31.1 Principal Executive Officer Certification as required by Rule 13a-   14(a)/15d-14(a), filed herewith.
   31.2 Principal Financial Officer Certification as required by Rule 13a-   14(a)/15d-14(a), filed herewith.
   32. Certification of the Chief Executive Officer and Chief Financial Officer    Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of    the Sarbanes-Oxley Act of 2002, filed herewith.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

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

Date: August 17, 2007             By:/s/ Ronald M. Diner                                  Ronald M. Diner
                                  President, Director
Date: August 17, 2007             By:/s/ Jonathan Oorlog
                                  Jonathan Oorlog
                                  Vice President and Chief Financial Officer
Date: August 17, 2007             By:/s/ Sandra C. Humphreys
                                  Sandra C. Humphreys
                                  Secretary and Treasurer

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EXHIBIT 31.1
CERTIFICATIONS*

I, Ron Diner, certify that:
1. I have reviewed this quarterly report on Form 10-Q of Gateway Tax Credit Fund, III, Ltd.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 17, 2007            By:/s/ Ronald M. Diner                                 Ronald M. Diner
                                 President
                                 Raymond James Tax Credit Funds, Inc.
                                 (Managing General Partner)

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EXHIBIT 31.2
CERTIFICATIONS*

I, Jonathan Oorlog, certify that:



1. I have reviewed this quarterly report on Form 10-Q of Gateway Tax Credit Fund, III, Ltd.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 17, 2007            By:/s/ Jonathan Oorlog
                                 Jonathan Oorlog
                                 Vice President and Chief Financial Officer
                                 Raymond James Tax Credit Funds, Inc.
                                 (Managing General Partner)

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EXHIBIT 32

CERTIFICATION PURSUANT TO 
18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO 
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Gateway Tax Credit Fund III, Ltd.; ("Gateway") on Form 10-Q for the period ended June 30, 2007 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), we hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to our knowledge:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Partnership.

/s/ Ronald M. DinerRonald M. Diner
President
Raymond James Tax Credit Funds, Inc.
(Managing General Partner)
August 17, 2007/s/ Jonathan OorlogJonathan Oorlog
Vice President and Chief Financial Officer
Raymond James Tax Credit Funds, Inc.
(Managing General Partner)
August 17, 2007