UNITED STATES
                            SECURITIES AND EXCHANGE COMMISSION
                                   WASHINGTON, DC  20549

                                         FORM 10-Q

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

For The Quarterly Period Ended             September 30, 1997 

Commission File Number              0-21762              

                       Gateway Tax Credit Fund III Ltd.      
      (Exact name of Registrant as specified in its charter) 
          
            Florida                              59-3090386 
(State or other jurisdiction of    ( I.R.S. Employer No.)
incorporation or organization)

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

Registrant's Telephone Number, Including Area Code:
(813)573-3800

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

                                YES     X                   NO          

                                                         Number of Units
      Title of Each Class                                 September 30, 1997
Units of Limited Partnership 
Interest:  $1,000 per unit                   33,799

                            DOCUMENTS INCORPORATED BY REFERENCE

                      Parts I and II, 1995 Form 10-K, filed with the
                    Securities and Exchange Commission on June 25, 1997
                    Parts III and IV - Form S-11 Registration Statement
                        and all amendments and supplements thereto
                                     File No. 33-44238
<PAGE>
PART I - Financial Information
  Item 1.  Financial Statements
                             GATEWAY TAX CREDIT FUND III LTD.
                              (A Florida Limited Partnership)

                                      BALANCE SHEETS

                                              SEPTEMBER 30,        MARCH 31,
                                                     1997            1997   
                                                 -----------     -----------
SERIES 7                                         (Unaudited)     (Unaudited)
ASSETS
Current Assets:
   Cash and Cash Equivalents                     $  227,010      $  267,980 
   Investments in Securities                         46,187          44,933 
   Receivable from Project Partnerships                   0               0 
                                                 -----------     -----------
     Total Current Assets                           273,197         312,913 

   Investments in Securities                        436,610         421,843 
   Investments in Project
          Partnerships, Net                       4,018,428       4,483,546 
                                                 -----------     -----------
       Total Assets                              $4,728,235      $5,218,302 
                                                 ===========     ===========

LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
   Payable to General Partners                   $   49,675      $   54,499 
   Payable to Project Partnerships                        0               0 
                                                 -----------     -----------
                                                     49,675          54,499 

Long-Term Liabilities:
   Payable to General Partners                      180,102         179,733 

Partners' Equity:
Limited Partners (10,395 units for
   Series 7, 9,980 for Series 8, 6,254
   for Series 9, 5,043 for Series 10
   and 5,127 for Series 11 at September 30,
   1997 and March 31, 1997)                       4,544,751       5,025,507 
General Partners                                    (46,293)        (41,437)
                                                 -----------     -----------
     Total Partners' Equity                       4,498,458       4,984,070 
                                                 -----------     -----------
       Total Liabilities and
          Partners' Equity                       $4,728,235      $5,218,302 
                                                 ===========     ===========
                      See accompanying notes to financial statements.
<PAGE>
                             GATEWAY TAX CREDIT FUND III LTD.
                              (A Florida Limited Partnership)

                                      BALANCE SHEETS
                                              SEPTEMBER 30,       MARCH 31, 
                                                     1997            1997   
                                                 -----------      ----------
SERIES 8                                         (Unaudited)       (Audited)
ASSETS
Current Assets:
   Cash and Cash Equivalents                     $  355,423      $  396,038 
   Investments in Securities                         41,279          40,189 
   Receivable from Project Partnerships                   0             453 
                                                 -----------     -----------
     Total Current Assets                           396,702         436,680 

   Investments in Securities                        414,126         400,823 
   Investments in Project
          Partnerships, Net                       4,005,200       4,614,122 
                                                 -----------     -----------
       Total Assets                              $4,816,028      $5,451,625 
                                                 ===========     ===========

LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
   Payable to General Partners                   $   40,011      $   42,185 
   Payable to Project Partnerships                        0               0 
                                                 -----------     -----------
                                                     40,011          42,185 
Long-Term Liabilities:
   Payable to General Partners                      222,837         217,295 

Partners' Equity:
Limited Partners (10,395 units for
   Series 7, 9,980 for Series 8, 6,254
   for Series 9, 5,043 for Series 10
   and 5,127 for Series 11 at September 30,
   1997 and March 31, 1997)                       4,595,274       5,227,849 
General Partners                                    (42,094)        (35,704)
                                                 -----------     -----------
     Total Partners' Equity                       4,553,180       5,192,145 
                                                 -----------     -----------
       Total Liabilities and
          Partners' Equity                       $4,816,028      $5,451,625 
                                                 ===========     ===========
                      See accompanying notes to financial statements.
<PAGE>
                             GATEWAY TAX CREDIT FUND III LTD.
                              (A Florida Limited Partnership)

                                      BALANCE SHEETS
                                               SEPTEMBER 30,       MARCH 31,
                                                      1997           1997   
                                                 -----------      ----------
SERIES 9                                         (Unaudited)       (Audited)
ASSETS
Current Assets:
   Cash and Cash Equivalents                     $  141,782      $  161,813 
   Investments in Securities                         27,552          26,879 
   Receivable from Project Partnerships                   0               0 
                                                 -----------     -----------
     Total Current Assets                           169,334         188,692 

   Investments in Securities                        278,631         270,520 
   Investments in Project
          Partnerships, Net                       3,623,261       3,848,367 
                                                 -----------     -----------
       Total Assets                              $4,071,226      $4,307,579 
                                                 ===========     ===========

LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
   Payable to General Partners                   $   22,389      $   24,250 
   Payable to Project Partnerships                        0               0 
                                                 -----------     -----------
                                                     22,389          24,250 

Long-Term Liabilities:
   Payable to General Partners                      126,772         119,002 

Partners' Equity:
Limited Partners (10,395 units for
   Series 7, 9,980 for Series 8, 6,254
   for Series 9, 5,043 for Series 10
   and 5,127 for Series 11 at September 30,
   1997 and March 31, 1997)                       3,937,682       4,177,521 
General Partners                                    (15,617)        (13,194)
                                                 -----------     -----------
     Total Partners' Equity                       3,922,065       4,164,327 
                                                 -----------     -----------
       Total Liabilities and
          Partners' Equity                       $4,071,226      $4,307,579 
                                                 ===========     ===========
                      See accompanying notes to financial statements.
<PAGE>
                             GATEWAY TAX CREDIT FUND III LTD.
                              (A Florida Limited Partnership)

                                      BALANCE SHEETS
                                               SEPTEMBER 30,       MARCH 31,
                                                      1997           1997   
                                                 -----------      ----------
SERIES 10                                        (Unaudited)       (Audited)
ASSETS
Current Assets:
   Cash and Cash Equivalents                     $  165,825      $  199,743 
   Investments in Securities                         21,601          20,995 
   Receivable from Project Partnerships                   0               0 
                                                 -----------      ----------
     Total Current Assets                           187,426         220,738 

   Investments in Securities                        221,871         214,600 
   Investments in Project
          Partnerships, Net                       3,454,347       3,571,518 
                                                 -----------     -----------
       Total Assets                              $3,863,644      $4,006,856 
                                                 ===========     ===========

LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
   Payable to General Partners                   $   26,607      $   28,072 
   Payable to Project Partnerships                        0           7,712 
                                                 -----------     -----------
                                                     26,607          35,784 

Long-Term Liabilities:
   Payable to General Partners                       27,025          37,184 

Partners' Equity:
Limited Partners (10,395 units for
   Series 7, 9,980 for Series 8, 6,254
   for Series 9, 5,043 for Series 10
   and 5,127 for Series 11 at September 30,
   1997 and March 31, 1997)                       3,816,092       3,938,729 
General Partners                                     (6,080)         (4,841)
                                                 -----------     -----------
     Total Partners' Equity                       3,810,012       3,933,888 
                                                 -----------     -----------
       Total Liabilities and
          Partners' Equity                       $3,863,644      $4,006,856 
                                                 ===========     ===========
                      See accompanying notes to financial statements.
<PAGE>
                             GATEWAY TAX CREDIT FUND III LTD.
                              (A Florida Limited Partnership)

                                      BALANCE SHEETS
                                               SEPTEMBER 30,       MARCH 31,
                                                      1997           1997   
                                                 -----------      ----------
SERIES 11                                        (Unaudited)       (Audited)
ASSETS
Current Assets:
   Cash and Cash Equivalents                     $  152,352      $  169,385 
   Investments in Securities                         20,572          19,915 
   Receivable from Project Partnerships                   0               0 
                                                 -----------     -----------
     Total Current Assets                           172,924         189,300 

   Investments in Securities                        235,844         227,438 
   Investments in Project
          Partnerships, Net                       3,924,355       4,070,301 
                                                 -----------     -----------
       Total Assets                              $4,333,123      $4,487,039 
                                                 ===========     ===========


LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
   Payable to General Partners                   $   26,397      $   27,882 
   Payable to Project Partnerships                        0               0 
                                                 -----------     -----------
                                                     26,397          27,882 

Long-Term Liabilities:
   Payable to General Partners                        3,034           8,161 

Partners' Equity:
Limited Partners (10,395 units for
   Series 7, 9,980 for Series 8, 6,254
   for Series 9, 5,043 for Series 10
   and 5,127 for Series 11 at September 30,
   1997 and March 31, 1997)                       4,306,646       4,452,477 
General Partners                                     (2,954)         (1,481)
                                                 -----------     -----------
     Total Partners' Equity                       4,303,692       4,450,996 
                                                 -----------     -----------
       Total Liabilities and
          Partners' Equity                       $4,333,123      $4,487,039 
                                                 ===========     ===========
                      See accompanying notes to financial statements.
<PAGE>
                             GATEWAY TAX CREDIT FUND III LTD.
                              (A Florida Limited Partnership)

                                      BALANCE SHEETS
                                               SEPTEMBER 30,       MARCH 31,
                                                      1997           1997   
                                                 -----------      ----------
TOTAL SERIES 7 - 11                              (Unaudited)       (Audited)
ASSETS
Current Assets:
   Cash and Cash Equivalents                    $ 1,042,392     $ 1,194,959 
   Investments in Securities                        157,191         152,911 
   Receivable from Project Partnerships                   0             453 
                                                ------------    ------------
     Total Current Assets                         1,199,583       1,348,323 

   Investments in Securities                      1,587,082       1,535,224 
   Investments in Project
          Partnerships, Net                      19,025,591      20,587,854 
                                                ------------    ------------
       Total Assets                             $21,812,256     $23,471,401 
                                                ============    ============

LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
   Payable to General Partners                  $   165,079     $   176,888 
   Payable to Project Partnerships                        0           7,712 
                                                ------------    ------------
                                                    165,079         184,600 

Long-Term Liabilities:
   Payable to General Partners                      559,770         561,375 

Partners' Equity:
Limited Partners (10,395 units for
   Series 7, 9,980 for Series 8, 6,254
   for Series 9, 5,043 for Series 10
   and 5,127 for Series 11 at September 30,
   1997 and March 31, 1997)                      21,200,445      22,822,083 
General Partners                                   (113,038)        (96,657)
                                                ------------    ------------
     Total Partners' Equity                      21,087,407      22,725,426 
                                                ------------    ------------
       Total Liabilities and
          Partners' Equity                      $21,812,256     $23,471,401 
                                                ============    ============
                      See accompanying notes to financial statements.
<PAGE>
                             GATEWAY TAX CREDIT FUND III LTD.
                              (A Florida Limited Partnership)

                                 STATEMENTS OF OPERATIONS
                                        (Unaudited)

                         FOR THE THREE MONTHS ENDED SEPTEMBER 30,


                                                      1997              1996   
SERIES 7                                           ---------       ----------- 
Revenue:
   Interest Income                              $    11,482        $    11,059 
                                                ------------       ----------- 
Expenses:
   Asset Management Fee-
     General Partner                                 20,148             19,500 
   General and Administrative-
     General Partner                                  4,154              2,970 
   General and Administrative-
     Other                                           11,926              8,614 
   Amortization                                       5,743              5,486 
                                                ------------       ----------- 
     Total Expenses                                  41,971             36,570 
                                                ------------       ----------- 
Loss Before Equity in Losses of
 Project Partnerships                               (30,489)           (25,511)
Equity in Losses of Project
 Partnerships                                      (193,446)          (197,028)
                                                ------------       ------------
Net Loss                                        $  (223,935)       $  (222,539)
                                                ============       ============
Allocation of Net Loss:
   Limited Partners                             $  (221,696)       $  (220,314)
   General Partners                                  (2,239)            (2,225)
                                                ------------       ------------
                                                $  (223,935)       $  (222,539)
                                                ============       ============
Net Loss Per Number of 
 Limited Partnership Units                      $    (21.33)       $    (21.19)
                                                ============       ============
Number of Limited Partnership
 Units Outstanding                                   10,395             10,395 
                                                ============       ============

                      See accompanying notes to financial statements.
<PAGE>
                             GATEWAY TAX CREDIT FUND III LTD.
                              (A Florida Limited Partnership)

                                 STATEMENTS OF OPERATIONS
                                        (Unaudited)

                         FOR THE THREE MONTHS ENDED SEPTEMBER 30,


                                                     1997               1996   
SERIES 8                                          ----------       ----------- 
Revenues:
   Interest Income                              $    11,697        $    14,448 
                                                ------------       ----------- 
Expenses:
   Asset Management Fee-
     General Partner                                 22,214             21,500 
   General and Administrative-
     General Partner                                  4,581              3,275 
   General and Administrative-
     Other                                           12,357              9,464 
   Amortization                                       3,675              3,745 
                                                ------------       ----------- 
     Total Expenses                                  42,827             37,984 
                                                ------------       ------------
Loss Before Equity in Losses of
 Project Partnerships                               (31,130)           (23,536)
Equity in Losses of Project
 Partnerships                                      (324,149)          (213,171)
                                                ------------       ------------
Net Loss                                        $  (355,279)       $  (236,707)
                                                ============       ============
Allocation of Net Loss:
   Limited Partners                             $  (351,726)       $  (234,340)
   General Partners                                  (3,553)            (2,367)
                                                ------------       ------------
                                                $  (355,279)       $  (236,707)
                                                ============       ============
Net Loss Per Number of 
 Limited Partnership Units                      $    (35.24)       $    (23.48)
                                                ============       ============
Number of Limited Partnership
 Units Outstanding                                    9,980              9,980 
                                                ============       ============

                      See accompanying notes to financial statements.
<PAGE>
                             GATEWAY TAX CREDIT FUND III LTD.
                              (A Florida Limited Partnership)

                                 STATEMENTS OF OPERATIONS
                                        (Unaudited)

                         FOR THE THREE MONTHS ENDED SEPTEMBER 30,


                                                     1997               1996   
SERIES 9                                            --------       ----------- 
Revenues:
   Interest Income                              $     6,419        $     5,780 
                                                ------------       ----------- 
Expenses:
   Asset Management Fee-
     General Partner                                 12,399             12,000 
   General and Administrative-
     General Partner                                  2,557              1,828 
   General and Administrative-
     Other                                            6,669              5,391 
   Amortization                                       1,779              1,779 
                                                ------------       ----------- 
     Total Expenses                                  23,404             20,998 
                                                ------------       ------------
Loss Before Equity in Losses of
 Project Partnerships                               (16,985)           (15,218)
Equity in Losses of Project
 Partnerships                                      (118,377)          (110,687)
                                                ------------       ------------
Net Loss                                        $  (135,362)       $  (125,905)
                                                ============       ============
Allocation of Net Loss:
   Limited Partners                             $  (134,008)       $  (124,646)
   General Partners                                  (1,354)            (1,259)
                                                ------------       ------------
                                                $  (135,362)       $  (125,905)
                                                ============       ============
Net Loss Per Number of 
 Limited Partnership Units                      $    (21.43)       $    (19.93)
                                                ============       ============
Number of Limited Partnership
 Units Outstanding                                    6,254              6,254 
                                                ============       ============

                      See accompanying notes to financial statements.
<PAGE>
                             GATEWAY TAX CREDIT FUND III LTD.
                              (A Florida Limited Partnership)

                                 STATEMENTS OF OPERATIONS
                                        (Unaudited)

                         FOR THE THREE MONTHS ENDED SEPTEMBER 30,


                                                     1997               1996   
SERIES 10                                         ----------        ---------- 
Revenues:
   Interest Income                              $     6,449        $     6,025 
                                                ------------       ----------- 
Expenses:
   Asset Management Fee-
     General Partner                                  7,750              7,500 
   General and Administrative-
     General Partner                                  1,599              1,142 
   General and Administrative-
     Other                                            4,198              3,602 
   Amortization                                       1,460              1,476 
                                                ------------       ----------- 
     Total Expenses                                  15,007             13,720 
                                                ------------       ------------
Loss Before Equity in Losses of
 Project Partnerships                                (8,558)            (7,695)
Equity in Losses of Project
 Partnerships                                       (72,667)           (55,725)
                                                ------------       ------------
Net Loss                                        $   (81,225)       $   (63,420)
                                                ============       ============
Allocation of Net Loss:
   Limited Partners                             $   (80,413)       $   (62,786)
   General Partners                                    (812)              (634)
                                                ------------       ------------
                                                $   (81,225)       $   (63,420)
                                                ============       ============
Net Loss Per Number of 
 Limited Partnership Units                      $    (15.95)       $    (12.45)
                                                ============       ============
Number of Limited Partnership
 Units Outstanding                                    5,043              5,043 
                                                ============       ============

                      See accompanying notes to financial statements.
<PAGE>
                             GATEWAY TAX CREDIT FUND III LTD.
                              (A Florida Limited Partnership)

                                 STATEMENTS OF OPERATIONS
                                        (Unaudited)

                         FOR THE THREE MONTHS ENDED SEPTEMBER 30,

                                                     1997               1996   
SERIES 11                                         ----------       ----------- 

Revenues:
   Interest Income                              $     6,689        $     7,392 
                                                ------------       ----------- 
Expenses:
   Asset Management Fee-
     General Partner                                  6,200              6,000 
   General and Administrative-
     General Partner                                  1,279                915 
   General and Administrative-
     Other                                            3,875              3,008 
   Amortization                                       1,797              1,663 
                                                ------------       ----------- 
     Total Expenses                                  13,151             11,586 
                                                ------------       ------------
Income (Loss) Before Equity in Losses of
 Project Partnerships                                (6,462)            (4,194)
Equity in Losses of Project
 Partnerships                                       (91,316)            23,411 
                                                ------------       ------------
Net Income (Loss)                               $   (97,778)       $    19,217 
                                                ============       ============
Allocation of Net Income (Loss):
   Limited Partners                             $   (96,800)       $    19,025 
   General Partners                                    (978)               192 
                                                ------------       ------------
                                                $   (97,778)       $    19,217 
                                                ============       ============
Net Income (Loss) Per Number of 
 Limited Partnership Units                      $    (18.88)       $      3.71 
                                                ============       ============
Number of Limited Partnership
 Units Outstanding                                    5,127              5,127 
                                                ============       ============

                      See accompanying notes to financial statements.
<PAGE>
                             GATEWAY TAX CREDIT FUND III LTD.
                              (A Florida Limited Partnership)

                                 STATEMENTS OF OPERATIONS
                                        (Unaudited)

                         FOR THE THREE MONTHS ENDED SEPTEMBER 30,


                                                     1997                1996  
TOTAL SERIES 7-11                                 ----------       ----------- 
Revenues:
   Interest Income                              $    42,736        $    44,704 
                                                ------------       ----------- 
Expenses:
   Asset Management Fee-
     General Partner                                 68,711             66,500 
   General and Administrative-
     General Partner                                 14,170             10,130 
   General and Administrative-
     Other                                           39,025             30,079 
   Amortization                                      14,454             14,149 
                                                ------------       ----------- 
     Total Expenses                                 136,360            120,858 
                                                ------------       ------------
Loss Before Equity in Losses of
 Project Partnerships                               (93,624)           (76,154)
Equity in Losses of Project
 Partnerships                                      (799,955)          (553,200)
                                                ------------       ------------
Net Loss                                        $  (893,579)       $  (629,354)
                                                ============       ============
Allocation of Net Loss:
   Limited Partners                             $  (884,643)       $  (623,059)
   General Partners                                  (8,936)            (6,295)
                                                ------------       ------------
                                                $  (893,579)       $  (629,354)
                                                ============       ============

                      See accompanying notes to financial statements.
<PAGE>
                             GATEWAY TAX CREDIT FUND III LTD.
                              (A Florida Limited Partnership)

                                 STATEMENTS OF OPERATIONS
                                        (Unaudited)

                          FOR THE SIX MONTHS ENDED SEPTEMBER 30,


                                                      1997              1996   
SERIES 7                                           ---------       ----------- 
Revenue:
   Interest Income                              $    22,645        $    21,940 
                                                ------------       ----------- 
Expenses:
   Asset Management Fee-
     General Partner                                 39,648             39,000 
   General and Administrative-
     General Partner                                  7,472              5,920 
   General and Administrative-
     Other                                           14,299             12,316 
   Amortization                                      10,879             10,946 
                                                ------------       ----------- 
     Total Expenses                                  72,298             68,182 
                                                ------------       ----------- 
Loss Before Equity in Losses of
 Project Partnerships                               (49,653)           (46,242)
Equity in Losses of Project
 Partnerships                                      (435,959)          (427,938)
                                                ------------       ------------
Net Loss                                        $  (485,612)       $  (474,180)
                                                ============       ============
Allocation of Net Loss:
   Limited Partners                             $  (480,756)       $  (469,438)
   General Partners                                  (4,856)            (4,742)
                                                ------------       ------------
                                                $  (485,612)       $  (474,180)
                                                ============       ============
Net Loss Per Number of 
 Limited Partnership Units                      $    (46.25)       $    (45.16)
                                                ============       ============
Number of Limited Partnership
 Units Outstanding                                   10,395             10,395 
                                                ============       ============

                      See accompanying notes to financial statements.
<PAGE>
                             GATEWAY TAX CREDIT FUND III LTD.
                              (A Florida Limited Partnership)

                                 STATEMENTS OF OPERATIONS
                                        (Unaudited)

                          FOR THE SIX MONTHS ENDED SEPTEMBER 30,


                                                     1997               1996   
SERIES 8                                          ----------       ----------- 
Revenues:
   Interest Income                              $    23,621        $    25,776 
                                                ------------       ----------- 
Expenses:
   Asset Management Fee-
     General Partner                                 43,714             43,000 
   General and Administrative-
     General Partner                                  8,240              6,528 
   General and Administrative-
     Other                                           14,951             13,391 
   Amortization                                       5,989              6,060 
                                                ------------       ----------- 
     Total Expenses                                  72,894             68,979 
                                                ------------       ------------
Loss Before Equity in Losses of
 Project Partnerships                               (49,273)           (43,203)
Equity in Losses of Project
 Partnerships                                      (589,692)          (419,946)
                                                ------------       ------------
Net Loss                                        $  (638,965)       $  (463,149)
                                                ============       ============
Allocation of Net Loss:
   Limited Partners                             $  (632,575)       $  (458,518)
   General Partners                                  (6,390)            (4,631)
                                                ------------       ------------
                                                $  (638,965)       $  (463,149)
                                                ============       ============
Net Loss Per Number of 
 Limited Partnership Units                      $    (63.38)       $    (45.94)
                                                ============       ============
Number of Limited Partnership
 Units Outstanding                                    9,980              9,980 
                                                ============       ============

                      See accompanying notes to financial statements.
<PAGE>
                             GATEWAY TAX CREDIT FUND III LTD.
                              (A Florida Limited Partnership)

                                 STATEMENTS OF OPERATIONS
                                        (Unaudited)

                          FOR THE SIX MONTHS ENDED SEPTEMBER 30,


                                                     1997               1996   
SERIES 9                                            --------       ----------- 
Revenues:
   Interest Income                              $    12,725        $    11,449 
                                                ------------       ----------- 
Expenses:
   Asset Management Fee-
     General Partner                                 24,399             24,000 
   General and Administrative-
     General Partner                                  4,599              3,644 
   General and Administrative-
     Other                                            8,056              7,519 
   Amortization                                       3,558              3,558 
                                                ------------       ----------- 
     Total Expenses                                  40,612             38,721 
                                                ------------       ------------
Loss Before Equity in Losses of
 Project Partnerships                               (27,887)           (27,272)
Equity in Losses of Project
 Partnerships                                      (214,375)          (225,344)
                                                ------------       ------------
Net Loss                                        $  (242,262)       $  (252,616)
                                                ============       ============
Allocation of Net Loss:
   Limited Partners                             $  (239,839)       $  (250,090)
   General Partners                                  (2,423)            (2,526)
                                                ------------       ------------
                                                $  (242,262)       $  (252,616)
                                                ============       ============
Net Loss Per Number of 
 Limited Partnership Units                      $    (38.35)       $    (39.99)
                                                ============       ============
Number of Limited Partnership
 Units Outstanding                                    6,254              6,254 
                                                ============       ============

                      See accompanying notes to financial statements.
<PAGE>
                             GATEWAY TAX CREDIT FUND III LTD.
                              (A Florida Limited Partnership)

                                 STATEMENTS OF OPERATIONS
                                        (Unaudited)

                          FOR THE SIX MONTHS ENDED SEPTEMBER 30,


                                                     1997               1996   
SERIES 10                                         ----------        ---------- 
Revenues:
   Interest Income                              $    12,776        $    13,033 
                                                ------------       ----------- 
Expenses:
   Asset Management Fee-
     General Partner                                 15,250             15,000 
   General and Administrative-
     General Partner                                  2,875              2,276 
   General and Administrative-
     Other                                            5,161              5,057 
   Amortization                                       2,920              2,936 
                                                ------------       ----------- 
     Total Expenses                                  26,206             25,269 
                                                ------------       ------------
Loss Before Equity in Losses of
 Project Partnerships                               (13,430)           (12,236)
Equity in Losses of Project
 Partnerships                                      (110,446)          (104,567)
                                                ------------       ------------
Net Loss                                        $  (123,876)       $  (116,803)
                                                ============       ============
Allocation of Net Loss:
   Limited Partners                             $  (122,637)       $  (115,635)
   General Partners                                  (1,239)            (1,168)
                                                ------------       ------------
                                                $  (123,876)       $  (116,803)
                                                ============       ============
Net Loss Per Number of 
 Limited Partnership Units                      $    (24.32)       $    (22.93)
                                                ============       ============
Number of Limited Partnership
 Units Outstanding                                    5,043              5,043 
                                                ============       ============

                      See accompanying notes to financial statements.
<PAGE>
                             GATEWAY TAX CREDIT FUND III LTD.
                              (A Florida Limited Partnership)

                                 STATEMENTS OF OPERATIONS
                                        (Unaudited)

                          FOR THE SIX MONTHS ENDED SEPTEMBER 30,

                                                     1997               1996   
SERIES 11                                         ----------       ----------- 

Revenues:
   Interest Income                              $    13,219        $    15,996 
                                                ------------       ----------- 
Expenses:
   Asset Management Fee-
     General Partner                                 12,200             12,000 
   General and Administrative-
     General Partner                                  2,300              1,820 
   General and Administrative-
     Other                                            4,746              4,276 
   Amortization                                       3,594              3,525 
                                                ------------       ----------- 
     Total Expenses                                  22,840             21,621 
                                                ------------       ------------
Income (Loss) Before Equity in Losses of
 Project Partnerships                                (9,621)            (5,625)
Equity in Losses of Project
 Partnerships                                      (137,683)            43,571 
                                                ------------       ------------
Net Income (Loss)                               $  (147,304)       $    37,946 
                                                ============       ============
Allocation of Net Income (Loss):
   Limited Partners                             $  (145,831)       $    37,567 
   General Partners                                  (1,473)               379 
                                                ------------       ------------
                                                $  (147,304)       $    37,946 
                                                ============       ============
Net Income (Loss) Per Number of 
 Limited Partnership Units                      $    (28.44)       $      7.33 
                                                ============       ============
Number of Limited Partnership
 Units Outstanding                                    5,127              5,127 
                                                ============       ============

                      See accompanying notes to financial statements.
<PAGE>
                             GATEWAY TAX CREDIT FUND III LTD.
                              (A Florida Limited Partnership)

                                 STATEMENTS OF OPERATIONS
                                        (Unaudited)

                          FOR THE SIX MONTHS ENDED SEPTEMBER 30,


                                                     1997                1996  
TOTAL SERIES 7-11                                 ----------       ----------- 
Revenues:
   Interest Income                              $    84,986        $    88,194 
                                                ------------       ----------- 
Expenses:
   Asset Management Fee-
     General Partner                                135,211            133,000 
   General and Administrative-
     General Partner                                 25,486             20,188 
   General and Administrative-
     Other                                           47,213             42,559 
   Amortization                                      26,940             27,025 
                                                ------------       ----------- 
     Total Expenses                                 234,850            222,772 
                                                ------------       ------------
Loss Before Equity in Losses of
 Project Partnerships                              (149,864)          (134,578)
Equity in Losses of Project
 Partnerships                                    (1,488,155)        (1,134,224)
                                                ------------       ------------
Net Loss                                        $(1,638,019)       $(1,268,802)
                                                ============       ============
Allocation of Net Loss:
   Limited Partners                             $(1,621,638)       $(1,256,115)
   General Partners                                 (16,381)           (12,687)
                                                ------------       ------------
                                                $(1,638,019)       $(1,268,802)
                                                ============       ============

                      See accompanying notes to financial statements.
<PAGE>
                             GATEWAY TAX CREDIT FUND III LTD.
                              (A Florida Limited Partnership)

                              STATEMENTS OF PARTNERS' EQUITY
                                        (Unaudited)

                   FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1997 AND 1996:


                                 Limited            General 
                                 Partners          Partners             Total  
SERIES 7                       -----------       -----------        -----------
(Inception July 16, 1992)



Balance at
 March 31, 1996                 6,042,156           (31,168)         6,010,988 

Net Loss                         (469,438)           (4,742)          (474,180)
                              ------------        ----------       ------------
Balance at
 September 30, 1996           $ 5,572,7118        $ (35,910)       $ 5,536,808 
                              ============        ==========       ============


Balance at
 March 31, 1997                 5,025,507           (41,437)         4,984,070 

Net Loss                         (480,756)           (4,856)          (485,612)
                              ------------        ----------       ------------
Balance at
 September 30, 1997           $ 4,544,751         $ (46,293)       $ 4,498,458 
                              ============        ==========       ============


                      See accompanying notes to financial statements.

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

                              STATEMENTS OF PARTNERS' EQUITY
                                        (Unaudited)

                   FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1997 AND 1996:


                                  Limited           General 
                                 Partners          Partners             Total  
SERIES 8                       -----------       -----------        -----------
(Inception January 4, 1993)



Balance at
 March 31, 1996                 6,306,146           (24,812)         6,281,334 

Net Loss                         (458,518)           (4,631)          (463,149)
                              ------------        ----------       ------------
Balance at
 September 30, 1996           $ 5,847,628         $ (29,443)       $ 5,818,185 
                              ============        ==========       ============


Balance at
 March 31, 1997                 5,227,849           (35,704)         5,192,145 

Net Loss                         (632,575)           (6,390)          (638,965)
                              ------------        ----------       ------------
Balance at
 September 30, 1997           $ 4,595,274         $ (42,094)       $ 4,553,180 
                              ============        ==========       ============


                      See accompanying notes to financial statements.
<PAGE>
                             GATEWAY TAX CREDIT FUND III LTD.
                              (A Florida Limited Partnership)

                              STATEMENTS OF PARTNERS' EQUITY
                                        (Unaudited)

                   FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1997 AND 1996:


                                   Limited          General 
                                  Partners         Partners             Total  
SERIES 9                       -----------       -----------        -----------
(Inception September 30, 1993)


Balance at
 March 31, 1996                 4,729,151            (7,622)         4,721,529 

Net Loss                         (250,090)           (2,526)          (252,616)
                              ------------        ----------       ------------
Balance at
 September 30, 1996           $ 4,479,061         $ (10,148)       $ 4,468,913 
                              ============        ==========       ============



Balance at
 March 31, 1997                 4,177,521           (13,194)         4,164,327 

Net Loss                         (239,839)           (2,423)          (242,262)
                              ------------        ----------       ------------
Balance at
 September 30, 1997           $ 3,937,682         $ (15,617)       $ 3,922,065 
                              ============        ==========       ============


                      See accompanying notes to financial statements.
<PAGE>
                             GATEWAY TAX CREDIT FUND III LTD.
                              (A Florida Limited Partnership)

                              STATEMENTS OF PARTNERS' EQUITY
                                        (Unaudited)

                   FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1997 AND 1996:


                                   Limited          General 
                                  Partners         Partners             Total  
SERIES 10                      -----------       -----------        -----------
(Inception January 21, 1994)

Balance at
 March 31, 1996                 4,151,503            (2,692)         4,148,811 

Net Loss                         (115,635)           (1,168)          (116,803)
                              ------------        ----------       ------------
Balance at
 September 30, 1996           $ 4,035,868         $  (3,860)       $ 4,032,008 
                              ============        ==========       ============


Balance at
 March 31, 1997                 3,938,729            (4,841)         3,933,888 

Net Loss                         (122,637)           (1,239)          (123,876)
                              ------------        ----------       ------------
Balance at
 September 30, 1997           $ 3,816,092         $  (6,080)       $ 3,810,012 
                              ============        ==========       ============



                      See accompanying notes to financial statements.
<PAGE>
                             GATEWAY TAX CREDIT FUND III LTD.
                              (A Florida Limited Partnership)

                              STATEMENTS OF PARTNERS' EQUITY
                                        (Unaudited)

                   FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1997 AND 1996:


                                   Limited          General 
                                  Partners         Partners             Total  
SERIES 11                      -----------       -----------        -----------
(Inception April 29, 1994)



Balance at
 March 31, 1996                 4,646,546               479          4,647,025 

Net Loss                           37,567               379             37,946 
                              ------------        ----------       ------------
Balance at
 September 30, 1996           $ 4,684,113         $     858        $ 4,684,971 
                              ============        ==========       ============



Balance at
 March 31, 1997                 4,452,477            (1,481)         4,450,996 

Net Loss                         (145,831)           (1,473)          (147,304)
                              ------------        ----------       ------------
Balance at
 September 30, 1997           $ 4,306,646         $  (2,954)       $ 4,303,692 
                              ============        ==========       ============




                      See accompanying notes to financial statements.
<PAGE>
                             GATEWAY TAX CREDIT FUND III LTD.
                              (A Florida Limited Partnership)

                              STATEMENTS OF PARTNERS' EQUITY
                                        (Unaudited)

                   FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1997 AND 1996:



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


Balance at
 March 31, 1996                25,875,502           (65,815)        25,809,687 

Net Loss                       (1,256,114)          (12,688)        (1,268,802)
                              ------------        ----------       ------------
Balance at
 September 30, 1996           $24,619,388         $ (78,503)       $24,540,885 
                              ============        ==========       ============


Balance at
 March 31, 1997                22,822,083           (96,657)        22,725,426 

Net Loss                       (1,621,638)          (16,381)        (1,638,019)
                              ------------        ----------       ------------
Balance at
 September 30, 1997           $21,200,445         $(113,038)       $21,087,407 
                              ============        ==========       ============



                      See accompanying notes to financial statements.


<PAGE>
                             GATEWAY TAX CREDIT FUND III LTD.
                              (A Florida Limited Partnership)
                                 STATEMENTS OF CASH FLOWS
                                        (Unaudited)
                   FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1997 AND 1996:

                                                      1997               1996  
SERIES 7                                           ---------         --------- 
Cash Flows from Operating Activities:
   Net Loss                                     $  (485,612)       $  (474,180)
   Adjustments to Reconcile
    Net Loss to Net Cash
    Provided by (Used in)
    Operating Activities:
     Amortization                                    10,879             10,946 
     Accreted Interest Income
     on Investments in
     Securities                                     (16,020)           (16,048)
     Equity in Losses of
      Project Partnerships                          435,959            427,938 
     Payment of Asset Management Fee                (41,000)           (33,000)
     Changes in Operating Assets
      and Liabilities:
       Increase in Payable to
         General Partners                            36,544             34,556 
                                                ------------          ---------
         Net Cash Provided by
         (Used in) Operating
         Activities                                 (59,250)           (49,788)
                                                ------------          ---------
Cash Flows from Investing Activities:
   Investments in Project
     Partnerships                                         0             (3,333)
   (Increase) Decrease in
     Receivable from
     Project Partnerships                                 0                  0 
   Acquisition Fees and
     Expenses                                             0               (272) 
   Distributions Received from
     Project Partnerships                            18,280             17,881 
   (Increase) Decrease in Payable to:
     Project Partnerships -                               0                  0 
                                                ------------          ---------
         Net Cash Provided by
         (Used in) Investing
         Activities                                  18,280             14,276 
                                                ------------          ---------
Increase (Decrease) in Cash and 
 Cash Equivalents                                   (40,970)           (35,512)
Cash and Cash Equivalents at
 Beginning of Year                                  267,980            259,782 
                                                ------------          ---------
Cash and Cash Equivalents at
 End of Year                                    $   227,010         $  224,270 
                                                ============          =========
                      See accompanying notes to financial statements.
<PAGE>
                             GATEWAY TAX CREDIT FUND III LTD.
                              (A Florida Limited Partnership)
                                 STATEMENTS OF CASH FLOWS
                                        (Unaudited)
                   FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1997 AND 1996:

                                                      1997               1996  
SERIES 8                                           ---------         --------- 
Cash Flows from Operating Activities:
   Net Loss                                     $  (638,965)       $  (463,149)
   Adjustments to Reconcile
    Net Loss to Net Cash
    Provided by (Used in)
    Operating Activities:
     Amortization                                     5,989              6,060 
     Accreted Interest Income
     on Investments in
     Securities                                     (14,394)           (14,436)
     Equity in Losses of
      Project Partnerships                          589,692            419,946 
     Payment of Asset Management Fee                (37,000)           (22,000)
     Changes in Operating Assets
      and Liabilities:
       Increase in Payable to
         General Partners                            40,369             38,215 
                                                ------------       ------------
         Net Cash Provided by
         (Used in) Operating
         Activities                                 (54,309)           (35,364)
                                                ------------       ------------
Cash Flows from Investing Activities:
   Investments in Project
     Partnerships                                         0                453 
   (Increase) Decrease in
     Receivable from
     Project Partnerships                               453             75,574 
   Acquisition Fees and
     Expenses                                             0                  0  
   Distributions Received from
     Project Partnerships                            13,241             15,689 
   (Increase) Decrease in Payable to:
     Project Partnerships                                 0                  0 
                                                ------------       ------------
         Net Cash Provided by
         (Used in) Investing
         Activities                                  13,694             91,716 
                                                ------------       ------------
Increase (Decrease) in Cash and 
 Cash Equivalents                                   (40,615)            56,352 
Cash and Cash Equivalents at
 Beginning of Year                                  396,038            295,021 
                                                ------------       ------------
Cash and Cash Equivalents at
 End of Year                                    $   355,423        $   351,373 
                                                ============       ============
                      See accompanying notes to financial statements.
<PAGE>
                             GATEWAY TAX CREDIT FUND III LTD.
                              (A Florida Limited Partnership)
                                 STATEMENTS OF CASH FLOWS
                                        (Unaudited)
                   FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1997 AND 1996:

                                                      1997               1996  
SERIES 9                                           ---------         --------- 
Cash Flows from Operating Activities:
   Net Loss                                     $  (242,262)       $  (252,616)
   Adjustments to Reconcile
    Net Loss to Net Cash
    Provided by (Used in)
    Operating Activities:
     Amortization                                     3,558              3,558 
     Accreted Interest Income
     on Investments in
     Securities                                      (8,783)            (8,891)
     Equity in Losses of
      Project Partnerships                          214,375            225,344 
     Payment of Asset Management Fee                (16,000)            (6,000)
     Changes in Operating Assets
      and Liabilities:
       Increase in Payable to
         General Partners                            21,908             21,213 
                                                ------------       ------------
         Net Cash Provided by
         (Used in) Operating
         Activities                                 (27,204)           (17,392)
                                                ------------       ------------
Cash Flows from Investing Activities:
   Investments in Project
     Partnerships                                         0                  0 
   (Increase) Decrease in
     Receivable from
     Project Partnerships                                 0                  0 
   Acquisition Fees and
     Expense                                              0                  0  
   Distributions Received from
     Project Partnerships                             7,173              6,161 
   (Increase) Decrease in Payable to:
     Project Partnerships                                 0                  0 
 
                                                ------------       ------------
         Net Cash Provided by
         (Used in) Investing
         Activities                                   7,173              6,161 
                                                ------------       ------------
Increase (Decrease) in Cash and 
 Cash Equivalents                                   (20,031)           (11,231)
Cash and Cash Equivalents at
 Beginning of Year                                  161,813            112,252 
                                                ------------       ------------
Cash and Cash Equivalents at
 End of Year                                    $   141,782        $   101,021 
                                                ============       ============
                      See accompanying notes to financial statements.
<PAGE>
                             GATEWAY TAX CREDIT FUND III LTD.
                              (A Florida Limited Partnership)
                                 STATEMENTS OF CASH FLOWS
                                        (Unaudited)
                   FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1997 AND 1996:

                                                      1997               1996  
SERIES 10                                          ---------         --------- 
Cash Flows from Operating Activities:
   Net Loss                                     $  (123,876)       $  (116,803)
   Adjustments to Reconcile
    Net Loss to Net Cash
    Provided by (Used in)
    Operating Activities:
     Amortization                                     2,920              2,936 
     Accreted Interest Income
     on Investments in
     Securities                                      (7,878)            (7,896)
     Equity in Losses of
      Project Partnerships                          110,446            104,567 
     Payment of Asset Management Fee                (25,000)           (10,000)
     Changes in Operating Assets
      and Liabilities:
       Increase in Payable to
         General Partners                            13,377             13,026 
                                                ------------       ------------
         Net Cash Provided by
         (Used in) Operating
         Activities                                 (30,011)           (14,170)
                                                ------------       ------------
Cash Flows from Investing Activities:
   Investments in Project
     Partnerships                                         0                  0 
   (Increase) Decrease in
     Receivable from
     Project Partnerships                                 0             13,059 
   Acquisition Fees and
     Expenses                                             0                  0 
   Distributions Received from
     Project Partnerships                             3,805              3,070 
   (Increase) Decrease in Payable to:
     Project Partnerships                            (7,712)                 0 
                                                ------------       ------------
         Net Cash Provided by
         (Used in) Investing
         Activities                                  (3,907)            16,129 
                                                ------------       ------------
Increase (Decrease) in Cash and 
 Cash Equivalents                                   (33,918)             1,959 
Cash and Cash Equivalents at
 Beginning of Year                                  199,743            162,576 
                                                ------------       ------------
Cash and Cash Equivalents at
 End of Year                                    $   165,825        $   164,535 
                                                ============       ============
                      See accompanying notes to financial statements.
<PAGE>
                             GATEWAY TAX CREDIT FUND III LTD.
                              (A Florida Limited Partnership)
                                 STATEMENTS OF CASH FLOWS
                                        (Unaudited)
                   FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1997 AND 1996:

                                                      1997               1996  
SERIES 11                                          ---------         --------- 
Cash Flows from Operating Activities:
   Net Loss                                     $  (147,304)       $    37,946 
   Adjustments to Reconcile
    Net Loss to Net Cash
    Provided by (Used in)
    Operating Activities:
     Amortization                                     3,594              3,525 
     Accreted Interest Income
     on Investments in
     Securities                                      (9,063)            (9,033)
     Equity in Losses of
      Project Partnerships                          137,683            (43,571)
     Payment of Asset Management Fee                (17,000)           (19,000)
     Changes in Operating Assets
      and Liabilities:
       Increase in Payable to
         General Partners                            10,388              6,289 
                                                ------------       ------------
         Net Cash Provided by
         (Used in) Operating
         Activities                                 (21,702)           (23,844)
                                                ------------       ------------
Cash Flows from Investing Activities:
   Investments in Project
     Partnerships                                         0             33,464 
   (Increase) Decrease in
     Receivable from
     Project Partnerships                                 0              8,250 
   Acquisition Fees and
     Expenses                                             0               (178) 
   Distributions Received from
     Project Partnerships                             4,669              1,500 
   (Increase) Decrease in Payable to:
     Project Partnerships                                 0           (279,887)
                                                ------------       ------------
         Net Cash Provided by
         (Used in) Investing
         Activities                                   4,669           (236,851)
                                                ------------       ------------
Increase (Decrease) in Cash and 
 Cash Equivalents                                   (17,033)          (260,695)
Cash and Cash Equivalents at
 Beginning of Year                                  169,385            365,027 
                                                ------------       ------------
Cash and Cash Equivalents at
 End of Year                                    $   152,352        $   104,332 
                                                ============       ============
                      See accompanying notes to financial statements.
<PAGE>
                             GATEWAY TAX CREDIT FUND III LTD.
                              (A Florida Limited Partnership)
                                 STATEMENTS OF CASH FLOWS
                                        (Unaudited)
                   FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1997 AND 1996:

                                                      1997               1996  
TOTAL SERIES 7-11                                  ---------         --------- 
Cash Flows from Operating Activities:
   Net Loss                                     $(1,638,019)       $(1,268,802)
   Adjustments to Reconcile
    Net Loss to Net Cash
    Provided by (Used in)
    Operating Activities:
     Amortization                                    26,940             27,025 
     Accreted Interest Income
     on Investments in
     Securities                                     (56,138)           (56,304)
     Equity in Losses of
      Project Partnerships                        1,488,155          1,134,224 
     Payment of Asset Management Fee               (136,000)           (90,000)
     Changes in Operating Assets
      and Liabilities:
       Increase in Payable to
         General Partners                           122,586            113,299 
                                                ------------       ------------
         Net Cash Provided by
         (Used in) Operating
         Activities                                (192,476)          (140,558)
                                                ------------       ------------
Cash Flows from Investing Activities:
   Investments in Project
     Partnerships                                         0             30,584 
   (Increase) Decrease in
     Receivable from
     Project Partnerships                               453             96,883 
   Acquisition Fees and
     Expenses                                             0               (450) 
   Distributions Received from
     Project Partnerships                            47,168             44,301 
   (Increase) Decrease in Payable to:
     Project Partnerships                            (7,712)          (279,887)
                                                ------------       ------------
         Net Cash Provided by
         (Used in) Investing
         Activities                                  39,909           (108,569)
                                                ------------       ------------
Increase (Decrease) in Cash and 
 Cash Equivalents                                  (152,567)          (249,127)
Cash and Cash Equivalents at
 Beginning of Year                                1,194,959          1,194,658 
                                                ------------       ------------
Cash and Cash Equivalents at
 End of Year                                    $ 1,042,392        $   945,531 
                                                ============       ============

                      See accompanying notes to financial statements.
<PAGE>
                             GATEWAY TAX CREDIT FUND III LTD.
                              (A Florida Limited Partnership)               

                               NOTES TO FINANCIAL STATEMENTS

                                    SEPTEMBER 30, 1997

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 March
31, 1997, Gateway had received capital contributions of $1,000
from the General Partners and $36,799,000 from the investor
Limited Partners.

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

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

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


NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES:

Basis of Accounting

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

   Gateway accounts for its investments as the limited partner
in Project Partnerships ("Investments in Project
Partnerships") using the equity method of accounting and
reports the equity in losses of the Project Partnerships on a
3-month lag in the Statement of Operations.  Under the equity
method, the Investments in Project Partnerships initially
include:

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

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

   1)  Increased for equity in income or decreased for equity
   in losses of the Project Partnerships, 
   2)  Decreased for cash distributions received from the
   Project Partnerships,
   3)  Decreased for the amortization of the acquisition fees
   and expenses,
   4)  In certain Project Partnerships, where Gateway's
   investment was greater than Gateway's pro-rata share of the
   book value of the underlying assets, decreased for the
   amortization of the difference; and 
   5)  In certain Project Partnerships, where Gateway's
   investment was less than Gateway's pro-rata share of the 
   book value of the underlying assets, increased for the
   accretion of the difference.

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

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

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

Cash and Cash Equivalents

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

Concentrations of Credit Risk

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

Use of Estimates in the Preparation of Financial Statements

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

Investment in Securities

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

Receivable from Project Partnerships

     Receivable from Project Partnerships represents amounts 
due from the Project Partnerships due to a change in the
amount Gateway agreed to pay the Project Partnerships and is
secured with cash in restricted escrow accounts.

Offering and Commission Costs

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

Income Taxes

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


Basis of Preparation

  The unaudited financial statements presented herein have
been prepared in accordance with the instructions to Form 10-Q
and do not include all of the information and note disclosures
required by generally accepted accounting principles.  These
statements should be read in conjunction with the financial
statements and notes thereto included with the Partnership's
Form 10-K for the year ended March 31, 1997.  In the opinion
of management these financial statements include adjustments,
consisting only of normal recurring adjustments, necessary to
fairly summarize the Partnership's financial position and
results of operations.  The results of operations for the
periods may not be indicative of the results to be expected
for the year.


NOTE 3 - INVESTMENT IN SECURITIES:

  The September 30, 1997 Balance Sheet includes Investment in
Securities consisting of U.S. Treasury Security Strips which
represents their cost, plus accreted interest income of
$137,921 for Series 7, $114,516 for Series 8, $61,090 for
Series 9, $50,714 for Series 10 and $54,646 for Series 11. 
                                                                  Gross  
                                        Cost Plus              Unrealized
                     Estimated           Accreted               Gains and
                 Market Value            Interest                (Losses)

Series 7             $ 506,470          $ 482,796               $ 23,674 
Series 8               468,731            455,404                 13,327 
Series 9               304,279            306,183                 (1,904)
Series 10              252,452            243,473                  8,979 
Series 11              275,237            256,416                 18,821 

  As of September 30, 1997, the cost and accreted interest of
debt securities by contractual maturities is as follows:

                                         Series 7                Series 8

Due within 1 year                       $  46,187               $  41,279
After 1 year through 5 years              183,354                 169,597
After 5 years through 10 years            213,451                 204,963
After 10 years                             39,804                  39,565
                                        ---------               ---------
  Total Amount Carried on
      Balance Sheet                     $ 482,796               $ 455,404
                                        =========               =========

                                         Series 9               Series 10

Due within 1 year                       $  27,552               $  21,601
After 1 year through 5 years              107,711                  83,071
After 5 years through 10 years            124,721                  89,402
After 10 years                             46,199                  49,399
                                        ---------               ---------
  Total Amount Carried on
       Balance Sheet                    $ 306,183               $ 243,473
                                        =========               =========

                                        Series 11                   Total

Due within 1 year                       $  20,572               $ 157,191
After 1 year through 5 years               82,997                 626,730
After 5 years through 10 years             99,299                 731,836
After 10 years                             53,548                 228,515
                                        ---------               ---------
  Total Amount Carried on
       Balance Sheet                    $ 256,416              $1,744,272
                                        =========               =========


NOTE 4 - RELATED PARTY TRANSACTIONS:

  The Payable to General Partners primarily represents the
asset management fees owed to the General Partners at the end
of the period.  It is unsecured, due on demand and, in
accordance with the limited partnership agreement, non-
interest bearing.  Within the next 12 months, the Managing
General Partner does not intend to demand payment on the
portion of Asset Management Fees payable classified as long-
term on the Balance Sheet.
 
  The Payable to Project Partnerships represents unpaid
capital contributions to the Project Partnerships and will be
paid after certain performance criteria are met.  Such
contributions are in turn payable to the general partners of
the Project Partnerships.

  For the six months ended September 30, 1997 and 1996 the
General Partners and affiliates are entitled to compensation
and reimbursement for costs and expenses incurred by Gateway
as follows: 

  Acquisition Expenses - Affiliates of the General Partners 
are reimbursed for acquisition expenses incurred on behalf of
Gateway.  These expenses are included in Investments in
Project Partnerships on the Balance Sheet. 

  Series 7                           $      0               $    272        
  Series 8                                  0                      0
  Series 9                                  0                      0
  Series 10                                 0                      0
  Series 11                                 0                    178
                                     --------               --------
  Total                              $      0               $    450
                                     ========               ========

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

  Series 7                           $ 39,648               $ 39,000        
  Series 8                             43,714                 43,000
  Series 9                             24,399                 24,000
  Series 10                            15,250                 15,000
  Series 11                            12,200                 12,000
                                     --------               --------
  Total                              $135,211               $133,000
                                     ========               ========

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

  Series 7                          $   7,472              $   5,920        
  Series 8                              8,240                  6,528
  Series 9                              4,599                  3,644
  Series 10                             2,875                  2,276
  Series 11                             2,300                  1,820
                                     --------               --------
  Total                              $ 25,486               $ 20,188
                                     ========               ========
<PAGE>
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS:

   As of September 30, 1997, the Partnership had acquired an
interest in 39 Project Partnerships for the Series which own and
operate government assisted multi-family housing complexes.  The
Partnership, as the Investor Limited Partner pursuant to the
Project Partnership Agreements has generally acquired an ownership
interest of 99% in these Project Partnerships.

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

                                                    SEPTEMBER 30,     MARCH 31,
                                                           1997         1997   
SERIES 7                                               ----------    ----------
   
Capital Contributions to Project
Partnerships (purchase price paid
for limited partner interests in
Project Partnerships)                                $ 7,732,089   $ 7,732,089 

Accumulated amortization of excess
of purchase price of Project
Partnerships over book value
of underlying assets (1)                                   1,508         1,172 

Cumulative equity in losses of
Project Partnerships (2)                              (4,308,894)   (3,872,935)

Cumulative distributions received
from Project Partnerships                                (85,487)      (67,207)

Acquisition fees and expenses                            793,335       793,335 

Accumulated amortization of
acquisition fees and expenses                           (114,123)     (102,908)
                                                     ------------  ------------
Investments in
 Project Partnerships                                $ 4,018,428   $ 4,483,546 
                                                     ============  ============
(1) Includes amounts representing accumulated accretion or
(amortization) of the difference between the book value of the
underlying assets of the Project Partnerships over or under
the purchase price.  At September 30, 1997 and March 31, 1997
these excess costs were $18,470.
(2) In accordance with the Partnership's accounting policy to
not carry Investments in Project Partnerships below zero,
cumulative suspended losses of $62,355 for the period ended 
September 30, 1997 and cumulative suspended losses of $40,687
for the year ended March 31, 1997 are not included.
<PAGE>
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

   As of September 30, 1997, the Partnership had acquired an
interest in 43 Project Partnerships for the Series which own and
operate government assisted multi-family housing complexes.  The
Partnership, as the Investor Limited Partner pursuant to the
Project Partnership Agreements has generally acquired an ownership
interest of 99% in these Project Partnerships.

   The following is a summary of Investments in Project Partnerships
as of:
                                                    SEPTEMBER 30,     MARCH 31,
                                                           1997         1997   
SERIES 8                                               ----------    ----------

Capital Contributions to Project
Partnerships (purchase price paid
for limited partner interests in
Project Partnerships)                                $ 7,586,105   $ 7,586,105 

Accumulated amortization of excess
of purchase price of Project
Partnerships over book value
of underlying assets (1)                                   2,673         2,317 

Cumulative equity in losses of
Project Partnerships (2)                              (3,998,326)   (3,408,634)

Cumulative distributions received
from Project Partnerships                                (70,227)      (56,986)

Acquisition fees and expenses                            549,773       549,773 

Accumulated amortization of
acquisition fees and expenses                            (64,798)      (58,453)
                                                     ------------  ------------
Investments in
 Project Partnerships                                $ 4,005,200   $ 4,614,122 
                                                     ============  ============

(1) Includes amounts representing accumulated accretion or
(amortization) of the difference between the book value of the
underlying assets of the Project Partnerships over or under
the purchase price.  At September 30, 1997 and March 31, 1997
these excess costs were $24,830.
(2) In accordance with the Partnership's accounting policy to
not carry Investments in Project Partnerships below zero,
cumulative suspended losses of $29,358 for the period ended 
September 30, 1997 and cumulative suspended losses of $24,072
for the year ended March 31, 1997 are not included.
<PAGE>
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

   As of September 30, 1997, the Partnership had acquired an
interest in 24 Project Partnerships for the Series which own and
operate government assisted multi-family housing complexes.  The
Partnership, as the Investor Limited Partner pursuant to the
Project Partnership Agreements has generally acquired an ownership
interest of 99% in these Project Partnerships.

   The following is a summary of Investments in Project Partnerships
as of:
                                                    SEPTEMBER 30,     MARCH 31,
                                                           1997         1997   
SERIES 9                                               ----------    ----------

Capital Contributions to Project
Partnerships (purchase price paid
for limited partner interests in
Project Partnerships)                                $ 4,914,116   $ 4,914,116 

Accumulated amortization of excess
of purchase price of Project
Partnerships over book value
of underlying assets (1)                                     655           727 

Cumulative equity in losses of
Project Partnerships                                  (1,466,605)   (1,252,230)

Cumulative distributions received
from Project Partnerships                                (42,516)      (35,343)

Acquisition fees and expenses                            244,087       244,087 

Accumulated amortization of
acquisition fees and expenses                            (26,476)      (22,990)
                                                     ------------  ------------
Investments in
 Project Partnerships                                $ 3,623,261   $ 3,848,367 
                                                     ============  ============

(1) Includes amounts representing accumulated accretion or
(amortization) of the difference between the book value of the
underlying assets of the Project Partnerships over or under
the purchase price.  At September 30, 1997 and March 31, 1997
these excess costs were ($5,076).
<PAGE>
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

   As of September 30, 1997, the Partnership had acquired an
interest in 15 Project Partnerships for the Series which own and
operate government assisted multi-family housing complexes.  The
Partnership, as the Investor Limited Partner pursuant to the
Project Partnership Agreements has generally acquired an ownership
interest of 99% in these Project Partnerships.

   The following is a summary of Investments in Project Partnerships
as of:
                                                    SEPTEMBER 30,     MARCH 31,
                                                           1997         1997   
SERIES 10                                              ----------    ----------
   
Capital Contributions to Project
Partnerships (purchase price paid
for limited partner interests in
Project Partnerships)                                $ 3,914,672   $ 3,914,672 

Accumulated amortization of excess
of purchase price of Project
Partnerships over book value
of underlying assets (1)                                    (605)         (497)

Cumulative equity in losses of
Project Partnerships                                    (590,898)     (480,119)
565
Cumulative distributions received
from Project Partnerships                                (45,311)      (41,506)

Acquisition fees and expenses                            196,738       196,738 

Accumulated amortization of
acquisition fees and expenses                            (20,582)      (17,770)
                                                     ------------  ------------
Investments in
 Project Partnerships                                $ 3,454,347   $ 3,571,518 
                                                     ============  ============

(1) Includes amounts representing accumulated accretion or
(amortization) of the difference between the book value of the
underlying assets of the Project Partnerships over or under
the purchase price.  At September 30, 1997 and March 31, 1997
these excess costs were ($7,486).
<PAGE>
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

   As of September 30, 1997, the Partnership had acquired an
interest in 12 Project Partnerships for the Series which own and
operate government assisted multi-family housing complexes.  The
Partnership, as the Investor Limited Partner pursuant to the
Project Partnership Agreements has generally acquired an ownership
interest of 99% in these Project Partnerships.

   The following is a summary of Investments in Project Partnerships
as of:
                                                    SEPTEMBER 30,     MARCH 31,
                                                           1997         1997   
SERIES 11                                              ----------    ----------

Capital Contributions to Project
Partnerships (purchase price paid
for limited partner interests in
Project Partnerships)                                $ 4,128,042   $ 4,128,042 

Accumulated amortization of excess
of purchase price of Project
Partnerships over book value
of underlying assets (1)                                   2,418         1,864 

Cumulative equity in losses of
Project Partnerships                                    (464,362)     (326,679)

Cumulative distributions received
from Project Partnerships                                 (9,764)       (5,095)

Acquisition fees and expenses                            290,335       290,335 

Accumulated amortization of
acquisition fees and expenses                            (22,314)      (18,166)
                                                     ------------  ------------
Investments in
 Project Partnerships                                $ 3,924,355   $ 4,070,301 
                                                     ============  ============

(1) Includes amounts representing accumulated accretion or
(amortization) of the difference between the book value of the
underlying assets of the Project Partnerships over or under
the purchase price.  At September 30, 1997 and March 31, 1997
these excess costs were $38,728.
<PAGE>
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

   The following is a summary of Investments in Project
Partnerships:

                                                    SEPTEMBER 30,     MARCH 31,
                                                           1997         1997   
TOTAL SERIES 7 - 11                                    ----------    ----------

Capital Contributions to Project
Partnerships (purchase price paid
for limited partner interests in
Project Partnerships)                               $ 28,275,024  $ 28,275,024 

Accumulated amortization of excess
of purchase price of Project
Partnerships over book value
of underlying assets                                       6,649         5,583 

Cumulative equity in losses of
Project Partnerships                                 (10,828,752)   (9,340,597)

Cumulative distributions received
from Project Partnerships                               (253,305)     (206,137)

Acquisition fees and expenses                          2,074,268     2,074,268 

Accumulated amortization of
acquisition fees and expenses                           (248,293)     (220,287)
                                                    ------------- -------------
Investments in
 Project Partnerships                               $ 19,025,591  $ 20,587,854 
                                                    ============= =============
<PAGE>
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

   In accordance with the Partnership's policy of presenting the 
financial information of the Project Partnerships on a three month
lag, below is the summarized financial information for the Series'
Project Partnerships as of June 30 of each year:

                                                      1997             1996    
SERIES 7                                          ----------     --------------
SUMMARIZED BALANCE SHEETS
Assets:
   Current assets                              $  2,553,915       $  2,339,353 
   Investment properties, net                    38,684,533         40,149,882 
   Other assets                                      90,231            113,530 
                                               -------------      -------------
     Total assets                              $ 41,328,679       $ 42,602,765 
                                               =============      =============
Liabilities and Partners' Equity
   Current liabilities                         $  1,134,296       $  1,076,455 
   Long-term debt                                36,935,137         37,183,790 
                                               -------------      -------------
     Total liabilities                           38,069,433         38,260,245 

Partners' Equity
   Limited Partner                                3,254,344          4,288,875 
   General Partners                                   4,902             53,645 
                                               -------------       ------------
                                                  3,259,246          4,342,520 
     Total liabilities and
     partners' equity                          $ 41,328,679       $ 42,620,765 
                                               =============      =============
SUMMARIZED STATEMENTS OF OPERATIONS:
Rental and other income                        $  2,158,653       $  2,097,627 
Expenses:
   Operating expenses                             1,197,337          1,130,538 
   Interest expense                                 630,765            601,339 
   Depreciation and amortization                    792,801            798,011 
                                               -------------      -------------
     Total expenses                               2,620,903          2,529,888 

       Net loss                                $   (462,250)      $   (432,261)
                                               =============      =============
   Other partners' share
    of net loss                                $     (4,623)      $     (4,323)
   Partnership's share
    of net loss                                $   (457,627)      $   (427,938)
     Suspended loss                                  21,668                  0 
                                               -------------      -------------
   Equity in Loss of
      Project Partnerships                     $   (435,959)      $   (427,938)
                                               =============      =============
<PAGE>
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

   In accordance with the Partnership's policy of presenting the 
financial information of the Project Partnerships on a three month
lag, below is the summarized financial information for the Series'
Project Partnerships as of June 30 of each year:

                                                      1997             1996    
SERIES 8                                          ----------     --------------
SUMMARIZED BALANCE SHEETS
Assets:
   Current assets                              $  2,152,244       $  1,940,636 
   Investment properties,
      net                                        41,562,416         43,223,971 
   Other assets                                      58,329            100,037 
                                               -------------      -------------
     Total assets                              $ 43,772,989       $ 45,264,644 
                                               =============      =============
Liabilities and Partners' Equity
   Current liabilities                         $  1,280,837       $  1,503,086 
   Long-term debt                                39,029,977         39,051,248 
                                               -------------      -------------
     Total liabilities                           40,310,814         40,554,334 

Partners' Equity
   Limited Partner                                3,517,799          4,746,609 
   General Partners                                 (55,624)           (36,299)
                                               -------------       ------------
                                                  3,462,175          4,710,310 
     Total liabilities and
     partners' equity                          $ 43,772,989       $ 45,264,644 
                                               =============      =============
SUMMARIZED STATEMENTS OF OPERATIONS:
Rental and other income                        $  2,021,757       $  1,928,743 
Expenses:
   Operating expenses                             1,255,152          1,167,315 
   Interest expense                                 551,530            419,065 
   Depreciation and
     amortization                                   816,063            766,551 
                                               -------------      -------------
     Total expenses                               2,622,745          2,352,931 

       Net loss                                $   (600,988)      $   (424,188)
                                               =============      =============
   Other partners' share
    of net loss                                $     (6,010)      $     (4,242)
   Partnership's share
    of net loss                                $   (594,978)      $   (419,946)
     Suspended loss                                   5,286                  0 
                                               -------------      -------------
   Equity in Loss of
      Project Partnerships                     $   (589,692)      $   (419,946)
                                               =============      =============
   <PAGE>
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

   In accordance with the Partnership's policy of presenting the 
financial information of the Project Partnerships on a three month
lag, below is the summarized financial information for the Series'
Project Partnerships as of June 30 of each year:

                                                      1997             1996    
SERIES 9                                          ----------     --------------
SUMMARIZED BALANCE SHEETS
Assets:
   Current assets                              $  1,426,611       $  1,327,812 
   Investment properties,
      net                                        23,091,859         23,963,097 
   Other assets                                       8,778             11,666 
                                               -------------      -------------
     Total assets                              $ 24,527,248       $ 25,302,575 
                                               =============      =============
Liabilities and Partners' Equity
   Current liabilities                         $    508,592       $    661,878 
   Long-term debt                                20,645,826         20,698,907 
                                               -------------      -------------
     Total liabilities                           21,154,418         21,360,785 

Partners' Equity
   Limited Partner                                3,401,970          3,931,890 
   General Partners                                 (29,140)             9,900 
                                               -------------       ------------
                                                  3,372,830          3,941,790 
     Total liabilities and
     partners' equity                          $ 24,527,248       $ 25,302,575 
                                               =============      =============
SUMMARIZED STATEMENTS OF OPERATIONS:
Rental and other income                        $  1,114,021       $  1,072,472 
Expenses:
   Operating expenses                               577,980            560,402 
   Interest expense                                 318,207            299,612 
   Depreciation and
     amortization                                   434,374            440,078 
                                               -------------      -------------
     Total expenses                               1,330,561          1,300,092 

       Net loss                                $   (216,540)      $   (227,620)
                                               =============      =============
   Other partners' share
    of net loss                                $     (2,165)      $     (2,276)
   Partnership's share
    of net loss                                $   (214,375)      $   (225,344)
     Suspended loss                                       0                  0 
                                               -------------      -------------
   Equity in Loss of
      Project Partnerships                     $   (214,375)      $   (225,344)
                                               =============      =============
   <PAGE>
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

   In accordance with the Partnership's policy of presenting the 
financial information of the Project Partnerships on a three month
lag, below is the summarized financial information for the Series'
Project Partnerships as of June 30 of each year:

                                                      1997             1996    
SERIES 10                                         ----------     --------------
SUMMARIZED BALANCE SHEETS
Assets:
   Current assets                              $  1,097,193       $  1,083,948 
   Investment properties,
      net                                        15,949,744         16,438,731 
   Other assets                                      18,305             25,714 
                                               -------------      -------------
     Total assets                              $ 17,065,242       $ 17,548,393 
                                               =============      =============
Liabilities and Partners' Equity
   Current liabilities                         $    263,890       $    409,405 
   Long-term debt                                13,538,658         13,595,950 
                                               -------------      -------------
     Total liabilities                           13,802,131         14,005,355 
548
Partners' Equity
   Limited Partner                                3,286,943          3,503,506 
   General Partners                                 (24,249)            39,532 
                                               -------------       ------------
                                                  3,262,694          3,543,038 
     Total liabilities and
     partners' equity                          $ 17,065,242       $ 17,548,393 
                                               =============      =============
SUMMARIZED STATEMENTS OF OPERATIONS:
Rental and other income                        $    688,913       $    686,541 
Expenses:
   Operating expenses                               398,430            404,364 
   Interest expense                                 145,835            135,606 
   Depreciation and
     amortization                                   256,210            252,194 
                                               -------------      -------------
     Total expenses                                 800,475            792,164 

       Net loss                                $   (111,562)      $   (105,623)
                                               =============      =============
   Other partners' share
    of net loss                                $     (1,116)      $     (1,056)
   Partnership's share
    of net loss                                $   (110,446)      $   (104,567)
     Suspended loss                                       0                  0 
                                               -------------      -------------
   Equity in Loss of
      Project Partnerships                     $   (110,446)      $   (104,567)
                                               =============      =============
 <PAGE>
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

   In accordance with the Partnership's policy of presenting the 
financial information of the Project Partnerships on a three month
lag, below is the summarized financial information for the Series'
Project Partnerships as of June 30 of each year:

                                                      1997             1996    
SERIES 11                                         ----------     --------------
SUMMARIZED BALANCE SHEETS
Assets:
   Current assets                              $    672,719       $  1,737,682 
   Investment properties,
      net                                        14,234,970         14,619,930 
   Other assets                                      28,811            132,098 
                                               -------------      -------------
     Total assets                              $ 14,936,500       $ 16,489,710 
                                               =============      =============
Liabilities and Partners' Equity
   Current liabilities                         $    231,985       $  1,179,857 
   Long-term debt                                10,919,656         11,050,478 
                                               -------------      -------------
     Total liabilities                           11,151,641         12,230,335 

Partners' Equity
   Limited Partner                                3,666,203          4,062,358 
   General Partners                                 118,656            197,017 
                                               -------------       ------------
                                                  3,784,859          4,259,375 
     Total liabilities and
     partners' equity                          $ 14,936,500       $ 16,489,710 
                                               =============      =============
SUMMARIZED STATEMENTS OF OPERATIONS:
Rental and other income                        $    722,192       $    698,965 
Expenses:
   Operating expenses                               350,042            334,443 
   Interest expense                                 248,214            202,677 
   Depreciation and
     amortization                                   263,010            117,834 
                                               -------------      -------------
     Total expenses                                 861,266            654,954 

       Net loss                                $   (139,074)      $     44,011 
                                               =============      =============
   Other partners' share
    of net loss                                $     (1,391)      $        440 
   Partnership's share
    of net loss                                $   (137,683)      $     43,571 
     Suspended loss                                       0                  0 
                                               -------------      -------------
   Equity in Loss of
      Project Partnerships                     $   (137,683)      $     43,571 
                                               =============      =============
  <PAGE>
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

   In accordance with the Partnership's policy of presenting the 
financial information of the Project Partnerships on a three month
lag, below is the summarized financial information for the Series'
Project Partnerships as of June 30 of each year:

                                                     1997              1996    
TOTAL SERIES 7-11                                 ----------     --------------
SUMMARIZED BALANCE SHEETS
Assets:
   Current assets                              $  7,902,682       $  8,429,431 
   Investment properties,
      net                                       133,523,522        138,395,611 
   Other assets                                     204,454            383,045 
                                               -------------      -------------
     Total assets                              $141,630,658       $147,208,087 
                                               =============      =============
Liabilities and Partners' Equity
   Current liabilities                         $  3,419,600       $  4,830,681 
   Long-term debt                               121,069,254        121,580,373 
                                               -------------      -------------
     Total liabilities                          124,488,854        126,411,054 

Partners' Equity
   Limited Partner                               17,127,259         20,533,238 
   General Partners                                  14,545            263,795 
                                               -------------       ------------
                                                 17,141,804         20,797,033 
     Total liabilities and
     partners' equity                          $141,630,658       $147,208,087 
                                               =============      =============
SUMMARIZED STATEMENTS OF OPERATIONS:
Rental and other income                        $  6,705,536       $  6,484,348 
Expenses:
   Operating expenses                             3,778,941          3,597,062 
   Interest expense                               1,894,551          1,658,299 
   Depreciation and
     amortization                                 2,562,458          2,374,668 
                                               -------------      -------------
     Total expenses                               8,235,950          7,630,029 

       Net loss                                $ (1,530,414)      $ (1,145,681)
                                               =============      =============
   Other partners' share
    of net loss                                $    (15,305)      $    (11,457)
   Partnership's share
    of net loss                                $ (1,515,109)      $ (1,134,224)
     Suspended loss                                  26,954                  0 
                                               -------------      -------------
   Equity in Loss of
      Project Partnerships                     $ (1,488,155)      $ (1,134,224)
                                               =============      =============
<PAGE>
Item 7.  Management's Discussion and Analysis of Financial
Condition and Results of Operations 

Results of Operations, Liquidity and Capital Resources

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

  As disclosed on the statement of operations for each Series,
except as described below, interest income is comparable for the 
six and three months ended September 30, 1997 and September 30,
1996.  The General and Administrative expenses - General Partner
and General and Administrative expenses - Other for the three and
six months ended September 30, 1997 are comparable to September 30,
1996.  There were no unusual variations in the operating results
between these two periods.

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

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

  Series 7 - Gateway closed this series on October 16, 1992 after
receiving $10,395,000 from 635 Limited Partner investors.  Equity
in Losses of Project Partnerships were comparable for the six
months ended September 30, 1997 and September 30, 1996.  In
general, it is common in the real estate industry to experience
losses for financial and tax reporting purposes because of the non-
cash expenses of depreciation and amortization. As a result,
management expects that this Series, as well as those described
below, will report its equity in Project Partnerships as a loss for
tax and financial reporting purposes.  Overall, management believes
the Project Partnerships are operating as expected and are
generating tax credits which meet projections.

  At September 30, 1997, the Series had $227,010 of short-term
investments (Cash and Cash Equivalents).  It also had $482,797 in
Zero Coupon Treasuries with annual maturities providing $50,000 in
fiscal year 1999 increasing to $80,000 in fiscal year 2008. 
Management believes the sources of funds are sufficient to meet
current and ongoing operating costs for the foreseeable future, and
to pay part of the Asset Management Fee.
 
   As disclosed on the statement of cash flows, the Series had a 
net loss of $485,612 for the six months ended September 30, 1997. 
However, after adjusting for Equity in Losses of Project
Partnerships of $435,959 and the changes in operating assets and 
liabilities, net cash used in operating activities was $59,250,
primarily due to the payment of the Asset Management Fee of
$41,000.  Cash provided by investing activities totaled $18,280,
consisting  of cash distributions from the Project Partnerships.

  Series 8 - Gateway closed this Series on September 28, 1993 after
receiving $9,980,000 from 664 Limited Partner investors.  Equity 
in Losses of Project Partnerships were comparable for the six
months ended September 30, 1997 and September 30, 1996.  At
September 30, 1997, the Series had $355,423 of short-term
investments (Cash and Cash Equivalents).  It also had $455,405 in
Zero Coupon Treasuries with annual maturities providing $45,000 in
fiscal year 1999 increasing to $82,000 in fiscal year 2008. 
Management believes the sources of funds are sufficient to meet
current and ongoing operating costs for the foreseeable future, and
to pay part of the Asset Management Fee.
 
  As disclosed on the statement of cash flows, the Series had a net
loss of $638,965 for the six months ended September 30, 1997. 
However, after adjusting for Equity in Losses of Project
Partnerships of $589,692 and the changes in operating assets and 
liabilities, net cash used in operating activities was $54,309,
primarily due to the payment of the Asset Management Fee of
$37,000.  Cash provided by investing activities totaled $13,694,
consisting primarily of cash distributions of $13,241 from the
Project Partnerships.  There were no unusual events or trends to
describe.

  Series 9 - Gateway closed this Series on September 30, 1993 after
receiving $6,254,000 from 406 Limited Partner investors.  Equity in
Losses of Project Partnerships were comparable for the six months
ended September 30, 1997 and September 30, 1996.  At September 30,
1997, the Series had $141,782 of short-term investments (Cash and
Cash Equivalents).  It also had $306,183 in Zero Coupon Treasuries
with annual maturities providing $29,000 in fiscal year 1999
increasing to $47,000 in fiscal year 2009.  Management believes the
sources of funds are sufficient to meet current and ongoing
operating costs for the foreseeable future, and to pay part of the
Asset Management Fee.
 
  As disclosed on the statement of cash flows, the Series had a net
loss of $242,262 for the six months ended September 30, 1997. 
However, after adjusting for Equity in Losses of Project
Partnerships of $214,375 and the changes in operating assets and
liabilities, net cash used in operating activities was $27,204,
primarily due to the payment of the Asset Management Fee of
$16,000.  Cash provided by investing activities totaled $7,173,
consisting of cash distributions from the Project Partnerships. 
There were no unusual events or trends to describe.

  Series 10 - Gateway closed this Series on January 21, 1994 after
receiving $5,043,000 from 325 Limited Partner investors.  Equity 
in Losses of Project Partnerships were comparable for the six
months ended September 30, 1997 and September 30, 1996.  At
September 30, 1997, the Series had $165,825 of short-term
investments (Cash and Cash Equivalents).  It also had $243,472 in
Zero Coupon Treasuries with annual maturities providing $24,000 in
fiscal year 1999 increasing to $40,000 in fiscal year 2010. 
Management believes the sources of funds are sufficient to meet
current and ongoing operating costs for the foreseeable future, and
to pay part of the Asset Management Fee.
 
  As disclosed on the statement of cash flows, the Series had a net
loss of $123,876 for the six months ended September 30, 1997. 
However, after adjusting for Equity in Losses of Project
Partnerships of $110,446 and the changes in operating assets and
liabilities, net cash used in operating activities was $30,011,
primarily due to the payment of the Asset Management Fee of
$25,000.  Cash used in investing activities totaled $3,907,
consisting of $3,805 of cash distributions from the Project
Partnerships and a decrease in Payable to the Project Partnerships
of $7,712.  There were no unusual events or trends to describe.

  Series 11 - Gateway closed this Series on April 29, 1994 after 
receiving $5,127,000 from 330 Limited investors.  Equity in losses
of Project Partnerships increased from income of $43,571 for the
six months ended September 30, 1996 to losses of $137,683 for the
six months ended September 30, 1997 due to the number of properties
moving from the construction and rent-up phases to fully
operational.  At September 30, 1997, the Series had $152,352 of
short-term investments (Cash and Cash Equivalents).  It also had
$256,416 in Zero Coupon Treasuries with annual maturities providing
$23,000 in fiscal year 1999 increasing to $44,000 in fiscal year
2010.  Management believes the sources of funds are sufficient to
meet current and ongoing operating costs for the foreseeable
future, and to pay part of the Asset Management Fee.
 
   As disclosed on the statement of cash flows, the Series had a 
net loss of $147,304 for the six months ended September 30, 1997. 
However, after adjusting for Equity in Losses of Project
Partnerships of $137,683 and the changes in operating assets and
liabilities, net cash used in operating activities was $21,702,
primarily due to the payment of the Asset Management Fee of
$17,000.  Cash provided by investing activities totaled $4,669,
consisting of cash distributions from the Project Partnerships. 
There were no unusual events or trends to describe.

<PAGE>

                                            SIGNATURES


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


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





Date:  November 3, 1997                   By:/s/ Ronald M. Diner 
                                          Ronald M. Diner
                                          President



Date:  November 3, 1997                   By:/s/ Sandra L. Furey  
                                          Sandra L. Furey
                                          Secretary and Treasurer<PAGE>