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

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For The Quarterly Period EndedJune 30, 2003Commission File Number0-21762                    
                    Gateway Tax Credit Fund III Ltd.         (Exact name of Registrant as specified in its charter)Florida                               59-3090386 (State or other jurisdiction of            (I.R.S. Employer No.)
 incorporation or organization)880 Carillon Parkway,   St. Petersburg,  Florida       33716       (Address of principal executive offices)        (Zip Code)
Registrant's Telephone Number, Including Area Code:(727) 567-4830

Indicate by check mark whether the Registrant: (1) has filed all reports 
required to be filed by Section 13 or 15(d) of the Securities Exchange Act 
of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to 
such filing requirements for the past 90 days.
                                    YESX      NO
                                                    Number of Units
     Title of Each Class                             June 30, 2003Units of Limited Partnership
Interest:  $1,000 per unit                                33,799

DOCUMENTS INCORPORATED BY REFERENCEParts I and II, 2003 Form 10-K, filed with the
Securities and Exchange Commission on June 24, 2003
Parts III and IV - Form S-11 Registration Statement
and all amendments and supplements thereto
File No. 33-44238

---

PART I - Financial Information
   Item 1.  Financial Statements

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

|SERIES 7                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | JUNE 30,
2003
-------
(Unaudited)                                                                                                                                                                                                                 | MARCH 31,
2003
-------
(Audited)                                                                                                                                                                                                                
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ASSETS
Current Assets:
 Cash and Cash Equivalents
 Investments in Securities
  Total Current Assets
 Investments in Securities
 Investments in Project Partnerships, Net
    Total Assets
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners
  Total Current Liabilities
Long-Term Liabilities:
 Payable to General Partners
Partners' Equity (Deficit):
Limited Partners (10,395 units for Series 7, 9,980 for Series 8, 6,254 for Series 9, 5,043 for Series 10 and 5,127 for Series 11 at June 30, 2003 and March 31, 2003)
General Partners
  Total Partners' Equity
    Total Liabilities and Partners' Equity | $  383,938 
65,283 
-----------
449,221 
251,375 
1,235,660 
-----------
$1,936,256 
===========
$   85,794 
-----------
85,794 
-----------
455,657 
-----------
1,472,135 
(77,330)
-----------
1,394,805 
-----------
$ 1,936,256 
=========== | $  390,008 
64,155 
-----------
454,163 
246,831 
1,278,834 
-----------
$1,979,828 
===========
$   69,660 
-----------
69,660 
-----------
437,160 
-----------
1,549,556 
(76,548)
-----------
1,473,008 
-----------
$1,979,828 
===========

See accompanying notes to financial statements.

---

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

|SERIES 8                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | JUNE 30,
2003
-------
(Unaudited)                                                                                                                                                                                                                  | MARCH 31,
2003
-------
(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, 2003 and March 31, 2003)
General Partners
  Total Partners' Equity
    Total Liabilities and Partners' Equity | $  427,773 
60,575 
22,909 
-----------
511,257 
239,687 
531,569 
-----------
$1,282,513 
===========
$   84,411 
-----------
84,411 
-----------
533,050 
-----------
746,027 
(80,975)
-----------
665,052 
-----------
$1,282,513 
=========== | $  450,206 
59,583 
0 
-----------
509,789 
235,603 
560,231 
-----------
$1,305,623 
===========
$   61,828 
-----------
61,828 
-----------
513,976 
-----------
810,146 
(80,327)
-----------
729,819 
-----------
$1,305,623 
============

See accompanying notes to financial statements.

---

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

|SERIES 9                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | JUNE 30,
2003
-------
(Unaudited)                                                                                                                                                                                                                | MARCH 31,
2003
-------
(Audited)                                                                                                                                                                                                                
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ASSETS
Current Assets:
 Cash and Cash Equivalents
 Investments in Securities
  Total Current Assets
 Investments in Securities
 Investments in Project Partnerships, Net
    Total Assets
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners
    Total Current Liabilities
Long-Term Liabilities:
 Payable to General Partners
Partners' Equity (Deficit):
Limited Partners (10,395 units for Series 7, 9,980 for Series 8, 6,254 for Series 9, 5,043 for Series 10 and 5,127 for Series 11 at June 30, 2003 and March 31, 2003)
General Partners
  Total Partners' Equity
    Total Liabilities and Partners' Equity | $  257,381 
35,700 
-----------
293,081 
171,191 
1,148,228 
-----------
$1,612,500 
===========
$   45,165 
-----------
45,165 
-----------
328,879 
-----------
1,280,908 
(42,452)
-----------
1,238,456 
-----------
$1,612,500 
=========== | $  260,485 
35,177 
-----------
295,662 
168,560 
1,211,933 
-----------
$1,676,155 
===========
$   35,252 
-----------
35,252 
-----------
318,435 
-----------
1,364,080 
(41,612)
-----------
1,322,468 
-----------
$1,676,155 
===========

See accompanying notes to financial statements.

---

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

|SERIES 10                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | JUNE 30,
2003
-------
(Unaudited)                                                                                                                                                                                                                | MARCH 31,
2003
-------
(Audited)                                                                                                                                                                                                               
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ASSETS
Current Assets:
 Cash and Cash Equivalents
 Investments in Securities
  Total Current Assets
 Investments in Securities
 Investments in Project Partnerships, Net
    Total Assets
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners
    Total Current Liabilities
Long-Term Liabilities:
 Payable to General Partners
Partners' Equity (Deficit):
Limited Partners (10,395 units for Series 7, 9,980 for Series 8, 6,254 for Series 9, 5,043 for Series 10 and 5,127 for Series 11 at June 30, 2003 and March 31, 2003)
General Partners
  Total Partners' Equity
    Total Liabilities and Partners' Equity | $  260,269 
27,069 
------------
287,338 
151,837 
1,960,756 
-----------
$2,399,931 
===========
$   40,808 
-----------
40,808 
-----------
93,681 
-----------
2,286,967 
(21,525)
-----------
2,265,442 
-----------
$2,399,931 
=========== | $  251,941 
26,620 
-----------
278,561 
149,205 
2,014,742 
-----------
$2,442,508 
===========
$   35,197 
-----------
35,197 
-----------
86,436 
-----------
2,341,846 
(20,971)
-----------
2,320,875 
-----------
$2,442,508 
===========

See accompanying notes to financial statements.

---

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

|SERIES 11                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | JUNE 30,
2003
-------
(Unaudited)                                                                                                                                                                                                                | MARCH 31,
2003
-------
(Audited)                                                                                                                                                                                                                    
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ASSETS
Current Assets:
 Cash and Cash Equivalents
 Investments in Securities
  Total Current Assets
 Investments in Securities
 Investments in Project Partnerships, Net
    Total Assets
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners
  Total Current Liabilities
Long-Term Liabilities:
 Payable to General Partners
Partners' Equity (Deficit):
Limited Partners (10,395 units for Series 7, 9,980 for Series 8, 6,254 for Series 9, 5,043 for Series 10 and 5,127 for Series 11 at June 30, 2003 and March 31, 2003)
General Partners
  Total Partners' Equity
    Total Liabilities and Partners' Equity | $  262,199 
30,675 
------------
292,874 
171,750 
2,888,342 
-----------
$3,352,966 
===========
$   37,771 
-----------
37,771 
-----------
17,784 
-----------
3,310,427 
(13,016)
-----------
3,297,411 
-----------
$3,352,966 
=========== | $  264,198 
30,129 
-----------
294,327 
168,593 
2,914,130 
------------
$3,377,050 
============
$   33,669 
-----------
33,669 
-----------
11,661 
-----------
3,344,393 
(12,673)
------------
3,331,720 
------------
$3,377,050 
============

See accompanying notes to financial statements.

---

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

|TOTAL SERIES 7 - 11                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | JUNE 30,
2003
-------
(Unaudited)                                                                                                                                                                                                                                            | MARCH 31,
2003
-------
(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, 2003 and March 31, 2003)
General Partners
  Total Partners' Equity
    Total Liabilities and Partners' Equity | $ 1,591,560 
219,302 
22,909 
------------
1,833,771 
985,840 
7,764,555 
------------
$10,584,166 
============
$   293,949 
------------
293,949 
------------
1,429,051 
------------
9,096,464 
(235,298)
------------
8,861,166 
------------
$10,584,166 
============ | $ 1,616,838 
215,664 
0 
------------
1,832,502 
968,792 
7,979,870 
------------
$10,781,164 
============
$   235,606 
------------
235,606 
------------
1,367,668 
------------
9,410,021 
(232,131)
------------
9,177,890 
------------
$10,781,164 
============

See accompanying notes to financial statements.

---

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

|SERIES 7                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 2003
----                                                                                                                                                                                                                                                               | 2002
----                                                                                                                                                                                                                                                          
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Interest Income
 Other 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
Equity in Losses of Project Partnerships
Net Loss
Allocation of Net Loss:
 Limited Partners
 General Partners
Net Loss Per Number of Limited Partnership
Units
Number of Limited Partnership Units
Outstanding | $    6,200 
1,746 
-----------
7,946 
-----------
21,771 
20,905 
1,812 
1,661 
-----------
46,149 
-----------
(38,203)
(40,000)
-----------
$  (78,203)
===========
$  (77,421)
(782)
-----------
$  (78,203)
===========
$    (7.45)
===========
10,395 
=========== | $    7,451 
0 
-----------
7,451 
-----------

21,849 
7,867 
3,453 
1,671 
-----------
34,840 
-----------
(27,389)
(30,696)
-----------
$  (58,085)
===========
$  (57,504)
(581)
-----------
$  (58,085)
===========
$    (5.53)
===========
10,395 
===========

See accompanying notes to financial statements.

---

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

|SERIES 8                                                                                                                                                                                                                                                                                                                                                                                                                              | 2003
----                                                                                                                                                                                                                                       | 2002
----                                                                                                                                                                                                                                      
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Interest Income
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Losses of Project
 Partnerships
Equity in Losses of Project Partnerships
Net Loss
Allocation of Net Loss:
 Limited Partners
 General Partners
Net Loss Per Number of Limited
Partnership Units
Number of Limited Partnership Units
Outstanding | $    5,669 
-----------
22,682 
23,048 
3,330 
768 
-----------
49,828 
-----------
(44,159)
(20,608)
-----------
$   (64,767)
===========
$   (64,119)
(648)
-----------
$   (64,767)
===========

$     (6.42)
===========
9,980 
=========== | $    6,966 
-----------
22,758 
8,674 
4,010 
1,185 
-----------
36,627 
-----------
(29,661)
(25,145)
-----------
$   (54,806)
===========
$   (54,258)
(548)
-----------
$   (54,806)
===========
$     (5.44)
===========
9,980 
===========

See accompanying notes to financial statements.

---

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

|SERIES 9                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 2003
----                                                                                                                                                                                                                                                           | 2002
----                                                                                                                                                                                                                                                      
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Interest Income
 Other 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
Equity in Losses of Project Partnerships
Net Loss
Allocation of Net Loss:
 Limited Partners
 General Partners
Net Loss Per Number of Limited Partnership
Units
Number of Limited Partnership Units
Outstanding | $    3,507 
828 
-----------
4,335 
-----------
12,466 
12,864 
1,211 
771 
-----------
27,312 
-----------
(22,977)
(61,035)
-----------
$  (84,012)
===========

$  (83,172)
(840)
-----------
$  (84,012)
===========
$   (13.30)
===========
6,254 
=========== | $    4,177 
0 
-----------
4,177 
-----------
12,507 
4,841 
2,222 
814 
-----------
20,384 
-----------
(16,207)
(64,954)
-----------
$  (81,161)
===========
$  (80,349)
(812)
-----------
$  (81,161)
===========
$   (12.85)
===========
6,254 
===========

See accompanying notes to financial statements.

---

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

|SERIES 10                                                                                                                                                                                                                                                                                                                                                                                                                             | 2003
----                                                                                                                                                                                                                                 | 2002
----                                                                                                                                                                                                                                  
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Interest Income
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Losses of Project
 Partnerships
Equity in Losses of Project Partnerships
Net Loss
Allocation of Net Loss:
 Limited Partners
 General Partners
Net Loss Per Number of Limited Partnership
Units
Number of Limited Partnership Units
Outstanding | $    3,430 
-----------
8,503 
8,041 
865 
1,145 
-----------
18,554 
-----------
(15,124)
(40,309)
-----------
$  (55,433)
===========

$  (54,879)
(554)
-----------
$  (55,433)
===========
$   (10.88)
===========
5,043 
=========== | $    4,027 
-----------
8,529 
3,026 
1,552 
1,203 
-----------
14,310 
-----------
(10,283)
(37,586)
-----------
$  (47,869)
===========

$  (47,390)
(479)
-----------
$  (47,869)
===========
$    (9.40)
===========
5,043 
===========

See accompanying notes to financial statements.

---

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

|SERIES 11                                                                                                                                                                                                                                                                                                                                                                                                                             | 2003
----                                                                                                                                                                                                                                | 2002
----                                                                                                                                                                                                                               
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Interest Income
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Losses of Project
 Partnerships
Equity in Losses of Project Partnerships
Net Loss
Allocation of Net Loss:
 Limited Partners
 General Partners
Net Loss Per Number of Limited Partnership
Units
Number of Limited Partnership Units
Outstanding | $    4,058 
-----------
7,130 
6,433 
805 
1,683 
-----------
16,051 
-----------
(11,993)
(22,316)
-----------
$  (34,309)
===========
$  (33,966)
(343)
-----------
$  (34,309)
===========
$    (6.62)
===========
5,127 
=========== | $    4,714
-----------
7,192 
2,421 
1,414 
2,074 
-----------
13,101 
-----------
(8,387)
(42,941)
-----------
$  (51,328)
===========
$  (50,815)
(513)
-----------
$  (51,328)
===========
$    (9.91)
===========
5,127 
===========

See accompanying notes to financial statements.

---

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

|TOTAL SERIES 7 - 11                                                                                                                                                                                                                                                                                                                                                 | 2003
----                                                                                                                                                                                                                         | 2002
----                                                                                                                                                                                                                    
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Interest Income
 Other 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
Equity in Losses of Project Partnerships
Net Loss
Allocation of Net Loss:
 Limited Partners
 General Partners | $   22,864 
2,574 
-----------
25,438 
-----------
72,552 
71,291 
8,023 
6,028 
-----------
157,894 
-----------
(132,456)
(184,268)
-----------
$ (316,724)
===========
$ (313,557)
(3,167)
-----------
$ (316,724)
=========== | $   27,335 
0 
-----------
27,335 
-----------
72,835 
26,829 
12,653 
6,947 
-----------
119,264 
-----------
(91,927)
(201,322)
-----------
$ (293,249)
===========
$ (290,316)
(2,933)
-----------
$ (293,249)
===========

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, 2003 AND 2002:

|SERIES 7                                                                                                                | Limited
Partners
---------                                                                                               | General
Partners
--------                                                                                    | Total
-----                                                                                                            
|----------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------ | -----------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 2002
Net Loss
Balance at June 30, 2002
Balance at March 31, 2003
Net Loss
Balance at June 30, 2003 | $ 1,780,281

(57,504)
-----------
$ 1,722,777 
============
$ 1,549,556 
(77,421)
------------
$ 1,472,135 
============ | $  (74,217)

(581)
-----------
$  (74,798)
===========
$  (76,548)
(782)
-----------
$  (77,330)
=========== | $ 1,706,064

(58,085)
-----------
$ 1,647,979 
============
$ 1,473,008 
(78,203)
-----------
$ 1,394,805 
============

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, 2003 AND 2002:

|SERIES 8                                                                                                                | Limited
Partners
---------                                                                                              | General
Partners
--------                                                                                   | Total
-----                                                                                                           
|----------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 2002
Net Loss
Balance at June 30, 2002
Balance at March 31, 2003
Net Loss
Balance at June 30, 2003 | $ 1,001,538 
(54,258)
-----------
$   947,280 
============
$   810,146 
(64,119)
-----------
$   746,027 
============ | $  (78,394)
(548)
-----------
$  (78,942)
===========
$  (80,327)
(648)
-----------
$  (80,975)
=========== | $   923,144 
(54,806)
-----------
$   868,338 
============
$   729,819 
(64,767)
-----------
$   665,052
============

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, 2003 AND 2002:

|SERIES 9                                                                                                                | Limited
Partners
---------                                                                                               | General
Partners
--------                                                                                    | Total
-----                                                                                                           
|----------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------ | ----------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 2002
Net Loss
Balance at June 30, 2002
Balance at March 31, 2003
Net Loss
Balance at June 30, 2003 | $ 1,707,018 
(80,349)
-----------
$ 1,626,669 
============
$ 1,364,080 
(83,172)
------------
$ 1,280,908 
============ | $  (38,148)
(812)
-----------
$  (38,960)
============
$  (41,612)
(840)
-----------
$  (42,452)
=========== | $ 1,668,870 
(81,161)
-----------
$ 1,587,709 
============
$1,322,468 
(84,012)
------------
$1,238,456 
============

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, 2003 AND 2002:

|SERIES 10                                                                                                               | Limited
Partners
---------                                                                                               | General
Partners
--------                                                                                   | Total
-----                                                                                                            
|----------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------ | ----------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 2002
Net Loss
Balance at June 30, 2002
Balance at March 31, 2003
Net Loss
Balance at June 30, 2003 | $ 2,586,073 
(47,390)
-----------
$ 2,538,683 
============
$ 2,341,846 
(54,879)
------------
$ 2,286,967 
============ | $  (18,504)
(479)
-----------
$  (18,983)
===========
$  (20,971)
(554)
-----------
$  (21,525)
=========== | $ 2,567,569 
(47,869)
-----------
$ 2,519,700 
============
$ 2,320,875 
(55,433)
------------
$ 2,265,442
============

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, 2003 AND 2002:

|SERIES 11                                                                                                               | Limited
Partners
---------                                                                                                | General
Partners
--------                                                                                   | Total
-----                                                                                                            
|----------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 2002
Net Loss
Balance at June 30, 2002
Balance at March 31, 2003
Net Loss
Balance at June 30, 2003 | $ 3,549,631 
(50,815)
------------
$ 3,498,816 
============
$ 3,344,393 
(33,966)
------------
$ 3,310,427 
============ | $  (10,600)
(513)
-----------
$  (11,113)
===========
$  (12,673)
(343)
-----------
$  (13,016)
=========== | $ 3,539,031 
(51,328)
-----------
$ 3,487,703 
============
$ 3,331,720 
(34,309)
-----------
$ 3,297,411 
============

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, 2003 AND 2002:

|TOTAL SERIES 7 - 11                                                                                                     | Limited
Partners
---------                                                                                                | General
Partners
--------                                                                                       | Total
-----                                                                                                              
|----------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 2002
Net Loss
Balance at June 30, 2002
Balance at March 31, 2003
Net Loss
Balance at June 30, 2003 | $10,624,541 
(290,316)
-----------
$10,334,225 
============
$ 9,410,021 
(313,557)
-----------
$ 9,096,464 
============ | $ (219,863)
(2,933)
-----------
$ (222,796)
===========
$ (232,131)
(3,167)
-----------
$ (235,298)
=========== | $10,404,678 
(293,249)
-----------
$10,111,429 
============
$ 9,177,890 
(316,724)
-----------
$ 8,861,166 
============

See accompanying notes to financial statements.

---

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

|SERIES 7
--------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 2003
----                                                                                                                                                                | 2002
----                                                                                                                                                           
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Cash Flows from Operating Activities:
  Net Loss
  Adjustments to Reconcile Net Loss to Net
  Cash Used in Operating Activities:
   Amortization
   Accreted Interest Income on Investments
   in Securities
   Equity in Losses of Project Partnerships
   Distribution Included in Other Income
   Changes in Operating Assets and Liabilities:
    Increase in Payable to General Partners
     Net Cash Used in Operating Activities
Cash Flows from Investing Activities:
 Distributions Received from Project
 Partnerships
     Net Cash Provided by Investing
     Activities
Decrease in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of
Period
Cash and Cash Equivalents at End of Period | $  (78,203)
1,661 
(5,672)
40,000 
(1,746)
34,631 
----------
(9,329)
----------
3,259 
----------
3,259 
----------
(6,070)
390,008 
----------
$  383,938 
=========== | $  (58,085)
1,671 
(6,319)
30,696 
0 
16,455 
----------
(15,582)
----------
14,608 
----------
14,608 
----------
(974)
384,626 
----------
$  383,652 
===========

See accompanying notes to financial statements.

---

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

|SERIES 8
--------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | 2003
----                                                                                                                                                                 | 2002
----                                                                                                                                                             
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Cash Flows from Operating Activities:
  Net Loss
  Adjustments to Reconcile Net Loss to Net
  Cash Used In Operating Activities:
   Amortization
   Accreted Interest Income on Investments
   in Securities
   Equity in Losses of Project Partnership
   Changes in Operating Assets and Liabilities:
    Increase in Accounts 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
Period
Cash and Cash Equivalents at End of Period | $  (64,767)
768 
(5,076)
20,608 
(22,909)
41,657 
----------
(29,719)
----------
7,286 
----------
7,286 
----------
(22,433)
450,206 
----------
$  427,773 
=========== | $  (54,806)
1,185 
(5,650)
25,145 
0 
16,965 
----------
(17,161)
----------
10,257 
----------
10,257 
----------
(6,904)
456,356 
----------
$  449,452 
===========

See accompanying notes to financial statements.

---

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

|SERIES 9
--------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 2003
----                                                                                                                                                            | 2002
----                                                                                                                                                       
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------
|Cash Flows from Operating Activities:
  Net Loss
  Adjustments to Reconcile Net Loss to Net
  Cash Used in Operating Activities:
   Amortization
   Accreted Interest Income on Investments
   in Securities
   Equity in Losses of Project Partnerships
   Distribution Included in Other Income
   Changes in Operating Assets and Liabilities:
    Increase in Payable to General Partners
     Net Cash Used in Operating Activities
Cash Flows from Investing Activities:
  Distributions Received from Project
  Partnerships
     Net Cash Provided by Investing
     Activities
Decrease in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of
Period
Cash and Cash Equivalents at End of Period | $  (84,012)
771 
(3,154)
61,035 
(828)
20,357 
----------
(5,831)
----------
2,727 
----------
2,727 
----------
(3,104)
260,485 
----------
$  257,381 
=========== | $  (81,161)
814 
(3,451)
64,954 
0 
9,278 
----------
(9,566)
----------
5,846 
----------
5,846 
----------
(3,720)
251,331 
----------
$  247,611 
===========

See accompanying notes to financial statements.

---

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

|SERIES 10
--------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 2003
----                                                                                                                                                         | 2002
----                                                                                                                                                      
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------
|Cash Flows from Operating Activities:
  Net Loss
  Adjustments to Reconcile Net Loss to Net
  Cash Used in Operating Activities:
   Amortization
   Accreted Interest Income on Investments
   in Securities
   Equity in Losses of Project Partnerships
   Changes in Operating Assets and Liabilities:
    Increase in Payable to General Partners
     Net Cash Used in Operating Activities
Cash Flows from Investing Activities:
  Distributions Received from Project
  Partnerships
     Net Cash Provided by Investing
     Activities
Increase (Decrease) in Cash and Cash
Equivalents
Cash and Cash Equivalents at Beginning of
Period
Cash and Cash Equivalents at End of Period | $  (55,433)
1,145 
(3,081)
40,309 
12,856 
----------
(4,204)
----------
12,532 
----------
12,532 
----------
 8,328
251,941 
----------
$  260,269 
=========== | $  (47,869)
1,203 
(3,299)
37,586 
6,039 
----------
(6,340)
----------
4,489 
----------
4,489 
----------
(1,851)
252,149 
----------
$  250,298 
===========

See accompanying notes to financial statements.

---

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

|SERIES 11
--------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 2003
----                                                                                                                                                        | 2002
----                                                                                                                                                      
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------
|Cash Flows from Operating Activities:
  Net Loss
  Adjustments to Reconcile Net Loss to Net
  Cash Used in Operating Activities:
   Amortization
   Accreted Interest Income on Investments
   in Securities
   Equity in Losses of Project Partnerships
   Changes in Operating Assets and Liabilities:
    Increase in Payable to General Partners
     Net Cash Used in Operating Activities
Cash Flows from Investing Activities:
   Distributions Received from Project
   Partnerships
     Net Cash Provided by Investing
     Activities
Decrease in Cash and Cash Equivalents

Cash and Cash Equivalents at Beginning of
Period
Cash and Cash Equivalents at End of Period | $  (34,309)
1,683 
(3,703)
22,316 
10,225 
----------
(3,788)
----------
1,789 
----------
1,789 
----------
(1,999)
264,198 
----------
$  262,199 
=========== | $  (51,328)
2,074 
(3,945)
42,941 
3,696 
----------
(6,562)
----------
5,282 
----------
5,282 
----------
(1,280)
266,059 
----------
$  264,779 
===========

See accompanying notes to financial statements.

---

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

|TOTAL SERIES 7 - 11
-------------------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 2003
----                                                                                                                                                                                   | 2002
----                                                                                                                                                                      
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Cash Flows from Operating Activities:
  Net Loss
  Adjustments to Reconcile Net Loss to Net
  Cash Used in Operating Activities:
   Amortization
   Accreted Interest Income on Investments
   in Securities
   Equity in Losses of Project Partnerships
   Distribution Included in Other Income
   Changes in Operating Assets and Liabilities:
    Increase in Accounts 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
Period
Cash and Cash Equivalents at End of Period | $  (316,724)
6,028 
(20,686)
184,268 
(2,574)
(22,909)
119,726 
----------
(52,871)
----------
27,593 
----------
27,593 
----------
(25,278)
1,616,838 
----------
$1,591,560 
=========== | $  (293,249)
6,947 
(22,664)
201,322 
0 
0 
52,433 
----------
(55,211)
----------
40,482 
----------
40,482 
----------
(14,729)
1,610,521 
----------
$1,595,792 
===========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2003

NOTE 1 - ORGANIZATION:

Gateway Tax Credit Fund III Ltd. ("Gateway"), a Florida Limited Partnership, was formed October 17, 1991 under the laws of Florida.  Gateway offered its limited partnership interests in Series.  The first Series for Gateway is Series 7.  Operations commenced on July 16, 1992 for Series 7, January 4, 1993 for Series 8, September 30, 1993 for Series 9, January 21, 1994 for Series 10 and April 29, 1994 for Series 11.  Each Series invests, as a limited partner, in other limited partnerships ("Project Partnerships"), each of which owns and operates apartment complexes eligible for Low-Income Housing Tax Credits ("Tax Credits"), provided for in Section 42 of the Internal Revenue Code of 1986.  Gateway will terminate on December 31, 2040 or sooner, in accordance with the terms of the Limited Partnership Agreement.  As of June 30, 2003, Gateway had received capital contributions of $1,000 from the General Partners and $36,799,000 from the investor Limited Partners.

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

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



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



NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES:
Basis of Accounting

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

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



Under the equity method, the Investments in Project Partnerships initially include:

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

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

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



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

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

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



Gateway 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.

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



Cash and Cash Equivalents

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

Accounts Receivable

Accounts receivable consist primarily of amounts due from Project Partnerships for voluntary operating advances made by the Partnership.  The operating advances are non-interest bearing and are due on demand.

Concentrations of Credit Risk

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

Use of Estimates in the Preparation of Financial Statements

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

Investment in Securities

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

Offering and Commission Costs

Offering and commission costs are charged against Limited Partners' Equity upon admission of Limited Partners.



Income Taxes

No provision for income taxes has been made in these financial statements, as income taxes are a liability of the partners rather than of Gateway.

Reclassifications

For comparability, the 2001 and 2002 figures have been reclassified, where appropriate, to conform with the financial statement presentation used in 2003.

Recent Accounting Pronouncements

In August 2001, the Financial Accounting Standards Board issued SFAS No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets".  SFAS No 144 provides accounting guidance for financial accounting and reporting for the impairment or disposal of long-lived assets.  SFAS No. 144 supersedes SFAS No. 121, "Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed Of".  SFAS No. 144 is effective for fiscal years beginning after December 15, 2001.  The Partnership adopted SFAS No. 144 effective January 1, 2002.  The adoption did not have an effect on the financial position or results of operations of the Partnership.
   In January 2003, the FASB issued FASB Interpretation No. 46 ("FIN46"), "Consolidation of Variable Interest Entities, an Interpretation of ARB No. 51."  FIN46 requires certain variable interest entities to be consolidated by the primary beneficiary of the entity if the equity investors in the entity do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties.  FIN46 is effective for all new variable interest entities created or acquired after January 31, 2003. For variable interest entities created or acquired prior to February 1, 2003, the provisions of FIN46 must be applied for the first interim or annual period beginning after June 15, 2003.  The Partnership is currently evaluating the effect, if any, that the adoption of FIN46 will have on its results of operations and financial condition.

Basis of Preparation

The unaudited financial statements presented herein have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and note disclosures required by generally accepted accounting principles.  These statements should be read in conjunction with the financial statements and notes thereto included with the Partnership's Form 10-K for the year ended March 31, 2003.  In the opinion of management these financial statements include adjustments, consisting only of normal recurring adjustments, necessary to fairly summarize the Partnership's financial position and results of operations.  The results of operations for the periods may not be indicative of the results to be expected for the year.

---

NOTE 3 - INVESTMENT IN SECURITIES:

The June 30, 2003 Balance Sheets include Investment in Securities consisting of U.S. Treasury Security Strips which represents their cost, plus accreted interest income of $179,967 for Series 7, $157,893 for Series 8, $93,481 for Series 9, $84,437 for Series 10 and $97,603 for Series 11.



|          | Estimated Market
Value
---------------- | Cost Plus 
Accreted Interest
---------------- | Gross Unrealized
Gains and (Losses)
----------------
|--------- | --------------------------------------- | --------------------------------------------- | ----------------------------------------------------
|Series 7  | $  364,617                              | $  316,658                                    | $  47,959                                           
|Series 8  | 342,634                                 | 300,262                                       | 42,372                                              
|Series 9  | 234,997                                 | 206,891                                       | 28,106                                              
|Series 10 | 209,666                                 | 178,906                                       | 30,760                                              
|Series 11 | 242,702                                 | 202,425                                       | 40,277                                              



As of June 30, 2003, the cost and accreted interest of debt securities by contractual maturities is as follows:



|                                        | Series 7
--------   | Series 8
--------   | Series 9
--------  
|--------------------------------------- | ------------------- | ------------------- | -------------------
|Due within 1 year                       | $  65,283           | $  60,575           | $  35,700          
|After 1 year through 5 years            | 251,375             | 239,687             | 138,334            
|After 5 years through 10 years          | 0                   | 0                   | 32,857             
|                                        | ---------           | ---------           | ---------          
|Total Amount Carried on
  Balance Sheet | $ 316,658
========= | $ 300,262
========= | $ 206,891
=========



|                                        | Series 10
--------  | Series 11
--------  | Total
--------       
|--------------------------------------- | ------------------- | ------------------- | ---------------------
|Due within 1 year                       | $  27,069           | $  30,675           | $  219,302           
|After 1 year through 5 years            | 102,214             | 117,510             | 849,120              
|After 5 years through 10 years          | 49,623              | 54,240              | 136,720              
|                                        | ---------           | ---------           | ---------            
|Total Amount Carried on
  Balance Sheet | $ 178,906
========= | $ 202,425
========= | $1,205,142
==========



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.



For the three months ended June 30 2003 and 2002 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.



2003             2002
                          -----	            -----
  Series 7              $ 21,771         $ 21,849
  Series 8                22,682           22,758
  Series 9                12,466           12,507
  Series 10                8,503            8,529
  Series 11                7,130	           7,192
                        --------         --------
  Total                 $ 72,552         $ 72,835
                        ========	        ========

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



Series 7             $  20,905        $   7,867
  Series 8                23,048            8,674
  Series 9                12,864            4,841
  Series 10                8,041            3,026
  Series 11                6,433            2,421
                        --------         --------
  Total                 $ 71,291	        $ 26,829
                        ========         ========

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS:

As of June 30, 2003, the Partnership had acquired a 99% interest in the profits, losses and tax credits as a limited partner in 39 Project Partnerships which own and operate government assisted multi-family housing complexes.  Cash flows from operations are allocated according to each Partnership agreement.  Upon dissolution proceeds will be distributed according to each Partnership agreement.



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



|SERIES 7                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | JUNE 30,
2003
-------------                                                                                      | MARCH 31,
2003
----------                                                                                      
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------
|Capital Contributions to Project Partnerships and purchase price paid for limited partner interests in Project Partnerships
Cumulative equity in losses of Project Partnerships (1)
Cumulative distributions received from Project Partnerships
Investment in Project Partnerships before adjustment
Excess of investment cost over the underlying assets acquired:
 Acquisition fees and expenses
 Accumulated amortization of acquisition
 fees and expenses
Investments in Project Partnerships | $ 7,732,089 
(6,902,243)
(205,957)
-----------
623,889 
793,335 
(181,564)
-----------
$ 1,235,660 
============ | $ 7,732,089 
(6,862,243)
(204,444)
-----------
665,402 
793,335 
(179,903)
-----------
$ 1,278,834 
===========

(1) In accordance with the Partnership's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $2,832,922 for the period ended June 30, 2003 and cumulative suspended losses of $2,658,435 for the year ended March 31, 2003 are not included.



---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

As of June 30, 2003, the Partnership had acquired a 99% interest in the profits, losses and tax credits as a limited partner in 43 Project Partnerships which own and operate government assisted multi-family housing complexes.  Cash flows from operations are allocated according to each Partnership agreement.  Upon dissolution proceeds will be distributed according to each Partnership agreement.



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



|SERIES 8                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | JUNE 30,
2003
------------                                                                                     | MARCH 31,
2003
-----------                                                                                     
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------
|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 
(7,324,534)
(166,183)
-----------
95,388 
549,773 
(113,592)
-----------
$   531,569 
=========== | $ 7,586,105 
(7,303,925)
(158,899)
-----------
123,281 
549,773 
(112,823)
-----------
$   560,231 
===========

(1) In accordance with the Partnership's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $3,286,163 for the period ended June 30, 2003 and cumulative suspended losses of $3,065,413 for the year ended March 31, 2003 are not included.



---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

As of June 30, 2003, the Partnership had acquired a 99% interest in the profits, losses and tax credits as a limited partner in 24 Project Partnerships which own and operate government assisted multi-family housing complexes.  Cash flows from operations are allocated according to each Partnership agreement.  Upon dissolution proceeds will be distributed according to each Partnership agreement.



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



|SERIES 9                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | JUNE 30,
2003
------------                                                                                      | MARCH 31,
2003
-----------                                                                                       
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------
|Capital Contributions to Project Partnerships and purchase price paid for limited partner interests in Project Partnerships
Cumulative equity in losses of Project Partnerships (1)
Cumulative distributions received from Project Partnerships
Investment in Project Partnerships before adjustment
Excess of investment cost over the underlying assets acquired:
 Acquisition fees and expenses
 Accumulated amortization of acquisition
 fees and expenses
Investments in Project Partnerships | $ 4,914,116 
(3,831,432)
(124,055)
-----------
958,629 
244,087 
(54,488)
-----------
$ 1,148,228 
============ | $ 4,914,116 
(3,770,400)
(122,154)
-----------
1,021,562 
244,087 
(53,716)
-----------
$ 1,211,933 
============

(1) In accordance with the Partnership's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $992,327 for the period ended June 30, 2003 and cumulative suspended losses of $925,614 for the year ended March 31, 2003 are not included.



---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

As of June 30, 2003, the Partnership had acquired a 99% interest in the profits, losses and tax credits as a limited partner in 15 Project Partnerships which own and operate government assisted multi-family housing complexes.  Cash flows from operations are allocated according to each Partnership agreement.  Upon dissolution proceeds will be distributed according to each Partnership agreement.



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



|SERIES 10                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | JUNE 30,
2003
--------------                                                                                     | MARCH 31,
2003
-----------                                                                                       
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------
|Capital Contributions to Project Partnerships and purchase price paid for limited partner interests in Project Partnerships
Cumulative equity in losses of Project Partnerships (1)
Cumulative distributions received from Project Partnerships
Investment in Project Partnerships before adjustment
Excess of investment cost over the underlying assets acquired:
 Acquisition fees and expenses
 Accumulated amortization of acquisition
 fees and expenses
Investments in Project Partnerships | $ 3,914,672 
(1,938,451)
(161,175)
-----------
1,815,046
196,738 
(51,028)
-----------
$ 1,960,756 
============ | $ 3,914,672 
(1,898,143)
(148,645)
-----------
1,867,884 
196,738 
(49,880)
-----------
$ 2,014,742 
============

(1) In accordance with the Partnership's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $100,439 for the period ended June 30, 2003 and cumulative suspended losses of $94,384 for the year ended March 31, 2003 are not included.



---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

As of June 30, 2003, the Partnership had acquired a 99% interest in the profits, losses and tax credits as a limited partner in 12 Project Partnerships which own and operate government assisted multi-family housing complexes.  Cash flows from operations are allocated according to each Partnership agreement.  Upon dissolution proceeds will be distributed according to each Partnership agreement.



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



|SERIES 11                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | JUNE 30,
2003
-------------                                                                                       | MARCH 31,
2002
-----------                                                                                       
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------
|Capital Contributions to Project Partnerships and purchase price paid for limited partner interests in Project Partnerships
Cumulative equity in losses of Project Partnerships (1)
Cumulative distributions received from Project Partnerships
Investment in Project Partnerships before adjustment
Excess of investment cost over the underlying assets acquired:
 Acquisition fees and expenses
 Accumulated amortization of acquisition
 fees and expenses
Investments in Project Partnerships | $ 4,128,042 
(1,315,703)
(144,715)
-----------
2,667,624 
290,335 
(69,617)
-----------
$ 2,888,342 
============ | $ 4,128,042 
(1,293,389)
(142,928)
-----------
2,691,725 
290,335 
(67,930)
-----------
$ 2,914,130 
============

(1) In accordance with the Partnership's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $50,839 for the period June 30, 2003 and cumulative suspended losses of $40,610 for the year ended March 31, 2003 are not included.



---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

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

|TOTAL SERIES 7 - 11                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | JUNE 30,
2003
-------------                                                                                              | MARCH 31,
2003
-----------                                                                                                
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------ | --------------------------------------------------------------------------------------------------------------------------
|Capital Contributions to Project Partner-  ships and purchase price paid for limited partner interests in Project Partnerships
Cumulative equity in losses of Project Partnerships (1)
Cumulative distributions received from Project Partnerships
Investment in Project Partnerships before adjustment
Excess of investment cost over the underlying assets acquired:
 Acquisition fees and expenses
 Accumulated amortization of acquisition
 fees and expenses
Investments in Project Partnerships | $ 28,275,024 
(21,312,363)
(802,085)
------------
6,160,576 
2,074,268 
(470,289)
------------
$ 7,764,555 
============ | $ 28,275,024 
(21,128,100)
(777,070)
------------
6,369,854 
2,074,268 
(464,252)
------------
$  7,979,870 
=============



---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

In accordance with the Partnership's policy of presenting the financial information of the Project Partnerships on a three month lag, below is the summarized financial information for the Series' Project Partnerships as of March 31, of each year:

|SERIES 7                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 2003
----                                                                                                                                                                                                                                                                                                                                                                                                                               | 2002
----                                                                                                                                                                                                                                                                                                                                                                                                                              
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|SUMMARIZED BALANCE SHEETS
Assets:
  Current assets
  Investment properties, net
  Other assets
    Total assets
Liabilities and Partners' Equity:
  Current liabilities
  Long-term debt
    Total liabilities
Partners' equity
  Limited Partner
  General Partners
    Total Partners' equity
    Total liabilities and partners' equity
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income
Expenses:
  Operating expenses
  Interest expense
  Depreciation and amortization
    Total expenses
      Net loss
Other partners' share of net loss
Partnerships' share of net loss
Suspended losses
Equity in Losses of Project Partnerships | $ 3,625,745 
30,776,059 
64,657 
------------
$34,466,461 
============
$   878,035 
36,119,409 
------------
36,997,444 
------------
(2,318,477)
(212,506)
------------
(2,530,983)
------------
$34,466,461 
============
$ 1,144,807 
------------
789,301 
205,513 
366,647 
------------
1,361,461 
------------
$  (216,654)
============
$    (2,167)
============
$  (214,487)
174,487 
------------
$   (40,000)
============ | $ 3,480,194 
32,105,399 
10,923 
------------
$35,596,516 
============
$   783,119 
36,330,807 
------------
37,113,926 
------------
(1,350,475)
(166,935)
------------
(1,517,410)
------------
$35,596,516 
============
$ 1,165,826 
------------
730,062 
209,988 
364,491 
------------
1,304,541 
------------
$  (138,715)
============
$    (1,387)
============
$  (137,328)
106,632 
------------
$   (30,696)
============



---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

In accordance with the Partnership's policy of presenting the financial information of the Project Partnerships on a three month lag, below is the summarized financial information for the Series' Project Partnerships as of March 31, of each year:

|SERIES 8                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 2003
----                                                                                                                                                                                                                                                                                                                                                                                                                               | 2002
----                                                                                                                                                                                                                                                                                                                                                                                                                              
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|SUMMARIZED BALANCE SHEETS
Assets:
  Current assets
  Investment properties, net
  Other assets
    Total assets
Liabilities and Partners' Equity:
  Current liabilities
  Long-term debt
    Total liabilities
Partners' equity
  Limited Partner
  General Partners
    Total Partners' equity
    Total liabilities and partners' equity
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income
Expenses:
  Operating expenses
  Interest expense
  Depreciation and amortization
    Total expenses
      Net loss
Other partners' share of net loss
Partnerships' share of net loss
Suspended losses
Equity in Losses of Project Partnerships | $ 3,308,519 
32,440,252 
61,423 
------------
$35,810,194 
============
$ 1,175,358 
38,150,126 
------------
39,325,484 
------------
(3,001,419)
(513,871)
------------
(3,515,290)
------------
$35,810,194 
============
$ 1,138,250 
------------
768,708 
219,598 
394,506 
------------
1,382,812 
------------
$  (244,562)
============
$    (3,204)
============
$  (241,358)
220,750 
------------
$   (20,608)
============ | $ 3,155,375 
33,867,183 
25,626 
------------
$37,048,184 
============
$ 1,197,056 
38,315,190 
------------
39,512,246 
------------
(1,996,331)
(467,731)
------------
(2,464,062)
------------
$37,048,184 
============
$ 1,102,475 
------------
705,783 
222,486 
382,891 
------------
1,311,160 
------------
$  (208,685)
============
$    (3,113)
============
$  (205,572)
180,427 
------------
$   (25,145)
============



---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

In accordance with the Partnership's policy of presenting the financial information of the Project Partnerships on a three month lag, below is the summarized financial information for the Series' Project Partnerships as of March 31, of each year:

|SERIES 9                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 2003
----                                                                                                                                                                                                                                                                                                                                                                                                                      | 2002
----                                                                                                                                                                                                                                                                                                                                                                                                                    
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|SUMMARIZED BALANCE SHEETS
Assets:
  Current assets
  Investment properties, net
  Other assets
    Total assets
Liabilities and Partners' Equity:
  Current liabilities
  Long-term debt
    Total liabilities
Partners' equity
  Limited Partner
  General Partners
    Total Partners' equity
    Total liabilities and partners' equity
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income
Expenses:
  Operating expenses
  Interest expense
  Depreciation and amortization
    Total expenses
      Net loss
Other partners' share of net loss
Partnerships' share of net loss
Suspended losses
Equity in Losses of Project Partnerships | $ 1,729,014 
18,505,824 
7,087 
------------
$20,241,925 
============
$   319,277 
20,232,258 
------------
20,551,535 
------------
(67,715)
(241,895)
------------
(309,610)
------------
$20,241,925 
============
$   586,230 
------------
391,754 
115,347 
208,167 
------------
715,268 
------------
$  (129,038)
============
$    (1,290)
============
$  (127,748)
66,713 
------------
$   (61,035)
============ | $ 1,764,946 
19,238,739 
5,942 
------------
$21,009,627 
============
$   334,681 
20,315,565 
------------
20,650,246 
------------
566,152 
(206,771)
------------
359,381 
------------
$21,009,627 
============
$   552,175 
------------
364,095 
117,516 
205,174 
------------
686,785 
------------
$  (134,610)
============
$    (1,346)
============
$  (133,264)
68,310 
------------
$   (64,954)
============



---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

In accordance with the Partnership's policy of presenting the financial information of the Project Partnerships on a three month lag, below is the summarized financial information for the Series' Project Partnerships as of March 31, of each year:

|SERIES 10                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 2003
----                                                                                                                                                                                                                                                                                                                                                                                                                      | 2002
----                                                                                                                                                                                                                                                                                                                                                                                                                       
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|SUMMARIZED BALANCE SHEETS
Assets:
  Current assets
  Investment properties, net
  Other assets
    Total assets
Liabilities and Partners' Equity:
  Current liabilities
  Long-term debt
    Total liabilities
Partners' equity
  Limited Partner
  General Partners
    Total Partners' equity
    Total liabilities and partners' equity
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income
Expenses:
  Operating expenses
  Interest expense
  Depreciation and amortization
    Total expenses
      Net loss
Other partners' share of net loss

Partnerships' share of net loss
Suspended losses

Equity in Losses of Project Partnerships | $ 1,572,647 
13,349,436 
5,970 
------------
$14,928,053 
============
$   276,665 
13,214,770 
------------
13,491,435 
------------
1,726,381 
(289,763)
------------
1,436,618
------------
$14,928,053 
============
$   400,108 
------------
258,633 
64,382 
124,110 
------------
447,125 
------------
$   (47,017)
============
$      (653)
============
$   (46,364)
6,055 
------------
$   (40,309)
============ | $ 1,492,019 
13,768,797 
2,738 
------------
$15,263,554 
============
$   239,184 
13,284,180 
------------
13,523,364 
------------
1,980,812 
(240,622)
------------
1,740,190 
------------
$15,263,554 
============
$   382,484 
------------
249,781 
65,147 
119,593 
------------
434,521 
------------
$   (52,037)
============
$      (732)
============
$   (51,305)
13,719 
------------
$   (37,586)
============



---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

In accordance with the Partnership's policy of presenting the financial information of the Project Partnerships on a three month lag, below is the summarized financial information for the Series' Project Partnerships as of March 31, of each year:

|SERIES 11                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 2003
----                                                                                                                                                                                                                                                                                                                                                                                                                          | 2002
----                                                                                                                                                                                                                                                                                                                                                                                                                   
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|SUMMARIZED BALANCE SHEETS
Assets:
  Current assets
  Investment properties, net
  Other assets
    Total assets
Liabilities and Partners' Equity:
  Current liabilities
  Long-term debt
    Total liabilities
Partners' equity
  Limited Partner
  General Partners
    Total Partners' equity
    Total liabilities and partners' equity
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income
Expenses:
  Operating expenses
  Interest expense
  Depreciation and amortization
    Total expenses
      Net loss
Other partners' share of net loss
Partnerships' share of net loss
Suspended losses
Equity in Losses of Project Partnerships | $ 1,215,093 
11,568,289 
123,167 
------------
$12,906,549 
============
$   298,685 
10,172,837 
------------
10,471,522 
------------
2,631,924 
(196,897)
------------
2,435,027 
------------
$12,906,549 
============
$   404,734 
------------
248,857 
58,451 
128,838 
------------
436,146 
------------
$   (31,412)
============
$     1,133 
============
$   (32,545)
10,229 
------------
$   (22,316)
============ | $ 1,219,687 
12,008,626 
56,436 
------------
$13,284,749 
============
$   244,181 
10,349,141 
------------
10,593,322 
------------
2,847,245 
(155,818)
------------
2,691,427 
------------
$13,284,749 
============
$   398,579 
------------
248,244 
61,609 
130,864 
------------
440,717 
------------
$   (42,138)
============
$       803 
============
$   (42,941)
0 
------------
$   (42,941)
============



---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

In accordance with the Partnership's policy of presenting the financial information of the Project Partnerships on a three month lag, below is the summarized financial information for the Series' Project Partnerships as of March 31, of each year:

|TOTAL SERIES 7 - 11                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 2003
----                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 2002
----                                                                                                                                                                                                                                                                                                                                                                                                                                             
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|SUMMARIZED BALANCE SHEETS
Assets:
  Current assets
  Investment properties, net
  Other assets
    Total assets
Liabilities and Partners' Equity:
  Current liabilities
  Long-term debt
    Total liabilities
Partners' equity
  Limited Partner
  General Partners
    Total Partners' equity
    Total liabilities and partners' equity
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income
Expenses:
  Operating expenses
  Interest expense
  Depreciation and amortization
    Total expenses
      Net loss
Other partners' share of net loss
Partnerships' share of net loss
Suspended losses
Equity in Losses of Project Partnerships | $ 11,451,018 
106,639,860 
262,304 
------------
$118,353,182 
============
$  2,948,020 
117,889,400 
------------
120,837,420 
------------
(1,029,306)
(1,454,932)
------------
(2,484,238)
------------
$118,353,182 
============
$  3,674,129 
------------
2,457,253 
663,291 
1,222,268 
------------
4,342,812 
------------
$   (668,683)
============
$     (6,181)
============
$   (662,502)
478,234 
------------
$   (184,268)
============ | $ 11,112,221 
110,988,744 
101,665 
------------
$122,202,630 
============
$  2,798,221 
118,594,883 
------------
121,393,104 
------------
2,047,403 
(1,237,877)
------------
809,526 
------------
$122,202,630 
============
$  3,601,539 
------------
2,297,965 
676,746 
1,203,013 
------------
4,177,724 
------------
$   (576,185)
============
$     (5,776)
============
$   (570,409)
369,088 
------------
$   (201,321)
============

NOTE 6 - SUBSEQUENT EVENTS:



Subsequent to the June 30, 2003, Value Partners, Inc., an affiliate of Raymond James Tax Credit Funds, Inc., acquired the general partner interest of Logan Heights, an apartment project in Series 8.

---

Item 4.  Controls and Procedures:

Within 90 days prior to the filing of this report, under the supervision and with the participation of the Partnership's management, including the Partnership's chief executive and chief financial officers, an evaluation of the effectiveness of the Partnership'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 the Partnership'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 the Partnership required to be included in this report and the Partnership'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 7.  Management's Discussion and Analysis of Financial Condition and Results of Operations 
Results of Operations, Liquidity and Capital Resources

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



As disclosed on the statement of operations for each Series, except as described below, interest income is comparable for the three months ended June 30, 2003 and June 30, 2002.  The General and Administrative Expenses - other was also comparable for the three months ended June 30, 2003 and June 30, 2002.  However, the General and Administrative Expenses - General Partner was significantly higher.  This increase was due to higher administrative costs and a change in the cost allocation methods.  There were no unusual variations in the operating results between these two periods.



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



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



Series 7 - Gateway closed this series on October 16, 1992 after receiving $10,395,000 from 635 Limited Partner investors.  Equity in Losses of Project Partnerships for the three months ended June 30, 2003 increased from $30,696 for the three months ended June 30, 2002 to $40,000 as a result of higher operating expenses.  In general, it is common in the real estate industry to experience losses for financial and tax reporting purposes because of the non-cash expenses of depreciation and amortization. As a result, management expects that this Series, as well as those described below, will report its equity in Project Partnerships as a loss for tax and financial reporting purposes.  Overall, management believes the Project Partnerships are operating as expected and are generating tax credits which meet projections.



At June 30, 2003, the Series had $383,938 of short-term investments (Cash and Cash Equivalents).  It also had $316,658 in Zero Coupon Treasuries with annual maturities providing $68,000 in fiscal year 2004 increasing to $86,000 in fiscal year 2008.  Management believes the sources of funds are sufficient to meet current and ongoing operating costs for the foreseeable future and to pay part of the Asset Management Fee.



As disclosed on the statement of cash flows, the Series had a net loss of $78,203 for the three months ended June 30, 2003.  However, after adjusting for Equity in Losses of Project Partnerships of $40,000 and the changes in operating assets and liabilities, net cash used in operating activities was $9,329.  Cash provided by investing activities totaled $3,259, consisting of cash distributions from the Project Partnerships.



Series 8 - Gateway closed this Series on September 28, 1993 after receiving $9,980,000 from 664 Limited Partner investors.  Equity in Losses of Project Partnerships for the three months ended June 30, 2003 decreased from $25,145 for the three months ended June 30, 2002 to $20,608 as a result of an increase in suspended losses.  At June 30, 2003, the Series had $427,773 of short-term investments (Cash and Cash Equivalents).  It also had $300,262 in Zero Coupon Treasuries with annual maturities providing $63,000 in fiscal year 2004 increasing to $82,000 in fiscal year 2008.  Management believes the sources of funds are sufficient to meet current and ongoing operating costs for the foreseeable future and to pay part of the Asset Management Fee.

As disclosed on the statement of cash flows, the Series had a net loss of $64,767 for the three months ended June 30, 2003.  However, after adjusting for Equity in Losses of Project Partnerships of $20,608 and the changes in operating assets and liabilities, net cash used in operating activities was $29,719.  Cash provided by investing activities totaled $7,286, consisting of cash distributions from the Project Partnerships.  There were no unusual events or trends to describe.Results of Operations, Liquidity and Capital Resources

Series 9 - Gateway closed this Series on December 31, 1993 after receiving $6,254,000 from 406 Limited Partner investors.  Equity in Losses of Project Partnerships for the three months ended June 30, 2003 decreased from $64,954 for the three months ended June 30, 2002 to $61,035 as a result of an increase in rental and other income.  At June 30, 2003, the Series had $257,381 of short-term investments (Cash and Cash Equivalents).  It also had $206,891 in Zero Coupon Treasuries with annual maturities providing $37,000 in fiscal year 2004 increasing to $47,000 in fiscal year 2009.  Management believes the sources of funds are sufficient to meet current and ongoing operating costs for the foreseeable future and to pay part of the Asset Management Fee.



As disclosed on the statement of cash flows, the Series had a net loss of $84,012 for the three months ended June 30, 2003.  However, after adjusting for Equity in Losses of Project Partnerships of $61,035 and the changes in operating assets and liabilities, net cash used in operating activities was $5,831.  Cash provided by investing activities totaled $2,727, consisting of cash distributions from the Project Partnerships.  There were no unusual events or trends to describe.



Series 10 - Gateway closed this Series on January 21, 1994 after receiving $5,043,000 from 325 Limited Partner investors.  Equity in Losses of Project Partnerships for the three months ended June 30, 2003 increased from $37,586 for the three months ended June 30, 2002 to $40,309 as a result of a decrease in suspended losses.  At June 30, 2003, the Series had $260,269 of short-term investments (Cash and Cash Equivalents).  It also had $178,906 in Zero Coupon Treasuries with annual maturities providing $28,000 in fiscal year 2004 increasing to $40,000 in fiscal year 2010.  Management believes the sources of funds are sufficient to meet current and ongoing operating costs for the foreseeable future and to pay part of the Asset Management Fee.



As disclosed on the statement of cash flows, the Series had a net loss of $55,433 for the three months ended June 30, 2003.  However, after adjusting for Equity in Losses of Project Partnerships of $40,309 and the changes in operating assets and liabilities, net cash used in operating activities was $4,204.  Cash provided by investing activities totaled $12,532, consisting of cash distributions from the Project Partnerships.  There were no unusual events or trends to describe.



Series 11 - Gateway closed this Series on April 29, 1994 after receiving $5,127,000 from 330 Limited investors.  Equity in Losses of Project Partnerships for the three months ended June 30, 2003 decreased from $42,941 for the three months ended June 30, 2002 to $22,316 as a result of an increase in suspended losses.  At June 30, 2003, the Series had $262,199 of short-term investments (Cash and Cash Equivalents).  It also had $202,425 in Zero Coupon Treasuries with annual maturities providing $32,000 in fiscal year 2004 increasing to $44,000 in fiscal year 2010.  Management believes the sources of funds are sufficient to meet current and ongoing operating costs for the foreseeable future and to pay part of the Asset Management Fee.



As disclosed on the statement of cash flows, the Series had a net loss of $34,309 for the three months ended June 30, 2003.  However, after adjusting for Equity in Losses of Project Partnerships of $22,316 and the changes in operating assets and liabilities, net cash used in operating activities was $3,788.  Cash provided by investing activities totaled $1,789, consisting of cash distributions from Project Partnerships.  There were no unusual events or trends to describe.

---

SIGNATURES

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

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

Date: August 15, 2003             By:/s/ Ronald M. Diner                                  Ronald M. Diner
                                  President
Date: August 15, 2003             By:/s/ Sandra L. Furey                                  Sandra L. Furey
                                  Secretary and Treasurer
Date: August 15, 2003             By:/s/ Carol Georges
                                  Carol Georges
                                  Vice President and Director of Accounting

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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 quarterly 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 quarterly report;
3. Based on my knowledge, the financial statements, and other financial information include 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 quarterly report;
4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:
a) designed such disclosure controls and procedures 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 quarterly report is being prepared;
b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly report (the "Evaluation Date"); and
c) presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date;
5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function):
a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and
b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and
6. The registrant's other certifying officers and I have indicated in this quarterly report whether there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.
Date: August 15, 2003             By:/s/ Ronald M. Diner                                  Ronald M. Diner
                                  President

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I, Carol Georges, 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 quarterly 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 quarterly report;
3. Based on my knowledge, the financial statements, and other financial information include 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 quarterly report;
4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:
a) designed such disclosure controls and procedures 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 quarterly report is being prepared;
b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly report (the "Evaluation Date"); and
c) presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date;
5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function):
a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and
b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and
6. The registrant's other certifying officers and I have indicated in this quarterly report whether there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

Date: August 15, 2003             By:/s/ Carol Georges
                                  Carol Georges
                                  Vice President and Director of Accounting