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                  June 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                                 June 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 July 11, 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

                                                   JUNE 30,        MARCH 31,
                                                     1997            1997   
                                                 -----------     -----------
SERIES 7                                         (Unaudited)     (Unaudited)
ASSETS
Current Assets:
   Cash and Cash Equivalents                     $  277,430      $  267,980 
   Investments in Securities                         45,553          44,933 
   Receivable from Project Partnerships                   0               0 
                                                 -----------     -----------
     Total Current Assets                           322,983         312,913 

   Investments in Securities                        429,122         421,843 
   Investments in Project
          Partnerships, Net                       4,223,546       4,483,546 
                                                 -----------     -----------
       Total Assets                              $4,975,651      $5,218,302 
                                                 ===========     ===========

LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
   Payable to General Partners                   $   50,818      $   54,499 
   Payable to Project Partnerships                        0               0 
                                                 -----------     -----------
                                                     50,818          54,499 

Long-Term Liabilities:
   Payable to General Partners                      202,440         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 March 31, 1997 and 1996)                    4,766,447       5,025,507 
General Partners                                    (44,054)        (41,437)
                                                 -----------     -----------
     Total Partners' Equity                       4,722,393       4,984,070 
                                                 -----------     -----------
       Total Liabilities and
          Partners' Equity                       $4,975,651      $5,218,302 
                                                 ===========     ===========
                      See accompanying notes to financial statements.
<PAGE>
                             GATEWAY TAX CREDIT FUND III LTD.
                              (A Florida Limited Partnership)

                                      BALANCE SHEETS
                                                   JUNE 30,       MARCH 31, 
                                                     1997            1997   
                                                 -----------      ----------
SERIES 8                                         (Unaudited)       (Audited)
ASSETS
Current Assets:
   Cash and Cash Equivalents                     $  398,604      $  396,038 
   Investments in Securities                         40,728          40,189 
   Receivable from Project Partnerships                 453             453 
                                                 -----------     -----------
     Total Current Assets                           439,785         436,680 

   Investments in Securities                        407,383         400,823 
   Investments in Project
          Partnerships, Net                       4,341,858       4,614,122 
                                                 -----------     -----------
       Total Assets                              $5,189,026      $5,451,625 
                                                 ===========     ===========

LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
   Payable to General Partners                   $   41,306      $   42,185 
   Payable to Project Partnerships                        0               0 
                                                 -----------     -----------
                                                     41,306          42,185 
Long-Term Liabilities:
   Payable to General Partners                      239,261         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 March 31, 1997 and 1996)                    4,947,000       5,227,849 
General Partners                                    (38,541)        (35,704)
                                                 -----------     -----------
     Total Partners' Equity                       4,908,459       5,192,145 
                                                 -----------     -----------
       Total Liabilities and
          Partners' Equity                       $5,189,026      $5,451,625 
                                                 ===========     ===========
                      See accompanying notes to financial statements.
<PAGE>
                             GATEWAY TAX CREDIT FUND III LTD.
                              (A Florida Limited Partnership)

                                      BALANCE SHEETS
                                                    JUNE 30,       MARCH 31,
                                                      1997           1997   
                                                 -----------      ----------
SERIES 9                                         (Unaudited)       (Audited)
ASSETS
Current Assets:
   Cash and Cash Equivalents                     $  161,968      $  161,813 
   Investments in Securities                         27,212          26,879 
   Receivable from Other Series                       2,208               0 
                                                 -----------     -----------
     Total Current Assets                           191,388         188,692 

   Investments in Securities                        274,523         270,520 
   Investments in Project
          Partnerships, Net                       3,747,374       3,848,367 
                                                 -----------     -----------
       Total Assets                              $4,213,285      $4,307,579 
                                                 ===========     ===========

LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
   Payable to General Partners                   $   23,568      $   24,250 
   Payable to Other Series                            1,003               0 
                                                 -----------     -----------
                                                     24,571          24,250 

Long-Term Liabilities:
   Payable to General Partners                      131,287         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 March 31, 1997 and 1996)                    4,071,690       4,177,521 
General Partners                                    (14,263)        (13,194)
                                                 -----------     -----------
     Total Partners' Equity                       4,057,427       4,164,327 
                                                 -----------     -----------
       Total Liabilities and
          Partners' Equity                       $4,213,285      $4,307,579 
                                                 ===========     ===========
                      See accompanying notes to financial statements.
<PAGE>
                             GATEWAY TAX CREDIT FUND III LTD.
                              (A Florida Limited Partnership)

                                      BALANCE SHEETS
                                                    JUNE 30,       MARCH 31,
                                                      1997           1997   
                                                 -----------      ----------
SERIES 10                                        (Unaudited)       (Audited)
ASSETS
Current Assets:
   Cash and Cash Equivalents                     $  202,950      $  199,743 
   Investments in Securities                         21,294          20,995 
   Receivable from Other Series                       1,003               0 
                                                 -----------      ----------
     Total Current Assets                           225,247         220,738 

   Investments in Securities                        218,185         214,600 
   Investments in Project
          Partnerships, Net                       3,529,896       3,571,518 
                                                 -----------     -----------
       Total Assets                              $3,973,328      $4,006,856 
                                                 ===========     ===========

LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
   Payable to General Partners                   $   27,325      $   28,072 
   Payable to Project Partnerships                    7,712           7,712 
   Payable to Other Series                            2,208               0 
                                                 -----------     -----------
                                                     37,245          35,784 

Long-Term Liabilities:
   Payable to General Partners                       44,846          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 March 31, 1997 and 1996)                    3,896,505       3,938,729 
General Partners                                     (5,268)         (4,841)
                                                 -----------     -----------
     Total Partners' Equity                       3,891,237       3,933,888 
                                                 -----------     -----------
       Total Liabilities and
          Partners' Equity                       $3,973,328      $4,006,856 
                                                 ===========     ===========
                      See accompanying notes to financial statements.
<PAGE>
                             GATEWAY TAX CREDIT FUND III LTD.
                              (A Florida Limited Partnership)

                                      BALANCE SHEETS
                                                    JUNE 30,       MARCH 31,
                                                      1997           1997   
                                                 -----------      ----------
SERIES 11                                        (Unaudited)       (Audited)
ASSETS
Current Assets:
   Cash and Cash Equivalents                     $  172,448      $  169,385 
   Investments in Securities                         20,239          19,915 
   Receivable from Project Partnerships                   0               0 
                                                 -----------     -----------
     Total Current Assets                           192,687         189,300 

   Investments in Securities                        231,580         227,438 
   Investments in Project
          Partnerships, Net                       4,018,455       4,070,301 
                                                 -----------     -----------
       Total Assets                              $4,442,722      $4,487,039 
                                                 ===========     ===========


LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
   Payable to General Partners                   $   26,963      $   27,882 
   Payable to Project Partnerships                        0               0 
                                                 -----------     -----------
                                                     26,963          27,882 

Long-Term Liabilities:
   Payable to General Partners                       14,289           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 March 31, 1997 and 1996)                    4,403,446       4,452,477 
General Partners                                     (1,976)         (1,481)
                                                 -----------     -----------
     Total Partners' Equity                       4,401,470       4,450,996 
                                                 -----------     -----------
       Total Liabilities and
          Partners' Equity                       $4,442,722      $4,487,039 
                                                 ===========     ===========
                      See accompanying notes to financial statements.
<PAGE>
                             GATEWAY TAX CREDIT FUND III LTD.
                              (A Florida Limited Partnership)

                                      BALANCE SHEETS
                                                    JUNE 30,       MARCH 31,
                                                      1997           1997   
                                                 -----------      ----------
TOTAL SERIES 7 - 11                              (Unaudited)       (Audited)
ASSETS
Current Assets:
   Cash and Cash Equivalents                    $ 1,213,400     $ 1,194,959 
   Investments in Securities                        155,026         152,911 
   Receivable from Project Partnerships                 453             453 
   Receivable from Other Series                       3,211               0 
                                                ------------    ------------
     Total Current Assets                         1,372,090       1,348,323 

   Investments in Securities                      1,560,793       1,535,224 
   Investments in Project
          Partnerships, Net                      19,861,129      20,587,854 
                                                ------------    ------------
       Total Assets                             $22,794,012     $23,471,401 
                                                ============    ============

LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
   Payable to General Partners                  $   169,980     $   176,888 
   Payable to Project Partnerships                    7,712           7,712 
   Payable to Other Series                            3,211               0 
                                                ------------    ------------
                                                    180,903         184,600 

Long-Term Liabilities:
   Payable to General Partners                      632,123         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 March 31, 1997 and 1996)                   22,085,087      22,822,083 
General Partners                                   (104,101)        (96,657)
                                                ------------    ------------
     Total Partners' Equity                      21,980,986      22,725,426 
                                                ------------    ------------
       Total Liabilities and
          Partners' Equity                      $22,794,012     $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 JUNE 30,


                                                      1997              1996   
SERIES 7                                           ---------       ----------- 
Revenue:
   Interest Income                              $    11,163        $    10,881 
                                                ------------       ----------- 
Expenses:
   Asset Management Fee-
     General Partner                                 19,500             19,500 
   General and Administrative-
     General Partner                                  3,318              2,950 
   General and Administrative-
     Other                                            2,373              3,702 
   Amortization                                       5,136              5,460 
                                                ------------       ----------- 
     Total Expenses                                  30,327             31,612 
                                                ------------       ----------- 
Loss Before Equity in Losses of
 Project Partnerships                               (19,164)           (20,731)
Equity in Losses of Project
 Partnerships                                      (242,513)          (230,910)
                                                ------------       ------------
Net Loss                                        $  (261,677)       $  (251,641)
                                                ============       ============
Allocation of Net Loss:
   Limited Partners                             $  (259,060)       $  (249,125)
   General Partners                                  (2,617)            (2,516)
                                                ------------       ------------
                                                $  (261,677)       $  (251,641)
                                                ============       ============
Net Loss Per Number of 
 Limited Partnership Units                      $    (24.92)       $    (23.97)
   
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 JUNE 30,


                                                     1997               1996   
SERIES 8                                          ----------       ----------- 
Revenues:
   Interest Income                              $    11,924        $    11,328 
                                                ------------       ----------- 
Expenses:
   Asset Management Fee-
     General Partner                                 21,500             21,500 
   General and Administrative-
     General Partner                                  3,659              3,253 
   General and Administrative-
     Other                                            2,594              3,927 
   Amortization                                       2,314              2,315 
                                                ------------       ----------- 
     Total Expenses                                  30,067             30,995 
                                                ------------       ------------
Loss Before Equity in Losses of
 Project Partnerships                               (18,143)           (19,667)
Equity in Losses of Project
 Partnerships                                      (265,543)          (206,775)
                                                ------------       ------------
Net Loss                                        $  (283,686)       $  (226,442)
                                                ============       ============
Allocation of Net Loss:
   Limited Partners                             $  (280,849)       $  (224,178)
   General Partners                                  (2,837)            (2,264)
                                                ------------       ------------
                                                $  (283,686)       $  (226,442)
                                                ============       ============
Net Loss Per Number of 
 Limited Partnership Units                      $    (28.14)       $    (22.46)
   
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 JUNE 30,


                                                     1997               1996   
SERIES 9                                            --------       ----------- 
Revenues:
   Interest Income                              $     6,306        $     5,669 
                                                ------------       ----------- 
Expenses:
   Asset Management Fee-
     General Partner                                 12,000             12,000 
   General and Administrative-
     General Partner                                  2,042              1,816 
   General and Administrative-
     Other                                            1,387              2,128 
   Amortization                                       1,779              1,779 
                                                ------------       ----------- 
     Total Expenses                                  17,208             17,723 
                                                ------------       ------------
Loss Before Equity in Losses of
 Project Partnerships                               (10,902)           (12,054)
Equity in Losses of Project
 Partnerships                                       (95,998)          (114,657)
                                                ------------       ------------
Net Loss                                        $  (106,900)       $  (126,711)
                                                ============       ============
Allocation of Net Loss:
   Limited Partners                             $  (105,831)       $  (125,444)
   General Partners                                  (1,069)            (1,267)
                                                ------------       ------------
                                                $  (106,900)       $  (126,711)
                                                ============       ============
Net Loss Per Number of 
 Limited Partnership Units                      $    (16.92)       $    (20.06)
   
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 JUNE 30,


                                                     1997               1996   
SERIES 10                                         ----------        ---------- 
Revenues:
   Interest Income                              $     6,327        $     7,008 
                                                ------------       ----------- 
Expenses:
   Asset Management Fee-
     General Partner                                  7,500              7,500 
   General and Administrative-
     General Partner                                  1,276              1,134 
   General and Administrative-
     Other                                              963              1,455 
   Amortization                                       1,460              1,460 
                                                ------------       ----------- 
     Total Expenses                                  11,199             11,549 
                                                ------------       ------------
Loss Before Equity in Losses of
 Project Partnerships                                (4,872)            (4,541)
Equity in Losses of Project
 Partnerships                                       (37,779)           (48,842)
                                                ------------       ------------
Net Loss                                        $   (42,651)       $   (53,383)
                                                ============       ============
Allocation of Net Loss:
   Limited Partners                             $   (42,224)       $   (52,849)
   General Partners                                    (427)              (534)
                                                ------------       ------------
                                                $   (42,651)       $   (53,383)
                                                ============       ============
Net Loss Per Number of 
 Limited Partnership Units                      $     (8.37)       $    (10.48)
   
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 JUNE 30,

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

Revenues:
   Interest Income                              $     6,530        $     8,604 
                                                ------------       ----------- 
Expenses:
   Asset Management Fee-
     General Partner                                  6,000              6,000 
   General and Administrative-
     General Partner                                  1,021                905 
   General and Administrative-
     Other                                              871              1,268 
   Amortization                                       1,797              1,862 
                                                ------------       ----------- 
     Total Expenses                                   9,689             10,035 
                                                ------------       ------------
Income (Loss) Before Equity in Losses of
 Project Partnerships                                (3,159)            (1,431)
Equity in Losses of Project
 Partnerships                                       (46,367)            20,160 
                                                ------------       ------------
Net Income (Loss)                               $   (49,526)       $    18,729 
                                                ============       ============
Allocation of Net Income (Loss):
   Limited Partners                             $   (49,031)       $    18,542 
   General Partners                                    (495)               187 
                                                ------------       ------------
                                                $   (49,526)       $    18,729 
                                                ============       ============
Net Income (Loss) Per Number of 
 Limited Partnership Units                      $     (9.56)       $      3.62 
   
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 JUNE 30,


                                                     1997                1996  
TOTAL SERIES 7-11                                 ----------       ----------- 
Revenues:
   Interest Income                              $    42,250        $    43,490 
                                                ------------       ----------- 
Expenses:
   Asset Management Fee-
     General Partner                                 66,500             66,500 
   General and Administrative-
     General Partner                                 11,316             10,058 
   General and Administrative-
     Other                                            8,188             12,480 
   Amortization                                      12,486             12,876 
                                                ------------       ----------- 
     Total Expenses                                  98,490            101,914 
                                                ------------       ------------
Loss Before Equity in Losses of
 Project Partnerships                               (56,240)           (58,424)
Equity in Losses of Project
 Partnerships                                      (688,200)          (581,024)
                                                ------------       ------------
Net Loss                                        $  (744,440)       $  (639,448)
                                                ============       ============
Allocation of Net Loss:
   Limited Partners                             $  (736,996)       $  (633,054)
   General Partners                                  (7,444)            (6,394)
                                                ------------       ------------
                                                $  (744,440)       $  (639,448)
                                                ============       ============

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

                              STATEMENTS OF PARTNERS' EQUITY
                                        (Unaudited)

                    FOR THE THREE MONTHS ENDED JUNE 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                         (249,125)           (2,516)          (251,641)
                              ------------        ----------       ------------
Balance at
 June 30, 1996                $ 5,793,031         $ (33,684)       $ 5,759,347 
                              ============        ==========       ============


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

Net Loss                         (259,060)           (2,617)          (261,677)
                              ------------        ----------       ------------
Balance at
 June 30, 1997                $ 4,766,447         $ (44,054)       $ 4,722,393 
                              ============        ==========       ============


                      See accompanying notes to financial statements.

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

                              STATEMENTS OF PARTNERS' EQUITY
                                        (Unaudited)

                    FOR THE THREE MONTHS ENDED JUNE 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                         (224,178)           (2,264)          (226,442)
                              ------------        ----------       ------------
Balance at
 June 30, 1996                $ 6,081,968         $ (27,076)       $ 6,054,892 
                              ============        ==========       ============


Balance at
 March 31, 1997                 5,277,849           (35,704)         5,192,145 

Net Loss                         (280,849)           (2,837)          (283,686)
                              ------------        ----------       ------------
Balance at
 June 30, 1997                $ 4,947,000         $ (38,541)       $ 4,908,459 
                              ============        ==========       ============


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

                              STATEMENTS OF PARTNERS' EQUITY
                                        (Unaudited)

                    FOR THE THREE MONTHS ENDED JUNE 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                         (125,444)           (1,267)          (126,711)
                              ------------        ----------       ------------
Balance at
 June 30, 1996                $ 4,603,707         $  (8,889)       $ 4,594,818 
                              ============        ==========       ============



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

Net Loss                         (105,831)           (1,069)          (106,900)
                              ------------        ----------       ------------
Balance at
 June 30, 1997                $ 4,071,690         $ (14,263)       $ 4,057,427 
                              ============        ==========       ============


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

                              STATEMENTS OF PARTNERS' EQUITY
                                        (Unaudited)

                    FOR THE THREE MONTHS ENDED JUNE 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                          (52,849)             (534)           (53,383)
                              ------------        ----------       ------------
Balance at
 June 30, 1996                $ 4,098,654         $  (3,226)       $ 4,095,428 
                              ============        ==========       ============


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

Net Loss                          (42,224)             (427)           (42,651)
                              ------------        ----------       ------------
Balance at
 June 30, 1997                $ 3,896,505         $  (5,268)       $ 3,891,237 
                              ============        ==========       ============



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

                              STATEMENTS OF PARTNERS' EQUITY
                                        (Unaudited)

                    FOR THE THREE MONTHS ENDED JUNE 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                           18,542               187             18,729 
                              ------------        ----------       ------------
Balance at
 June 30, 1996                $ 4,665,088         $     666        $ 4,665,754 
                              ============        ==========       ============



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

Net Loss                          (49,031)             (495)           (49,526)
                              ------------        ----------       ------------
Balance at
 June 30, 1997                $ 4,403,446         $  (1,976)       $ 4,401,470 
                              ============        ==========       ============




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

                              STATEMENTS OF PARTNERS' EQUITY
                                        (Unaudited)

                    FOR THE THREE MONTHS ENDED JUNE 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                         (633,054)           (6,394)          (639,448)
                              ------------        ----------       ------------
Balance at
 June 30, 1996                $25,242,448         $ (72,209)       $25,170,239 
                              ============        ==========       ============


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

Net Loss                         (736,996)           (7,444)          (744,440)
                              ------------        ----------       ------------
Balance at
 June 30, 1997                $22,085,087         $(104,101)       $21,980,986 
                              ============        ==========       ============



                      See accompanying notes to financial statements.


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

                                                      1997               1996  
SERIES 7                                           ---------         --------- 
Cash Flows from Operating Activities:
   Net Loss                                     $  (261,677)       $  (251,641)
   Adjustments to Reconcile
    Net Loss to Net Cash
    Provided by (Used in)
    Operating Activities:
     Amortization                                     5,136              5,460 
     Accreted Interest Income
     on Investments in
     Securities                                      (7,898)            (7,914)
     Equity in Losses of
      Project Partnerships                          242,513            230,910 
      Changes in Operating Assets
      and Liabilities:
       Increase in Payable to
         General Partners                            19,025             13,863 
                                                ------------          ---------
         Net Cash Provided by
         (Used in) Operating
         Activities                                  (2,901)            (9,322)
                                                ------------          ---------
Cash Flows from Investing Activities:
   Investments in Project
     Partnerships                                         0             (3,332)
   (Increase) Decrease in
     Receivable from
     Project Partnerships                                 0                  0 
   Acquisition Fees and
     Expenses                                             0               (272) 
   Distributions Received from
     Project Partnerships                            12,351              7,286 
   (Increase) Decrease in Payable to:
     Project Partnerships -                               0                  0 
                                                ------------          ---------
         Net Cash Provided by
         (Used in) Investing
         Activities                                  12,351              3,682 
                                                ------------          ---------
Increase (Decrease) in Cash and 
 Cash Equivalents                                     9,450             (5,640)
Cash and Cash Equivalents at
 Beginning of Year                                  267,980            259,782 
                                                ------------          ---------
Cash and Cash Equivalents at
 End of Year                                    $   277,430         $  254,142 
                                                ============          =========

                      See accompanying notes to financial statements.
<PAGE>
                             GATEWAY TAX CREDIT FUND III LTD.
                              (A Florida Limited Partnership)
                                 STATEMENTS OF CASH FLOWS
                                        (Unaudited)
                    FOR THE THREE MONTHS ENDED JUNE 30, 1997 AND 1996:

                                                      1997               1996  
SERIES 8                                           ---------         --------- 
Cash Flows from Operating Activities:
   Net Loss                                     $  (283,686)       $  (226,442)
   Adjustments to Reconcile
    Net Loss to Net Cash
    Provided by (Used in)
    Operating Activities:
     Amortization                                     2,314              2,315 
     Accreted Interest Income
     on Investments in
     Securities                                      (7,100)            (7,121)
     Equity in Losses of
      Project Partnerships                          265,543            206,775 
      Changes in Operating Assets
      and Liabilities:
       Increase in Payable to
         General Partners                            21,088             15,447 
                                                ------------       ------------
         Net Cash Provided by
         (Used in) Operating
         Activities                                  (1,841)            (9,026)
                                                ------------       ------------
Cash Flows from Investing Activities:
   Investments in Project
     Partnerships                                         0            (54,070)
   (Increase) Decrease in
     Receivable from
     Project Partnerships                                 0             76,027 
   Acquisition Fees and
     Expenses                                             0                  0  
   Distributions Received from
     Project Partnerships                             4,407             12,437 
   (Increase) Decrease in Payable to:
     Project Partnerships                                 0                  0 
                                                ------------       ------------
         Net Cash Provided by
         (Used in) Investing
         Activities                                   4,407             34,394 
                                                ------------       ------------
Increase (Decrease) in Cash and 
 Cash Equivalents                                     2,566             25,368 
Cash and Cash Equivalents at
 Beginning of Year                                  396,038            295,021 
                                                ------------       ------------
Cash and Cash Equivalents at
 End of Year                                    $   398,604        $   320,389 
                                                ============       ============

                      See accompanying notes to financial statements.
<PAGE>
                             GATEWAY TAX CREDIT FUND III LTD.
                              (A Florida Limited Partnership)
                                 STATEMENTS OF CASH FLOWS
                                        (Unaudited)
                    FOR THE THREE MONTHS ENDED JUNE 30, 1997 AND 1996:

                                                      1997               1996  
SERIES 9                                           ---------         --------- 
Cash Flows from Operating Activities:
   Net Loss                                     $  (106,900)       $  (126,711)
   Adjustments to Reconcile
    Net Loss to Net Cash
    Provided by (Used in)
    Operating Activities:
     Amortization                                     1,779              1,779 
     Accreted Interest Income
     on Investments in
     Securities                                      (4,336)            (4,389)
     Equity in Losses of
      Project Partnerships                           95,998            114,657 
      Changes in Operating Assets
      and Liabilities:
       Increase in Payable to
         General Partners                            11,603              8,461 
                                                ------------       ------------
         Net Cash Provided by
         (Used in) Operating
         Activities                                  (1,856)            (6,203)
                                                ------------       ------------
Cash Flows from Investing Activities:
   Investments in Project
     Partnerships                                         0                  0 
   (Increase) Decrease in
     Receivable from
     Project Partnerships                            (2,208)                 0 
   Acquisition Fees and
     Expense                                              0                  0  
   Distributions Received from
     Project Partnerships                             3,216              6,161 
   (Increase) Decrease in Payable to:
     Project Partnerships                             1,003                  0 
 
                                                ------------       ------------
         Net Cash Provided by
         (Used in) Investing
         Activities                                   2,011              6,161 
                                                ------------       ------------
Increase (Decrease) in Cash and 
 Cash Equivalents                                       155                (42)
Cash and Cash Equivalents at
 Beginning of Year                                  161,813            112,252 
                                                ------------       ------------
Cash and Cash Equivalents at
 End of Year                                    $   161,968        $   112,210 
                                                ============       ============
                      See accompanying notes to financial statements.
<PAGE>
                             GATEWAY TAX CREDIT FUND III LTD.
                              (A Florida Limited Partnership)
                                 STATEMENTS OF CASH FLOWS
                                        (Unaudited)
                    FOR THE THREE MONTHS ENDED JUNE 30, 1997 AND 1996:

                                                      1997               1996  
SERIES 10                                          ---------         --------- 
Cash Flows from Operating Activities:
   Net Loss                                     $   (42,651)       $   (53,383)
   Adjustments to Reconcile
    Net Loss to Net Cash
    Provided by (Used in)
    Operating Activities:
     Amortization                                     1,460              1,460 
     Accreted Interest Income
     on Investments in
     Securities                                      (3,885)            (3,894)
     Equity in Losses of
      Project Partnerships                           37,779             48,842 
      Changes in Operating Assets
      and Liabilities:
       Increase in Payable to
         General Partners                             6,916              4,963 
                                                ------------       ------------
         Net Cash Provided by
         (Used in) Operating
         Activities                                    (381)            (2,012)
                                                ------------       ------------
Cash Flows from Investing Activities:
   Investments in Project
     Partnerships                                         0                  0 
   (Increase) Decrease in
     Receivable from
     Project Partnerships                            (1,003)            13,059 
   Acquisition Fees and
     Expenses                                             0                  0 
   Distributions Received from
     Project Partnerships                             2,383              2,383 
   (Increase) Decrease in Payable to:
     Project Partnerships                             2,208                  0 
                                                ------------       ------------
         Net Cash Provided by
         (Used in) Investing
         Activities                                   3,588             15,442 
                                                ------------       ------------
Increase (Decrease) in Cash and 
 Cash Equivalents                                     3,207             13,430 
Cash and Cash Equivalents at
 Beginning of Year                                  199,743            162,576 
                                                ------------       ------------
Cash and Cash Equivalents at
 End of Year                                    $   202,950        $   176,006 
                                                ============       ============

                      See accompanying notes to financial statements.
<PAGE>
                             GATEWAY TAX CREDIT FUND III LTD.
                              (A Florida Limited Partnership)
                                 STATEMENTS OF CASH FLOWS
                                        (Unaudited)
                    FOR THE THREE MONTHS ENDED JUNE 30, 1997 AND 1996:

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

Cash Flows from Operating Activities:
   Net Loss                                     $   (49,526)       $    18,729 
   Adjustments to Reconcile
    Net Loss to Net Cash
    Provided by (Used in)
    Operating Activities:
     Amortization                                     1,797              1,862 
     Accreted Interest Income
     on Investments in
     Securities                                      (4,466)            (4,452)
     Equity in Losses of
      Project Partnerships                           46,367            (20,160)
      Changes in Operating Assets
      and Liabilities:
       Increase in Payable to
         General Partners                             5,209               (251)
                                                ------------       ------------
         Net Cash Provided by
         (Used in) Operating
         Activities                                    (619)            (4,272)
                                                ------------       ------------
Cash Flows from Investing Activities:
   Investments in Project
     Partnerships                                         0             (2,173)
   (Increase) Decrease in
     Receivable from
     Project Partnerships                                 0              8,250 
   Acquisition Fees and
     Expenses                                             0               (178) 
   Distributions Received from
     Project Partnerships                             3,682                  0 
   (Increase) Decrease in Payable to:
     Project Partnerships                                 0           (150,000)
                                                ------------       ------------
         Net Cash Provided by
         (Used in) Investing
         Activities                                   3,682           (144,101)
                                                ------------       ------------
Increase (Decrease) in Cash and 
 Cash Equivalents                                     3,063           (148,373)
Cash and Cash Equivalents at
 Beginning of Year                                  169,385            365,027 
                                                ------------       ------------
Cash and Cash Equivalents at
 End of Year                                    $   172,448        $   216,654 
                                                ============       ============
                      See accompanying notes to financial statements.
<PAGE>
                             GATEWAY TAX CREDIT FUND III LTD.
                              (A Florida Limited Partnership)
                                 STATEMENTS OF CASH FLOWS
                                        (Unaudited)
                    FOR THE THREE MONTHS ENDED JUNE 30, 1997 AND 1996:

                                                      1997               1996  
TOTAL SERIES 7-11                                  ---------         --------- 
Cash Flows from Operating Activities:
   Net Loss                                     $  (744,440)       $  (639,448)
   Adjustments to Reconcile
    Net Loss to Net Cash
    Provided by (Used in)
    Operating Activities:
     Amortization                                    12,486             12,876 
     Accreted Interest Income
     on Investments in
     Securities                                     (27,685)           (27,770)
     Equity in Losses of
      Project Partnerships                          688,200            581,024 
      Changes in Operating Assets
      and Liabilities:
       Increase in Payable to
         General Partners                            63,841             42,483 
                                                ------------       ------------
         Net Cash Provided by
         (Used in) Operating
         Activities                                  (7,598)           (30,835)
                                                ------------       ------------
Cash Flows from Investing Activities:
   Investments in Project
     Partnerships                                         0            (59,575)
   (Increase) Decrease in
     Receivable from
     Project Partnerships                            (3,211)            97,336 
   Acquisition Fees and
     Expenses                                             0               (450) 
   Distributions Received from
     Project Partnerships                            26,039             28,267 
   (Increase) Decrease in Payable to:
     Project Partnerships                             3,211           (150,000)
                                                ------------       ------------
         Net Cash Provided by
         (Used in) Investing
         Activities                                  26,039            (84,422)
                                                ------------       ------------
Increase (Decrease) in Cash and 
 Cash Equivalents                                    18,441           (115,257)
Cash and Cash Equivalents at
 Beginning of Year                                1,194,959          1,194,658 
                                                ------------       ------------
Cash and Cash Equivalents at
 End of Year                                    $ 1,213,400        $ 1,079,401 
                                                ============       ============

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

                               NOTES TO FINANCIAL STATEMENTS

                                       JUNE 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 June 30, 1997 Balance Sheet includes Investment in
Securities consisting of U.S. Treasury Security Strips which
represents their cost, plus accreted interest income of
$129,800 for Series 7, $107,223 for Series 8, $56,642 for
Series 9, $46,720 for Series 10 and $50,049 for Series 11. 
                                                                  Gross  
                                        Cost Plus              Unrealized
                     Estimated           Accreted               Gains and
                 Market Value            Interest                (Losses)

Series 7             $ 488,492          $ 474,675               $ 13,817 
Series 8               451,985            448,111                  3,874 
Series 9               293,015            301,735                 (8,720)
Series 10              242,685            239,479                  3,206 
Series 11              264,308            251,819                 12,489 

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

                                         Series 7                Series 8

Due within 1 year                       $  45,553               $  40,728
After 1 year through 5 years              180,458                 167,039
After 5 years through 10 years            209,610                 201,483
After 10 years                             39,054                  38,861
                                        ---------               ---------
  Total Amount Carried on
      Balance Sheet                     $ 474,675               $ 448,111
                                        =========               =========

                                         Series 9               Series 10

Due within 1 year                       $  27,212               $  21,294
After 1 year through 5 years              106,243                  81,783
After 5 years through 10 years            122,822                  87,881
After 10 years                             45,458                  48,521
                                        ---------               ---------
  Total Amount Carried on
       Balance Sheet                    $ 301,735               $ 239,479
                                        =========               =========

                                        Series 11                   Total

Due within 1 year                       $  20,239               $ 155,036
After 1 year through 5 years               81,574                 617,097
After 5 years through 10 years             97,477                 719,273
After 10 years                             52,529                 224,423
                                        ---------               ---------
  Total Amount Carried on
       Balance Sheet                    $ 251,819              $1,715,829
                                        =========               =========


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 three months ended June 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                    176
                                     --------               --------
  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                           $ 19,500               $ 19,500        
  Series 8                             21,500                 21,500
  Series 9                             12,000                 12,000
  Series 10                             7,500                  7,500
  Series 11                             6,000                  6,000
                                     --------               --------
  Total                              $ 66,500               $ 66,500
                                     ========               ========

  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                          $   3,318              $   2,950        
  Series 8                              3,659                  3,253
  Series 9                              2,042                  1,816
  Series 10                             1,276                  1,134
  Series 11                             1,021                    905
                                     --------               --------
  Total                              $ 11,316               $ 10,058
                                     ========               ========
<PAGE>
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS:

   As of June 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:

                                                         JUNE 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)                                   1,700         1,172 

Cumulative equity in losses of
Project Partnerships (2)                              (4,115,448)   (3,872,935)

Cumulative distributions received
from Project Partnerships                                (79,558)      (67,207)

Acquisition fees and expenses                            793,335       793,335 

Accumulated amortization of
acquisition fees and expenses                           (108,572)     (102,908)
                                                     ------------  ------------
Investments in
 Project Partnerships                                $ 4,223,546   $ 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 June 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 $51,309 for the period ended 
June 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 June 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:
                                                         JUNE 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)                                   2,495         2,317 

Cumulative equity in losses of
Project Partnerships (2)                              (3,674,177)   (3,408,634)

Cumulative distributions received
from Project Partnerships                                (61,393)      (56,986)

Acquisition fees and expenses                            549,773       549,773 

Accumulated amortization of
acquisition fees and expenses                            (60,945)      (58,453)
                                                     ------------  ------------
Investments in
 Project Partnerships                                $ 4,341,858   $ 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 June 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 $27,832 for the period ended 
June 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 June 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:
                                                         JUNE 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)                                     691           727 

Cumulative equity in losses of
Project Partnerships                                  (1,348,228)   (1,252,230)

Cumulative distributions received
from Project Partnerships                                (38,559)      (35,343)

Acquisition fees and expenses                            244,087       244,087 

Accumulated amortization of
acquisition fees and expenses                            (24,733)      (22,990)
                                                     ------------  ------------
Investments in
 Project Partnerships                                $ 3,747,374   $ 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 June 30, 1997 and March 31, 1997 these
excess costs were ($5,076).
<PAGE>
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

   As of June 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:
                                                         JUNE 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)                                    (551)         (497)

Cumulative equity in losses of
Project Partnerships                                    (517,898)     (480,119)

Cumulative distributions received
from Project Partnerships                                (43,889)      (41,506)

Acquisition fees and expenses                            196,738       196,738 

Accumulated amortization of
acquisition fees and expenses                            (19,176)      (17,770)
                                                     ------------  ------------
Investments in
 Project Partnerships                                $ 3,529,896   $ 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 June 30, 1997 and March 31, 1997 these
excess costs were ($7,486).
<PAGE>
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

   As of June 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:
                                                         JUNE 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)                                   2,141         1,864 

Cumulative equity in losses of
Project Partnerships                                    (373,046)     (326,679)

Cumulative distributions received
from Project Partnerships                                 (8,777)       (5,095)

Acquisition fees and expenses                            290,335       290,335 

Accumulated amortization of
acquisition fees and expenses                            (20,240)      (18,166)
                                                     ------------  ------------
Investments in
 Project Partnerships                                $ 4,018,455   $ 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 June 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:

                                                         JUNE 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                                       6,476         5,583 

Cumulative equity in losses of
Project Partnerships                                 (10,028,797)   (9,340,597)

Cumulative distributions received
from Project Partnerships                               (232,176)     (206,137)

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

Accumulated amortization of
acquisition fees and expenses                           (233,666)     (220,287)
                                                    ------------- -------------
Investments in
 Project Partnerships                               $ 19,861,129  $ 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 March 31 of each year:

                                                      1997             1996    
SERIES 7                                          ----------     --------------
SUMMARIZED BALANCE SHEETS
Assets:
   Current assets                              $  2,382,026       $  2,324,412 
   Investment properties, net                    39,061,797         40,536,523 
   Other assets                                      97,380            117,448 
                                               -------------      -------------
     Total assets                              $ 41,541,203       $ 42,978,383 
                                               =============      =============
Liabilities and Partners' Equity
   Current liabilities                         $  1,115,422       $  1,216,485 
   Long-term debt                                36,950,678         37,220,359 
                                               -------------      -------------
     Total liabilities                           38,066,100         38,436,844 

Partners' Equity
   Limited Partner                                3,461,558          4,485,903 
   General Partners                                  13,545             55,636 
                                               -------------       ------------
                                                  3,475,103          4,541,539 
     Total liabilities and
     partners' equity                          $ 41,541,203       $ 42,978,383 
                                               =============      =============
SUMMARIZED STATEMENTS OF OPERATIONS:
Rental and other income                        $  1,073,643       $  1,052,555 
Expenses:
   Operating expenses                               619,352            557,569 
   Interest expense                                 307,713            322,836 
   Depreciation and amortization                    402,267            405,392 
                                               -------------      -------------
     Total expenses                               1,329,332          1,285,797 

       Net loss                                $   (255,689)      $   (233,242)
                                               =============      =============
   Other partners' share
    of net loss                                $     (2,557)      $     (2,332)
   Partnership's share
    of net loss                                $   (253,132)      $   (230,910)
     Suspended loss                                  10,619                  0 
                                               -------------      -------------
   Equity in Loss of
      Project Partnerships                     $   (242,513)      $   (230,910)
                                               =============      =============
<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 March 31 of each year:

                                                      1997             1996    
SERIES 8                                          ----------     --------------
SUMMARIZED BALANCE SHEETS
Assets:
   Current assets                              $  1,988,966       $  1,777,410 
   Investment properties,
      net                                        41,981,767         43,584,462 
   Other assets                                      65,566             95,264 
                                               -------------      -------------
     Total assets                              $ 44,036,299       $ 45,457,136 
                                               =============      =============
Liabilities and Partners' Equity
   Current liabilities                         $  1,246,574       $  1,419,615 
   Long-term debt                                38,998,505         39,109,114 
                                               -------------      -------------
     Total liabilities                           40,245,079         40,528,729 

Partners' Equity
   Limited Partner                                3,843,554          4,960,886 
   General Partners                                 (52,334)           (32,479)
                                               -------------       ------------
                                                  3,791,220          4,928,407 
     Total liabilities and
     partners' equity                          $ 44,036,299       $ 45,457,136 
                                               =============      =============
SUMMARIZED STATEMENTS OF OPERATIONS:
Rental and other income                        $  1,063,045       $    948,232 
Expenses:
   Operating expenses                               682,122            551,691 
   Interest expense                                 267,830            217,371 
   Depreciation and
     amortization                                   385,116            388,034 
                                               -------------      -------------
     Total expenses                               1,335,068          1,157,096 

       Net loss                                $   (272,023)      $   (208,864)
                                               =============      =============
   Other partners' share
    of net loss                                $     (2,720)      $     (2,089)
   Partnership's share
    of net loss                                $   (269,303)      $   (206,775)
     Suspended loss                                   3,760                  0 
                                               -------------      -------------
   Equity in Loss of
      Project Partnerships                     $   (265,543)      $   (206,775)
                                               =============      =============
   <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 March 31 of each year:

                                                      1997             1996    
SERIES 9                                          ----------     --------------
SUMMARIZED BALANCE SHEETS
Assets:
   Current assets                              $  1,333,321       $  1,053,666 
   Investment properties,
      net                                        23,295,181         24,180,155 
   Other assets                                     188,752             13,179 
                                               -------------      -------------
     Total assets                              $ 24,817,254       $ 25,247,000 
                                               =============      =============
Liabilities and Partners' Equity
   Current liabilities                         $    677,625       $    485,281 
   Long-term debt                                20,645,207         20,708,124 
                                               -------------      -------------
     Total liabilities                           21,322,832         21,193,405 

Partners' Equity
   Limited Partner                                3,521,357          4,042,577 
   General Partners                                 (26,935)            11,018 
                                               -------------       ------------
                                                  3,494,422          4,053,595 
     Total liabilities and
     partners' equity                          $ 24,817,254       $ 25,247,000 
                                               =============      =============
SUMMARIZED STATEMENTS OF OPERATIONS:
Rental and other income                        $    547,292       $    530,314 
Expenses:
   Operating expenses                               281,862            275,178 
   Interest expense                                 146,617            150,916 
   Depreciation and
     amortization                                   215,781            220,035 
                                               -------------      -------------
     Total expenses                                 644,260            646,129 

       Net loss                                $    (96,968)      $   (115,815)
                                               =============      =============
   Other partners' share
    of net loss                                $       (970)      $     (1,158)
   Partnership's share
    of net loss                                $    (95,998)      $   (114,657)
     Suspended loss                                       0                  0 
                                               -------------      -------------
   Equity in Loss of
      Project Partnerships                     $    (95,998)      $   (114,657)
                                               =============      =============
   <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 March 31 of each year:

                                                      1997             1996    
SERIES 10                                         ----------     --------------
SUMMARIZED BALANCE SHEETS
Assets:
   Current assets                              $  1,028,221       $  1,022,681 
   Investment properties,
      net                                        16,079,503         16,563,334 
   Other assets                                      20,402             26,677 
                                               -------------      -------------
     Total assets                              $ 17,128,126       $ 17,612,692 
                                               =============      =============
Liabilities and Partners' Equity
   Current liabilities                         $    240,248       $    407,719 
   Long-term debt                                13,535,883         13,605,647 
                                               -------------      -------------
     Total liabilities                           13,776,131         14,013,366 

Partners' Equity
   Limited Partner                                3,364,035          3,559,231 
   General Partners                                 (12,040)            40,095 
                                               -------------       ------------
                                                  3,351,995          3,599,326 
     Total liabilities and
     partners' equity                          $ 17,128,126       $ 17,612,692 
                                               =============      =============
SUMMARIZED STATEMENTS OF OPERATIONS:
Rental and other income                        $    345,176       $    348,206 
Expenses:
   Operating expenses                               199,620            201,959 
   Interest expense                                  60,860             69,485 
   Depreciation and
     amortization                                   122,857            126,097 
                                               -------------      -------------
     Total expenses                                 383,337            397,541 

       Net loss                                $    (38,161)      $    (49,335)
                                               =============      =============
   Other partners' share
    of net loss                                $       (382)      $       (493)
   Partnership's share
    of net loss                                $    (37,779)      $    (48,842)
     Suspended loss                                       0                  0 
                                               -------------      -------------
   Equity in Loss of
      Project Partnerships                     $    (37,779)      $    (48,842)
                                               =============      =============
 <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 March 31 of each year:

                                                      1997             1996    
SERIES 11                                         ----------     --------------
SUMMARIZED BALANCE SHEETS
Assets:
   Current assets                              $    630,783       $  1,844,884 
   Investment properties,
      net                                        14,350,170         14,647,464 
   Other assets                                      28,421            133,439 
                                               -------------      -------------
     Total assets                              $ 15,009,374       $ 16,625,787 
                                               =============      =============
Liabilities and Partners' Equity
   Current liabilities                         $    194,137       $  1,312,762 
   Long-term debt                                10,918,640         11,071,935 
                                               -------------      -------------
     Total liabilities                           11,112,777         12,384,697 

Partners' Equity
   Limited Partner                                3,759,019          3,902,588 
   General Partners                                 137,578            338,502 
                                               -------------       ------------
                                                  3,896,597          4,241,090 
     Total liabilities and
     partners' equity                          $ 15,009,374       $ 16,625,787 
                                               =============      =============
SUMMARIZED STATEMENTS OF OPERATIONS:
Rental and other income                        $    376,957       $    332,519 
Expenses:
   Operating expenses                               179,721            167,232 
   Interest expense                                 109,833             88,675 
   Depreciation and
     amortization                                   134,238             56,248 
                                               -------------      -------------
     Total expenses                                 423,792            312,155 

       Net loss                                $    (46,835)      $     20,364 
                                               =============      =============
   Other partners' share
    of net loss                                $       (468)      $        204 
   Partnership's share
    of net loss                                $    (46,367)      $     20,160 
     Suspended loss                                       0                  0 
                                               -------------      -------------
   Equity in Loss of
      Project Partnerships                     $    (46,367)      $     20,160 
                                               =============      =============
  <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 March 31 of each year:

                                                     1997              1996    
TOTAL SERIES 7-11                                 ----------     --------------
SUMMARIZED BALANCE SHEETS
Assets:
   Current assets                              $  7,363,317       $  8,023,053 
   Investment properties,
      net                                       134,768,418        139,511,938 
   Other assets                                     400,521            386,007 
                                               -------------      -------------
     Total assets                              $142,532,256       $147,920,998 
                                               =============      =============
Liabilities and Partners' Equity
   Current liabilities                         $  3,474,006       $  4,841,862 
   Long-term debt                               121,048,913        121,715,179 
                                               -------------      -------------
     Total liabilities                          124,522,919        126,557,041 

Partners' Equity
   Limited Partner                               17,949,523         20,951,185 
   General Partners                                  59,814            412,772 
                                               -------------       ------------
                                                 18,009,337         21,363,957 
     Total liabilities and
     partners' equity                          $142,532,256       $147,920,998 
                                               =============      =============
SUMMARIZED STATEMENTS OF OPERATIONS:
Rental and other income                        $  3,406,113       $  3,211,826 
Expenses:
   Operating expenses                             1,962,677          1,753,629 
   Interest expense                                 892,853            849,283 
   Depreciation and
     amortization                                 1,260,259          1,195,806 
                                               -------------      -------------
     Total expenses                               4,115,789          3,798,718 

       Net loss                                $   (709,676)      $   (586,892)
                                               =============      =============
   Other partners' share
    of net loss                                $     (7,097)      $     (5,868)
   Partnership's share
    of net loss                                $   (702,579)      $   (581,024)
     Suspended loss                                  14,379                  0 
                                               -------------      -------------
   Equity in Loss of
      Project Partnerships                     $   (688,200)      $   (581,024)
                                               =============      =============
<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 
three months ended June 30 1997 and June 30, 1996.  The General and
Administrative expenses - General Partner and General and
Administrative expenses - Other for the three months ended June 30,
1997 are comparable to June 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 three
months ended June 30, 1997 and June 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 June 30, 1997, the Series had $277,430 of short-term
investments (Cash and Cash Equivalents).  It also had $474,675 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 $261,677 for the three months ended June 30, 1997. 
However, after adjusting for Equity in Losses of Project
Partnerships of $242,513 and the changes in operating assets and 
liabilities, net cash used in operating activities was $2,901. 
Cash provided by investing activities totaled $12,351, consisting 
of cash distributions from the Project Partnerships.

  Series 8 - Gateway closed this Series on June 28, 1993 after
receiving $9,980,000 from 664 Limited Partner investors.  Equity 
in Losses of Project Partnerships were comparable for the three
months ended June 30, 1997 and June 30, 1996.  At June 30, 1997, 
the Series had $398,604 of short-term investments (Cash and Cash 
Equivalents).  It also had $448,111 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 $283,686 for the three months ended June 30, 1997. 
However, after adjusting for Equity in Losses of Project
Partnerships of $265,543 and the changes in operating assets and 
liabilities, net cash used in operating activities was $1,841. Cash
provided by investing activities totaled $4,407, consisting of cash
distributions 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 three months
ended June 30, 1997 and June 30, 1996.  At June 30, 1997, the
Series had $161,968 of short-term investments (Cash and Cash
Equivalents).  It also had $301,735 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 $106,900 for the three months ended June 30, 1997. 
However, after adjusting for Equity in Losses of Project
Partnerships of $95,998 and the changes in operating assets and
liabilities, net cash used in operating activities was $1,856. Cash
provided by investing activities totaled $2,011, consisting
primarily of $3,216 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 three
months ended June 30, 1997 and June 30, 1996.  At June 30, 1997, 
the Series had $202,950 of short-term investments (Cash and Cash 
Equivalents).  It also had $239,479 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 $42,651 for the three months ended June 30, 1997.  However,
after adjusting for Equity in Losses of Project Partnerships of
$37,779 and the changes in operating assets and liabilities, net
cash used in operating activities was $381. Cash provided by
investing activities totaled $3,588, consisting primarily of $2,383
of cash distributions from the Project Partnerships.  There were no
unusual events or trends to describe.

  Series 11 - Gateway closed this Series on April 29, 1994 after 
receiving $5,127,000 from 330 Limited investors.  Equity in losses
of Project Partnerships increased from income of $20,160 for the
three months ended June 30, 1996 to losses of $46,367 for the three
months ended June 30, 1997 due to the number of properties moving
from the construction and rent-up phases to fully operational.  At
June 30, 1997, the Series had $172,448 of short-term investments
(Cash and Cash Equivalents).  It also had $251,819 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 $49,526 for the three months ended June 30, 1997. 
However, after adjusting for Equity in Losses of Project
Partnerships of $46,367 and the changes in operating assets and
liabilities, net cash used in operating activities was $619. Cash
provided by investing activities totaled $3,682, 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:  August 29, 1997                    By:/s/ Ronald M. Diner 
                                          Ronald M. Diner
                                          President



Date:  August 29, 1997                    By:/s/ Sandra L. Furey  
                                          Sandra L. Furey
                                          Secretary and Treasurer<PAGE>