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 EndedDECEMBER 31, 2003Commission File Number0-21762                     
                          Gateway Tax Credit Fund III Ltd.               (Exact name of Registrant as specified in its charter)     Florida                              59-3090386(State or other jurisdiction of              (I.R.S. Employer No.)
 incorporation or organization)880 Carillon Parkway,   St. Petersburg,  Florida         33716     (Address of principal executive offices)                (Zip Code)
Registrant's Telephone Number, Including Area Code:(727) 567-4830

Indicate by check mark whether the Registrant: (1) has filed all reports 
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to 
such filing requirements for the past 90 days.
                                           YES X       NO 
                                                          Number of Units
     Titleof Each Class                                December 31, 2003Units of Limited Partnership 
Interest:  $1,000 per unit                                      36,799

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

---



PART I - Financial Information
  Item 1.  Financial Statements

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

|SERIES 7                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | DECEMBER 31,
2003
-------
(Unaudited)                                                                                                                                                                                                                        | MARCH 31,
2003
-------
(Audited)                                                                                                                                                                                                                            
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ASSETS
Current Assets:
 Cash and Cash Equivalents
 Investments in Securities
  Total Current Assets
 Investments in Securities
 Investments in Project Partnerships, Net
    Total Assets
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners
  Total Current Liabilities
Long-Term Liabilities:
 Payable to General Partners
Partners' Equity (Deficit):
Limited Partners (10,395 units for Series 7, 9,980 for Series 8, 6,254 for Series 9, 5,043 for Series 10 and 5,127 for Series 11 at December 31, 2003 and March 31,2003)
General Partners
  Total Partners' Equity
    Total Liabilities and Partners' Equity | $   294,280 
67,602 
----------- 
361,882 
260,717 
1,177,378 
----------- 
$ 1,799,977 
=========== 
$    71,135 
----------- 
71,135 
----------- 
445,119 
----------- 
1,362,164 
(78,441)
----------- 
1,283,723 
----------- 
$ 1,799,977 
=========== | $   390,008 
64,155 
----------- 
454,163 
246,831 
1,278,834 
----------- 
$ 1,979,828 
=========== 
$    69,660 
----------- 
69,660 
----------- 
437,160 
----------- 
1,549,556 
(76,548)
----------- 
1,473,008 
----------- 
$ 1,979,828 
===========

See accompanying notes to financial statements.

---

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

|SERIES 8                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | DECEMBER 31,
2003
-------
(Unaudited)                                                                                                                                                                                                                          | MARCH 31,
2003
-------
(Audited)                                                                                                                                                                                                                         
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ASSETS
Current Assets:
 Cash and Cash Equivalents
 Investments in Securities
 Accounts Receivable
  Total Current Assets
 Investments in Securities
 Investments in Project Partnerships, Net
    Total Assets
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners
  Total Current Liabilities
Long-Term Liabilities:
 Payable to General Partners
Partners' Equity (Deficit):
Limited Partners (10,395 units for Series 7, 9,980 for Series 8, 6,254 for Series 9, 5,043 for Series 10 and 5,127 for Series 11 at December 31, 2003 and March 31, 2003)
General Partners
  Total Partners' Equity
    Total Liabilities and Partners' Equity | $   332,167 
62,609 
24,220 
----------- 
418,996 
248,075 
500,032 
----------- 
$ 1,167,103 
=========== 
$    59,161 
----------- 
59,161 
----------- 
541,223 
----------- 
648,677 
(81,958)
----------- 
566,719 
----------- 
$ 1,167,103 
=========== | $   450,206 
59,583 
0 
----------- 
509,789 
235,603 
560,231 
----------- 
$ 1,305,623 
=========== 
$    61,828 
----------- 
61,828 
----------- 
513,976 
----------- 
810,146 
(80,327)
----------- 
729,819 
----------- 
$ 1,305,623 
===========

See accompanying notes to financial statements.

---

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

|SERIES 9                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | DECEMBER 31,
2003
-------
(Unaudited)                                                                                                                                                                                                                        | MARCH 31,
2003
-------
(Audited)                                                                                                                                                                                                                            
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ASSETS
Current Assets:
 Cash and Cash Equivalents
 Investments in Securities
  Total Current Assets
 Investments in Securities
 Investments in Project Partnerships, Net
    Total Assets
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners
    Total Current Liabilities
Long-Term Liabilities:
Payable to General Partners
Partners' Equity (Deficit):
Limited Partners (10,395 units for Series 7, 9,980 for Series 8, 6,254 for Series 9, 5,043 for Series 10 and 5,127 for Series 11 at December 31, 2003 and March 31, 2003)
General Partners
  Total Partners' Equity
    Total Liabilities and Partners' Equity | $   224,120 
36,772 
----------- 
260,892 
176,578 
1,047,910 
----------- 
$ 1,485,380 
=========== 
$    30,223 
----------- 
30,223 
----------- 
350,188 
----------- 
1,148,756 
(43,787)
----------- 
1,104,969 
----------- 
$ 1,485,380 
=========== | $   260,485 
35,177 
----------- 
295,662 
168,560 
1,211,933 
----------- 
$ 1,676,155 
=========== 
$    35,252 
----------- 
35,252 
----------- 
318,435 
----------- 
1,364,080 
(41,612)
----------- 
1,322,468 
----------- 
$ 1,676,155 
===========

See accompanying notes to financial statements.

---

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

|SERIES 10                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | DECEMBER 31,
2003
-------
(Unaudited)                                                                                                                                                                                                                       | MARCH 31,
2003
-------
(Audited)                                                                                                                                                                                                                           
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ASSETS
Current Assets:
 Cash and Cash Equivalents
 Investments in Securities
  Total Current Assets
 Investments in Securities
 Investments in Project Partnerships, Net
    Total Assets
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners
    Total Current Liabilities
Long-Term Liabilities:
 Payable to General Partners
Partners' Equity (Deficit):
Limited Partners (10,395 units for Series 7, 9,980 for Series 8, 6,254 for Series 9, 5,043 for Series 10 and 5,127 for Series 11 at December 31, 2003 and March 31, 2003)
General Partners
  Total Partners' Equity
    Total Liabilities and Partners' Equity | $   225,449 
28,000 
----------- 
253,449 
157,299 
1,858,068 
----------- 
$ 2,268,816 
=========== 
$    34,654 
----------- 
34,654 
----------- 
92,770 
----------- 
2,164,158 
(22,766)
----------- 
2,141,392 
----------- 
$ 2,268,816 
=========== | $   251,941 
26,620 
----------- 
278,561 
149,205 
2,014,742 
----------- 
$ 2,442,508 
=========== 
$    35,197 
----------- 
35,197 
----------- 
86,436 
----------- 
2,341,846 
(20,971)
----------- 
2,320,875 
----------- 
$ 2,442,508 
===========

See accompanying notes to financial statements.

---

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

|SERIES 11                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | DECEMBER 31,
2003
-------
(Unaudited)                                                                                                                                                                                                                    | MARCH 31,
2003
-------
(Audited)                                                                                                                                                                                                                           
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ASSETS
Current Assets:
 Cash and Cash Equivalents
 Investments in Securities
  Total Current Assets
 Investments in Securities
 Investments in Project Partnerships, Net
    Total Assets
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners
  Total Current Liabilities
Long-Term Liabilities:
 Payable to General Partners
Partners' Equity (Deficit):
Limited Partners (10,395 units for Series 7, 9,980 for Series 8, 6,254 for Series 9, 5,043 for Series 10 and 5,127 for Series 11 at December 31, 2003 and March 31, 2003)
General Partners
  Total Partners' Equity
    Total Liabilities and Partners' Equity | $   222,672 
31,798 
----------- 
254,470 
178,241 
2,832,299 
----------- 
$ 3,265,010 
=========== 
$    36,638 
----------- 
36,638 
----------- 
836 
----------- 
3,241,251 
(13,715)
----------- 
3,227,536 
----------- 
$ 3,265,010 
=========== | $   264,198 
30,129 
----------- 
294,327 
168,593 
2,914,130 
----------- 
$ 3,377,050 
=========== 
$    33,669 
----------- 
33,669 
----------- 
11,661 
----------- 
3,344,393 
(12,673)
----------- 
3,331,720 
----------- 
$ 3,377,050 
===========

See accompanying notes to financial statements.

---

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

|TOTAL SERIES 7 - 11                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | DECEMBER 31,
2003
-------
(Unaudited)                                                                                                                                                                                                                                         | MARCH 31,
2003
-------
(Audited)                                                                                                                                                                                                                                      
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ASSETS
Current Assets:
 Cash and Cash Equivalents
 Investments in Securities
 Accounts Receivable
  Total Current Assets
 Investments in Securities
 Investments in Project Partnerships, Net
    Total Assets
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners
  Total Current Liabilities
Long-Term Liabilities:
 Payable to General Partners
Partners' Equity (Deficit):
Limited Partners (10,395 units for Series 7, 9,980 for Series 8, 6,254 for Series 9, 5,043 for Series 10 and 5,127 for Series 11 at December 31, 2003 and March 31, 2003)
General Partners
  Total Partners' Equity
    Total Liabilities and Partners' Equity | $ 1,298,688 
226,781 
24,220 
----------- 
1,549,689 
1,020,910 
7,415,687 
----------- 
$ 9,986,286 
=========== 
$   231,811 
----------- 
231,811 
----------- 
1,430,136 
----------- 
8,565,006 
(240,667)
----------- 
8,324,339 
----------- 
$ 9,986,286 
=========== | $ 1,616,838 
215,664 
0 
----------- 
1,832,502 
968,792 
7,979,870 
----------- 
$10,781,164 
=========== 
$   235,606 
----------- 
235,606 
----------- 
1,367,668 
----------- 
9,410,021 
(232,131)
----------- 
9,177,890 
----------- 
$10,781,164 
===========

See accompanying notes to financial statements.

---

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

|SERIES 7                                                                                                                                                                                                                                                                                                                                                                                                                                                            | 2003 
----                                                                                                                                                                                                                                                                | 2002 
----                                                                                                                                                                                                                                                         
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Interest Income
 Other Income
  Total Revenue
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Losses of
 Project Partnerships
Equity in Losses of Project Partnerships
Net Loss
Allocation of Net Loss:
 Limited Partners
 General Partners
Net Loss Per Number of Limited
Partnership Units
Number of Limited Partnership Units
Outstanding | $     6,180 
7,315 
----------- 
13,495 
21,771 
12,472 
2,413 
1,661 
----------- 
38,317 
----------- 
(24,822)
(60,089)
----------- 
$   (84,911)
=========== 
$   (84,062)
(849)
----------- 
$   (84,911)
=========== 
$     (8.09)
=========== 
10,395 
=========== | $     7,310 
0 
----------- 
7,310 
21,849 
6,469 
2,093 
1,671 
----------- 
32,082 
----------- 
(24,772)
(46,357)
----------- 
$   (71,129)
=========== 
$   (70,418)
(711)
----------- 
$   (71,129)
=========== 
$     (6.77)
=========== 
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                                                                                                                                                                                                                                                                                                                                                                                                                                                            | 2003 
----                                                                                                                                                                                                                                                                          | 2002 
----                                                                                                                                                                                                                                                                    
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Interest Income
 Other Income
  Total Revenue
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Losses of
 Project Partnerships
Equity in Losses of Project Partnerships
Net Loss
Allocation of Net Loss:
 Limited Partners
 General Partners
Net Loss Per Number of Limited
Partnership Units
Number of Limited Partnership Units
Outstanding | $     5,589 
10,693 
----------- 
16,282 
------------
22,682 
13,751 
2,946 
768 
----------- 
40,147 
----------- 
(23,865)
(29,609)
---------- 
$   (53,474)
=========== 
$   (52,939)
(535)
----------- 
$   (53,474)
=========== 
$     (5.30)
=========== 
9,980 
=========== | $     6,778 
0 
----------- 
6,778 
------------
22,758 
7,111 
3,864 
1,185 
----------- 
34,918 
----------- 
(28,140)
(45,165)
---------- 
$   (73,305)
=========== 
$   (72,572)
(733)
----------- 
$   (73,305)
=========== 
$     (7.27)
=========== 
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                                                                                                                                                                                                                                                                                                                                                                                                                                                            | 2003 
----                                                                                                                                                                                                                                                                     | 2002 
----                                                                                                                                                                                                                                                                  
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Interest Income
 Other Income
  Total Revenue
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Losses of
 Project Partnerships
Equity in Losses of Project Partnerships
Net Loss
Allocation of Net Loss:
 Limited Partners
 General Partners
Net Loss Per Number of Limited
Partnership Units
Number of Limited Partnership Units
Outstanding | $     3,477 
600 
----------- 
4,077 
------------
12,466 
7,676 
1,160 
771 
----------- 
22,073 
----------- 
(17,996)
(51,476)
---------- 
$   (69,472)
=========== 
$   (68,777)
(695)
----------- 
$   (69,472)
=========== 
$    (11.00)
=========== 
6,254 
=========== | $     4,093 
0 
----------- 
4,093 
------------
12,507 
3,969 
1,654 
814 
----------- 
18,944 
----------- 
(14,851)
(82,354)
---------- 
$   (97,205)
=========== 
$   (96,233)
(972)
----------- 
$   (97,205)
=========== 
$    (15.39)
=========== 
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                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 2003 
----                                                                                                                                                                                                                                                                       | 2002 
----                                                                                                                                                                                                                                                                   
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Interest Income
 Other Income
  Total Revenue
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Losses of
 Project Partnerships
Equity in Losses of Project Partnerships
Net Loss
Allocation of Net Loss:
 Limited Partners
 General Partners
Net Loss Per Number of Limited
Partnership Units
Number of Limited Partnership Units
Outstanding | $     3,446 
1,500 
----------- 
4,946 
------------
8,503 
4,796 
859 
1,145 
----------- 
15,303 
----------- 
(10,357)
(54,629)
----------- 
$   (64,986)
=========== 
$   (64,336)
(650)
----------- 
$   (64,986)
=========== 
$    (12.76)
=========== 
5,043 
=========== | $     3,982 
0 
----------- 
3,982 
------------
8,529 
2,480 
1,071 
1,203 
----------- 
13,283 
----------- 
(9,301)
(58,668)
----------- 
$   (67,969)
=========== 
$   (67,289)
(680)
----------- 
$   (67,969)
=========== 
$    (13.34)
=========== 
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                                                                                                                                                                                                                                                                                                                                                                                                                                                            | 2003 
----                                                                                                                                                                                                                                                                    | 2002 
----                                                                                                                                                                                                                                                                
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Interest Income
 Other Income
  Total Revenue
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Losses of
 Project Partnerships
Equity in Losses of Project Partnerships
Net Loss
Allocation of Net Loss:
 Limited Partners
 General Partners
Net Loss Per Number of Limited 
Partnership Units
Number of Limited Partnership Units
Outstanding | $     4,059 
985 
----------- 
5,044 
------------
7,130 
3,837 
1,199 
1,683 
----------- 
13,849 
----------- 
(8,805)
(6,953)
---------- 
$   (15,758)
=========== 
$   (15,600)
(158)
----------- 
$   (15,758)
=========== 
$     (3.04)
=========== 
5,127 
=========== | $     4,625 
0 
----------- 
4,625 
------------
7,192 
1,984 
864 
2,074 
----------- 
12,114 
----------- 
(7,489)
(79,909)
---------- 
$   (87,398)
=========== 
$   (86,524)
(874)
----------- 
$   (87,398)
=========== 
$    (16.88)
=========== 
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                                                                                                                                                                                                                                                                                                                                                | 2003 
----                                                                                                                                                                                                                                   | 2002 
----                                                                                                                                                                                                                             
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Interest Income
 Other Income
  Total Revenue
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Losses of
 Project Partnerships
Equity in Losses of Project Partnerships
Net Loss
Allocation of Net Loss:
 Limited Partners
 General Partners | $    22,751 
21,093 
----------- 
43,844 
------------
72,552 
42,532 
8,577 
6,028 
----------- 
129,689 
----------- 
(85,845)
(202,756)
----------- 
$  (288,601)
=========== 
$  (285,714)
(2,887)
----------- 
$  (288,601)
=========== | $    26,788 
0 
----------- 
26,788 
------------
72,835 
22,013 
9,546 
6,947 
----------- 
111,341 
----------- 
(84,553)
(312,453)
----------- 
$  (397,006)
=========== 
$  (393,036)
(3,970)
----------- 
$  (397,006)
===========

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                                                                                                                                                                                                                                                                                                                                                                                                                                                            | 2003 
----                                                                                                                                                                                                                                                                                  | 2002 
----                                                                                                                                                                                                                                                                             
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Interest Income
 Other Income
  Total Revenue
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Losses of
 Project Partnerships
Equity in Losses of Project Partnerships
Net Loss
Allocation of Net Loss:
 Limited Partners
 General Partners
Net Loss Per Number of Limited
Partnership Units
Number of Limited Partnership
Units Outstanding | $    18,489 
9,061 
----------- 
27,550 
------------
65,313 
44,683 
12,676 
4,983 
----------- 
127,655 
----------- 
(100,105)
(89,180)
----------- 
$  (189,285)
=========== 
$  (187,392)
(1,893)
----------- 
$  (189,285)
=========== 
$    (18.03)
=========== 
10,395 
=========== | $    22,195 
0 
----------- 
22,195 
------------
65,547 
26,316 
13,051 
5,013 
----------- 
109,927 
----------- 
(87,732)
(117,987)
----------- 
$  (205,719)
=========== 
$  (203,662)
(2,057)
----------- 
$  (205,719)
=========== 
$    (19.59)
=========== 
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                                                                                                                                                                                                                                                                                                                                                                                                                                                            | 2003 
----                                                                                                                                                                                                                                                                             | 2002 
----                                                                                                                                                                                                                                                                       
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Interest Income
 Other Income
  Total Revenue
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Losses of
 Project Partnerships
Equity in Losses of Project Partnerships
Net Loss
Allocation of Net Loss:
 Limited Partners
 General Partners
Net Loss Per Number of Limited
Partnership Units
Number of Limited Partnership
Units Outstanding | $    16,789 
12,073 
---------- 
28,862 
-----------
68,046 
49,265 
15,480 
2,304 
---------- 
135,095 
---------- 
(106,233)
(56,867)
---------- 
$  (163,100)
=========== 
$  (161,469)
(1,631)
----------- 
$  (163,100)
=========== 
$    (16.18)
=========== 
9,980 
=========== | $    20,700 
0 
---------- 
20,700 
-----------
68,274 
29,016 
16,026 
3,555 
---------- 
116,871 
---------- 
(96,171)
(102,918)
---------- 
$  (199,089)
=========== 
$  (197,098)
(1,991)
----------- 
$  (199,089)
=========== 
$    (19.75)
=========== 
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                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 2003 
----                                                                                                                                                                                                                                                                          | 2002 
----                                                                                                                                                                                                                                                                     
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Interest Income
 Other Income
  Total Revenue
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Losses of
 Project Partnership
Equity in Losses of Project Partnerships
Net Loss
Allocation of Net Loss:
 Limited Partners
 General Partners
Net Loss Per Number of Limited
Partnership Units
Number of Limited Partnership Units
Outstanding | $    10,413 
3,038 
---------- 
13,451 
-----------
37,398 
27,497 
7,434 
2,313 
---------- 
74,642 
---------- 
(61,191)
(156,308)
---------- 
$  (217,499)
=========== 
$  (215,324)
(2,175)
----------- 
$  (217,499)
=========== 
$    (34.43)
=========== 
6,254 
=========== | $    12,447 
0 
---------- 
12,447 
-----------
37,521 
16,195 
8,717 
2,442 
---------- 
64,875 
---------- 
(52,428)
(225,884)
---------- 
$  (278,312)
=========== 
$  (275,529)
(2,783)
----------- 
$  (278,312)
=========== 
$    (44.06)
=========== 
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                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 2003 
----                                                                                                                                                                                                                                                                          | 2002 
----                                                                                                                                                                                                                                                                     
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Interest Income
 Other Income
  Total Revenue
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Losses of
 Project Partnerships
Equity in Losses of Project Partnerships
Net Loss
Allocation of Net Loss:
 Limited Partners
 General Partners
Net Loss Per Number of Limited
Partnership Units
Number of Limited Partnership
Units Outstanding | $    10,275 
1,500 
---------- 
11,775 
-----------
25,509 
17,186 
5,043 
3,435 
---------- 
51,173 
---------- 
(39,398)
(140,085)
---------- 
$  (179,483)
=========== 
$  (177,688)
(1,795)
----------- 
$  (179,483)
=========== 
$    (35.23)
=========== 
5,043 
=========== | $    12,074 
0 
---------- 
12,074 
-----------
25,587 
10,121 
5,817 
3,609 
---------- 
45,134 
---------- 
(33,060)
(133,570)
---------- 
$  (166,630)
=========== 
$  (164,964)
(1,666)
----------- 
$  (166,630)
=========== 
$    (32.71)
=========== 
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                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 2003 
----                                                                                                                                                                                                                                                                         | 2002 
----                                                                                                                                                                                                                                                                    
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Interest Income
 Other Income
  Total Revenue
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Losses of
 Project Partnerships
Equity in Losses of Project Partnerships
Net Loss
Allocation of Net Loss:
 Limited Partners
 General Partners
Net Loss Per Number of Limited
Partnership Units
Number of Limited Partnership
Units Outstanding | $    12,122 
3,167 
---------- 
15,289 
-----------
21,390 
13,749 
4,892 
5,049 
---------- 
45,080 
---------- 
(29,791)
(74,393)
---------- 
$  (104,184)
=========== 
$  (103,142)
(1,042)
----------- 
$  (104,184)
=========== 
$    (20.12)
=========== 
5,127 
=========== | $    14,060 
0 
---------- 
14,060 
-----------
21,576 
8,097 
5,103 
6,222 
---------- 
40,998 
---------- 
(26,938)
(151,500)
---------- 
$  (178,438)
=========== 
$  (176,654)
(1,784)
----------- 
$  (178,438)
=========== 
$    (34.46)
=========== 
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                                                                                                                                                                                                                                                                                                                                                | 2003 
----                                                                                                                                                                                                                                   | 2002 
----                                                                                                                                                                                                                             
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Interest Income
 Other Income
  Total Revenue
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Losses of
 Project Partnerships
Equity in Losses of Project Partnerships
Net Loss
Allocation of Net Loss:
 Limited Partners
 General Partners | $    68,088 
28,839 
---------- 
96,927 
-----------
217,656 
152,380 
45,525 
18,084 
---------- 
433,645 
---------- 
(336,718)
(516,833)
---------- 
$  (853,551)
=========== 
$  (845,015)
(8,536)
----------- 
$  (853,551)
=========== | $    81,476 
0 
---------- 
81,476 
-----------
218,505 
89,745 
48,714 
20,841 
---------- 
377,805 
---------- 
(296,329)
(731,859)
---------- 
$(1,028,188)
=========== 
$(1,017,907)
(10,281)
----------- 
$(1,028,188)
===========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)STATEMENTS OF PARTNERS' EQUITY (Deficit)
FOR THE NINE MONTHS ENDED DECEMBER 31, 2003 AND 2002:
(Unaudited)

|SERIES 7                                                                                                                        | Limited 
Partners 
---------                                                                                               | General 
Partners 
(Deficit)
--------                                                                                  | Total 
-----                                                                                                              
|------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 2002
Net Loss
Balance at December 31, 2002
Balance at March 31, 2003
Net Loss
Balance at December 31, 2003 | $ 1,780,281 
(203,662)
----------- 
$ 1,576,619 
=========== 
$ 1,549,556 
(187,392)
----------- 
$ 1,362,164 
=========== | $   (74,217)
(2,057)
----------- 
$   (76,274)
=========== 
$   (76,548)
(1,893)
----------- 
$   (78,441)
=========== | $ 1,706,064 
(205,719)
----------- 
$ 1,500,345 
=========== 
$ 1,473,008 
(189,285)
----------- 
$ 1,283,723 
===========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)STATEMENTS OF PARTNERS' EQUITY (Deficit)
FOR THE NINE MONTHS ENDED DECEMBER 31, 2003 AND 2002:
(Unaudited)

|SERIES 8                                                                                                                        | Limited 
Partners 
---------                                                                                               | General 
Partners 
(Deficit) 
--------                                                                                 | Total 
-----                                                                                                              
|------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 2002
Net Loss
Balance at December 31, 2002
Balance at March 31, 2003
Net Loss
Balance at December 31, 2003 | $ 1,001,538 
(197,098)
----------- 
$   804,440 
=========== 
$   810,146 
(161,469)
----------- 
$   648,677 
=========== | $   (78,394)
(1,991)
----------- 
$   (80,385)
=========== 
$   (80,327)
(1,631)
----------- 
$   (81,958)
=========== | $   923,144 
(199,089)
----------- 
$   724,055 
=========== 
$   729,819 
(163,100)
----------- 
$   566,719 
===========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)STATEMENTS OF PARTNERS' EQUITY (Deficit)
FOR THE NINE MONTHS ENDED DECEMBER 31, 2003 AND 2002:
(Unaudited)

|SERIES 9                                                                                                                        | Limited 
Partners 
---------                                                                                               | General 
Partners 
(Deficit) 
--------                                                                                 | Total 
-----                                                                                                              
|------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 2002
Net Loss
Balance at December 31, 2002
Balance at March 31, 2003
Net Loss
Balance at December 31, 2003 | $ 1,707,018 
(275,529)
----------- 
$ 1,431,489 
=========== 
$ 1,364,080 
(215,324)
----------- 
$ 1,148,756 
=========== | $   (38,148)
(2,783)
----------- 
$   (40,931)
=========== 
$   (41,612)
(2,175)
----------- 
$   (43,787)
=========== | $ 1,668,870 
(278,312)
----------- 
$ 1,390,558 
=========== 
$ 1,322,468 
(217,499)
----------- 
$ 1,104,969 
===========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)STATEMENTS OF PARTNERS' EQUITY (Deficit)
FOR THE NINE MONTHS ENDED DECEMBER 31, 2003 AND 2002:
(Unaudited)

|SERIES 10                                                                                                                       | Limited 
Partners 
---------                                                                                               | General 
Partners 
(Deficit) 
--------                                                                                 | Total 
-----                                                                                                              
|------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 2002
Net Loss
Balance at December 31, 2002
Balance at March 31, 2003
Net Loss
Balance at December 31, 2003 | $ 2,586,073 
(164,964)
----------- 
$ 2,421,109 
=========== 
$ 2,341,846 
(177,688)
----------- 
$ 2,164,158 
=========== | $   (18,504)
(1,666)
----------- 
$   (20,170)
=========== 
$   (20,971)
(1,795)
----------- 
$   (22,766)
=========== | $ 2,567,569 
(166,630)
----------- 
$ 2,400,939 
=========== 
$ 2,320,875 
(179,483)
----------- 
$ 2,141,392 
===========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)STATEMENTS OF PARTNERS' EQUITY (Deficit)
FOR THE NINE MONTHS ENDED DECEMBER 31, 2003 AND 2002:
(Unaudited)

|SERIES 11                                                                                                                       | Limited 
Partners 
---------                                                                                               | General 
Partners 
(Deficit) 
--------                                                                                 | Total 
-----                                                                                                              
|------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 2002
Net Loss
Balance at December 31, 2002
Balance at March 31, 2003
Net Loss
Balance at December 31, 2003 | $ 3,549,631 
(176,654)
----------- 
$ 3,372,977 
=========== 
$ 3,344,393 
(103,142)
----------- 
$ 3,241,251 
=========== | $   (10,600)
(1,784)
----------- 
$   (12,384)
=========== 
$   (12,673)
(1,042)
----------- 
$   (13,715)
=========== | $ 3,539,031 
(178,438)
----------- 
$ 3,360,593 
=========== 
$ 3,331,720 
(104,184)
----------- 
$ 3,227,536 
===========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)STATEMENTS OF PARTNERS' EQUITY (Deficit)
FOR THE NINE MONTHS ENDED DECEMBER 31, 2003 AND 2002:(Unaudited)

|TOTAL SERIES 7 - 11                                                                                                             | Limited 
Partners 
---------                                                                                                 | General 
Partners 
(Deficit) 
--------                                                                                  | Total 
-----                                                                                                               
|------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 2002
Net Loss
Balance at December 31, 2002
Balance at March 31, 2003
Net Loss
Balance at December 31, 2003 | $10,624,541 
(1,017,907)
----------- 
$ 9,606,634 
=========== 
$ 9,410,021 
(845,015)
----------- 
$ 8,565,006 
=========== | $  (219,863)
(10,281)
----------- 
$  (230,144)
=========== 
$  (232,131)
(8,536)
----------- 
$  (240,667)
=========== | $10,404,678 
(1,028,188)
----------- 
$9,376,490 
=========== 
$ 9,177,890 
(853,551)
----------- 
$ 8,324,339 
===========

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
--------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 2003 
----                                                                                                                                                                        | 2002 
----                                                                                                                                                                   
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Cash Flows from Operating Activities:
  Net Loss
  Adjustments to Reconcile Net Loss to
  Net Cash Used in Operating Activities:
   Amortization
   Accreted Interest Income on Investments
   in Securities
   Equity in Losses of Project Partnerships
   Distributions Included in Other Income
   Changes in Operating Assets and Liabilities:
    Increase in Payable to General Partners
     Net Cash Used in Operating Activities
Cash Flows from Investing Activities:
   Distributions Received from Project
   Partnerships
     Net Cash Provided by Investing Activities
Decrease in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning
of Period
Cash and Cash Equivalents at End of Period | $ (189,285)
4,983 
(17,334)
89,180 
(9,061)
9,435 
---------- 
(112,082)
---------- 
16,354 
---------- 
16,354 
---------- 
(95,728)
390,008 
---------- 
$  294,280 
========== | $ (205,719)
5,013 
(19,302)
117,987 
0 
12,385 
---------- 
(89,636)
---------- 
18,075 
---------- 
18,075 
---------- 
(71,561)
384,626 
---------- 
$  313,065 
==========

See accompanying notes to financial statements.

---

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

|SERIES 8
--------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 2003 
----                                                                                                                                                                             | 2002 
----                                                                                                                                                               
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Cash Flows from Operating Activities:
  Net Loss
  Adjustments to Reconcile Net Loss to
  Net Cash Used in Operating Activities:
   Amortization
   Accreted Interest Income on Investments
   in Securities
   Equity in Losses of Project Partnership
   Distributions Included in Other Income
   Changes in Operating Assets and Liabilities:
    Increase in Payable to General Partners
    Increase in Accounts Receivable
     Net Cash Used in Operating Activities
Cash Flows from Investing Activities:
   Distributions Received from Project
   Partnerships
     Net Cash Provided by Investing Activities
Decrease in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning
of Period
Cash and Cash Equivalents at End of Period | $ (163,100)
2,304 
(15,498)
56,867 
(12,073)
24,579 
(24,220)
--------- 
(131,141)
--------- 
13,102 
--------- 
13,102 
--------- 
(118,039)
450,206 
--------- 
$ 332,167 
========= | $ (199,089)
3,555 
(17,239)
102,918 
0 
27,280 
0 
--------- 
(82,575)
--------- 
12,087 
--------- 
12,087 
--------- 
(70,488)
456,356 
--------- 
$ 385,868 
=========

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
--------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 2003 
----                                                                                                                                                                    | 2002 
----                                                                                                                                                               
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Cash Flows from Operating Activities:
  Net Loss
  Adjustments to Reconcile Net Loss to
  Net Cash Used in Operating Activities:
   Amortization
   Accreted Interest Income on Investments
   in Securities
   Equity in Losses of Project Partnerships
   Distributions Included in Other Income
   Changes in Operating Assets and Liabilities:
    Increase in Payable to General Partners
     Net Cash Used in Operating Activities
Cash Flows from Investing Activities:
  Distributions Received from Project
  Partnerships
     Net Cash Provided by Investing Activities
Decrease in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning
of Period
Cash and Cash Equivalents at End of Period | $ (217,499)
2,313 
(9,613)
156,308 
(3,038)
26,723 
---------- 
(44,806)
---------- 
8,441 
--------- 
8,441 
--------- 
(36,365)
260,485 
---------- 
$  224,120 
========== | $ (278,312)
2,442 
(10,513)
225,884 
0 
23,098 
---------- 
(37,401)
---------- 
6,585 
--------- 
6,585 
--------- 
(30,816)
251,331 
---------- 
$  220,515 
==========

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
--------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 2003 
----                                                                                                                                                                       | 2002 
----                                                                                                                                                                
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Cash Flows from Operating Activities:
  Net Loss
  Adjustments to Reconcile Net Loss to
  Net Cash Used in Operating
  Activities:
   Amortization
   Accreted Interest Income on Investments
   in Securities
   Equity in Losses of Project Partnerships
   Distributions Included in Other Income
   Changes in Operating Assets and Liabilities:
    Increase in Payable to General Partners
     Net Cash Used in Operating Activities
Cash Flows from Investing Activities:
   Distributions Received from Project
   Partnerships
     Net Cash Provided by Investing Activities
Decrease in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning
of Period
Cash and Cash Equivalents at End of Period | $ (179,483)
3,435 
(9,472)
140,085 
(1,500)
5,791 
---------- 
(41,144)
---------- 
14,652 
---------- 
14,652 
---------- 
(26,492)
251,941 
---------- 
$  225,449 
========== | $ (166,630)
3,609 
(10,146)
133,570 
0 
2,947 
---------- 
(36,650)
---------- 
6,534 
---------- 
6,534 
---------- 
(30,116)
252,149 
---------- 
$  222,033 
==========

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
--------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | 2003 
----                                                                                                                                                                           | 2002 
----                                                                                                                                                                       
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Cash Flows from Operating Activities:
  Net Loss
  Adjustments to Reconcile Net Loss to
  Net Cash Used in Operating Activities:
   Amortization
   Accreted Interest Income on Investments
   in Securities
   Equity in Losses of Project Partnerships
   Distributions Included in Other Income
   Changes in Operating Assets and Liabilities:
    Decrease in Payable to General Partners
     Net Cash Used in Operating Activities
Cash Flows from Investing Activities:
   Distributions Received from Project
   Partnerships
     Net Cash Provided by Investing Activities
Decrease in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning
of Period
Cash and Cash Equivalents at End of Period | $ (104,184)
5,049 
(11,315)
74,393 
(3,167)
(7,856)
----------- 
(47,080)
----------- 
5,554 
---------- 
5,554 
----------- 
(41,526)
264,198 
----------- 
$  222,672 
=========== | $ (178,438)
6,222 
(12,058)
151,500 
0 
(16,108)
----------- 
(48,882)
----------- 
6,194 
---------- 
6,194 
----------- 
(42,688)
266,059 
----------- 
$  223,371 
===========

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
-------------------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 2003 
----                                                                                                                                                                                          | 2002 
----                                                                                                                                                                             
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Cash Flows from Operating Activities:
  Net Loss
  Adjustments to Reconcile Net Loss to
  Net Cash Used in Operating
  Activities:
   Amortization
   Accreted Interest Income on Investments
   in Securities
   Equity in Losses of Project Partnerships
   Distributions Included in Other Income
   Changes in Operating Assets and Liabilities:
    Increase in Payable to General Partners
    Increase in Accounts Receivable
     Net Cash Used in Operating Activities
Cash Flows from Investing Activities:
   Distributions Received from Project
   Partnerships
     Net Cash Provided by Investing Activities
Decrease in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning
of Period
Cash and Cash Equivalents at End of Period | $  (853,551)
18,084 
(63,232)
516,833 
(28,839)
58,672 
(24,220)
---------- 
(376,253)
---------- 
58,103 
---------- 
58,103 
---------- 
(318,150)
1,616,838 
---------- 
$ 1,298,688 
========== | $(1,028,188)
20,841 
(69,258)
731,859 
0 
49,602 
0 
---------- 
(295,144)
---------- 
49,475 
---------- 
49,475 
---------- 
(245,669)
1,610,521 
---------- 
$ 1,364,852 
==========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2003

NOTE 1 - ORGANIZATION:   Gateway Tax Credit Fund III Ltd. ("Gateway"), a Florida Limited Partnership, was formed October 17, 1991 under the laws of Florida.  Gateway offered its limited partnership interests in Series.  The first Series for Gateway is Series 7.  Operations commenced on July 16, 1992 for Series 7, January 4, 1993 for Series 8, September 30, 1993 for Series 9, January 21, 1994 for Series 10 and April 29, 1994 for Series 11.  Each Series invests, as a limited partner, in other limited partnerships ("Project Partnerships"), each of which owns and operates apartment complexes eligible for Low-Income Housing Tax Credits ("Tax Credits"), provided for in Section 42 of the Internal Revenue Code of 1986.  Gateway will terminate on December 31, 2040 or sooner, in accordance with the terms of the Limited Partnership Agreement.  As of December 31, 2003, Gateway had received capital contributions of $1,000 from the General Partners and $36,799,000 from the investor Limited Partners.
   Raymond James Partners, Inc. and Raymond James Tax Credit Funds, Inc., wholly-owned subsidiaries of Raymond James Financial, Inc., are the General Partner and Managing General Partner, respectively.  The Managing General Partner manages and controls the business of Gateway.
   Gateway received capital contributions of $10,395,000, $9,980,000, $6,254,000, $5,043,000 and $5,127,000 from the investor Limited Partners in Series 7, 8, 9, 10 and 11, respectively.  Each Series will be treated as though it were a separate partnership, investing in a separate and distinct pool of Project Partnerships.  Income or loss and all tax items from the Project Partnerships acquired by each Series will be specifically allocated among the limited partners of such Series.
   Operating profits and losses, cash distributions from operations and Tax Credits from each Series are generally allocated 99% to the Limited Partners in that Series and 1% to the General Partners.  Profit or loss and cash distributions from sales of property by each Series are allocated as formulated in the Limited Partnership Agreement.NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES:
Basis of Accounting   Gateway utilizes an accrual basis of accounting whereby revenues are recognized as earned and expenses are recognized as obligations are incurred.
   Gateway accounts for its investments as the limited partner in Project Partnerships ("Investments in Project Partnerships") using the equity method of accounting, because management believes that Gateway does not have a majority control of the major operating and financial policies of the Project Partnerships in which it invests, and reports the equity in losses of the Project Partnerships on a 3-month lag in the Statement of Operations. Under the equity method, the Investments in Project Partnerships initially include:
   1) Gateway's capital contribution,
   2) Acquisition fees paid to the General Partner for services rendered 
      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 reviews its investment in the Project Partnerships to determine if there has been any permanent impairment whenever events or changes in circumstances indicate that the carrying amount of the investment may not be recoverable.  If the sum of the expected future cash flows is less than the carrying amount of the investment, Gateway recognizes an impairment loss.  No impairment loss has been recognized in the accompanying financial statements.
   Gateway, as a limited partner in the Project Partnerships, is subject to risks inherent in the ownership of property which are beyond its control, such as fluctuations in occupancy rates and operating expenses, variations in rental schedules, proper maintenance and continued eligibility of tax credits.  If the cost of operating a property exceeds the rental income earned thereon, Gateway may deem it in its best interest to voluntarily provide funds in order to protect its investment.Cash and Cash Equivalents   It is Gateway's policy to include short-term investments with an original maturity of three months or less in Cash and Cash Equivalents.  Short-term investments are comprised of money market mutual funds.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 to Gateway from Logan Heights for loans made to the property and expenses paid on behalf of the property.

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, 2003.  In the opinion of management these financial statements include adjustments, consisting only of normal recurring adjustments, necessary to fairly summarize the Partnership's financial position and results of operations.  The results of operations for the periods may not be indicative of the results to be expected for the year.Recent Accounting Pronouncements    In August 2001, the Financial Accounting Standards Board issued SFAS No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets".  SFAS No. 144 provides accounting guidance for financial accounting and reporting for the impairment or disposal of long-lived assets.  SFAS No. 144 supersedes SFAS No. 121, "Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed Of". SFAS No. 144 is effective for fiscal years beginning after December 15, 2001.  The Partnership adopted SFAS No. 144 effective January 1, 2002.  The adoption did not have an effect on the financial position or results of operations of the Partnership.
    In January 2003, the FASB issued FASB Interpretation No. 46 ("FIN46"), "Consolidation of Variable Interest Entities, an Interpretation of ARB No. 51." FIN46 requires certain variable interest entities to be consolidated by the primary beneficiary of the entity if the equity investors in the entity do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties.  FIN46 is effective for all new variable interest entities created or acquired after January 31, 2003. For variable interest entities created or acquired prior to February 1, 2003, the provisions of FIN46 must be applied for the first interim or annual period ending after March 15, 2004.  The Partnership is currently evaluating the effect, if any, that the adoption of FIN46 will have on its results of operations and financial condition.

---

NOTE 3 - INVESTMENT IN SECURITIES:   The December 31, 2003 Balance Sheet includes Investment in Securities consisting of U.S. Treasury Security Strips which represents their cost, plus accreted interest income of $192,950 for Series 7, $169,483 for Series 8, $100,542 for Series 9, $91,282 for Series 10 and $105,714 for Series 11.

|          | Estimated
Market Value
----------------- | Cost Plus
Accreted Interest
----------------- | Gross Unrealized
Gains and (Losses)
----------------
|--------- | ---------------------------------------- | --------------------------------------------- | ----------------------------------------------------
|Series 7  | $  363,758                               | $  328,319                                    | $  35,439                                           
|Series 8  | 341,800                                  | 310,684                                       | 31,116                                              
|Series 9  | 233,818                                  | 213,350                                       | 20,468                                              
|Series 10 | 208,053                                  | 185,299                                       | 22,754                                              
|Series 11 | 240,855                                  | 210,039                                       | 30,816                                              

As of December 31, 2003, the cost and accreted interest of debt securities by contractual maturities is as follows:

|                                            | Series 7
--------     | Series 8
--------     | Series 9
--------    
|------------------------------------------- | --------------------- | --------------------- | ---------------------
|Due within 1 year                           | $   67,602            | $   62,609            | $   36,772           
|After 1 year through 5 years                | 197,306               | 186,649               | 107,942              
|After 5 years through 10 years              | 63,411                | 61,426                | 68,636               
|Total Amount Carried on
      Balance Sheet | $  328,319
========== | $  310,684
========== | $  213,350
==========
|                                            | Series 10
--------    | Series 11
--------    | Total
--------       
|Due within 1 year                           | $   28,000            | $   31,798            | $  226,781           
|After 1 year through 5 years                | 80,147                | 92,495                | 664,539              
|After 5 years through 10 years              | 77,152                | 85,746                | 356,371              
|Total Amount Carried on
      Balance Sheet | $  185,299
========== | $  210,039
========== | $1,247,691
==========

NOTE 4 - RELATED PARTY TRANSACTIONS:

2003             2002
                          -----            -----
Series 7                $ 65,313         $ 65,547
Series 8                  68,046           68,274
Series 9                  37,398           37,521
Series 10                 25,509	           25,587
Series 11                 21,390           21,576
                        --------         --------
Total                   $217,656         $218,505
                        ========         ========
   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                $  44,683	        $  26,316
Series 8                   49,265           29,016
Series 9                   27,497           16,195
Series 10                  17,186           10,121
Series 11                  13,749            8,097
                         --------         --------
Total                   $ 152,380        $  89,745
                         ========         ========

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS:   As of December 31, 2003, the Partnership had acquired a 99% interest in the profits, losses and tax credits as a limited partner in 39 Project Partnerships which own and operate government assisted multi-family housing complexes.  Cash flows from operations are allocated according to each Partnership agreement.  Upon dissolution proceeds will be distributed according to each Partnership agreement.
   The following is a summary of Investments in Project Partnerships as of:

|SERIES 7                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | DECEMBER 31,
2003
------------                                                                                    | MARCH 31,
2003
-----------                                                                                       
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------
|Capital Contributions to Project Partnerships and purchase price paid for limited partner interests in Project Partnerships
Cumulative equity in losses of Project Partnerships (1)
Cumulative distributions received from Project Partnerships
Investment in Project Partnerships before adjustment
Excess of investment cost over the underlying assets acquired:
 Acquisition fees and expenses
 Accumulated amortization of acquisition
 fees and expenses
Investments in Project Partnerships | $ 7,732,089 
(6,951,423)
(211,737)
-----------
568,929 
793,335 
(184,886)
------------
$ 1,177,378 
============ | $ 7,732,089 
(6,862,243)
(204,444)
-----------
665,402 
793,335 
(179,903)
------------
$ 1,278,834 
============

(1) In accordance with the Partnership's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $3,169,446 for the period ended December 31, 2003 and cumulative suspended losses of $2,658,435 for the year ended March 31, 2003 are not included.

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):
   As of December 31, 2003, the Partnership had acquired a 99% interest in the profits, losses and tax credits as a limited partner in 43 Project Partnerships which own and operate government assisted multi-family housing complexes.  Cash flows from operations are allocated according to each Partnership agreement.  Upon dissolution proceeds will be distributed according to each Partnership agreement.
   The following is a summary of Investments in Project Partnerships as of:

|SERIES 8                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | DECEMBER 31,
2003
------------                                                                                   | MARCH 31,
2003
-----------                                                                                       
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------
|Capital Contributions to Project Partnerships and purchase price paid for limited partner interests in Project Partnerships
Cumulative equity in losses of Project Partnerships (1)
Cumulative distributions received from Project Partnerships
Investment in Project Partnerships before adjustment
Excess of investment cost over the underlying assets acquired:
 Acquisition fees and expenses
 Accumulated amortization of acquisition
 fees and expenses
Investments in Project Partnerships | $ 7,586,105 
(7,360,793)
(159,925)
-----------
65,387 
549,773 
(115,128)
------------
$   500,032 
============ | $ 7,586,105 
(7,303,925)
(158,899)
-----------
123,281 
549,773 
(112,823)
------------
$   560,231 
============

(1) In accordance with the Partnership's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $3,628,709 for the period ended December 31, 2003 and cumulative suspended losses of $3,065,413 for the year ended March 31, 2003 are not included.

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):
   As of December 31, 2003, the Partnership had acquired a 99% interest in the profits, losses and tax credits as a limited partner in 24 Project Partnerships which own and operate government assisted multi-family housing complexes.  Cash flows from operations are allocated according to each Partnership agreement.  Upon dissolution proceeds will be distributed according to each Partnership agreement.
   The following is a summary of Investments in Project Partnerships as of:

|SERIES 9                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | DECEMBER 31,
2003
------------                                                                                   | MARCH 31,
2003
-----------                                                                                       
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------
|Capital Contributions to Project Partnerships and purchase price paid for limited partner interests in Project Partnerships
Cumulative equity in losses of Project Partnerships (1)
Cumulative distributions received from Project Partnerships
Investment in Project Partnerships before adjustment
Excess of investment cost over the underlying assets acquired:
 Acquisition fees and expenses
 Accumulated amortization of acquisition
 fees and expenses
Investments in Project Partnerships | $ 4,914,116 
(3,926,705)
(127,558)
-----------
859,853 
244,087 
(56,030)
------------
$ 1,047,910 
============ | $ 4,914,116 
(3,770,400)
(122,154)
----------
1,021,562 
244,087 
(53,716)
------------
$ 1,211,933 
============

(1) In accordance with the Partnership's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $1,114,752 for the period ended December 31, 2003 and cumulative suspended losses of $925,614 for the year ended March 31, 2003 are not included.

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):   As of December 31, 2003, the Partnership had acquired a 99% interest in the profits, losses and tax credits as a limited partner in 15 Project Partnerships which own and operate government assisted multi-family housing complexes.  Cash flows from operations are allocated according to each Partnership agreement.  Upon dissolution proceeds will be distributed according to each Partnership agreement.
   The following is a summary of Investments in Project Partnerships as of:

|SERIES 10                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | DECEMBER 31,
2003
------------                                                                                       | MARCH 31,
2003
-----------                                                                                       
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------
|Capital Contributions to Project Partnerships and purchase price paid for limited partner interests in Project Partnerships
Cumulative equity in losses of Project Partnerships (1)
Cumulative distributions received from Project Partnerships
Investment in Project Partnerships before adjustment
Excess of investment cost over the underlying assets acquired:
 Acquisition fees and expenses
 Accumulated amortization of acquisition
 fees and expenses
Investments in Project Partnerships | $ 3,914,672 
(2,038,227)
(161,797)
-----------
1,714,648 
196,738 
(53,318)
-------------
$ 1,858,068 
============= | $ 3,914,672 
(1,898,143)
(148,645)
----------
1,867,884 
196,738 
(49,880)
------------
$ 2,014,742 
============

(1) In accordance with the Partnership's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $113,095 for the period ended December 31, 2003 and cumulative suspended losses of $94,384 for the year ended March 31, 2003 are not included.

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):   As of December 31, 2003, the Partnership had acquired a 99% interest in the profits, losses and tax credits as a limited partner in 12 Project Partnerships which own and operate government assisted multi-family housing complexes.  Cash flows from operations are allocated according to each Partnership agreement.  Upon dissolution proceeds will be distributed according to each Partnership agreement.
   The following is a summary of Investments in Project Partnerships as of:

|SERIES 11                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | DECEMBER 31,
2003
-----------                                                                                     | MARCH 31,
2003
-----------                                                                                       
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------
|Capital Contributions to Project Partnerships and purchase price paid for limited partner interests in Project Partnerships
Cumulative equity in losses of Project Partnerships 
Cumulative distributions received from Project Partnerships
Investment in Project Partnerships before adjustment
Excess of investment cost over the underlying assets acquired:
 Acquisition fees and expenses
 Accumulated amortization of acquisition
 fees and expenses
Investments in Project Partnerships | $ 4,128,042 
(1,367,780)
(145,315)
-----------
2,614,947 
290,335 
(72,983)
-----------
$ 2,832,299 
============ | $ 4,128,042 
(1,293,389)
(142,928)
-----------
2,691,725 
290,335 
(67,930)
-----------
$ 2,914,130 
============

(1) In accordance with the Partnership's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $144,936 for the period ended December 31, 2003 and cumulative suspended losses of $40,610 for the year ended March 31, 2003 are not included.

---

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

|TOTAL SERIES 7 - 11                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | DECEMBER 31,
2003
-------------                                                                                         | MARCH 31,
2003
-----------                                                                                           
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------
|Capital Contributions to Project Partnerships and purchase price paid for limited partner interests in Project Partnerships
Cumulative equity in losses of Project Partnerships 
Cumulative distributions received from Project Partnerships
Investment in Project Partnerships before adjustment
Excess of investment cost over the underlying assets acquired:
 Acquisition fees and expenses
 Accumulated amortization of acquisition
 fees and expenses
Investments in Project Partnerships | $28,275,024 
(21,644,928)
(806,332)
------------
5,823,764 
2,074,268 
(482,345)
------------
$ 7,415,687 
============ | $28,275,024 
(21,128,100)
(777,070)
-----------
6,369,854 
2,074,268 
(464,252)
------------
$ 7,979,870 
===========

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):
   In accordance with the Partnership's policy of presenting the financial information of the Project Partnerships on a three month lag, below is the summarized financial information for the Series' Project Partnerships as of September 30, of each year:

|SERIES 7                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 2003
----                                                                                                                                                                                                                                                                                                                                                                                                                                 | 2002
----                                                                                                                                                                                                                                                                                                                                                                                                                                
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|SUMMARIZED BALANCE SHEETS
Assets:
  Current assets
  Investment properties, net
  Other assets
    Total assets
Liabilities and Partners' Equity:
  Current liabilities
  Long-term debt
    Total liabilities
Partners' equity (deficit)
  Limited Partner
  General Partners
    Total Partners' equity
    Total liabilities and partners' equity
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income
Expenses:
  Operating expenses
  Interest expense
  Depreciation and amortization
    Total expenses
      Net loss
Other partners' share of net loss
Partnerships' share of net loss
Suspended losses
Equity in Losses of Project Partnerships | $ 3,851,489 
30,086,385 
19,599 
------------
$33,957,473 
============
$   814,567 
36,063,490 
------------
36,878,057 
------------
(2,704,179)
(216,405)
-----------
(2,920,584)
-----------
$33,957,473 
============
$ 3,485,254 
------------
2,375,028 
616,538 
1,099,942 
------------
4,091,508 
------------
$  (606,254)
============
$    (6,063)
============
$  (600,191)
511,011 
------------
$   (89,180)
============ | $ 3,744,201 
31,376,417 
11,522 
------------
$35,132,140 
============
$   788,127 
36,330,807 
------------
37,118,934 
------------
(1,815,165)
(171,629)
-----------
(1,986,794)
-----------
$35,132,140 
============
$ 3,351,365 
------------
2,236,027 
629,966 
1,093,472 
------------
3,959,465 
------------
$  (608,100)
============
$    (6,081)
============
$  (602,019)
484,032 
------------
$  (117,987)
============

---

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:

|SERIES 8                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 2003
----                                                                                                                                                                                                                                                                                                                                                                                                                                 | 2002
----                                                                                                                                                                                                                                                                                                                                                                                                                                
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|SUMMARIZED BALANCE SHEETS
Assets:
  Current assets
  Investment properties, net
  Other assets
    Total assets
Liabilities and Partners' Equity:
  Current liabilities
  Long-term debt
    Total liabilities
Partners' equity (deficit)
  Limited Partner
  General Partners
    Total Partners' equity (deficit)
    Total liabilities and partners' equity
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income
Expenses:
  Operating expenses
  Interest expense
  Depreciation and amortization
    Total expenses
      Net loss
Other partners' share of net loss
Partnerships' share of net loss
Suspended losses
Equity in Losses of Project Partnerships | $ 3,509,600 
31,663,436 
75,307 
------------
$35,248,343 
============
$ 1,061,467 
38,086,148 
------------
39,147,615 
------------
(3,380,219)
(519,053)
-----------
(3,899,272)
-----------
$35,248,343 
============
$ 3,446,687 
------------
2,232,870 
658,793 
1,183,569 
------------
4,075,232 
------------
$  (628,545)
============
$    (8,382)
============
$  (620,163)
563,296 
------------
$   (56,867)
============ | $ 3,385,652 
33,106,083 
28,300 
------------
$36,520,035 
============
$ 1,120,369 
38,315,190 
------------
39,435,559 
------------
(2,438,650)
(476,874)
-----------
(2,915,524)
-----------
$36,520,035 
============
$ 3,353,502 
------------
2,200,750 
667,457 
1,141,649 
------------
4,009,856 
------------
$  (656,354)
============
$    (8,463)
============
$  (647,891)
544,973 
------------
$  (102,918)
============

---

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:

|SERIES 9                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 2003
----                                                                                                                                                                                                                                                                                                                                                                                                                          | 2002
----                                                                                                                                                                                                                                                                                                                                                                                                                      
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|SUMMARIZED BALANCE SHEETS
Assets:
  Current assets
  Investment properties, net
  Other assets
    Total assets
Liabilities and Partners' Equity:
  Current liabilities
  Long-term debt
    Total liabilities
Partners' equity (deficit)
  Limited Partner
  General Partners
    Total Partners' equity
    Total liabilities and partners' equity
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income
Expenses:
  Operating expenses
  Interest expense
  Depreciation and amortization
    Total expenses
      Net loss
Other partners' share of net loss
Partnerships' share of net loss
Suspended losses
Equity in Losses of Project Partnerships | $ 1,827,766 
18,096,688 
3,573 
------------
$19,928,027 
============
$   270,446 
20,187,089 
------------
20,457,535 
------------
(285,411)
(244,097)
-----------
(529,508)
-----------
$19,928,027 
============
$ 1,762,155 
------------
1,140,548 
346,043 
624,500 
------------
2,111,091 
------------
$  (348,936)
============
$    (3,490)
============
$  (345,446)
189,138 
------------
$  (156,308)
============ | $ 1,780,557 
18,828,554 
7,839 
------------
$20,616,950 
============
$   240,529 
20,315,565 
------------
20,556,094 
------------
270,613 
(209,757)
-----------
60,856 
-----------
$20,616,950 
============
$ 1,661,674 
------------
1,126,737 
352,549 
615,523 
------------
2,094,809 
------------
$  (433,135)
============
$    (4,331)
============
$  (428,804)
202,920 
------------
$  (225,884)
============

---

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:

|SERIES 10                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 2003
----                                                                                                                                                                                                                                                                                                                                                                                                                         | 2002
----                                                                                                                                                                                                                                                                                                                                                                                                                        
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|SUMMARIZED BALANCE SHEETS
Assets:
  Current assets
  Investment properties, net
  Other assets
    Total assets
Liabilities and Partners' Equity:
  Current liabilities
  Long-term debt
    Total liabilities
Partners' equity (deficit)
  Limited Partner
  General Partners
    Total Partners' equity
    Total liabilities and partners' equity
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income
Expenses:
  Operating expenses
  Interest expense
  Depreciation and amortization
    Total expenses
      Net loss
Other partners' share of net loss
Partnerships' share of net loss
Suspended losses
Equity in Losses of Project Partnerships | $ 1,691,260 
13,105,539 
9,112 
------------
$14,805,911 
============
$   288,543 
13,195,207 
------------
13,483,750 
------------
1,613,946 
(291,785)
-----------
1,322,161 
-----------
$14,805,911 
============
$ 1,183,271 
------------
779,271 
193,146 
372,329 
------------
1,344,746 
------------
$  (161,475)
============
$    (2,679)
============
$  (158,796)
18,711 
------------
$  (140,085)
============ | $ 1,561,259 
13,529,695 
2,948 
------------
$15,093,902 
============
$   193,159 
13,284,180 
------------
13,477,339 
------------
1,859,069 
(242,506)
-----------
1,616,563 
-----------
$15,093,902 
============
$ 1,131,933 
------------
753,376 
195,442 
358,779 
------------
1,307,597 
------------
$  (175,664)
============
$    (2,616)
============
$  (173,048)
39,478 
------------
$  (133,570)
============

---

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:

|SERIES 11                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 2003
----                                                                                                                                                                                                                                                                                                                                                                                                                      | 2002
----                                                                                                                                                                                                                                                                                                                                                                                                                    
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|SUMMARIZED BALANCE SHEETS
Assets:
  Current assets
  Investment properties, net
  Other assets
    Total assets
Liabilities and Partners' Equity:
  Current liabilities
  Long-term debt
    Total liabilities
Partners' equity (deficit)
  Limited Partner
  General Partners
    Total Partners' equity
    Total liabilities and partners' equity
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income
Expenses:
  Operating expenses
  Interest expense
  Depreciation and amortization
    Total expenses
      Net loss
Other partners' share of net loss
Partnerships' share of net loss
Suspended losses
Equity in Losses of Project Partnerships | $ 1,287,516 
11,322,260 
0 
------------
$12,609,776 
============
$   205,295 
10,128,122 
------------
10,333,417 
------------
2,485,750 
(209,391)
-----------
2,276,359 
-----------
$12,609,776 
============
$ 1,122,516 
------------
750,730 
175,354 
386,514 
------------
1,312,598 
------------
$  (190,082)
============
$   (11,363)
============
$  (178,719)
104,326 
------------
$   (74,393)
============ | $ 1,285,272 
11,746,898 
60,071 
------------
$13,092,241 
============
$   171,088 
10,349,141 
------------
10,520,229 
------------
2,738,686 
(166,674)
-----------
2,572,012 
-----------
$13,092,241 
============
$ 1,118,361 
------------
702,492 
184,830 
392,591 
------------
1,279,913 
------------
$  (161,552)
============
$   (10,052)
============
$  (151,500)
0 
------------
$  (151,500)
============

---

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:

|TOTAL SERIES 7 - 11                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 2003
----                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 2002
----                                                                                                                                                                                                                                                                                                                                                                                                                                               
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|SUMMARIZED BALANCE SHEETS
Assets:
  Current assets
  Investment properties, net
  Other assets
    Total assets
Liabilities and Partners' Equity:
  Current liabilities
  Long-term debt
    Total liabilities
Partners' equity (deficit)
  Limited Partner
  General Partners
    Total Partners' equity (deficit)
    Total liabilities and partners' equity
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income
Expenses:
  Operating expenses
  Interest expense
  Depreciation and amortization
    Total expenses
      Net loss
Other partners' share of net loss
Partnerships' share of net loss
Suspended losses
Equity in Losses of Project Partnerships | $ 12,167,631 
104,274,308 
107,591 
------------
$116,549,530 
============
$  2,640,318 
117,660,056 
------------
120,300,374 
------------
(2,270,113)
(1,480,731)
-----------
(3,750,844)
-----------
$116,549,530 
============
$ 10,999,883 
------------
7,278,447 
1,989,874 
3,666,854 
------------
12,935,175 
------------
$ (1,935,292)
============
$    (31,977)
============
$ (1,903,315)
1,386,482 
------------
$   (516,833)
============ | $ 11,756,941 
108,587,647 
110,680 
------------
$120,455,268 
============
$  2,513,272 
118,594,883 
------------
121,108,155 
------------
614,553 
(1,267,440)
-----------
(652,887)
-----------
$120,455,268 
============
$ 10,616,835 
------------
7,019,382 
2,030,244 
3,602,014 
------------
12,651,640 
------------
$ (2,034,805)
============
$    (31,543)
============
$ (2,003,262)
1,271,403 
------------
$   (731,859)
============

---

Item 4.  Controls and Procedures:

Within 90 days prior to the filing of this report, under the supervision and with the participation of the Partnership's management, including the Partnership's chief executive and chief financial officers, an evaluation of the effectiveness of the Partnership's disclosure controls and procedures (as defined in Rule 13a-14(c) under the Securities and Exchange Act of 1934) was performed.  Based on this evaluation, such officers have concluded that the Partnership's disclosure controls and procedures were effective as of the date of that evaluation in alerting them in a timely manner to material information relating to the Partnership required to be included in this report and the Partnership's other reports that it files or submits under the Securities Exchange Act of 1934.  There were no significant changes in the Partnership's internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation.
Item 7.  Management's Discussion and Analysis of Financial Condition and Results of Operations
Results of Operations, Liquidity and Capital Resources
   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, 2003 and December 31, 2002.  Other income increased to $9,061 for Series 7, $12,073 for Series 8, $3,038 for Series 9, $1,500 for Series 10, and $3,167 for Series 11 for the nine months ended December 31, 2003.  These amounts consisted of distributions from Project Partnerships that were in excess of Gateway's investment in the partnership.  The General and Administrative expenses - General Partner increased for the three and nine months ended December 31, 2003 due to higher administrative costs.  General and Administrative - Other for the three and nine months ended December 31, 2003 are comparable to December 31, 2002. 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.
   As of June 3, 2003, an affiliate of Gateway's Managing General Partner, Value Partners, Inc. became the general partner of Logan Heights, Ltd., a project partnership contained in Gateway III - Series 8.
   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, 2003 decreased from $117,987 for the nine months ended December 31, 2002 to $89,180 as a result of an increase in suspended losses.  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, 2003, the Series had $294,280 of short-term investments (Cash and Cash Equivalents).  It also had $328,319 in Zero Coupon Treasuries with annual maturities providing $68,000 in fiscal year 2004 increasing to $86,000 in fiscal year 2008.  Management believes the sources of funds are sufficient to meet current and ongoing operating costs for the foreseeable future, and to pay part of the Asset Management Fee.
   As disclosed on the statement of cash flows, the Series had a net loss of $189,285 for the nine months ended December 31, 2003.  However, after adjusting for Equity in Losses of Project Partnerships of $89,180 and the changes in operating assets and liabilities, net cash used in operating activities was $112,082. Cash provided by investing activities totaled $16,354 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, 2003 decreased from $102,918 for the nine months ended December 31, 2002 to $56,867 as a result of an increase in rental revenue.  At December 31, 2003, the Series had $332,167 of short-term investments (Cash and Cash Equivalents). It also had $310,684 in Zero Coupon Treasuries with annual maturities providing $63,000 in fiscal year 2004 increasing to $82,000 in fiscal year 2008.  Management believes the sources of funds are sufficient to meet current and ongoing operating costs for the foreseeable future, and to pay part of the Asset Management Fee.
   As disclosed on the statement of cash flows, the Series had a net loss of $163,100 for the nine months ended December 31, 2003.  However, after adjusting for Equity in Losses of Project Partnerships of $56,867 and the changes in operating assets and liabilities, net cash used in operating activities was $131,141.  Cash provided by investing activities totaled $13,102, 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, 2003 decreased from $225,884 for the nine months ended December 31, 2002 to $156,308 as a result of an increase in rental revenue.  At December 31, 2003, the Series had $224,120 of short-term investments (Cash and Cash Equivalents). It also had $213,350 in Zero Coupon Treasuries with annual maturities providing $37,000 in fiscal year 2004 increasing to $47,000 in fiscal year 2009.  Management believes the sources of funds are sufficient to meet current and ongoing operating costs for the foreseeable future, and to pay part of the Asset Management Fee.
   As disclosed on the statement of cash flows, the Series had a net loss of $217,499 for the nine months ended December 31, 2003.  However, after adjusting for Equity in Losses of Project Partnerships of $156,308 and the changes in operating assets and liabilities, net cash used in operating activities was $44,806.  Cash provided by investing activities totaled $8,441, consisting of cash distributions from the Project Partnerships.  There were no unusual events or trends to describe.
   Series 10 - Gateway closed this Series on January 21, 1994 after receiving $5,043,000 from 325 Limited Partner investors.  Equity in Losses of Project Partnerships for the nine months ended December 31, 2003 increased from $133,570 for the nine months ended December 31, 2002 to $140,085 as a result of a decrease in suspended losses.  At December 31, 2003, the Series had $225,449 of short-term investments (Cash and Cash Equivalents).  It also had $185,299 in Zero Coupon Treasuries with annual maturities providing $28,000 in fiscal year 2004 increasing to $40,000 in fiscal year 2010.  Management believes the sources of funds are sufficient to meet current and ongoing operating costs for the foreseeable future, and to pay part of the Asset Management Fee.
   As disclosed on the statement of cash flows, the Series had a net loss of $179,483 for the nine months ended December 31, 2003.  However, after adjusting for Equity in Losses of Project Partnerships of $140,085 and the changes in operating assets and liabilities, net cash used in operating activities was $41,144.  Cash provided by investing activities totaled $14,652, consisting of cash distributions from the Project Partnerships.  There were no unusual events or trends to describe.
   Series 11 - Gateway closed this Series on April 29, 1994 after receiving $5,127,000 from 330 Limited investors.  Equity in losses of Project Partnerships for the nine months ended December 31, 2003 decreased from $151,500 for the nine months ended December 31, 2002 to $74,393 as a result of an increase in suspended losses.  At December 31, 2003, the Series had $222,672 of short-term investments (Cash and Cash Equivalents).  It also had $210,039 in Zero Coupon Treasuries with annual maturities providing $32,000 in fiscal year 2004 increasing to $44,000 in fiscal year 2010.  Management believes the sources of funds are sufficient to meet current and ongoing operating costs for the foreseeable future, and to pay part of the Asset Management Fee.
   As disclosed on the statement of cash flows, the Series had a net loss of $104,184 for the nine months ended December 31, 2003.  However, after adjusting for Equity in Losses of Project Partnerships of $74,393 and the changes in operating assets and liabilities, net cash used in operating activities was $47,080.  Cash provided by investing activities totaled $5,554, consisting of cash distributions from the 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: February 13, 2004           By:/s/ Ronald M. Diner                                  Ronald M. Diner
                                  President
Date: February 13, 2004           By:/s/ Sandra L. Furey                                  Sandra L. Furey
                                  Secretary and Treasurer
Date: February 13, 2004           By:/s/ Carol Georges
                                  Carol Georges
                                  Vice President and Director of Accounting

---

CERTIFICATIONS*

I, Ron Diner, certify that:
1. I have reviewed this quarterly report on Form 10-Q of Gateway Tax Credit Fund III, Ltd.;
2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;
3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;
4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:
a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;
b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly report (the "Evaluation Date"); and
c) presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date;
5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function):
a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and
b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and
6. The registrant's other certifying officers and I have indicated in this quarterly report whether there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.
Date: February 13, 2004           By:/s/ Ronald M. Diner                                  Ronald M. Diner
                                  President

---

I, Carol Georges, certify that:
1. I have reviewed this quarterly report on Form 10-Q of Gateway Tax Credit Fund III, Ltd.;
2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;
3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;
4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:
a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;
b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly report (the "Evaluation Date"); and
c) presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date;
5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function):
a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and
b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and
6. The registrant's other certifying officers and I have indicated in this quarterly report whether there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.
Date: February 13, 2004           By:/s/ Carol Georges
                                  Carol Georges
                                  Vice President and Director of Accounting
                                  Secretary and Treasurer