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 EndedSEPTEMBER 30, 2001Commission File Number 0-21762

DOCUMENTS INCORPORATED BY REFERENCEParts I and II, 2000 Form 10-K, filed with the
Securities and Exchange Commission on July 14, 2001
Parts III and IV - Form S-11 Registration Statement
and all amendments and supplements thereto

File No. 33-44238

---

PART I - Financial Information

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

|SERIES 7                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | SEPTEMBER 30,
     2001
     -------
     (Unaudited)                                                                                                                                                                                             | MARCH 31,
     2001
     -------
     (Audited)                                                                                                                                                                                                   
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ASSETS
Current Assets:
  Cash and Cash Equivalents
  Investments in Securities
    Total Current Assets
  Investments in Securities
  Investments in Project Partnerships, Net
    Total Assets
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
  Payable to General Partners
    Total Current Liabilities
Long-Term Liabilities:
  Payable to General Partners
Partners' Equity (Deficit):
Limited Partners (10,395 units for Series 7,  9,980 for
Series 8,  6,254 for Series 9,  5,043 for Series 10 and
5,127 for Series 11 at September 30, 2001 and
March 31, 2001)
General Partners    Total Partners' Equity
      Total Liabilities and Partners' Equity | $    312,756 
58,712 
------------
371,468 
337,456 
1,580,785 
------------
$ 2,289,709 
========
$    55,201 
-----------
55,201 
-----------
357,339 
-----------
1,949,675 
(72,506)
-----------
1,877,169 
-----------
$ 2,289,709 
======== | $      353,838 
56,801 
-----------
410,639 
325,585 
1,773,751 
-----------
$ 2,509,975 
========
$    57,117 
-----------
57,117 
-----------
356,584 
-----------
2,166,589 
(70,315)
-----------
2,096,274 
-----------
$ 2,509,975 
=========

See accompanying notes to financial statements.

---

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

|SERIES 8                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | SEPTEMBER 30,
     2001
     -------
     (Unaudited)                                                                                                                                                                                               | MARCH 31,
     2001
     -------
     (Audited)                                                                                                                                                                                                    
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ASSETS
Current Assets:
  Cash and Cash Equivalents
  Investments in Securities
    Total Current Assets
  Investments in Securities
  Investments in Project Partnerships, Net
    Total Assets
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
  Payable to General Partners
    Total Current Liabilities
Long-Term Liabilities:
  Payable to General Partners
Partners' Equity (Deficit):
Limited Partners (10,395 units for Series 7,  9,980
for Series 8,  6,254 for Series 9,  5,043 for Series
10 and 5,127 for Series 11 at September 30, 2001
and March 31, 2001)
General Partners
    Total Partners' Equity
      Total Liabilities and Partners' Equity | $     396,518 
53,847 
------------
450,365 
320,588 
742,420 
-----------
$ 1,513,373 
========
$        46,142 
-----------
46,142 
-----------
417,934 
-----------
1,126,429 
(77,132)
-----------
1,049,297 
-----------
$ 1,513,373 
======== | $     447,343 
52,185 
-----------
499,528 
309,940 
940,463 
-----------
$ 1,749,931 
========
$     48,367 
-----------
48,367 
-----------
412,655 
-----------
   
1,363,645 
(74,736)
-----------
1,288,909 
-----------
$ 1,749,931 
========

See accompanying notes to financial statements.

---

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

|SERIES 9                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | SEPTEMBER 30,
     2001
     -------
     (Unaudited)                                                                                                                                                                                              | MARCH 31,
     2001
     -------
      (Audited)                                                                                                                                                                                                
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ASSETS
Current Assets:
  Cash and Cash Equivalents
  Investments in Securities
    Total Current Assets
  Investments in Securities
  Investments in Project Partnerships, Net
    Total Assets
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
  Payable to General Partners
    Total Current Liabilities
Long-Term Liabilities:
  Payable to General Partners
Partners' Equity (Deficit):
Limited Partners (10,395 units for Series 7,  9,980 for
Series 8,  6,254 for Series 9,  5,043 for Series 10 and
5,127 for Series 11 at September 30, 2001 and
March 31, 2001)
General Partners
    Total Partners' Equity
      Total Liabilities and Partners' Equity | $     215,163 
33,344 
------------
248,507 
218,170 
1,698,089 
-----------
$ 2,164,766 
========
$    26,321 
-----------
26,321 
-----------
257,015 
-----------
1,917,453 
(36,023)
-----------
 1,881,430 
-----------
$ 2,164,766 
======== | $   232,688 
32,416 
----------- 
265,104 
211,626 
1,874,596 
-----------
$ 2,351,326 
========
$    27,514 
-----------
27,514 
-----------
247,323 
-----------
2,110,561 
(34,072)
-----------
 2,076,489 
-----------
$ 2,351,326 
========

See accompanying notes to financial statements.

---

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

|SERIES 10                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | SEPTEMBER 30,
     2001
    -------
      (Unaudited)                                                                                                                                                                                                | MARCH 31,
   2001
     -------      
(Audited)                                                                                                                                                                                                     
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ASSETS
Current Assets:
  Cash and Cash Equivalents
  Investments in Securities
    Total Current Assets
  Investments in Securities
  Investments in Project Partnerships, Net
    Total Assets
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
  Payable to General Partners
    Total Current Liabilities
Long-Term Liabilities:
  Payable to General Partners
Partners' Equity (Deficit):
Limited Partners (10,395 units for Series 7,  9,980
for Series 8,  6,254 for Series 9,  5,043 for Series
10 and 5,127 for Series 11 at September 30,
2001 and March 31, 2001)
General Partners
    Total Partners' Equity
      Total Liabilities and Partners' Equity | $      211,318 
25,542 
-----------
236,860 
183,173 
2,320,585 
-----------
$ 2,740,618 
========
$       29,157 
-----------
29,157 
-----------
 56,881 
-----------
2,672,214 
(17,634)
-----------
2,654,580 
-----------
$ 2,740,618 
======== | $     236,522 
24,731 
-----------
261,253 
176,929 
2,451,287 
-----------
$ 2,889,469 
========
$         30,195 
-----------
30,195 
-----------
64,462 
-----------
2,811,044 
(16,232)
----------
2,794,812 
-----------
$ 2,889,469 
========

See accompanying notes to financial statements.

---

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

|SERIES 11                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | SEPTEMBER 30,
     2001
     -------
     (Unaudited)                                                                                                                                                                                          | MARCH 31,
      2001
      -------
      (Audited)                                                                                                                                                                                               
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ASSETS
Current Assets:
  Cash and Cash Equivalents
  Investments in Securities
    Total Current Assets
  Investments in Securities
  Investments in Project Partnerships, Net
    Total Assets
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
  Payable to General Partners
    Total Current Liabilities
Long-Term Liabilities:
  Payable to General Partners
Partners' Equity (Deficit):
Limited Partners (10,395 units for Series 7,  9,980
for Series 8,  6,254 for Series 9,  5,043 for Series
10 and 5,127 for Series 11 at September 30,
2001 and March 31, 2001)
General Partners
    Total Partners' Equity
      Total Liabilities and Partners' Equity | $   223,475 
27,359 
------------
250,834 
205,174 
3,228,075 
-----------
$ 3,684,083 
========
$    28,528 
-----------
28,528 
-----------
 4,089 
-----------
3,660,942 
 (9,476)
-----------
3,651,466 
-----------
$ 3,684,083 
======== | $     244,339 
26,421 
------------
270,760 
197,772 
3,328,681 
-----------
$ 3,797,213 
========
$    29,452 
-----------
29,452 
-----------
 19,496 
-----------
3,756,773 
 (8,508)
-----------
3,748,265 
-----------
$ 3,797,213 
========

See accompanying notes to financial statements.

---

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

|TOTAL SERIES 7 - 11                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | SEPTEMBER 30,
2001
-------
(Unaudited)                                                                                                                                                                                                                        | MARCH 31,
2001
-------
(Audited)                                                                                                                                                                                                                              
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ASSETS
Current Assets:
  Cash and Cash Equivalents
  Investments in Securities
    Total Current Assets
  Investments in Securities
  Investments in Project Partnerships, Net
    Total Assets
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
  Payable to General Partners
    Total Current Liabilities
Long-Term Liabilities:
  Payable to General Partners
Partners' Equity (Deficit):
Limited Partners (10,395 units for Series 7,  9,980
for Series 8,  6,254 for Series 9,  5,043 for Series
10 and 5,127 for Series 11 at September 30,
2001 and March 31, 2001)
General Partners
    Total Partners' Equity
      Total Liabilities and Partners' Equity | $ 1,359,230 
198,804 
------------
1,558,034 
1,264,561 
9,569,954 
-----------
$12,392,549 
========
$      185,349 
-----------
185,349 
-----------
1,093,258 
-----------
11,326,713 
(212,771)
-----------
11,113,942 
-----------
$12,392,549 
======== | $ 1,514,730 
192,554 
------------
1,707,284 
1,221,852 
10,368,778 
-----------
$13,297,914 
========
$      192,645 
-----------
192,645 
-----------
1,100,520 
-----------
12,208,612 
(203,863)
-----------
12,004,749 
-----------
$13,297,914 
========

See accompanying notes to financial statements.

---

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

|SERIES 7                                                                                                                                                                                                                                                                                                                                                                                                                                           | 2001                                                                                                                                                                                                                                         | 2000                                                                                                                                                                                                                                          
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
  Interest Income
Expenses:
  Asset Management Fee-General Partner
  General and Administrative:
  General Partner
  Other
  Amortization
    Total Expenses
Loss Before Equity in Losses
  of Project Partnerships
Equity in Losses of Project Partnerships
    Net Loss
Allocation of Net Loss:
  Limited Partners
  General Partners
Net Loss Per Number of Limited Partnership Units
Number of Limited Partnership Units Outstanding | $        9,588 
-----------
21,920 
6,153 
 4,549 
 9,756 
-----------
42,378 
-----------
(32,790)
(82,028)
----------
$  (114,818)
========
$  (113,670)
(1,148)
-----------
$  (114,818)
========
$     (10.94)
========
10,395 
======== | $   11,934 
-----------
21,988 
5,862 
 8,039 
 3,549 
-----------
39,438 
-----------
(27,504)
(197,993)
----------
$  (225,497)
========
$  (223,242)
(2,255)
-----------
$  (225,497)
========
$          (21.47)
========
10,395 
========

See accompanying notes to financial statements.

---

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

|SERIES 8                                                                                                                                                                                                                                                                                                                                                                                                                                          | 2001                                                                                                                                                                                                                                     | 2000                                                                                                                                                                                                                                             
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
  Interest Income
Expenses:
  Asset Management Fee-General Partner
  General and Administrative:
  General Partner
  Other
  Amortization
    Total Expenses
Loss Before Equity in Losses
 of Project Partnerships
Equity in Losses of Project Partnerships
    Net Loss
Allocation of Net Loss:
  Limited Partners
  General Partners
Net Loss Per Number of Limited Partnership Units
Number of Limited Partnership Units Outstanding | $     9,489 
-----------
22,841 
6,784 
 4,892 
 1,847 
-----------
36,364 
-----------
(26,875)
(89,689)
----------
$  (116,564)
========
$  (115,398)
(1,166)
-----------
$  (116,564)
========
$     (11.56)
========
 9,980
======== | $      12,650 
-----------
22,914 
6,463 
 8,522 
 2,264 
-----------
40,163 
-----------
(27,513)
(128,130)
----------
$  (155,643)
========
$  (154,087)
(1,556)
-----------
$  (155,643)
========
$          (15.44)
========
 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 SEPTEMBER 30,
(Unaudited)

|SERIES 9                                                                                                                                                                                                                                                                                                                                                                                                                                 | 2001                                                                                                                                                                                                                                     | 2000                                                                                                                                                                                                                                          
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:  Interest Income
Expenses:  Asset Management Fee-General Partner  General and Administrative:  General Partner  Other  Amortization    Total Expenses
Loss Before Equity in Losses  of Project Partnerships
Equity in Losses of Project Partnerships     Net Loss
Allocation of Net Loss:  Limited Partners  General Partners
Net Loss Per Number of Limited Partnership Units
Number of Limited Partnership Units Outstanding | $    5,500 
-----------
12,544 
3,786 
 2,867 
 1,138 
-----------
20,335 
-----------
(14,835)
(91,299)
----------
$  (106,134)
========
$  (105,073)
(1,061)
-----------
$  (106,134)
========
$     (16.80)
========
 6,254 
======== | $    7,015 
-----------
12,580 
3,608 
 4,525 
 1,430 
-----------
22,143 
-----------
(15,128)
(137,151)
----------
$  (152,279)
========
$  (150,756)
(1,523)
-----------
$  (152,279)
========
$          (24.11)
========
 6,254 
========

See accompanying notes to financial statements.

---

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

|SERIES 10                                                                                                                                                                                                                                                                                                                                                                                                                                        | 2001                                                                                                                                                                                                                                    | 2000                                                                                                                                                                                                                                          
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
  Interest Income
Expenses:  Asset Management Fee-General Partner
  General and Administrative:
  General Partner
  Other
  Amortization
    Total Expenses
Loss Before Equity in Losses
  of Project Partnerships
Equity in Losses of Project Partnerships
    Net Loss
Allocation of Net Loss:
  Limited Partners  General Partners
Net Loss Per Number of Limited Partnership Units
Number of Limited Partnership Units Outstanding | $        5,332 
-----------
 8,553 
2,367 
 2,030 
 1,406 
-----------
14,356 
-----------
(9,024)
(58,277)
----------
$   (67,301)
========
$   (66,628)
(673)
-----------
$   (67,301)
========
$   (13.21)
========
 5,043 
======== | $        6,947 
-----------
 8,577 
 
2,254 
 3,308 
 1,405 
-----------
15,544 
-----------
(8,597)
(114,234)
----------
$  (122,831)
========
$  (121,603)
(1,228)
-----------
$  (122,831)
========
$     (24.11)
========
 5,043 
========

See accompanying notes to financial statements.

---

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

|SERIES 11                                                                                                                                                                                                                                                                                                                                                                                                                                  | 2001                                                                                                                                                                                                                                       | 2000                                                                                                                                                                                                                                 
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues
  Interest Income
Expenses:  Asset Management Fee-General Partner
  General and Administrative:
  General Partner  Other  Amortization    Total Expenses
Loss Before Equity in Losses  of Project Partnerships
Equity in Losses of Project Partnerships
    Net Loss
Allocation of Net Loss:  Limited Partners  General Partners
Net Loss Per Number of Limited Partnership Units
Number of Limited Partnership Units Outstanding | $        6,078 
-----------
 7,271 
1,893 
1,849 
2,074 
-----------
13,087 
-----------
(7,009)
(60,994)
----------
$   (68,003)
========
$   (67,323)
(680)
-----------
$   (68,003)
========
$        (13.13)
========
 5,127 
======== | $   7,605  
-----------
 7,116 
1,804 
2,763 
2,073 
-----------
13,756 
-----------
(6,151)
(87,596)
----------
$   (93,747)
========
$   (92,810)
(937)
-----------
$   (93,747)
========
$       (18.10)
========
 5,127 
========

See accompanying notes to financial statements.

---



|TOTAL SERIES 7 - 11                                                                                                                                                                                                                                                                                                                             | 2001                                                                                                                                                                                               | 2000                                                                                                                                                                                                
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:  Interest Income
Expenses:  Asset Management Fee-General Partner
  General and Administrative: 
  General Partner
     Other
 Amortization
     Total Expenses
Loss Before Equity in Losses
of Project Partnerships
Equity in Losses of Project Partnerships
    Net Loss
Allocation of Net Loss:
 Limited Partners
 General Partners | $    35,987 
-----------
73,129 
20,983 
16,187 
16,221 
-----------
126,520 
-----------
(90,533)
(382,287)
----------
$ (472,820
========
$ (468,091)
(4,729)
------------
$  (472,820)
======== | $    46,151 
-----------
73,175 
19,991 
27,157 
10,721 
-----------
131,044 
-----------
(84,893)
(665,104)
----------
$  (749,997)
========
$  (742,497)
(7,500)
-----------
$  (749,997)
========

See accompanying notes to financial statements.

---

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

|SERIES 7                                                                                                                                                                                                                                                                                                                                                                                                                                           | 2001                                                                                                                                                                                                                                                 | 2000                                                                                                                                                                                                                                              
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
  Interest Income
Expenses:
  Asset Management Fee-General Partner
  General and Administrative:
  General Partner
  Other
  Amortization
    Total Expenses
Loss Before Equity in Losses
  of Project Partnerships
Equity in Losses of Project Partnerships
    Net Loss
Allocation of Net Loss:
  Limited Partners
  General Partners
Net Loss Per Number of Limited Partnership Units
Number of Limited Partnership Units Outstanding | $      19,919 
-----------
43,841 
10,854 
 10,228 
 11,362 
-----------
76,285 
-----------
(56,366)
(162,739)
----------
$  (219,105)
========
$  (216,914)
(2,191)
-----------
$  (219,105)
========
$          (20.87)
========
10,395 
======== | $      23,654 
-----------
43,976 
9,119 
 11,294 
 7,098 
-----------
71,487 
-----------
(47,833)
(358,024)
----------
$  (405,857)
========
$  (401,798)
(4,059)
-----------
$  (405,857)
========
$          (38.65)
========
10,395 
========

See accompanying notes to financial statements.

---

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

|SERIES 8                                                                                                                                                                                                                                                                                                                                                                                                                                           | 2001                                                                                                                                                                                                                                             | 2000                                                                                                                                                                                                                                          
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
  Interest Income
Expenses:
  Asset Management Fee-General Partner
  General and Administrative:
  General Partner
  Other
  Amortization
    Total Expenses
Loss Before Equity in Losses
  of Project Partnerships
Equity in Losses of Project Partnerships
    Net Loss
Allocation of Net Loss:
  Limited Partners
  General Partners
Net Loss Per Number of Limited Partnership Units
Number of Limited Partnership Units Outstanding | $   19,992 
-----------
45,682 
11,967 
 11,087 
 3,694 
-----------
72,430 
-----------
(52,438)
(187,174)
----------
$  (239,612)
========
$  (237,216)
(2,396)
-----------
$  (239,612)
========
$          (23.77)
========
 9,980 
======== | $   25,009 
-----------
45,828 
10,054 
 11,865 
 4,528 
-----------
72,275 
-----------
(47,266)
(276,425)
----------
$  (323,691)
========
$  (320,454)
(3,237)
-----------
$  (323,691)
========
$         (32.11)
========
9,980 
========

See accompanying notes to financial statements.

---

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

|SERIES 9                                                                                                                                                                                                                                                                                                                                                                                                                                             | 2001                                                                                                                                                                                                                                             | 2000                                                                                                                                                                                                                                          
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
  Interest Income
Expenses:
  Asset Management Fee-General Partner
  General and Administrative:
  General Partner
  Other
  Amortization
    Total Expenses
Loss Before Equity in Losses
  of Project Partnerships
Equity in Losses of Project Partnerships
    Net Loss
Allocation of Net Loss:
  Limited Partners
  General Partners
 
Net Loss Per Number of Limited Partnership Units
Number of Limited Partnership Units Outstanding | $       11,512 
-----------
25,089 
6,679 
 6,469 
2,276 
-----------
40,513 
-----------
(29,001)
(166,058)
----------
$  (195,059)
========
$  (193,108)
(1,951)
-----------
$  (195,059)
========
$          (30.88)
========
6,254 
======== | $    13,847 
-----------
25,160 
5,612 
 6,691 
2,860 
-----------
40,323 
-----------
(26,476)
(282,954)
----------
$  (309,430)
========
$  (306,336)
(3,094)
-----------
$  (309,430)
========
$          (48.98)
========
 6,254 
========

See accompanying notes to financial statements.

---

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

|SERIES 10                                                                                                                                                                                                                                                                                                                                                                                                                                          | 2001                                                                                                                                                                                                                                              | 2000                                                                                                                                                                                                                                             
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
  Interest Income
Expenses:
  Asset Management Fee-General Partner
  General and Administrative:
  General Partner
  Other
  Amortization
    Total Expenses
Loss Before Equity in Losses
  of Project Partnerships
Equity in Losses of Project Partnerships
    Net Loss
Allocation of Net Loss:
  Limited Partners
  General Partners
Net Loss Per Number of Limited Partnership Units
Number of Limited Partnership Units Outstanding | $      11,146 
-----------
 17,106 
4,175 
 4,386 
 2,811 
-----------
28,478 
-----------
(17,332)
(122,900)
----------
$  (140,232)
========
$  (138,830)
(1,402)
-----------
$  (140,232)
========
$         (27.53)
========
 5,043 
======== | $      13,726 
-----------
 17,154 
3,507 
 4,863 
 2,810 
-----------
28,334 
-----------
(14,608)
(210,621)
----------
$  (225,229)
========
$  (222,977)
(2,252)
-----------
$  (225,229)
========
$         (44.22)
========
 5,043 
========

See accompanying notes to financial statements.

---

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

|SERIES 11                                                                                                                                                                                                                                                                                                                                                                                                                                          | 2001                                                                                                                                                                                                                                | 2000                                                                                                                                                                                                                                          
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
  Interest Income
Expenses:
  Asset Management Fee-General Partner
  General and Administrative:
  General Partner
  Other
  Amortization
    Total Expenses
Loss Before Equity in Losses
  of Project Partnerships
Equity in Losses of Project Partnerships
    Net Loss
Allocation of Net Loss:
  Limited Partners
  General Partners
Net Loss Per Number of Limited Partnership Units
Number of Limited Partnership Units Outstanding | $   12,660 
-----------
 14,543 
3,339 
3,806 
4,147 
-----------
25,835 
-----------
(13,175)
(83,624)
----------
$   (96,799)
========
$   (95,831)
(968)
-----------
$   (96,799)
========
$   (18.69)
========
 5,127 
======== | $      15,061 
-----------
 14,232 
2,806 
4,327 
4,146 
-----------
25,511 
-----------
(10,450)
(149,129)
----------
$  (159,579)
========
$  (157,983)
(1,596)
-----------
$  (159,579)
========
$        (30.81)
========
 5,127 
========

See accompanying notes to financial statements.

---

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

|TOTAL SERIES 7 - 11                                                                                                                                                                                                                                                                                                                             | 2001                                                                                                                                                                                                 | 2000                                                                                                                                                                                                         
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
  Interest Income
Expenses:
  Asset Management Fee-General Partner
  General and Administrative:
  General Partner
  Other
  Amortization
    Total Expenses
Loss Before Equity in Losses
  of Project Partnerships
Equity in Losses of Project Partnerships
    Net Loss
Allocation of Net Loss:  Limited Partners  General Partners | $  75,229 
-----------
146,261 
37,014 
35,976 
24,290 
-----------
243,541 
-----------
(168,312)
(722,495)
----------
$  (890,807)
========
$  (881,899)
(8,908)
-----------
$  (890,807)
======== | $      91,297 
-----------
146,350 
 
31,098 
39,040 
21,442 
-----------
237,930 
-----------
(146,633)
(1,277,153)
----------
$(1,423,786)
========
$(1,409,548)
(14,238)
-----------
$(1,423,786)
========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2001 AND 2000

|SERIES 7                                                                                                                          | Limited
Partners
---------                                                                                          | General
Partners
--------                                                                                          | Total
-----                                                                                                         
|--------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------ | --------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 2000
Net Loss
Balance at September 30, 2000
Balance at March 31, 2001
Net Loss
Balance at September 30, 2001 | $ 2,670,270 
(401,798)
-----------
$ 2,268,472 
=========
$ 2,166,589 
(216,914)
-----------
$ 1,949,675 
========= | $   (65,227)
  (4,059)
-----------
$   (69,286)
========
 
$   (70,315)
(2,191)
-----------
$    (72.506)
======== | $ 2,605,043 
(405,857)
-----------
$ 2,199,186 
=========
$ 2,096,274 
(219,105)
-----------
$  1,877,169 
=========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2001 AND 2000

|SERIES 8                                                                                                                          | Limited
Partners
---------                                                                                              | General
Partners
--------                                                                                               | Total
-----                                                                                                            
|--------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 2000
Net Loss
Balance at September 30, 2000
Balance at March 31, 2001
Net Loss
Balance at September 30, 2001 | $ 1,898,013 
(320,454)
-------------
$ 1,577,559 
=========
$ 1,363,645 
(237,216)
-------------
$ 1,126,429 
========= | $   (69,338)
  (3,237)
------------
$   (72,575)
========
$   (74,736)
(2,396)
------------
      $   (77,132)
======== | $ 1,828,675 
(323,691)
-------------
$ 1,504,984 
=========
$ 1,288,909 
(239,612)
-------------
$ 1,049,297 
=========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2001 AND 2000

|SERIES 9                                                                                                                          | Limited
Partners
---------                                                                                               | General
Partners
--------                                                                                              | Total
-----                                                                                                               
|--------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------ | ---------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 2000
Net Loss
Balance at September 30, 2000
Balance at March 31, 2001
Net Loss
Balance at September 30, 2001 | $ 2,563,166 
(306,336)
-------------
$ 2,256,830 
=========
$ 2,110,561 
(193,108)
--------------
$ 1,917,453 
========= | $   (29,500)
  (3,094)
-------------
$   (32,594)
=========
$   (34,072)
(1,951)
--------------
$   (36,023)
========= | $ 2,533,666 
  (309,430)
-------------
$ 2,224,236 
=========
$ 2,076,489 
(195,059)
--------------
$ 1,881,430 
=========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2001 AND 2000

|SERIES 10                                                                                                                         | Limited
Partners
---------                                                                                               | General
Partners
--------                                                                                             | Total
-----                                                                                                            
|--------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------ | --------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 2000
Net Loss
Balance at September 30, 2000
Balance at March 31, 2001
Net Loss
Balance at September 30, 2001 | $ 3,128,940 
(222,977)
-------------
$ 2,905,963 
=========
$ 2,811,044 
(138,830)
--------------
$ 2,672,214 
========= | $   (13,021)
  (2,252)
-------------
$   (15,273)
=========
$   (16,232)
(1,402)
-------------
$   (17,634)
========= | $ 3,115,919 
(225,229)
-------------
$ 2,890,690 
=========
$ 2,794,812 
(140,232)
-------------
$ 2,654,580 
=========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2001 AND 2000

|SERIES 11                                                                                                                         | Limited
Partners
---------                                                                                              | General
Partners
--------                                                                                      | Total
-----                                                                                                            
|--------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 2000
Net Loss
Balance at September 30, 2000
Balance at March 31, 2001
Net Loss
Balance at September 30, 2001 | $ 3,957,139 
(157,983)
-------------
$ 3,799,156 
=========
$ 3,756,773 
(95,831)
--------------
$ 3,660,942 
========= | $    (6,484)
  (1,596)
-----------
$    (8,080)
========
$    (8,508)
(968)
------------
$    (9,476)
======== | $ 3,950,655 
(159,579)
-------------
$ 3,791,076 
=========
$ 3,748,265 
(96,799)
--------------
$ 3,651,466 
=========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2001 AND 2000

|TOTAL SERIES 7 - 11                                                                                                               | Limited
Partners
---------                                                                                            | General
Partners
--------                                                                                            | Total
-----                                                                                                         
|--------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 2000
Net Loss
Balance at September 30, 2000
Balance at March 31, 2001
Net Loss
Balance at September 30, 2001 | $14,217,528
(1,409,548)
-------------
$12,807,980
=========
$12,208,612
(881,899)
-------------
$11,326,713
========= | $  (183,570)
 (14,238)
------------
$  (197,808)
=========
$  (203,863)
(8,908)
-------------
$  (212,771)
========= | $14,033,958
(1,423,786)
------------
$12,610,172
=========
$12,004,749
(890,807)
-------------
$11,113,942
=========

See accompanying notes to financial statements.

---

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

|SERIES 7
--------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 2001                                                                                                                                                                  | 2000                                                                                                                                                              
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Cash Flows from Operating Activities:
  Net Loss
  Adjustments to Reconcile Net Loss to Net
  Cash Used in Operating Activities:
       Amortization
       Accreted Interest Income on Investments
    in Securities
       Equity in Losses of Project Partnerships
    Changes in Operating Assets and Liabilities:
        Increase(Decrease) in Payable to General Partners
           Net Cash Used in Operating Activities
Cash Flows from Investing Activities:
Distributions Received from Project Partnerships
     Net Cash Provided by Investing Activities
Decrease in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
Cash and Cash Equivalents at End of Year | $  (219,105)
11,362
(13,781)
162,739
(1,161)
-----------
(59,946)
-----------
18,864
-----------
18,864
-----------
(41,082)
353,838
-----------
$   312,756
======== | $  (405,857)
 
7,098
(14,597)
358,024
745
-----------
(54,587)
-----------
17,460
-----------
17,460
-----------
(37,127)
324,156
-----------
$   287,029
========

See accompanying notes to financial statements.

---

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

|SERIES 8
--------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 2001                                                                                                                                                               | 2000                                                                                                                                                             
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -----------------------------------------------------------------------------------------------------------------------------------------------------------------
|Cash Flows from Operating Activities:
  Net Loss
  Adjustments to Reconcile Net Loss to Net
  Cash Used in Operating Activities:
    Amortization
    Accreted Interest Income on Investments
    in Securities
    Equity in Losses of Project Partnership
   Changes in Operating Assets and Liabilities:
    Increase in Payable to General Partners
      Net Cash Used in Operating Activities
Cash Flows from Investing Activities:
Distributions Received from Project Partnerships
     Net Cash Provided by Investing Activities
Decrease in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
Cash and Cash Equivalents at End of Year | $  (239,612)
 
3,694
(12,3120)
187,174
3,056
-----------
(58,000)
-----------
7,175
-----------
7,175
-----------
(50,825)
447,343
-----------
$  396,518
======== | $  (323,691)
4,528
(13,100)
276,425
2,853
-----------
(52,985)
-----------
10,216
-----------
10,216
-----------
(42,769)
425,447
-----------
$  382,678
========

See accompanying notes to financial statements.

---

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

|SERIES 9
--------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 2001                                                                                                                                                            | 2000                                                                                                                                                           
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------
|Cash Flows from Operating Activities:
  Net Loss
  Adjustments to Reconcile Net Loss to Net
  Cash Used in Operating Activities:
        Amortization
        Accreted Interest Income on Investments
      In Securities
     Equity in Losses of Project Partnerships
        Changes in Operating Assets and Liabilities:
            Increase in Payable to General Partners
               Net Cash Used in Operating Activities
Cash Flows from Investing Activities:
Distributions Received from Project Partnerships
               Net Cash Provided by Investing Activities
Decrease in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
Cash and Cash Equivalents at End of Year | $  (195,059)
2,276
(7,471)
166,058
8,497
-----------
(25,699)
-----------
8,174
-----------
8,174
-----------
(17,525)
232,688
-----------
$   215,163
======== | $  (309,430)
2,860
(7,883)
282,954
7,868
-----------
(23,631)
-----------
9,770
-----------
9,770
-----------
(13,861)
209,964
-----------
$   196,103
========

See accompanying notes to financial statements.

---

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

|SERIES 10
--------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 2001                                                                                                                                                              | 2000                                                                                                                                                            
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------
|Cash Flows from Operating Activities:
  Net Loss
  Adjustments to Reconcile Net Loss to Net
  Cash Used in Operating Activities:
      Amortization
       Accreted Interest Income on Investments
    in Securities
    Equity in Losses of Project Partnerships
    Changes in Operating Assets and Liabilities:
          Decrease in Payable to General Partners
              Net Cash Used in Operating Activities
Cash Flows from Investing Activities:
Distributions Received from Project Partnerships
              Net Cash Provided by Investing Activities
Decrease in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
Cash and Cash Equivalents at End of Year | $  (140,232)
2,811
(7,054)
122,900
(8,618)
-----------
(30,193)
-----------
4,989
-----------
4,989
-----------
(25,204)
236,522
-----------
$   211,318
======== | $  (225,229)
2,810
(7,351)
210,621
(10,248)
-----------
(29,397)
-----------
5,161
-----------
5,161
-----------
(24,236)
226,070
-----------
$ 201,834
========

See accompanying notes to financial statements.

---

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

|SERIES 11
--------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 2001                                                                                                                                                                | 2000                                                                                                                                                            
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------
|Cash Flows from Operating Activities:
  Net Loss
  Adjustments to Reconcile Net Loss to Net
  Cash Used in Operating Activities:
     Amortization
     Accreted Interest Income on Investments
   in Securities
   Equity in Losses of Project Partnerships
   Changes in Operating Assets and Liabilities:
          Decrease in Payable to General Partners
             Net Cash Used in Operating Activities
Cash Flows from Investing Activities:
Distributions Received from Project Partnerships
        Net Cash Provided by Investing Activities
Decrease in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
Cash and Cash Equivalents at End of Year | $  (96,799)
4,147
(8,337)
83,624
(16,332)
-----------
(33,697)
-----------
12,833
-----------
 12,833
-----------
(20,864)
244,339
-----------
$   223,475
======== | (159,579)
4,146
(8,603)
149,129
(15,075)
-----------
(29,982)
-----------
4,172
-----------
 4,172
-----------
(25,810)
230,874
-----------
$   205,064
========

See accompanying notes to financial statements.

---

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

|TOTAL SERIES 7 - 11
-------------------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 2001                                                                                                                                                                       | 2000                                                                                                                                                                        
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Cash Flows from Operating Activities:  Net Loss  Adjustments to Reconcile Net Loss to Net
  Cash Used in Operating Activities:
    Amortization
     Accreted Interest Income on Investments
  in Securities
     Equity in Losses of Project Partnerships
     Changes in Operating Assets and Liabilities:
        Decrease in Payable to General Partners
            Net Cash Used in Operating Activities
|Cash Flows from Investing Activities:
Distributions Received from Project Partnerships
       Net Cash Provided by Investing Activities
Decrease in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
Cash and Cash Equivalents at End of Year | $  (890,807)
24,290
(48,955)
722,495
(14,558)
-----------
(207,535)
-----------
52,035
-----------
52,035
-----------
(155,500)
1,514,730
-----------
$ 1,359,230
======== | $(1,423,786)
21,442
(51,534)
1,277,153
(13,857)
-----------
(190,582)
-----------
46,779
-----------
46,779
-----------
(143,803)
1,416,511
-----------
$ 1,272,708
========

See accompanying notes to financial statements.

---

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

NOTE 1 - ORGANIZATION:     Gateway Tax Credit Fund III Ltd. ("Gateway"), a Florida Limited Partnership, was formed October 17, 1991 under the laws of Florida.  Gateway offered its limited partnership interests in Series.  The first Series for Gateway is Series 7.  Operations commenced on July 16, 1992 for Series 7, January 4, 1993 for Series 8, September 30, 1993 for Series 9, January 21, 1994 for Series 10 and April 29, 1994 for Series 11.  Each Series invests, as a limited partner, in other limited partnerships ("Project Partnerships"), each of which owns and operates apartment complexes eligible for Low-Income Housing Tax Credits ("Tax Credits"), provided for in Section 42 of the Internal Revenue Code of 1986.  Gateway will terminate on December 31, 2040 or sooner, in accordance with the terms of the Limited Partnership Agreement.  As of September 30, 2001, Gateway had received capital contributions of $1,000 from the General Partners and $36,799,000 from the investor Limited Partners.
     Raymond James Partners, Inc. and Raymond James Tax Credit Funds, Inc., wholly-owned subsidiaries of Raymond James Financial, Inc., are the General Partner and Managing General Partner, respectively.  The Managing General Partner manages and controls the business of Gateway.
     Gateway received capital contributions of $10,395,000, $9,980,000, $6,254,000, $5,043,000 and $5,127,000 from the investor Limited Partners in Series 7, 8, 9, 10 and 11, respectively.  Each Series will be treated as though it were a separate partnership, investing in a separate and distinct pool of Project Partnerships. Income or loss and all tax items from the Project Partnerships acquired by each Series will be specifically allocated among the limited partners of such Series.

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.

---

NOTE 3 - INVESTMENT IN SECURITIES:
     The September 30, 2001 Balance Sheet includes Investment in Securities consisting of U.S. Treasury Security Strips which represents their cost, plus accreted interest income of $187,867 for Series 7, $163,657 for Series 8, $95,278 for Series 9, $84,529 for Series 10 and $97,010 for Series 11.

|          | Estimated Market
Value
----------------- | Cost Plus
Accreted Interest
---------------- | Gross Unrealized
Gains and (Losses)
----------------
|--------- | ---------------------------------------- | -------------------------------------------- | ----------------------------------------------------
|Series 7  | $  442,649                               | $  396,168                                   | $  46,481                                           
|Series 8  | 413,368                                  | 374,435                                      | 38,933                                              
|Series 9  | 272,660                                  | 251,514                                      | 21,146                                              
|Series 10 | 233,216                                  | 208,715                                      | 24,501                                              
|Series 11 | 266,713                                  | 232,533                                      | 34,180                                              

As of September 30, 2001, the cost and accreted interest of debt securities by contractual maturities is as follows:

|                                      | Series 7
--------   | Series 8
--------   | Series 9
--------  
|------------------------------------- | ------------------- | ------------------- | -------------------
|Due within 1 year                     | $   58,712          | $   53,847          | $   33,344         
|After 1 year through 5 years          | 229,146             | 215,092             | 127,815            
|After 5 years through 10 years        | 108,310             | 105,496             | 90,355             
|                                      | ----------          | ----------          | ----------         
|Total Amount Carried on Balance Sheet | $  396,168
======== | $  374,435
======== | $  251,514
========



|                                      | Series 10
--------  | Series 11
--------  | Total
--------     
|------------------------------------- | ------------------- | ------------------- | -------------------
|Due within 1 year                     | $   25,542          | $   27,359          | $  198,804         
|After 1 year through 5 years          | 95,257              | 107,213             | 774,523            
|After 5 years through 10 years        | 87,916              | 97,961              | 490,038            
|                                      | ----------          | ----------          | ----------         
|Total Amount Carried on Balance Sheet | $  208,715
======== | $  232,533
======== | $1,463,365
========

NOTE 4 - RELATED PARTY TRANSACTIONS:

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS:
     As of September 30, 2001, the Partnership had acquired a 99% interest in the profits, losses and tax credits as a limited partner in 39 Project Partnerships which own and operate government assisted multi-family housing complexes.  Cash flows from operations are allocated according to each Partnership agreement.  Upon dissolution proceeds will be distributed according to each Partnership agreement.
The following is a summary of Investments in Project Partnerships as of:

|SERIES 7                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | SEPTEMBER 30,
2001
--------------                                                                              | MARCH 31,
2001
-----------                                                                                      
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------
|Capital Contributions to Project Partnerships and
purchase price paid for limited partner interests in Project
Partnerships
Cumulative equity in losses of Project Partnerships (1)
Cumulative distributions received from Project
Partnerships
Investment in Project Partnerships before adjustment
Excess of investment cost over theunderlying assets
acquired:
  Acquisition fees and expenses
  Accumulated amortization of acquisition  fees and
  expenses
Investments in Project Partnerships | $ 7,732,089 
(6,570,568)
(196,175)
-----------
965,346 
793,335 
(177,896)
------------
$ 1,580,785 
========= | $ 7,732,089 
(6,407,829)
(177,311)
-----------
1,146,949 
793,335 
(166,533)
------------
$ 1,773,751 
=========

(1) In accordance with the Partnership's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $1,528,320 for the period ended September 30, 2001 and cumulative suspended losses of $1,220,839 for the year ended March 31, 2001 are not included.

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

|SERIES 8                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | SEPTEMBER 30,
2001
--------------                                                                          | MARCH 31,
2001
-----------                                                                                   
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ---------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------
|Capital Contributions to Project Partnerships and purchase
price paid for limited partner interests in Project
Partnerships
Cumulative equity in losses of Project Partnerships (1)
Cumulative distributions received from Project
Partnerships
Investment in Project Partnerships before adjustment
Excess of investment cost over the underlying assets
 acquired:
  Acquisition fees and expenses
  Accumulated amortization of acquisition fees and
  expenses
Investments in Project Partnerships | $ 7,586,105 
(7,136,030)
(150,389)
-----------
299,686 
549,773 
(107,039)
-----------
$ 742,420 
======== | $ 7,586,105 
(6,948,856)
(143,214)
-----------
494,035 
549,773 
(103,345)
------------
$   940,463 
========

(1) In accordance with the Partnership's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $1,700,605 for the period ended September 30, 2001 and cumulative suspended losses of $1,367,522 for the year ended March 31, 2001 are not included.

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

|SERIES 9                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | SEPTEMBER 30,
2001
--------------                                                                              | MARCH 31,
2001
-----------                                                                                   
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------
|Capital Contributions to Project Partnerships and
purchase price paid for limited partner interests in
Project Partnerships
Cumulative equity in losses of Project Partnerships (1)
Cumulative distributions received from Project
Partnerships
Investment in Project Partnerships before Adjustment
Excess of investment cost over the underlying assets
acquired:
  Acquisition fees and expenses
  Accumulated amortization of acquisition fees and
  expenses
Investments in Project Partnerships | $ 4,914,116 
(3,301,448)
(109,183)
-----------
1,503,485 
244,087 
(49,483)
------------
$ 1,698,089 
======== | $ 4,914,116 
(3,135,390)
(101,009)
----------
1,677,717 
244,087 
(47,208)
------------
$ 1,874,596 
========

(1) In accordance with the Partnership's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $386,229 for the period ended September 30, 2001 and cumulative suspended losses of $279,195 for the year ended March 31, 2001 are not included.

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

|SERIES 10                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | SEPTEMBER 30,
2001
--------------                                                                                  | MARCH 31,
2001
-----------                                                                                    
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------ | --------------------------------------------------------------------------------------------------------------
|Capital Contributions to Project Partnerships and purchase
price paid for limited partner interests in Project
Partnerships
Cumulative equity in losses of Project Partnerships (1)
Cumulative distributions received from Project Partnerships
Investment in Project Partnerships before Adjustment
Excess of investment cost over the underlying assets
acquired:  Acquisition fees and expenses  Accumulated amortization of acquisition fees and expenses
Investments in Project Partnerships | $ 3,914,672 
 
(1,627,407)
(120,347)
-----------
2,166,918 
196,738 
(43,071)
-------------
$ 2,320,585 
========= | $ 3,914,672 
(1,504,507)
(115,357)
----------
2,294,808 
196,738 
(40,259)
------------
$ 2,451,287 
=========

(1) In accordance with the Partnership's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $0 for the period ended September 30, 2001 and cumulative suspended losses of $0 for the year ended March 31, 2001 are not included.

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

|SERIES 11                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | SEPTEMBER 30,
2001
--------------                                                                               | MARCH 31,
2001
-----------                                                                                
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------
|Capital Contributions to Project Partnerships and purchase
price paid for limited partner interests in Project
Partnerships
Cumulative equity in losses of Project Partnerships (1)
Cumulative distributions received from Project Partnerships
Investment in Project Partnerships before adjustment
Excess of investment cost over the underlying assets
acquired:  Acquisition fees and expenses  Accumulated amortization of acquisition fees and
  expenses
Investments in Project Partnerships | $ 4,128,042 
(1,027,055)
(107,756)
-----------
2,993,231 
290,335 
(55,491)
------------
$ 3,228,075 
========= | $ 4,128,042 
(943,431)
(94,923)
-----------
3,089,688 
290,335 
(51,342)
-----------
$ 3,328,681
=========

(1) In accordance with the Partnership's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $0 for the period September 30, 2001 and cumulative suspended losses of $0 for the year ended March 31, 2001 are not included.

---

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

|TOTAL SERIES 7 - 11                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | SEPTEMBER 30,
2001
--------------                                                                                    | MARCH 31,
2001
-----------                                                                                         
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------
|Capital Contributions to Project Partnerships and
purchase price paid for limited partner interests in Project
Partnerships
Cumulative equity in losses of Project Partnerships (1)
Cumulative distributions received from Project Partnerships
Investment in Project Partnerships before Adjustment
Excess of investment cost over the underlying assets
acquired:  Acquisition fees and expenses  Accumulated amortization of acquisition fees and
  expenses
Investments in Project Partnerships | $28,275,024 
(19,662,508)
(683,850)
------------
7,928,666 
2,074,268 
(432,980)
------------
$ 9,569,954 
========= | $28,275,024 
(18,940,013)
(631,814)
-----------
8,703,197 
2,074,268 
(408,687)
------------
$10,368,778 
=========

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

|SERIES 7                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 2001                                                                                                                                                                                                                                                                                                                                                                                                                     | 2000                                                                                                                                                                                                                                                                                                                                                                                                                   
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|SUMMARIZED BALANCE SHEETS
Assets:
  Current assets
  Investment properties, net
  Other assets
      Total assets
Liabilities and Partners' Equity:
  Current liabilities
  Long-term debt
 
      Total liabilities
Partners' equity (deficit)
  Limited Partner
  General Partners
      Total Partners' equity
      Total liabilities and partners' equity
SUMMARIZED STATEMENTS OF
OPERATIONS
Rental and other income
Expenses
  Operating expenses
  Interest expense
  Depreciation and amortization
      Total expenses
      Net loss
Other partners' share of net loss
Partnerships' share of net loss
Suspended losses
Equity in Losses of Project Partnerships | $  3,421,228 
33,068,943 
 15,870 
------------
$36,506,041 
=========
$    801,006 
36,441,924 
------------
37,242,930 
------------
(618,907)
 (117,982)
-----------
(736,889)
-----------
$36,506,041 
=========
$ 2,164,487 
------------
1,490,601 
415,562 
733,294 
------------
2,639,457 
-----------
$  (474,970)
=========
$     (4,750)
=========
$  (470,220)
307,481 
------------
$  (162,739)
========= | $ 3,294,232 
34,400,647 
 35,594 
------------
$37,730,473 
=========
$    973,606 
36,579,442 
------------
37,553,048 
------------
239,108 
 (61,683)
-----------
177,425 
-----------
$37,730,473 
=========
$ 2,165,438 
------------
1,439,252 
631,230 
751,348 
------------
2,821,830 
------------
$  (656,392)
=========
$        (6,564)
=========
$  (649,828)
291,804 
------------
$ (358,024)
=========

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

|SERIES 8                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | 2001                                                                                                                                                                                                                                                                                                                                                                                                                          | 2000                                                                                                                                                                                                                                                                                                                                                                                                                  
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|SUMMARIZED BALANCE SHEETS
Assets:
  Current assets
  Investment properties, net
  Other assets
      Total assets
Liabilities and Partners' Equity:
  Current liabilities
  Long-term debt
      Total liabilities
Partners' equity (deficit)
  Limited Partner
  General Partners  
      Total Partners' equity (deficit)
      Total liabilities and partners' equity  
SUMMARIZED STATEMENTS OF
OPERATIONS
Rental and other income
Expenses:
  Operating expenses
  Interest expense
  Depreciation and amortization
      Total expenses
      Net loss
Other partners' share of net loss
Partnerships' share of net loss
Suspended losses
Equity in Losses of Project Partnerships | $  2,985,618 
34,910,036 
 36,534 
------------
$37,932,188 
=========
$ 1,098,271 
38,447,298 
------------
39,545,569 
------------
(1,185,574)
(427,807)
-----------
(1,613,381)
-----------
$37,932,188 
=========
$ 2,179,208 
------------
1,467,482 
450,373 
789,013 
------------
2,706,868 
------------
$  (527,660)
========
$          (7,433)
========
$  (520,227)
333,053 
------------
$  (187,174)
======== | $  2,853,433 
36,416,155 
 35,313 
------------
$39,304,901 
========
$ 1,139,316 
38,620,980 
------------
39,760,296 
------------
(92,484)
(362,911)
-----------
(455,395)
-----------
$39,304,901 
=========
$ 2,186,453 
-----------
1,427,613 
562,807 
798,526 
------------
2,788,946 
------------
$  (602,493)
========
$          (8,266)
========
$  (594,227)
317,802 
------------
$  (276,425)
========

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

|SERIES 9                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 2001                                                                                                                                                                                                                                                                                                                                                                                                                           | 2000                                                                                                                                                                                                                                                                                                                                                                                                                          
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|SUMMARIZED BALANCE SHEETS
Assets:
  Current assets
  Investment properties, net
  Other assets
       Total assets
Liabilities and Partners' Equity:
  Current liabilities
  Long-term debt
      Total liabilities
Partners' equity (deficit)
  Limited Partner
  General Partners
      Total Partners' equity
      Total liabilities and partners' equity
SUMMARIZED STATEMENTS OF
OPERATIONS
Rental and other income
Expenses:
  Operating expenses
  Interest expense
  Depreciation and amortization
      Total expenses
      Net loss
Other partners' share of net loss
Partnerships' share of net loss
Suspended losses
Equity in Losses of Project Partnerships | $  1,768,791 
19,777,405 
 8,248 
------------
$21,554,444 
=========
$    265,717 
20,368,291 
------------
20,634,008 
------------
1,097,464 
(177,028)
-----------
920,436 
-----------
$21,554,444 
=========
$ 1,095,455 
------------
  720,771 
234,201 
  416,334 
------------
1,371,306 
------------
$  (275,851)
=========
$          (2,759)
=========
$  (273,092)
107,034 
------------
$  (166,058)
========= | $  1,733,235 
20,574,469 
 5,611 
------------
$22,313,315 
=========
$    354,578 
20,445,841 
------------
20,800,419 
------------
1,660,103 
(147,207)
-----------
1,512,896 
-----------
$22,313,315 
=========
$ 1,100,331 
------------
  717,304 
305,362 
  420,566 
------------
1,443,232 
------------
$ (342,901)
=========
$          (3,429)
=========
$  (339,472)
56,518 
------------
$  (282,954)
=========

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

|SERIES 10                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 2001                                                                                                                                                                                                                                                                                                                                                                                                                      | 2000                                                                                                                                                                                                                                                                                                                                                                                                                        
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|SUMMARIZED BALANCE SHEETS
Assets:
  Current assets
  Investment properties, net
  Other assets
      Total assets
Liabilities and Partners' Equity:
  Current liabilities
  Long-term debt
       Total liabilities
Partners' equity (deficit)
  Limited Partner
  General Partners
      Total Partners' equity
      Total liabilities and partners' equity
SUMMARIZED STATEMENTS OF
OPERATIONS
Rental and other income
Expenses:
  Operating expenses
  Interest expense
  Depreciation and amortization
      Total expenses
      Net loss
Other partners' share of net loss
Partnerships' share of net loss
Suspended losses
Equity in Losses of Project Partnerships | $  1,438,100 
14,078,703 
 5,319 
------------
$15,522,122 
=========
$       251,593 
13,320,516 
------------
13,572,109 
------------
2,171,653 
(221,640)
-----------
1,950,013 
-----------
$15,522,122 
=========
$      736,367 
------------
  482,389 
130,694 
  248,303 
------------
861,386 
------------
$  (125,019)
=========
$     (2,119)
=========
$  (122,900)
0 
------------
$  (122,900)
========= | $  1,343,827 
14,519,761 
 3,789 
------------
$15,867,377 
=========
$       280,428 
13,393,689 
------------
13,674,117 
------------
2,390,346 
(197,086)
-----------
2,193,260 
-----------
$15,867,377 
=========
$    713,644 
------------
  527,010 
152,607 
  247,824 
------------
927,441 
------------
$  (213,797)
=========
$          (3,176)
=========
$  (210,621)
0 
------------
$  (210,621)
=========

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

|SERIES 11                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 2001                                                                                                                                                                                                                                                                                                                                                                                                                     | 2000                                                                                                                                                                                                                                                                                                                                                                                                                         
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|SUMMARIZED BALANCE SHEETS
Assets:
  Current assets
  Investment properties, net
  Other assets
      Total assets
Liabilities and Partners' Equity:
  Current liabilities
  Long-term debt
      Total liabilities
Partners' equity (deficit)
  Limited Partner
  General Partners
      Total Partners' equity
      Total liabilities and partners' equity
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income
Expenses:
  Operating expenses
  Interest expense
  Depreciation and amortization
      Total expenses
      Net loss
Other partners' share of net loss
Partnerships' share of net loss
Suspended losses
Equity in Losses of Project Partnerships | $  1,307,536 
12,367,376 
 12,378 
------------
$13,687,290 
=========
$       260,662 
10,508,107 
------------
10,768,769 
------------
3,015,367 
(96,846)
-----------
2,918,521 
-----------
$13,687,290 
=========
$       734,370 
------------
  449,577 
123,027 
  258,062 
------------
830,666 
------------
$  (96,296)
=========
$  (12,672)
=========
$    (83,624)
0 
------------
$   (83,624)
========= | $   1,215,585 
12,825,775 
 14,512 
------------
$14,055,872 
=========
$       331,863 
10,608,709 
------------
10,940,572 
------------
3,146,070 
(30,770)
-----------
3,115,300 
-----------
$14,055,872 
=========
$    771,597 
------------
  451,090 
221,266 
  257,847 
------------
930,203 
------------
$  (158,606)
=========
$          (9,477)
=========
$  (149,129)
0 
------------
$  (149,129)
=========

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

|TOTAL SERIES 7 - 11                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 2001                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 2000                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|SUMMARIZED BALANCE SHEETS
Assets:
  Current assets
  Investment properties, net
  Other assets
      Total assets
Liabilities and Partners' Equity:
  Current liabilities
  Long-term debt
      Total liabilities
Partners' equity (deficit)
  Limited Partner
  General Partners
      Total Partners' equity
      Total liabilities and partners' equity
SUMMARIZED STATEMENTS OF
OPERATIONS
Rental and other income
Expenses:
  Operating expenses
  Interest expense
  Depreciation and amortization
      Total expenses
      Net loss
Other partners' share of net loss
Partnerships' share of net loss
Suspended losses
Equity in Losses of Project Partnerships | $   10,921,273 
114,202,463 
78,349 
------------
$125,202,085 
==========
$     2,677,249 
119,086,136 
------------
121,763,385 
------------
4,480,003 
(1,041,303)
-----------
3,438,700 
-----------
$125,202,085 
==========
$  6,909,887 
------------
4,610,820 
1,353,857 
2,445,006 
------------
8,409,683 
------------
$ (1,499,796)
==========
$           (29,733)
==========
$ (1,470,063)
747,568 
------------
$      (722,495)
========== | $   10,440,312 
118,736,807 
94,819 
------------
$129,271,938 
==========
$    3,079,791 
119,648,661 
------------
122,728,452 
------------
7,343,143 
(799,657)
-----------
6,543,486 
-----------
$129,271,938 
==========
$  6,937,463 
------------
4,562,269 
1,873,272 
2,476,111 
------------
8,911,652 
------------
$ (1,974,189)
==========
$           (30,912)
==========
$ (1,943,277)
666,124 
------------
$ (1,277,153)
==========

---

Item 7.  Management's Discussion and Analysis of Financial Condition and Results of Operations
Results of Operations, Liquidity and Capital Resources

---

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.