GTWY3
                               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          DECEMBER 31, 2000
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:      (727)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                        December 31, 2000
Units of Limited Partnership
Interest:  $1,000 per unit                            33,799

                   DOCUMENTS INCORPORATED BY REFERENCE
              Parts I and II, 1998 Form 10-K, filed with the
            Securities and Exchange Commission on July 17, 2000
            Parts III and IV - Form S-11 Registration Statement
                and all amendments and supplements thereto
                             File No. 33-44238

PART I - Financial Information
 Item 1.  Financial Statements
                     GATEWAY TAX CREDIT FUND III LTD.
                      (A Florida Limited Partnership)
                              BALANCE SHEETS

SERIES 7                                       DECEMBER 31,      MARCH 31,
                                                  2000              2000
                                                 -------         -------
                                               (Unaudited)      (Audited)
ASSETS
Current Assets:
 Cash and Cash Equivalents                     $   284,464     $   324,156
 Investments in Securities                          56,728          54,067
                                               ------------    ------------
  Total Current Assets                             341,192         378,223

 Investments in Securities                         375,676         356,248
 Investments in Project Partnerships, Net        1,836,544       2,237,728
                                               -----------     -----------
    Total Assets                               $ 2,553,412     $ 2,972,199
                                               ===========     ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners                   $    50,237     $    54,468
                                               -----------     -----------
  Total Current Liabilities                         50,237          54,468
                                               -----------     -----------
Long-Term Liabilities:
 Payable to General Partners                       336,616         312,688
                                               -----------     -----------
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 December 31, 2000 and March 31,2000)       2,236,171       2,670,270
General Partners                                   (69,612)        (65,227)
                                               -----------     -----------
  Total Partners' Equity                         2,166,559       2,605,043
                                               -----------     -----------
    Total Liabilities and Partners' Equity     $ 2,553,412     $ 2,972,199
                                               ===========     ===========

              See accompanying notes to financial statements.

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

SERIES 8                                         DECEMBER 31,     MARCH 31,
                                                    2000            2000
                                                  -------        -------
                                                 (Unaudited)     (Audited)
ASSETS
Current Assets:
 Cash and Cash Equivalents                      $   379,865    $   425,447
 Investments in Securities                           53,725         51,329
                                                ------------    ------------
  Total Current Assets                              433,590        476,776

 Investments in Securities                          356,119        338,702
 Investments in Project Partnerships, Net         1,100,895      1,423,188
                                                -----------    -----------
    Total Assets                                $ 1,890,604    $ 2,238,666
                                                ===========    ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners                    $    40,821    $    45,318
                                                -----------    -----------
  Total Current Liabilities                          40,821         45,318
                                                -----------    -----------
Long-Term Liabilities:
 Payable to General Partners                        391,964        364,673
                                                -----------    -----------
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 December 31, 2000 and March 31, 2000)          1,530,866      1,898,013
General Partners                                    (73,047)       (69,338)
                                                -----------    -----------
  Total Partners' Equity                          1,457,819      1,828,675
                                                -----------    -----------
    Total Liabilities and Partners' Equity      $ 1,890,604    $ 2,238,666
                                                ===========    ===========

              See accompanying notes to financial statements.

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

SERIES 9                                        DECEMBER 31,      MARCH 31,
                                                    2000            2000
                                                  -------         -------
                                                (Unaudited)      (Audited)
ASSETS
Current Assets:
 Cash and Cash Equivalents                      $   196,496    $   209,964
 Investments in Securities                           31,843         30,560
                                                ------------    ------------
  Total Current Assets                              228,339        240,524

 Investments in Securities                          240,391        229,761
 Investments in Project Partnerships, Net         1,916,477      2,303,872
                                                -----------    -----------
    Total Assets                                $ 2,385,207    $ 2,774,157
                                                ===========    ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners                    $    23,320    $    25,970
                                                -----------    -----------
    Total Current Liabilities                        23,320         25,970
                                                -----------    -----------
Long-Term Liabilities:
 Payable to General Partners                        235,966        214,521
                                                -----------    -----------
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 December 31, 2000 and March 31, 2000)          2,159,498      2,563,166
General Partners                                    (33,577)       (29,500)
                                                -----------    -----------
  Total Partners' Equity                          2,125,921      2,533,666
                                                -----------    -----------
    Total Liabilities and Partners' Equity      $ 2,385,207    $ 2,774,157
                                                ===========    ===========

              See accompanying notes to financial statements.

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

SERIES 10                                       DECEMBER 31,      MARCH 31,
                                                    2000            2000
                                                  -------         -------
                                                (Unaudited)      (Audited)
ASSETS
Current Assets:
 Cash and Cash Equivalents                      $   201,961    $   226,070
 Investments in Securities                           24,944         23,784
                                                 ------------   ------------
  Total Current Assets                              226,905        249,854

 Investments in Securities                          198,242        188,259
 Investments in Project Partnerships, Net         2,550,314      2,764,397
                                                -----------    -----------
    Total Assets                                $ 2,975,461    $ 3,202,510
                                                ===========    ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners                    $    27,203    $    29,116
                                                -----------    -----------
    Total Current Liabilities                        27,203         29,116
                                                -----------    -----------
Long-Term Liabilities:
 Payable to General Partners                         56,654         57,475
                                                -----------    -----------
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 December 31, 2000 and March 31, 2000)          2,906,868      3,128,940
General Partners                                    (15,264)       (13,021)
                                                -----------    -----------
  Total Partners' Equity                          2,891,604      3,115,919
                                                -----------    -----------
    Total Liabilities and Partners' Equity      $ 2,975,461    $ 3,202,510
                                                ===========    ===========

              See accompanying notes to financial statements.

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

SERIES 11                                        DECEMBER 31,      MARCH 31,
                                                    2000            2000
                                                  -------         -------
                                                (Unaudited)      (Audited)
ASSETS
Current Assets:
 Cash and Cash Equivalents                      $   206,735    $   230,874
 Investments in Securities                           25,862         24,571
                                                 ------------   ------------
  Total Current Assets                              232,597        255,445

 Investments in Securities                          220,140        208,405
 Investments in Project Partnerships, Net         3,406,650      3,534,837
                                                -----------    -----------
    Total Assets                                $ 3,859,387    $ 3,998,687
                                                ===========    ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners                    $    27,031    $    28,842
                                                -----------    -----------
  Total Current Liabilities                          27,031         28,842
                                                -----------    -----------
Long-Term Liabilities:
 Payable to General Partners                         12,296         19,190
                                                -----------    -----------
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 December 31, 2000 and March 31, 2000)          3,827,850      3,957,139
General Partners                                     (7,790)        (6,484)
                                                -----------    -----------
  Total Partners' Equity                          3,820,060      3,950,655
                                                -----------    -----------
    Total Liabilities and Partners' Equity      $ 3,859,387    $ 3,998,687
                                                ===========    ===========

              See accompanying notes to financial statements.

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

TOTAL SERIES 7 - 11                             DECEMBER 31,      MARCH 31,
                                                   2000            2000
                                                  -------         -------
                                                (Unaudited)      (Audited)
ASSETS
Current Assets:
 Cash and Cash Equivalents                      $ 1,269,521    $ 1,416,511
 Investments in Securities                          193,102        184,311
                                                 ------------   ------------
Total Current Assets                              1,462,623      1,600,822

 Investments in Securities                        1,390,568      1,321,375
 Investments in Project Partnerships, Net        10,810,880     12,264,022
                                                -----------    -----------
    Total Assets                                $13,664,071    $15,186,219
                                                ===========    ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners                    $   168,612    $   183,714
                                                -----------    -----------
  Total Current Liabilities                         168,612        183,714
                                                -----------    -----------
Long-Term Liabilities:
 Payable to General Partners                      1,033,496        968,547
                                                -----------    -----------
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 December 31, 2000 and March 31, 2000)         12,661,253     14,217,528
General Partners                                   (199,290)      (183,570)
                                                -----------    -----------
  Total Partners' Equity                         12,461,963     14,033,958
                                                -----------    -----------
    Total Liabilities and Partners' Equity      $13,664,071    $15,186,219
                                                ===========    ===========

              See accompanying notes to financial statements.

                     GATEWAY TAX CREDIT FUND III LTD.
                      (A Florida Limited Partnership)
                         STATEMENTS OF OPERATIONS
                  FOR THE THREE MONTHS ENDED DECEMBER 31,
                                (Unaudited)

SERIES 7                                             2000            1999
                                                     ----            ----
Revenues:
 Interest Income                               $    11,622    $    11,144
                                               -----------    -----------
Expenses:
 Asset Management Fee-General Partner               21,988         22,052
 General and Administrative:
  General Partner                                    2,628          3,095
  Other                                              2,818          2,056
 Amortization                                        3,549          4,368
                                               -----------    -----------
  Total Expenses                                    30,983         31,571
                                               -----------    -----------
Loss Before Equity in Losses
 of Project Partnerships                           (19,361)       (20,427)
Equity in Losses of Project
 Partnerships                                      (13,266)      (208,618)
                                                ----------     ----------
Net Loss                                       $   (32,627)   $  (229,045)
                                               ===========    ===========
Allocation of Net Loss:
 Limited Partners                              $   (32,301)   $  (226,755)
 General Partners                                     (326)        (2,290)
                                               -----------    -----------
                                               $   (32,627)   $  (229,045)
                                               ===========    ===========
Net Loss Per Number of Limited
Partnership Units                              $     (3.11)   $    (16.31)
                                              ============   ============
Number of Limited Partnership Units
Outstanding                                         10,395         10,395
                                              ============   ============

              See accompanying notes to financial statements.


                     GATEWAY TAX CREDIT FUND III LTD.
                      (A Florida Limited Partnership)
                         STATEMENTS OF OPERATIONS
                  FOR THE THREE MONTHS ENDED DECEMBER 31,
                                (Unaudited)
SERIES 8                                             2000            1999
                                                     ----            ----
Revenues:
 Interest Income                               $    12,236    $    11,767
                                               -----------    -----------
Expenses:
 Asset Management Fee-General Partner               22,914         22,983
 General and Administrative:
  General Partner                                    2,898          3,412
  Other                                              3,103          2,181
 Amortization                                        2,264          3,260
                                               -----------    -----------
  Total Expenses                                    31,179         31,836
                                               -----------    -----------
Loss Before Equity in Losses
 of Project Partnerships                           (18,943)       (20,069)
Equity in Losses of Project
 Partnerships                                      (28,222)      (305,211)
                                                ----------     ----------
Net Loss                                       $   (47,165)   $  (325,280)
                                               ===========    ===========
Allocation of Net Loss:
 Limited Partners                              $   (46,693)   $  (322,027)
 General Partners                                     (472)        (3,253)
                                               -----------    -----------
                                               $   (47,165)   $  (325,280)
                                               ===========    ===========
Net Loss Per Number of Limited
Partnership Units                              $     (4.68)   $    (22.60)
                                              ============   ============
Number of Limited Partnership Units
Outstanding                                          9,980          9,980
                                              ============   ============

              See accompanying notes to financial statements.


                     GATEWAY TAX CREDIT FUND III LTD.
                      (A Florida Limited Partnership)
                         STATEMENTS OF OPERATIONS
                  FOR THE THREE MONTHS ENDED DECEMBER 31,
                                (Unaudited)

SERIES 9                                              2000            1999
                                                      ----            ----
Revenues:
 Interest Income                                $     6,869   $     6,468
                                                -----------   -----------
Expenses:
 Asset Management Fee-General Partner                12,580        12,615
 General and Administrative:
  General Partner                                     1,617         1,904
  Other                                               1,870         1,036
 Amortization                                         1,430         1,743
                                                -----------   -----------
  Total Expenses                                     17,497        17,298
                                                -----------   -----------
Loss Before Equity in Losses
 of Project Partnerships                            (10,628)      (10,830)
Equity in Losses of Project
 Partnerships                                       (87,687)     (235,852)
                                                 ----------    ----------
Net Loss                                        $   (98,315)  $  (246,682)
                                                ===========   ===========
Allocation of Net Loss:
 Limited Partners                               $   (97,332)  $  (244,215)
 General Partners                                      (983)       (2,467)
                                                -----------   -----------
                                                $   (98,315)  $  (246,682)
                                                ===========   ===========
Net Loss Per Number of Limited
Partnership Units                               $    (15.56)  $    (39.05)
                                               ============  ============
Number of Limited Partnership Units
Outstanding                                           6,254         6,254
                                               ============  ============

              See accompanying notes to financial statements.


                     GATEWAY TAX CREDIT FUND III LTD.
                      (A Florida Limited Partnership)
                         STATEMENTS OF OPERATIONS
                  FOR THE THREE MONTHS ENDED DECEMBER 31,
                                (Unaudited)

SERIES 10                                            2000            1999
                                                     ----            ----
Revenues:
 Interest Income                               $     6,721    $     6,364
                                               -----------    -----------
Expenses:
 Asset Management Fee-General Partner                8,577          8,607
 General and Administrative:
  General Partner                                    1,011          1,190
  Other                                              1,429          1,118
 Amortization                                        1,405          1,406
                                               -----------    -----------
  Total Expenses                                    12,422         12,321
                                               -----------    -----------
Loss Before Equity in Losses
 of Project Partnerships                            (5,701)        (5,957)
Equity in Losses of Project
 Partnerships                                        6,615        (86,124)
                                               -----------     ----------
Net Gain / Loss                                $       914    $   (92,081)
                                               ===========    ===========
Allocation of Net Gain / Loss:
 Limited Partners                              $       905    $   (91,160)
 General Partners                                        9           (921)
                                               -----------    -----------
                                               $       914    $   (92,081)
                                               ===========    ===========
Net Gain / Loss Per Number of Limited
Partnership Units                              $      0.18    $    (10.90)
                                              ============   ============
Number of Limited Partnership Units
Outstanding                                          5,043          5,043
                                              ============   ============

              See accompanying notes to financial statements.

                     GATEWAY TAX CREDIT FUND III LTD.
                      (A Florida Limited Partnership)
                         STATEMENTS OF OPERATIONS
                  FOR THE THREE MONTHS ENDED DECEMBER 31,
                                (Unaudited)

SERIES 11                                            2000            1999
                                                     ----            ----
Revenues:
 Interest Income                                $     7,404   $     7,015
                                                -----------   -----------
Expenses:
 Asset Management Fee-General Partner                 7,116         6,930
 General and Administrative:
  General Partner                                       809           953
  Other                                               1,343           775
 Amortization                                         2,073         2,074
                                                -----------   -----------
  Total Expenses                                     11,341        10,732
                                                -----------   -----------
Loss Before Equity in Losses
 of Project Partnerships                             (3,937)       (3,717)
Equity in Losses of Project
 Partnerships                                        32,921      (135,064)
                                                 ----------    ----------
Net Gain / Loss                                 $    28,984    $ (138,781)
                                                ===========   ===========
Allocation of Net Gain / Loss:
 Limited Partners                               $    28,694    $ (137,394)
 General Partners                                       290        (1,387)
                                                -----------   -----------
                                                $    28,984    $ (138,781)
                                                ===========   ===========
Net Gain / Loss Per Number of Limited
Partnership Units                               $      5.60    $   (26.80)
                                               ============  ============
Number of Limited Partnership Units
Outstanding                                           5,127         5,127
                                               ============  ============

              See accompanying notes to financial statements.


                     GATEWAY TAX CREDIT FUND III LTD.
                      (A Florida Limited Partnership)
                         STATEMENTS OF OPERATIONS
                  FOR THE THREE MONTHS ENDED DECEMBER 31,
                                (Unaudited)

TOTAL SERIES 7 - 11                                  2000            1999
                                                     ----            ----
Revenues:
 Interest Income                                $    44,852   $    42,758
                                                -----------   -----------
Expenses:
 Asset Management Fee-General Partner                73,175        73,187
 General and Administrative:
  General Partner                                     8,963        10,554
  Other                                              10,563         7,166
 Amortization                                        10,721        12,851
                                                -----------   -----------
  Total Expenses                                    103,422       103,758
                                                -----------   -----------
Loss Before Equity in Losses
 of Project Partnerships                            (58,570)      (61,000)
Equity in Losses of Project
 Partnerships                                       (89,639)     (970,869)
                                                 ----------    ----------
Net Loss                                        $  (148,209)  $(1,031,869)
                                                ===========   ===========
Allocation of Net Loss:
 Limited Partners                               $  (146,727)  $(1,021,551)
 General Partners                                    (1,482)      (10,318)
                                                -----------   -----------
                                                $  (148,209)  $(1,031,869)
                                                ===========   ===========

              See accompanying notes to financial statements.

                     GATEWAY TAX CREDIT FUND III LTD.
                      (A Florida Limited Partnership)
                         STATEMENTS OF OPERATIONS
                  FOR THE NINE MONTHS ENDED DECEMBER 31,
                                (Unaudited)

SERIES 7                                             2000            1999
                                                     ----            ----
Revenues:
 Interest Income                               $    35,276    $    32,649
                                               -----------    -----------
Expenses:
 Asset Management Fee-General Partner               65,964         66,156
 General and Administrative:
  General Partner                                   11,747         11,140
  Other                                             14,112         14,063
 Amortization                                       10,647         13,104
                                               -----------    -----------
  Total Expenses                                   102,470        104,463
                                               -----------    -----------
Loss Before Equity in Losses
 of Project Partnerships                           (67,194)       (71,814)
Equity in Losses of Project
 Partnerships                                     (371,290)      (612,827)
                                                ----------     ----------
Net Loss                                       $  (438,484)   $  (684,641)
                                               ===========    ===========
Allocation of Net Loss:
 Limited Partners                              $  (434,099)   $  (677,795)
 General Partners                                   (4,385)        (6,846)
                                               -----------    -----------
                                               $  (438,484)   $  (684,641)
                                               ===========    ===========
Net Loss Per Number of Limited
Partnership Units                              $    (41.76)   $    (65.20)
                                              ============   ============
Number of Limited Partnership Units
Outstanding                                         10,395         10,395
                                              ============   ============

              See accompanying notes to financial statements.


                     GATEWAY TAX CREDIT FUND III LTD.
                      (A Florida Limited Partnership)
                         STATEMENTS OF OPERATIONS
                  FOR THE NINE MONTHS ENDED DECEMBER 31,
                                (Unaudited)

SERIES 8                                             2000            1999
                                                     ----            ----
Revenues:
 Interest Income                               $    37,245    $    34,127
                                               -----------    -----------
Expenses:
 Asset Management Fee-General Partner               68,742         68,949
 General and Administrative:
  General Partner                                   12,952         12,282
  Other                                             14,968         15,214
 Amortization                                        6,792          9,780
                                               -----------    -----------
  Total Expenses                                   103,454        106,225
                                               -----------    -----------
Loss Before Equity in Losses
 of Project Partnerships                           (66,209)       (72,098)
Equity in Losses of Project
 Partnerships                                     (304,647)      (743,689)
                                                ----------     ----------
Net Loss                                       $  (370,856)   $  (815,787)
                                               ===========    ===========
Allocation of Net Loss:
 Limited Partners                              $  (367,147)   $  (807,629)
 General Partners                                   (3,709)        (8,158)
                                               -----------    -----------
                                               $  (370,856)   $  (815,787)
                                               ===========    ===========
Net Loss Per Number of Limited
Partnership Units                              $    (36.79)   $    (80.92)
                                              ============   ============
Number of Limited Partnership Units
Outstanding                                          9,980          9,980
                                              ============   ============

              See accompanying notes to financial statements.


                     GATEWAY TAX CREDIT FUND III LTD.
                      (A Florida Limited Partnership)
                         STATEMENTS OF OPERATIONS
                  FOR THE NINE MONTHS ENDED DECEMBER 31,
                                (Unaudited)

SERIES 9                                             2000            1999
                                                     ----            ----
Revenues:
 Interest Income                                $    20,716   $    18,842
                                                -----------   -----------
Expenses:
 Asset Management Fee-General Partner                37,740        37,845
 General and Administrative:
  General Partner                                     7,229         6,855
  Other                                               8,561         8,511
 Amortization                                         4,290         5,229
                                                -----------   -----------
  Total Expenses                                     57,820        58,440
                                                -----------   -----------
Loss Before Equity in Losses
 of Project Partnerships                            (37,104)      (39,598)
Equity in Losses of Project
 Partnerships                                      (370,641)     (539,492)
                                                ----------    ----------
Net Loss                                        $  (407,745)  $  (579,090)
                                                ===========   ===========
Allocation of Net Loss:
 Limited Partners                               $  (403,668)  $  (573,299)
 General Partners                                    (4,077)       (5,791)
                                                -----------   -----------
                                                $  (407,745)  $  (579,090)
                                                ===========   ===========
Net Loss Per Number of Limited
Partnership Units                               $    (64.55)  $    (91.67)
                                               ============  ============
Number of Limited Partnership Units
Outstanding                                           6,254         6,254
                                               ============  ============

              See accompanying notes to financial statements.


                     GATEWAY TAX CREDIT FUND III LTD.
                      (A Florida Limited Partnership)
                         STATEMENTS OF OPERATIONS
                  FOR THE NINE MONTHS ENDED DECEMBER 31,
                                (Unaudited)

SERIES 10                                            2000            1999
                                                     ----            ----
Revenues:
 Interest Income                               $    20,447    $    18,492
                                               -----------    -----------
Expenses:
 Asset Management Fee-General Partner               25,731         25,821
 General and Administrative:
  General Partner                                    4,518          4,284
  Other                                              6,292          6,209
 Amortization                                        4,215          4,218
                                               -----------    -----------
  Total Expenses                                    40,756         40,532
                                               -----------    -----------
Loss Before Equity in Losses
 of Project Partnerships                           (20,309)       (22,040)
Equity in Losses of Project
 Partnerships                                     (204,006)      (237,426)
                                                ----------     ----------
Net Loss                                       $  (224,315)   $  (259,466)
                                               ===========    ===========
Allocation of Net Loss:
 Limited Partners                              $  (222,072)   $  (256,871)
 General Partners                                   (2,243)        (2,595)
                                               -----------    -----------
                                               $  (224,315)   $  (259,466)
                                               ===========    ===========
Net Loss Per Number of Limited
Partnership Units                              $    (44.04)   $    (50.94)
                                              ============   ============
Number of Limited Partnership Units
Outstanding                                          5,043          5,043
                                              ============   ============

              See accompanying notes to financial statements.


                     GATEWAY TAX CREDIT FUND III LTD.
                      (A Florida Limited Partnership)
                         STATEMENTS OF OPERATIONS
                  FOR THE NINE MONTHS ENDED DECEMBER 31,
                                (Unaudited)

SERIES 11                                            2000            1999
                                                     ----            ----
Revenues:
 Interest Income                                $    22,465   $    20,433
                                                -----------   -----------
Expenses:
 Asset Management Fee-General Partner                21,348        20,790
 General and Administrative:
  General Partner                                     3,615         3,428
  Other                                               5,670         5,321
 Amortization                                         6,219         6,222
                                                -----------   -----------
  Total Expenses                                     36,852        35,761
                                                -----------   -----------
Loss Before Equity in Losses
 of Project Partnerships                            (14,387)      (15,328)
Equity in Losses of Project
 Partnerships                                      (116,208)     (203,917)
                                                 ----------    ----------
Net Loss                                        $  (130,595)  $  (219,245)
                                                ===========   ===========
Allocation of Net Loss:
 Limited Partners                               $  (129,289)  $  (217,053)
 General Partners                                    (1,306)       (2,192)
                                                -----------   -----------
                                                $  (130,595)  $  (219,245)
                                                ===========   ===========
Net Loss Per Number of Limited
Partnership Units                               $    (25.22)  $    (42.34)
                                               ============  ============
Number of Limited Partnership Units
Outstanding                                           5,127         5,127
                                               ============  ============

              See accompanying notes to financial statements.

                     GATEWAY TAX CREDIT FUND III LTD.
                      (A Florida Limited Partnership)
                         STATEMENTS OF OPERATIONS
                  FOR THE NINE MONTHS ENDED DECEMBER 31,
                                (Unaudited)

TOTAL SERIES 7 - 11                                  2000            1999
                                                     ----            ----
Revenues:
 Interest Income                                $   136,149   $   124,543
                                                -----------   -----------
Expenses:
 Asset Management Fee-General Partner               219,525       219,561
 General and Administrative:
  General Partner                                    40,061        37,989
  Other                                              49,603        49,318
 Amortization                                        32,163        38,553
                                                -----------   -----------
  Total Expenses                                    341,352       345,421
                                                -----------   -----------
Loss Before Equity in Losses
 of Project Partnerships                           (205,203)     (220,878)
Equity in Losses of Project
 Partnerships                                    (1,366,792)   (2,337,351)
                                                 ----------    ----------
Net Loss                                        $(1,571,995)  $(2,558,229)
                                                ===========   ===========
Allocation of Net Loss:
 Limited Partners                               $(1,556,275)  $(2,532,647)
 General Partners                                   (15,720)      (25,582)
                                                -----------   -----------
                                                $(1,571,995)  $(2,558,229)
                                                ===========   ===========

              See accompanying notes to financial statements.


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

                      STATEMENTS OF PARTNERS' EQUITY
           FOR THE NINE MONTHS ENDED DECEMBER 31, 2000 AND 1999:


                                   Limited         General
SERIES 7                           Partners        Partners         Total
                                  ---------        --------         -----


Balance at March 31, 1999       $ 3,220,449     $   (59,670)    $ 3,160,779

Net Loss                           (677,795)         (6,846)       (684,641)
                                -----------     -----------     -----------

Balance at December 31, 1999    $ 2,542,654     $   (66,516)    $ 2,476,138
                               ============    ============    ============


Balance at March 31, 2000       $ 2,670,270     $   (65,227)    $ 2,605,043

Net Loss                           (434,099)         (4,385)       (438,484)
                                -----------     -----------     -----------

Balance at December 31,2000     $ 2,236,171     $   (69,612)    $ 2,166,559
                               ============    ============    ============


              See accompanying notes to financial statements.



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

                      STATEMENTS OF PARTNERS' EQUITY
           FOR THE NINE MONTHS ENDED DECEMBER 31, 2000 AND 1999:


                                   Limited         General
SERIES 8                           Partners        Partners         Total
                                  ---------        --------         -----


Balance at March 31, 1999       $ 3,132,833     $   (56,866)    $ 3,075,967

Net Loss                           (807,629)         (8,158)       (815,787)
                                -----------     -----------     -----------

Balance at December 31, 1999    $ 2,325,204     $   (65,024)    $ 2,260,180
                               ============    ============    ============


Balance at March 31, 2000       $ 1,898,013     $   (69,338)    $ 1,828,675

Net Loss                           (367,147)         (3,709)       (370,856)
                                -----------     -----------     -----------

Balance at December 31, 2000    $ 1,530,866     $   (73,047)    $ 1,457,819
                               ============    ============    ============


              See accompanying notes to financial statements.



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

                      STATEMENTS OF PARTNERS' EQUITY
           FOR THE NINE MONTHS ENDED DECEMBER 31, 2000 AND 1999:


                                   Limited         General
SERIES 9                           Partners        Partners         Total
                                  ---------        --------         -----


Balance at March 31, 1999       $ 3,105,611     $   (24,021)    $ 3,081,590

Net Loss                           (573,299)         (5,791)       (579,090)
                                -----------     -----------     -----------

Balance at December 31, 1999    $ 2,532,312     $   (29,812)    $ 2,502,500
                               ============    ============    ============


Balance at March 31, 2000       $ 2,563,166     $   (29,500)    $ 2,533,666

Net Loss                           (403,668)         (4,077)       (407,745)
                                -----------     -----------     -----------

Balance at December 31, 2000    $ 2,159,498     $   (33,577)    $ 2,125,921
                               ============    ============    ============


              See accompanying notes to financial statements.



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

                      STATEMENTS OF PARTNERS' EQUITY
           FOR THE NINE MONTHS ENDED DECEMBER 31, 2000 AND 1999:


                                   Limited         General
SERIES 10                          Partners        Partners         Total
                                  ---------        --------         -----


Balance at March 31, 1999       $ 3,454,065     $    (9,737)    $ 3,444,328

Net Loss                           (256,871)         (2,595)       (259,466)
                                -----------     -----------     -----------

Balance at December 31, 1999    $ 3,197,194     $   (12,332)    $ 3,184,862
                               ============    ============    ============


Balance at March 31, 2000       $ 3,128,940     $   (13,021)    $ 3,115,919

Net Loss                           (222,072)         (2,243)       (224,315)
                                -----------     -----------     -----------

Balance at December 31, 2000    $ 2,906,868     $   (15,264)    $ 2,891,604
                               ============    ============    ============


              See accompanying notes to financial statements.



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

                      STATEMENTS OF PARTNERS' EQUITY
           FOR THE NINE MONTHS ENDED DECEMBER 31, 2000 AND 1999:


                                   Limited         General
SERIES 11                          Partners        Partners         Total
                                  ---------        --------         -----


Balance at March 31, 1999       $ 4,120,106     $    (4,838)    $ 4,115,268

Net Loss                           (217,053)         (2,192)       (219,245)
                                -----------     -----------     -----------

Balance at December 31, 1999    $ 3,903,053     $    (7,030)    $ 3,896,023
                               ============    ============    ============


Balance at March 31, 2000       $ 3,957,139     $    (6,484)    $ 3,950,655

Net Loss                           (129,289)         (1,306)       (130,595)
                                -----------     -----------     -----------

Balance at December 31, 2000    $ 3,827,850     $    (7,790)    $ 3,820,060
                               ============    ============    ============


              See accompanying notes to financial statements.



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

                      STATEMENTS OF PARTNERS' EQUITY
           FOR THE NINE MONTHS ENDED DECEMBER 31, 2000 AND 1999:


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


Balance at March 31, 1999       $17,033,064     $  (155,132)    $16,877,932

Net Loss                         (2,532,647)        (25,582)     (2,558,229)
                                -----------     -----------     -----------

Balance at December 31, 1999    $14,500,417     $  (180,714)    $14,319,703
                               ============    ============    ============


Balance at March 31, 2000       $14,217,528     $  (183,570)    $14,033,958

Net Loss                         (1,556,275)        (15,720)     (1,571,995)
                                -----------     -----------     -----------

Balance at December 31, 2000    $12,661,253     $  (199,290)    $12,461,963
                               ============    ============    ============


              See accompanying notes to financial statements.



                     GATEWAY TAX CREDIT FUND III LTD.
                      (A Florida Limited Partnership)
                         STATEMENTS OF CASH FLOWS
                  FOR THE NINE MONTHS ENDED DECEMBER 31,
                                (Unaudited)

SERIES 7                                              2000           1999
--------                                              ----           ----
Cash Flows from Operating Activities:
  Net Income (Loss)                             $  (438,484)  $  (684,641)
  Adjustments to Reconcile Net Loss to Net
  Cash Provided by (Used in) Operating
  Activities:
   Amortization                                      10,647        13,104
   Accreted Interest Income on Investments
   in Securities                                    (22,090)      (22,948)
   Equity in Losses of Project Partnerships         371,290       612,827
Changes in Operating Assets and
Liabilities:
    Increase in Payable to General Partners          19,699        21,497
                                                -----------   -----------
     Net Cash Used in Operating Activities          (58,938)      (60,161)
                                                -----------   -----------
Cash Flows from Investing Activities:
   Distributions Received from Project
   Partnerships                                      19,246        20,133
                                                -----------   -----------
     Net Cash Provided by (Used in)
     Investing Activities                            19,246        20,133
                                                -----------   -----------
Increase (Decrease) in Cash and Cash
Equivalents                                         (39,692)      (40,028)
Cash and Cash Equivalents at Beginning of
Year                                                324,156       299,313
                                                -----------   -----------
Cash and Cash Equivalents at End of Year        $   284,464   $   259,285
                                                ===========   ===========


              See accompanying notes to financial statements.

                     GATEWAY TAX CREDIT FUND III LTD.
                      (A Florida Limited Partnership)
                         STATEMENTS OF CASH FLOWS
                  FOR THE NINE MONTHS ENDED DECEMBER 31,
                                (Unaudited)
SERIES 8                                              2000           1999
--------                                              ----           ----
Cash Flows from Operating Activities:
  Net Income (Loss)                             $  (370,856)  $  (815,787)
  Adjustments to Reconcile Net Loss to Net
  Cash Provided by (Used in) Operating
  Activities:
   Amortization                                       6,792         9,780
   Accreted Interest Income on Investments
   in Securities                                    (19,814)      (20,587)
   Equity in Losses of Project Partnership          304,647       743,689
Changes in Operating Assets and
Liabilities:
    Increase in Payable to General Partners          22,795        25,028
                                                -----------   -----------
     Net Cash Used in Operating Activities          (56,436)      (57,877)
                                                -----------   -----------
Cash Flows from Investing Activities:
   Distributions Received from Project
   Partnerships                                      10,854        14,668
                                                -----------   -----------
     Net Cash Provided by (Used in)
     Investing Activities                            10,854        14,668
                                                -----------   -----------
Increase (Decrease) in Cash and Cash
Equivalents                                         (45,582)      (43,209)
Cash and Cash Equivalents at Beginning of
Year                                                425,447       411,602
                                                -----------   -----------
Cash and Cash Equivalents at End of Year         $  379,865    $  368,393
                                                ===========   ===========


              See accompanying notes to financial statements.

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

                         STATEMENTS OF CASH FLOWS
                  FOR THE NINE MONTHS ENDED DECEMBER 31,
                                (Unaudited)
SERIES 9                                              2000           1999
--------                                              ----           ----
Cash Flows from Operating Activities:
  Net Income (Loss)                             $  (407,745)  $  (579,090)
  Adjustments to Reconcile Net Loss to Net
  Cash Provided by (Used in) Operating
  Activities:
   Amortization                                       4,290         5,229
   Accreted Interest Income on Investments
   in Securities                                    (11,913)      (12,421)
   Equity in Losses of Project Partnerships         370,641       539,492
Changes in Operating Assets and
Liabilities:
    Increase in Payable to General Partners          18,794        18,287
                                                -----------   -----------
     Net Cash Used in Operating Activities          (25,933)      (28,503)
                                                -----------   -----------
Cash Flows from Investing Activities:
  Distributions Received from Project
  Partnerships                                       12,465         7,990

     Net Cash Provided by (Used in)             -----------   -----------
     Investing Activities                            12,465         7,990
                                                -----------   -----------
Increase (Decrease) in Cash and Cash
Equivalents                                         (13,468)      (20,513)
Cash and Cash Equivalents at Beginning of
Year                                                209,964       195,618
                                                -----------   -----------
Cash and Cash Equivalents at End of Year        $   196,496   $   175,105
                                                ===========   ===========


              See accompanying notes to financial statements.

                     GATEWAY TAX CREDIT FUND III LTD.
                      (A Florida Limited Partnership)
                         STATEMENTS OF CASH FLOWS
                  FOR THE NINE MONTHS ENDED DECEMBER 31,
                                (Unaudited)
SERIES 10                                            2000           1999
--------                                             ----           ----
Cash Flows from Operating Activities:
  Net Income (Loss)                             $  (224,315)  $  (259,466)
  Adjustments to Reconcile Net Loss to Net
  Cash Provided by (Used in) Operating
  Activities:
   Amortization                                       4,215         4,218
   Accreted Interest Income on Investments
   in Securities                                    (11,142)      (11,482)
   Equity in Losses of Project Partnerships         204,006       237,426
Changes in Operating Assets and
Liabilities:
    Increase in Payable to General Partners          (2,733)       (3,042)
                                                 -----------   -----------
     Net Cash Used in Operating Activities          (29,969)      (32,346)
                                                 -----------   -----------
Cash Flows from Investing Activities:
   Distributions Received from Project
   Partnerships                                       5,860         5,161
                                                 -----------   -----------
     Net Cash Provided by (Used in)
     Investing Activities                             5,860         5,161
                                                 -----------   -----------
Increase (Decrease) in Cash and Cash
Equivalents                                         (24,109)      (27,185)
Cash and Cash Equivalents at Beginning of
Year                                                226,070       216,566
                                                -----------   -----------
Cash and Cash Equivalents at End of Year        $   201,961   $   189,381
                                                ===========   ===========


              See accompanying notes to financial statements.

                     GATEWAY TAX CREDIT FUND III LTD.
                      (A Florida Limited Partnership)
                         STATEMENTS OF CASH FLOWS
                  FOR THE NINE MONTHS ENDED DECEMBER 31,
                                (Unaudited)
SERIES 11                                            2000           1999
--------                                             ----           ----
Cash Flows from Operating Activities:
  Net Income (Loss)                              $ (130,595)  $  (219,245)
  Adjustments to Reconcile Net Loss to Net
  Cash Provided by (Used in) Operating
  Activities:
   Amortization                                       6,219         6,222
   Accreted Interest Income on Investments
   in Securities                                    (13,023)      (13,280)
   Equity in Losses of Project Partnerships         116,208       203,917
Changes in Operating Assets and
Liabilities:
    Increase in Payable to General Partners          (8,706)       (9,729)
                                                -----------   -----------
     Net Cash Used in Operating Activities          (29,897)      (32,115)
                                                -----------   -----------
Cash Flows from Investing Activities:
   Distributions Received from Project
   Partnerships                                       5,758         3,296
                                                -----------   -----------
     Net Cash Provided by (Used in)
     Investing Activities                             5,758         3,296
                                                -----------   -----------
Increase (Decrease) in Cash and Cash
Equivalents                                         (24,139)      (28,819)
Cash and Cash Equivalents at Beginning of
Year                                                230,874       223,024
                                                -----------   -----------
Cash and Cash Equivalents at End of Year        $   206,735   $   194,205
                                                ===========   ===========


              See accompanying notes to financial statements.

                     GATEWAY TAX CREDIT FUND III LTD.
                      (A Florida Limited Partnership)
                         STATEMENTS OF CASH FLOWS
                  FOR THE NINE MONTHS ENDED DECEMBER 31,
                                (Unaudited)
TOTAL SERIES 7 - 11                                  2000           1999
-------------------                                  ----           ----
Cash Flows from Operating Activities:
  Net Income (Loss)                             $(1,571,995)  $(2,558,229)
  Adjustments to Reconcile Net Loss to Net
  Cash Provided by (Used in) Operating
  Activities:
   Amortization                                      32,163        38,553
   Accreted Interest Income on Investments
   in Securities                                    (77,982)      (80,718)
   Equity in Losses of Project Partnerships       1,366,792     2,337,351
Changes in Operating Assets and
Liabilities:
    Increase in Payable to General Partners          49,849        52,041
                                                -----------   -----------
     Net Cash Used in Operating Activities         (201,173)     (211,002)
                                                -----------   -----------
Cash Flows from Investing Activities:
   Distributions Received from Project
   Partnerships                                      54,183        51,248
                                                -----------   -----------
     Net Cash Provided by (Used in)
     Investing Activities                            54,183        51,248
                                                -----------   -----------
Increase (Decrease) in Cash and Cash
Equivalents                                        (146,990)     (159,754)
Cash and Cash Equivalents at Beginning of
Year                                              1,416,511     1,346,123
                                                -----------   -----------
Cash and Cash Equivalents at End of Year        $ 1,269,521   $ 1,186,369
                                                ===========   ===========


              See accompanying notes to financial statements.

                     GATEWAY TAX CREDIT FUND III LTD.
                      (A Florida Limited Partnership)
                       NOTES TO FINANCIAL STATEMENTS
                             DECEMBER 31, 2000

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 December 31, 2000, 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  in
curred.

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

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

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

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

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

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

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

  Gateway recognizes a decline in the carrying value of its investment in
the Project Partnerships when there is evidence of a non-temporary decline
in the recoverable amount of the investment.  There is a possibility that
the estimates relating to reserves for non-temporary declines in carrying
value of the investments in Project Partnerships may be subject to material
near term adjustments.

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

Cash and Cash Equivalents

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

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, 2000.  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  December  31, 2000 Balance Sheet includes Investment  in  Securities
consisting  of U.S. Treasury Security Strips which represents  their  cost,
plus accreted interest income of $190,835 for Series 7, $165,733 for Series
8, $94,475 for Series 9, $82,794 for Series 10 and $94,050 for Series 11.

                                                            Gross Unrealized
                      Estimated Market       Cost Plus          Gains and
                            Value        Accreted Interest       (Losses)
                   -----------------  -----------------   ----------------
Series 7                  $  466,332         $  432,404           $  33,928
Series 8                     436,202            409,844              26,358
Series 9                     284,099            272,234              11,865
Series 10                    240,704            223,186              17,518
Series 11                    272,617            246,002              26,615

 As of December 31, 2000, the cost and accreted interest of debt securities
by contractual maturities is as follows:

                                     Series 7       Series 8       Series 9
                                     --------       --------       --------
Due within 1 year                  $   56,728     $   53,725     $   31,843
After 1 year through 5 years          220,030        205,202        124,201
After 5 years through 10 years        155,646        150,917        116,190
Over 10 years                               0              0              0
                                   ----------     ----------     ----------
  Total Amount Carried on
  Balance Sheet                    $  432,404     $  409,844     $  272,234
                                   ==========     ==========     ==========

                                    Series 10      Series 11        Total
                                     --------       --------       --------
Due within 1 year                  $   24,944     $   25,862     $  193,102
After 1 year through 5 years           92,913        102,743        745,089
After 5 years through 10 years         84,263         95,305        602,321
Over 10 years                          21,066         22,092         43,158
                                   ----------     ----------     ----------
  Total Amount Carried on
  Balance Sheet                    $  223,186     $  246,002     $1,583,670
                                   ==========     ==========     ==========

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 nine months ended December 31, 2000 and 1999 the General Partners
and affiliates are entitled to compensation and reimbursement for costs and
expenses incurred by Gateway as follows:

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

                         2000           1999
                        -----          -----
 Series 7            $ 65,964       $ 66,156
 Series 8              68,742         68,949
 Series 9              37,740         37,845
 Series 10             25,731         25,821
 Series 11             21,348         20,790
                     --------       --------
 Total               $219,525       $219,561
                     ========       ========

  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           $  11,747      $  11,140
 Series 8              12,952         12,282
 Series 9               7,229          6,855
 Series 10              4,518          4,284
 Series 11              3,615          3,428
                     --------       --------
 Total               $ 40,061       $ 37,989
                     ========       ========

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS:

   As of December 31, 2000, the Partnership had acquired a 99% interest  in
the  profits,  losses and tax credits as a limited partner  in  39  Project
Partnerships which own and operate government assisted multi-family housing
complexes.   Cash  flows from operations are allocated  according  to  each
Partnership  agreement.   Upon  dissolution proceeds  will  be  distributed
according to each Partnership agreement.

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

SERIES 7                                        DECEMBER 31,     MARCH 31,
                                                    2000           2000
                                               --------------   -----------
Capital Contributions to Project Partner-
ships and purchase price paid for limited
partner interests in Project Partnerships       $ 7,732,089     $ 7,732,089

Cumulative equity in losses of Project
Partnerships (1)                                 (6,344,658)     (5,973,368)

Cumulative distributions received from
Project Partnerships                               (176,797)       (157,551)
                                                -----------     -----------
Investment in Project Partnerships before
adjustment                                        1,210,634       1,601,170

Excess of investment cost over the
underlying assets acquired:
 Acquisition fees and expenses                      793,335         793,335
 Accumulated amortization of acquisition
 fees and expenses                                 (167,425)       (156,777)
                                               ------------    ------------

Investments in Project Partnerships             $ 1,836,544     $ 2,237,728
                                               ============    ============

(1)  In  accordance with the Partnership's accounting policy to  not  carry
Investments in Project Partnerships below zero, cumulative suspended losses
of  $1,022,240  for  the  period ended December  31,  2000  and  cumulative
suspended  losses  of $650,567 for the year ended March 31,  2000  are  not
included.

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

   As of December 31, 2000, the Partnership had acquired a 99% interest  in
the  profits,  losses and tax credits as a limited partner  in  43  Project
Partnerships which own and operate government assisted multi-family housing
complexes.   Cash  flows from operations are allocated  according  to  each
Partnership  agreement.   Upon  dissolution proceeds  will  be  distributed
according to each Partnership agreement.

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

SERIES 8                                         DECEMBER 31,     MARCH 31,
                                                     2000           2000
                                               --------------   -----------
Capital Contributions to Project Partner-
ships and purchase price paid for limited
partner interests in Project Partnerships       $ 7,586,105     $ 7,586,105

Cumulative equity in losses of Project
Partnerships (1)                                 (6,795,774)     (6,491,127)

Cumulative distributions received from
Project Partnerships                               (136,458)       (125,604)
                                                -----------     -----------
Investment in Project Partnerships before
adjustment                                          653,873         969,374

Excess of investment cost over the
underlying assets acquired:
 Acquisition fees and expenses                      549,773         549,773
 Accumulated amortization of acquisition
 fees and expenses                                 (102,751)        (95,959)
                                               ------------    ------------

Investments in Project Partnerships             $ 1,100,895     $ 1,423,188
                                               ============    ============

(1)  In  accordance with the Partnership's accounting policy to  not  carry
Investments in Project Partnerships below zero, cumulative suspended losses
of  $1,102,131  for  the  period ended December  31,  2000  and  cumulative
suspended  losses  of $678,455 for the year ended March 31,  2000  are  not
included.

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

   As of December 31, 2000, the Partnership had acquired a 99% interest  in
the  profits,  losses and tax credits as a limited partner  in  24  Project
Partnerships which own and operate government assisted multi-family housing
complexes.   Cash  flows from operations are allocated  according  to  each
Partnership  agreement.   Upon  dissolution proceeds  will  be  distributed
according to each Partnership agreement.

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

SERIES 9                                         DECEMBER 31,     MARCH 31,
                                                     2000           2000
                                               --------------   -----------
Capital Contributions to Project Partner-
ships and purchase price paid for limited
partner interests in Project Partnerships       $ 4,914,116     $ 4,914,116

Cumulative equity in losses of Project
Partnerships (1)                                 (3,096,581)     (2,725,940)

Cumulative distributions received from
Project Partnerships                                (98,201)        (85,736)
                                                -----------      ----------
Investment in Project Partnerships before
adjustment                                        1,719,334       2,102,440

Excess of investment cost over the
underlying assets acquired:
 Acquisition fees and expenses                      244,087         244,087
 Accumulated amortization of acquisition
 fees and expenses                                  (46,944)        (42,655)
                                               ------------    ------------

Investments in Project Partnerships             $ 1,916,477     $ 2,303,872
                                               ============    ============

(1)  In  accordance with the Partnership's accounting policy to  not  carry
Investments in Project Partnerships below zero, cumulative suspended losses
of $151,403 for the period ended December 31, 2000 and cumulative suspended
losses of $78,588 for the year ended March 31, 2000 are not included.

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

   As of December 31, 2000, the Partnership had acquired a 99% interest  in
the  profits,  losses and tax credits as a limited partner  in  15  Project
Partnerships which own and operate government assisted multi-family housing
complexes.   Cash  flows from operations are allocated  according  to  each
Partnership  agreement.   Upon  dissolution proceeds  will  be  distributed
according to each Partnership agreement.

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

SERIES 10                                        DECEMBER 31,     MARCH 31,
                                                     2000           2000
                                               --------------   -----------
Capital Contributions to Project Partner-
ships and purchase price paid for limited
partner interests in Project Partnerships       $ 3,914,672     $ 3,914,672

Cumulative equity in losses of Project
Partnerships (1)                                 (1,415,766)     (1,211,760)

Cumulative distributions received from
Project Partnerships                               (106,477)       (100,617)
                                                -----------      ----------
Investment in Project Partnerships before
adjustment                                        2,392,429       2,602,295

Excess of investment cost over the
underlying assets acquired:
 Acquisition fees and expenses                      196,738         196,738
 Accumulated amortization of acquisition
fees and expenses                                  (38,853)        (34,636)
                                              -------------    ------------

Investments in Project Partnerships             $ 2,550,314     $ 2,764,397
                                              =============    ============

(1)  In  accordance with the Partnership's accounting policy to  not  carry
Investments in Project Partnerships below zero, cumulative suspended losses
of  $0  for  the  period  ended December 31, 2000 and cumulative  suspended
losses of $0 for the year ended March 31, 2000 are not included.


NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

   As of December 31, 2000, the Partnership had acquired a 99% interest  in
the  profits,  losses and tax credits as a limited partner  in  12  Project
Partnerships which own and operate government assisted multi-family housing
complexes.   Cash  flows from operations are allocated  according  to  each
Partnership  agreement.   Upon  dissolution proceeds  will  be  distributed
according to each Partnership agreement.

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

SERIES 11                                        DECEMBER 31,     MARCH 31,
                                                     2000           2000
                                             --------------   -----------
Capital Contributions to Project Partner-
ships and purchase price paid for limited
partner interests in Project Partnerships       $ 4,128,042     $ 4,128,042

Cumulative equity in losses of Project
Partnerships (1)                                   (878,234)       (762,026)

Cumulative distributions received from
Project Partnerships                                (84,224)        (78,466)
                                                -----------     -----------
Investment in Project Partnerships before
adjustment                                        3,165,584       3,287,550

Excess of investment cost over the
underlying assets acquired:
 Acquisition fees and expenses                      290,335         290,335
 Accumulated amortization of acquisition
 fees and expenses                                  (49,269)        (43,048)
                                               ------------     -----------

Investments in Project Partnerships             $ 3,406,650     $ 3,534,837
                                              =============   =============

(1)  In  accordance with the Partnership's accounting policy to  not  carry
Investments in Project Partnerships below zero, cumulative suspended losses
of  $0 for the period December 31, 1999 and cumulative suspended losses  of
$0 for the year ended March 31, 1999 are not included.

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

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

TOTAL SERIES 7 - 11                              DECEMBER 31,     MARCH 31,
                                                     2000           2000
                                               --------------   -----------
Capital Contributions to Project Partner-
ships and purchase price paid for limited
partner interests in Project Partnerships       $28,275,024     $28,275,024

Cumulative equity in losses of Project
Partnerships (1)                                (18,531,013)    (17,164,221)

Cumulative distributions received from
Project Partnerships                               (602,157)       (547,974)
                                                ------------     -----------
Investment in Project Partnerships before
adjustment                                        9,141,854      10,562,829

Excess of investment cost over the
underlying assets acquired:
 Acquisition fees and expenses                    2,074,268       2,074,268
 Accumulated amortization of acquisition
 fees and expenses                                 (405,242)       (373,075)
                                               ------------    ------------

Investments in Project Partnerships             $10,810,880     $12,264,022
                                               ============   =============

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
September 30, of each year:
                                                      2000          1999
SERIES 7                                              ----          ----
SUMMARIZED BALANCE SHEETS
Assets:
  Current assets                                $ 3,452,461   $ 3,274,796
  Investment properties, net                     34,039,544    35,485,091
  Other assets                                       31,108        26,615
                                               ------------  ------------
    Total assets                                $37,523,113   $38,786,502
                                               ============  ============
Liabilities and Partners' Equity:
  Current liabilities                           $   860,321   $ 1,193,548
  Long-term debt                                 36,579,443    36,681,296
                                               ------------  ------------
    Total liabilities                            37,439,764    37,874,844
                                               ------------  ------------
Partners' equity
  Limited Partner                                   145,973       959,086
  General Partners                                  (62,624)      (47,428)
                                                -----------   -----------
    Total Partners' equity                           83,349       911,658
                                                -----------   -----------
    Total liabilities and partners' equity      $37,523,113   $38,786,502
                                               ============  ============
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income                         $ 3,141,569   $ 3,330,475
Expenses:                                      ------------  ------------
  Operating expenses                              2,142,186     2,042,674
  Interest expense                                  622,829       985,831
  Depreciation and amortization                   1,127,022     1,142,568
                                               ------------  ------------
    Total expenses                                3,892,037     4,171,073
                                               ------------  ------------
      Net loss                                  $  (750,468)  $  (840,598)
                                               ============  ============
Other partners' share of net loss               $    (7,505)  $    (8,406)
                                               ============  ============
Partnerships' share of net loss                 $  (742,963)  $  (832,192)
Suspended losses                                    371,673       219,365
                                               ------------  ------------
Equity in Losses of Project Partnerships        $  (371,290)  $  (612,827)
                                               ============  ============

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
September 30, of each year:
                                                       2000          1999
SERIES 8                                               ----          ----
SUMMARIZED BALANCE SHEETS
Assets:
  Current assets                                $ 3,048,032   $ 2,765,258
  Investment properties, net                     36,033,335    38,055,197
  Other assets                                       31,914        46,215
                                               ------------  ------------
    Total assets                                $39,113,281   $40,866,670
                                               ============  ============
Liabilities and Partners' Equity:
  Current liabilities                           $ 1,083,812   $ 1,300,671
  Long-term debt                                 38,620,980    38,688,206
                                               ------------  ------------
    Total liabilities                            39,704,792    39,988,877
                                               ------------  ------------
Partners' equity
  Limited Partner                                  (226,580)    1,028,575
  General Partners                                 (364,931)     (150,782)
                                                -----------   -----------
    Total Partners' equity                         (591,511)      877,793
                                                -----------   -----------
    Total liabilities and partners' equity      $39,113,281   $40,866,670
                                               ============  ============
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income                         $ 3,269,838   $ 3,184,330
Expenses:                                      ------------  ------------
  Operating expenses                              2,142,487     2,061,475
  Interest expense                                  668,271       839,299
  Depreciation and amortization                   1,197,688     1,205,100
                                               ------------  ------------
    Total expenses                                4,008,446     4,105,874
                                               ------------  ------------
      Net loss                                  $  (738,608)  $  (921,544)
                                               ============  ============
Other partners' share of net loss               $   (10,285)  $   (11,264)
                                               ============  ============
Partnerships' share of net loss                 $  (728,323)  $  (910,280)
Suspended losses                                    423,676       166,591
                                               ------------  ------------
Equity in Losses of Project Partnerships        $  (304,647)  $  (743,689)
                                               ============  ============

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
September 30, of each year:
                                                      2000          1999
SERIES 9                                              ----          ----
SUMMARIZED BALANCE SHEETS
Assets:
  Current assets                                $ 1,772,930   $ 1,761,152
  Investment properties, net                     20,376,191    21,142,550
  Other assets                                        5,459         4,756
                                               ------------  ------------
    Total assets                                $22,154,580   $22,908,458
                                               ============  ============
Liabilities and Partners' Equity:
  Current liabilities                           $   300,241   $   480,417
  Long-term debt                                 20,445,841    20,494,619
                                               ------------  ------------
    Total liabilities                            20,746,082    20,975,036
                                               ------------  ------------
Partners' equity
  Limited Partner                                 1,556,749     2,055,953
  General Partners                                 (148,251)     (122,531)
                                                -----------   -----------
    Total Partners' equity                        1,408,498     1,933,422
                                                -----------   -----------
    Total liabilities and partners' equity      $22,154,580   $22,908,458
                                               ============  ============
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income                         $ 1,591,004   $ 1,647,668
Expenses:                                      ------------  ------------
  Operating expenses                              1,052,261     1,075,868
  Interest expense                                  355,193       452,023
  Depreciation and amortization                     630,849       664,719
                                               ------------  ------------
    Total expenses                                2,038,303     2,192,610
                                               ------------  ------------
      Net loss                                  $  (447,299)  $  (544,942)
                                               ============  ============
Other partners' share of net loss               $    (4,473)  $    (5,450)
                                               ============  ============
Partnerships' share of net loss                 $  (442,826)  $  (539,492)
Suspended losses                                     72,185             0
                                               ------------  ------------
Equity in Losses of Project Partnerships        $  (370,641)  $  (539,492)
                                               ============  ============

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
September 30, of each year:
                                                       2000          1999
SERIES 10                                              ----          ----
SUMMARIZED BALANCE SHEETS
Assets:
  Current assets                                $ 1,403,755   $ 1,396,010
  Investment properties, net                     14,400,767    14,885,171
  Other assets                                        4,495         4,225
                                               ------------  ------------
    Total assets                                $15,809,017   $16,285,406
                                               ============  ============
Liabilities and Partners' Equity:
  Current liabilities                           $   241,581   $   358,885
  Long-term debt                                 13,393,689    13,411,288
                                               ------------  ------------
    Total liabilities                            13,635,270    13,770,173
                                               ------------  ------------
Partners' equity
  Limited Partner                                 2,370,961     2,675,345
  General Partners                                 (197,214)     (160,112)
                                                -----------   -----------
    Total Partners' equity                        2,173,747     2,515,233
                                                -----------   -----------
    Total liabilities and partners' equity      $15,809,017   $16,285,406
                                               ============  ============
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income                         $ 1,079,464   $ 1,063,871
Expenses:                                      ------------  ------------
  Operating expenses                                727,588       702,532
  Interest expense                                  187,450       234,082
  Depreciation and amortization                     371,736       368,340
                                               ------------  ------------
    Total expenses                                1,286,774     1,304,954
                                               ------------  ------------
      Net loss                                  $  (207,310)  $  (241,083)
                                               ============  ============
Other partners' share of net loss               $    (3,304)  $    (3,657)
                                               ============  ============
Partnerships' share of net loss                 $  (204,006)  $  (237,426)
Suspended losses                                          0             0
                                               ------------  ------------
Equity in Losses of Project Partnerships        $  (204,006)  $  (237,426)
                                               ============  ============

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
September 30, of each year:
                                                      2000          1999
SERIES 11                                             ----          ----
SUMMARIZED BALANCE SHEETS
Assets:
  Current assets                                $ 1,276,409   $ 1,189,993
  Investment properties, net                     12,697,898    13,165,027
  Other assets                                       13,921         6,024
                                               ------------  ------------
    Total assets                                $13,988,228   $14,361,044
                                               ============  ============
Liabilities and Partners' Equity:
  Current liabilities                           $   233,424   $   386,154
  Long-term debt                                 10,608,709    10,701,955
                                               ------------  ------------
    Total liabilities                            10,842,133    11,088,109
                                               ------------  ------------
Partners' equity
  Limited Partner                                 3,178,991     3,250,949
  General Partners                                  (32,896)       21,986
                                                -----------   -----------
    Total Partners' equity                        3,146,095     3,272,935
                                                -----------   -----------
    Total liabilities and partners' equity      $13,988,228   $14,361,044
                                               ============  ============
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income                         $ 1,071,555   $ 1,142,365
Expenses:                                      ------------  ------------
  Operating expenses                                640,532       637,082
  Interest expense                                  172,064       340,381
  Depreciation and amortization                     386,770       382,215
                                               ------------  ------------
    Total expenses                                1,199,366     1,359,678
                                               ------------  ------------
      Net loss                                  $  (127,811)  $  (217,313)
                                               ============  ============
Other partners' share of net loss               $   (11,603)  $   (13,396)
                                               ============  ============
Partnerships' share of net loss                 $  (116,208)  $  (203,917)
Suspended losses                                          0             0
                                               ------------  ------------
Equity in Losses of Project Partnerships        $  (116,208)  $  (203,917)
                                               ============  ============

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
September 30, of each year:
                                                     2000            1999
TOTAL SERIES 7 - 11                                  ----            ----
SUMMARIZED BALANCE SHEETS
Assets:
  Current assets                              $ 10,953,587   $ 10,387,209
  Investment properties, net                   117,547,735    122,733,036
  Other assets                                      86,897         87,835
                                              ------------   ------------
    Total assets                              $128,588,219   $133,208,080
                                              ============   ============
Liabilities and Partners' Equity:
  Current liabilities                         $  2,719,379   $  3,719,675
  Long-term debt                               119,648,662    119,977,364
                                              ------------   ------------
    Total liabilities                          122,368,041    123,697,039
                                              ------------   ------------
Partners' equity
  Limited Partner                                7,026,094      9,969,908
  General Partners                                (805,916)      (458,867)
                                               -----------    -----------
    Total Partners' equity                       6,220,178      9,511,041
                                               -----------    -----------
    Total liabilities and partners' equity    $128,588,219   $133,208,080
                                              ============   ============
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income                       $ 10,153,430   $ 10,368,709
Expenses:                                     ------------   ------------
  Operating expenses                             6,705,054      6,519,631
  Interest expense                               2,005,807      2,851,616
  Depreciation and amortization                  3,714,065      3,762,942
                                              ------------   ------------
    Total expenses                              12,424,926     13,134,189
                                              ------------   ------------
      Net loss                                $ (2,271,496)  $ (2,765,480)
                                              ============   ============
Other partners' share of net loss             $    (37,170)  $    (42,173)
                                              ============   ============
Partnerships' share of net loss               $ (2,234,326)  $ (2,723,307)
Suspended losses                                   867,534        385,956
                                              ------------   ------------
Equity in Losses of Project Partnerships      $ (1,366,792)  $ (2,337,351)
                                              ============   ============

  Item 7.  Management's Discussion and Analysis of Financial Condition  and
Results of Operations

Results of Operations, Liquidity and Capital Resources

  As  disclosed on the statement of operations for each Series,  except  as
described  below,  interest income is comparable for  the  nine  and  three
months  ended  December 31, 2000 and December 31, 1999.   The  General  and
Administrative  expenses - General Partner and General  and  Administrative
expenses - Other for the three and nine months ended December 31, 2000  are
comparable to December 31, 1999.  There were no unusual variations  in  the
operating results between these two periods.

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

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

  Series 7 - Gateway closed this series on October 16, 1992 after receiving
$10,395,000  from  635  Limited Partner investors.   Equity  in  Losses  of
Project  Partnerships for the nine months ended December 31, 2000 decreased
from $612,827 for the nine months ended December 31, 1999 to $371,290 as  a
result  of a decrease in interest expense at the project partnership  level
due to a change in the way the quarterly interest expense is calculated  to
more  accurately reflect a proportionate share of the total yearly expense.
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  December 31, 2000, the Series had $284,464 of short-term  investments
(Cash  and  Cash  Equivalents).   It  also  had  $432,404  in  Zero  Coupon
Treasuries  with  annual maturities providing $57,000 in fiscal  year  2001
increasing to $86,000 in fiscal year 2008.  Management believes the sources
of funds are sufficient to meet current and ongoing operating costs for the
foreseeable future, and to pay part of the Asset Management Fee.

  As disclosed on the statement of cash flows, the Series had a net loss of
$438,484  for  the  nine months ended December 31,  2000.   However,  after
adjusting for Equity in Losses of Project Partnerships of $371,290 and  the
changes  in  operating assets and liabilities, net cash used  in  operating
activities  was  $58,938.  Cash  provided by investing  activities  totaled
$19,246  consisting  of  cash distributions from the Project  Partnerships.
There were no unusual events or trends to describe.

  Series  8  -  Gateway  closed this Series on  September  28,  1993  after
receiving $9,980,000 from 664 Limited Partner investors.  Equity in  Losses
of  Project  Partnerships  for  the nine months  ended  December  31,  2000
decreased  from  $743,689 for the nine months ended December  31,  1999  to
$304,647  as  a  result of a decrease in interest expense  at  the  project
partnership level due to a change in the way the quarterly interest expense
is calculated to more accurately reflect a proportionate share of the total
yearly  expense.  At December 31, 2000, the Series had $379,865  of  short-
term investments (Cash and Cash Equivalents).  It also had $409,844 in Zero
Coupon  Treasuries with annual maturities providing $54,000 in fiscal  year
2001  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
$370,856  for  the  nine months ended December 31,  2000.   However,  after
adjusting for Equity in Losses of Project Partnerships of $304,647 and  the
changes  in  operating assets and liabilities, net cash used  in  operating
activities  was  $56,436.   Cash provided by investing  activities  totaled
$10,854,  consisting  of cash distributions from the Project  Partnerships.
There were no unusual events or trends to describe.

 Series 9 - Gateway closed this Series on December 31, 1993 after receiving
$6,254,000 from 406 Limited Partner investors.  Equity in Losses of Project
Partnerships  for  the nine months ended December 31, 2000  decreased  from
$539,492  for  the  nine months ended December 31, 1999 to  $370,641  as  a
result  of a decrease in interest expense at the project partnership  level
due to a change in the way the quarterly interest expense is calculated  to
more  accurately reflect a proportionate share of the total yearly expense.
At  December  31,  2000, the Series had $196,496 of short-term  investments
(Cash  and  Cash  Equivalents).   It  also  had  $272,234  in  Zero  Coupon
Treasuries  with  annual maturities providing $32,000 in fiscal  year  2001
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
$407,745  for  the  nine months ended December 31,  2000.   However,  after
adjusting for Equity in Losses of Project Partnerships of $370,641 and  the
changes  in  operating assets and liabilities, net cash used  in  operating
activities  was  $25,933.   Cash provided by investing  activities  totaled
$12,465,  consisting  of cash distributions from the Project  Partnerships.
There were no unusual events or trends to describe.

 Series 10 - Gateway closed this Series on January 21, 1994 after receiving
$5,043,000 from 325 Limited Partner investors.  Equity in Gains  or  Losses
of  Project  Partnerships  for the three months  ended  December  31,  2000
increased  to a gain of $6,615 from a loss of $86,124 for the three  months
ended December 31, 1999.  This gain is as a result of a decrease in the way
quarterly  interest  expense is calculated to  more  accurately  reflect  a
proportionate share of the total yearly interest expense. Equity in  Losses
of  Project  Partnerships  for  the nine months  ended  December  31,  2000
decreased  from  $237,426 for the nine months ended December  31,  1999  to
$204,006  as  a  result of a decrease in interest expense  at  the  project
partnership level due to a change in the way the quarterly interest expense
is calculated to more accurately reflect a proportionate share of the total
yearly  expense.  At December 31, 2000, the Series had $201,961  of  short-
term investments (Cash and Cash Equivalents).  It also had $223,186 in Zero
Coupon  Treasuries with annual maturities providing $25,000 in fiscal  year
2001  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
$224,315  for  the  nine months ended December 31,  2000.   However,  after
adjusting for Equity in Losses of Project Partnerships of $204,006 and  the
changes  in  operating assets and liabilities, net cash used  in  operating
activities  was  $29,969.   Cash provided by investing  activities  totaled
$5,860,  consisting  of  cash distributions from the Project  Partnerships.
There were no unusual events or trends to describe.

  Series  11 - Gateway closed this Series on April 29, 1994 after receiving
$5,127,000  from  330  Limited investors.  Equity in  Gains  or  Losses  of
Project Partnerships for the three months ended December 31, 2000 increased
to  a  gain  of $32,921 from a loss of $135,064 for the three months  ended
December  31,  1999.   This gain is as a result of a decrease  in  the  way
quarterly  interest  expense is calculated to  more  accurately  reflect  a
proportionate share of the total yearly interest expense.  Equity in losses
of  Project  Partnerships  for  the nine months  ended  December  31,  2000
decreased  from  $203,917 for the nine months ended December  31,  1999  to
$116,208  as  a  result of a decrease in interest expense  at  the  project
partnership level due to a change in the way the quarterly interest expense
is calculated to more accurately reflect a proportionate share of the total
yearly  expense.  At December 31, 2000, the Series had $206,735  of  short-
term investments (Cash and Cash Equivalents).  It also had $246,002 in Zero
Coupon  Treasuries with annual maturities providing $26,000 in fiscal  year
2001  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
$130,945  for  the  nine months ended December 31,  2000.   However,  after
adjusting for Equity in Losses of Project Partnerships of $116,208 and  the
changes  in  operating assets and liabilities, net cash used  in  operating
activities  was  $29,897.   Cash provided by investing  activities  totaled
$5,758, consisting of cash distributions from Project Partnerships.   There
were no unusual events or trends to describe.


                           SIGNATURES

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


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





Date:  March 1, 2001       By:/s/ Ronald M. Diner

                           Ronald M. Diner
                           President



Date:  March 1, 2001       By:/s/ Sandra L. Furey

                           Sandra L. Furey
                           Secretary and Treasurer