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 EndedSEPTEMBER 30, 2002Commission File Number 0-21762                        
                            Gateway Tax Credit Fund III Ltd.                 (Exact name of Registrant as specified in its charter)Florida                                            59-3090386(State or other jurisdiction of                      (I.R.S. Employer No.)
 incorporation or organization)880 Carillon Parkway,      St. Petersburg,       Florida          33716(Address of principal executive offices)                            (Zip Code)
Registrant's Telephone Number, Including Area Code:(727) 567-1000Indicate 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.
                                        YESX     NO                                                       Number of UnitsTitle of Each Class                                  September 30, 2002Units of Limited Partnership 
Interest: $1,000 per unit                                   33,799

DOCUMENTS INCORPORATED BY REFERENCE
Parts I and II, 2001 Form 10-K, filed with the
Securities and Exchange Commission on July 9, 2002
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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | SEPTEMBER 30,
2002
-------
(Unaudited)                                                                                                                                                                                                               | MARCH 31,
2002
-------
(Audited)                                                                                                                                                                                                                    
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ASSETS
Current Assets:
 Cash and Cash Equivalents
 Investments in Securities
  Total Current Assets
 Investments in Securities
 Investments in Project Partnerships, Net
    Total Assets
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners
  Total Current Liabilities
Long-Term Liabilities:
 Payable to General Partners
Partners' Equity (Deficit):
Limited Partners (10,395 units for Series 7, 9,980 for Series 8, 6,254 for Series 9, 5,043 for Series 10 and 5,127 for Series 11 at September 30, 2002 and March 31, 2002)
General Partners
  Total Partners' Equity
    Total Liabilities and Partners' Equity | $   353,098 
62,570 
-----------
415,668 
299,942 
1,344,844 
-----------
$ 2,060,454 
===========
$    87,716 
-----------
87,716 
-----------
401,264 
-----------
1,647,037 
(75,563)
-----------
1,571,474 
-----------
$ 2,060,454 
=========== | $   384,626 
60,470 
-----------
445,096 
289,290 
1,436,847 
-----------
$ 2,171,233 
===========
$    68,252 
-----------
68,252 
-----------
396,917 
-----------
1,780,281 
(74,217)
-----------
1,706,064 
-----------
$ 2,171,233 
===========

See accompanying notes to financial statements.

---

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

|SERIES 8                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | SEPTEMBER 30,
2002
-------
(Unaudited)                                                                                                                                                                                                         | MARCH 31,
2002
-------
(Audited)                                                                                                                                                                                                               
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ASSETS
Current Assets:
 Cash and Cash Equivalents
 Investments in Securities
  Total Current Assets
 Investments in Securities
 Investments in Project Partnerships, Net
    Total Assets
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners
  Total Current Liabilities
Long-Term Liabilities:
 Payable to General Partners
Partners' Equity (Deficit):
Limited Partners (10,395 units for Series 7, 9,980 for Series 8, 6,254 for Series 9, 5,043 for Series 10 and 5,127 for Series 11 at September 30, 2002 and March 31, 2002)
General Partners
  Total Partners' Equity
    Total Liabilities and Partners' Equity | $   429,162 
57,717 
-----------
486,879 
285,283 
584,189 
-----------
$ 1,356,351 
===========
$    81,975 
-----------
81,975 
-----------
477,016 
-----------
877,012 
(79,652)
-----------
797,360 
-----------
$ 1,356,351 
=========== | $   456,356 
55,888 
-----------
512,244 
275,718 
654,569 
-----------
$ 1,442,531 
===========
$    60,485 
-----------
60,485
-----------
458,902 
-----------
1,001,538 
(78,394)
-----------
923,144 
-----------
$ 1,442,531 
===========

See accompanying notes to financial statements.

---

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

|SERIES 9                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | SEPTEMBER 30,
2002
-------
(Unaudited)                                                                                                                                                                                                               | MARCH 31,
2002
-------
(Audited)                                                                                                                                                                                                                    
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|SSETS
Current Assets:
 Cash and Cash Equivalents
 Investments in Securities
  Total Current Assets
 Investments in Securities
 Investments in Project Partnerships, Net
    Total Assets
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners
    Total Current Liabilities
Long-Term Liabilities:
 Payable to General Partners
Partners' Equity (Deficit):
Limited Partners (10,395 units for Series 7, 9,980 for Series 8, 6,254 for Series 9, 5,043 for Series 10 and 5,127 for Series 11 at September 30, 2002 and March 31, 2002)
General Partners
  Total Partners' Equity
    Total Liabilities and Partners' Equity | $   246,024 
34,301 
-----------
280,325 
197,571 
1,354,701 
-----------
$ 1,832,597 
===========
$    46,616 
-----------
46,616 
-----------
298,218 
-----------
1,527,722 
(39,959)
-----------
1,487,763 
-----------
$ 1,832,597 
=========== | $   251,331 
33,325 
------------
284,656 
191,591 
1,506,444
-----------
$ 1,982,691 
===========
$    34,316 
-----------
34,316 
-----------
279,505 
-----------
1,707,018 
(38,148)
-----------
1,668,870 
-----------
$ 1,982,691 
===========

See accompanying notes to financial statements.

---

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

|SERIES 10                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | SEPTEMBER 30,
2002
-------
(Unaudited)                                                                                                                                                                                                                | MARCH 31,
2002
-------
(Audited)                                                                                                                                                                                                                     
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ASSETS
Current Assets:
 Cash and Cash Equivalents
 Investments in Securities
  Total Current Assets
 Investments in Securities
 Investments in Project Partnerships, Net
    Total Assets
LIABILITIES AND PARTNERS' EQUITY 
Current Liabilities:
 Payable to General Partners
    Total Current Liabilities
Long-Term Liabilities:
 Payable to General Partners
Partners' Equity (Deficit):
Limited Partners (10,395 units for Series 7, 9,980 for Series 8, 6,254 for Series 9, 5,043 for Series 10 and 5,127 for Series 11 at September 30, 2002 and March 31, 2002)
General Partners
  Total Partners' Equity
    Total Liabilities and Partners' Equity | $   236,670 
26,534 
-----------
263,204 
169,793 
2,150,229 
-----------
$ 2,583,226 
===========
 
$    41,959 
-----------
41,959 
-----------
72,359 
-----------
2,488,399 
(19,491)
-----------
2,468,908 
-----------
$ 2,583,226 
=========== | $   252,149 
25,668 
-----------
277,817 
163,967 
2,232,728 
-----------
$ 2,674,512 
===========
 
$    34,582 
-----------
34,582 
-----------
72,361 
-----------
2,586,073 
(18,504)
-----------
2,567,569 
-----------
$ 2,674,512 
===========

See accompanying notes to financial statements.

---

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

|SERIES 11                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | SEPTEMBER 30,
2002
-------
(Unaudited)                                                                                                                                                                                                              | MARCH 31,
2002
-------
(Audited)                                                                                                                                                                                                                  
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ASSETS
Current Assets:
 Cash and Cash Equivalents
 Investments in Securities
  Total Current Assets
 Investments in Securities
 Investments in Project Partnerships, Net
    Total Assets
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners
  Total Current Liabilities
Long-Term Liabilities:
 Payable to General Partners
Partners' Equity (Deficit):
Limited Partners (10,395 units for Series 7, 9,980 for Series 8, 6,254 for Series 9, 5,043 for Series 10 and 5,127 for Series 11 at September 30, 2002 and March 31, 2002)
General Partners
  Total Partners' Equity
    Total Liabilities and Partners' Equity | $   294,392 
29,294 
-----------
323,686 
191,520 
3,029,627 
-----------
$ 3,544,833 
===========
$    39,010 
-----------
39,010 
-----------
57,832 
-----------
3,459,501 
(11,510)
-----------
3,447,991 
-----------
$ 3,544,833 
=========== | $   266,059 
28,271 
-----------
294,330 
184,577 
3,111,560 
-----------
$ 3,590,467 
===========
$    34,342 
-----------
34,342 
-----------
7,094 
-----------
3,549,611 
(10,600)
-----------
3,539,031 
-----------
$ 3,590,467 
===========

See accompanying notes to financial statements.

---

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

|TOTAL SERIES 7 - 11                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | SEPTEMBER 30,
2002
-------
(Unaudited)                                                                                                                                                                                                                          | MARCH 31,
2002
-------
(Audited)                                                                                                                                                                                                                               
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ASSETS
Current Assets:
 Cash and Cash Equivalents
 Investments in Securities
Total Current Assets
 Investments in Securities
 Investments in Project Partnerships, Net
    Total Assets
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners
  Total Current Liabilities
Long-Term Liabilities:
 Payable to General Partners
Partners' Equity (Deficit):
Limited Partners (10,395 units for Series 7, 9,980 for Series 8,  6,254 for Series 9,  5,043 for Series 10 and 5,127 for Series 11 at September 30, 2002 and March 31, 2002)
General Partners
  Total Partners' Equity
    Total Liabilities and Partners' Equity | $ 1,559,346 
210,416 
-----------
1,769,762 
1,144,109 
8,463,590 
-----------
$11,377,461 
===========
 
$   297,276 
-----------
297,276 
-----------
1,306,689 
-----------
9,999,672 
(226,176)
-----------
9,773,496 
-----------
$11,377,461 
=========== | $ 1,610,521 
203,622 
-----------
1,814,143 
1,105,143 
8,942,148 
-----------
$11,861,434 
===========
$   231,977 
-----------
231,977 
-----------
1,224,779 
-----------
10,624,541 
(219,863)
-----------
10,404,678 
-----------
$11,861,434 
===========

See accompanying notes to financial statements.

---

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

|SERIES 7                                                                                                                                                                                                                                                                                                                                                                                                                             | 2002                                                                                                                                                                                                                                         | 2001                                                                                                                                                                                                                                          
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Interest Income
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Losses of Project Partnerships
Equity in Losses of Project Partnerships
Net Loss
Allocation of Net Loss:
 Limited Partners
 General Partners
Net Loss Per Number of Limited Partnership Units
Number of Limited Partnership Units Outstanding | $     7,434 
----------
21,849 
11,980 
7,505 
1,671 
----------
43,005 
----------
(35,571)
(40,934)
----------
$   (76,505)
==========
$   (75,740)
(765)
----------
$   (76,505)
===========
$     (7.29)
===========
10,395 
=========== | $     9,588 
----------
21,920 
6,153 
4,549 
9,756 
----------
42,378 
----------
(32,790)
(82,028)
----------
$  (114,818)
==========
$  (113,670)
(1,148)
-----------
$  (114,818)
===========
$    (10.94)
===========
10,395 
===========

See accompanying notes to financial statements.

---

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

|SERIES 8                                                                                                                                                                                                                                                                                                                                                                                                                             | 2002                                                                                                                                                                                                                                              | 2001                                                                                                                                                                                                                                
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Interest Income
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Losses of Project Partnerships
Equity in Losses of Project Partnerships
Net Loss
Allocation of Net Loss:
 Limited Partners
 General Partners
Net Loss Per Number of Limited Partnership Units
Number of Limited Partnership Units Outstanding | $     6,956 
-----------
22,758 
13,231 
8,152 
1,185 
-----------
45,326 
-----------
(38,370)
(32,608)
-----------
$   (70,978)
===========
$   (70,268)
(710)
-----------
$   (70,978)
===========
$     (7.04)
===========
9,980 
=========== | $    9,489 
----------
22,841 
6,784 
4,892 
1,847 
----------
36,364 
----------
(26,875)
(89,689)
----------
$ (116,564)
==========
$ (115,398)
(1,166)
----------
$ (116,564)
==========
$   (11.56)
==========
9,980 
==========

See accompanying notes to financial statements.

---

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

|SERIES 9                                                                                                                                                                                                                                                                                                                                                                                                                             | 2002                                                                                                                                                                                                                                           | 2001                                                                                                                                                                                                                                              
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Interest Income
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Losses of Project Partnerships
Equity in Losses of Project Partnerships
Net Loss
Allocation of Net Loss:
 Limited Partners
 General Partners
Net Loss Per Number of Limited Partnership Units
Number of Limited Partnership Units Outstanding | $     4,177 
-----------
12,507 
7,385 
4,841 
814 
-----------
25,547 
-----------
(21,370)
(78,576)
-----------
$   (99,946)
===========
$   (98,947)
(999)
-----------
$   (99,946)
===========
$    (15.82)
===========
6,254 
=========== | $    5,500  
-----------
12,544 
3,786 
2,867 
1,138 
-----------
20,335 
-----------
(14,835)
(91,299)
-----------
$  (106,134)
===========
$  (105,073)
(1,061)
-----------
$  (106,134)
===========
$    (16.80)
===========
6,254 
===========

See accompanying notes to financial statements.

---

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

|SERIES 10                                                                                                                                                                                                                                                                                                                                                                                                                            | 2002                                                                                                                                                                                                                              | 2001                                                                                                                                                                                                                            
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Interest Income
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Losses of Project Partnerships
Equity in Losses of Project Partnerships
Net Loss
Allocation of Net Loss:
 Limited Partners
 General Partners
Net Loss Per Number of Limited Partnership Units
Number of Limited Partnership Units Outstanding | $    4,065 
----------
8,529 
4,615 
3,194 
1,203 
----------
17,541 
----------
(13,476)
(37,316)
----------
$  (50,792)
==========
$  (50,284)
(508)
----------
$  (50,792)
==========
$    (9.97)
==========
5,043 
========== | $    5,332 
----------
8,553 
2,367 
2,030 
1,406 
----------
14,356 
----------
(9,024)
(58,277)
----------
$  (67,301)
==========
$  (66,628)
(673)
----------
$  (67,301)
==========
$   (13.21)
==========
5,043 
==========

See accompanying notes to financial statements.

---

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

|SERIES 11                                                                                                                                                                                                                                                                                                                                                                                                                          | 2002                                                                                                                                                                                                                             | 2001                                                                                                                                                                                                                        
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:Interest Income
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Losses Of Project Partnerships
Equity in Losses of Project Partnerships
Net Loss
Allocation of Net Loss:
 Limited Partners
 General Partners
Net Loss Per Number of Limited Partnership Units
Number of Limited Partnership Units Outstanding | $    4,721 
---------
7,192 
3,692 
2,825 
2,074 
----------
15,783 
----------
(11,062)
(28,650)
----------
$  (39,712)
==========
$  (39,315)
(397)
----------
$  (39,712)
==========
$    (7.67)
==========
5,127 
========== | $   6,078  
---------
7,271 
1,893 
1,849 
2,074 
---------
13,087 
---------
(7,009)
(60,994)
---------
$  (68,003)
==========
$  (67,323)
(680)
----------
$  (68,003)
==========
$   (13.13)
==========
5,127 
==========

See accompanying notes to financial statements.

---

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

|TOTAL SERIES 7 - 11                                                                                                                                                                                                                                                                                                                 | 2002                                                                                                                                                                                           | 2001                                                                                                                                                                                          
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Interest Income
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Losses of Project Partnerships
Equity in Losses of Project Partnerships
Net Loss
Allocation of Net Loss:
 Limited Partners
 General Partners | $   27,353 
----------
72,835 
40,903 
26,517 
6,947 
----------
147,202 
----------
(119,849)
(218,084)
----------
$ (337,933)
==========
$ (334,555)
(3,378)
---------
$ (337,933)
========= | $   35,987 
----------
73,129 
20,983 
16,187 
16,221 
----------
126,520 
----------
(90,533)
(382,287)
----------
$ (472,820)
==========
$ (468,091)
(4,729)
---------
$ (472,820)
=========

See accompanying notes to financial statements.

---

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

|SERIES 7                                                                                                                                                                                                                                                                                                                                                                                                                             | 2002                                                                                                                                                                                                                                    | 2001                                                                                                                                                                                                                                     
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Interest Income
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Losses of Project Partnerships
Equity in Losses of Project Partnerships
Net Loss
Allocation of Net Loss:
 Limited Partners
 General Partners
Net Loss Per Number of Limited Partnership Units
Number of Limited Partnership Units Outstanding | $   14,885 
----------
43,698 
19,847 
10,958 
3,342 
----------
77,845 
----------
(62,960)
(71,630)
----------
$ (134,590)
==========
$ (133,244)
(1,346)
----------
$ (134,590)
==========
$   (12.82)
==========
10,395 
========== | $   19,919 
----------
43,841 
10,854 
10,228 
11,362 
----------
76,285 
----------
(56,366)
(162,739)
----------
$ (219,105)
==========
$ (216,914)
(2,191)
----------
$ (219,105)
==========
$   (20.87)
==========
10,395 
==========

See accompanying notes to financial statements.

---

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

|SERIES 8                                                                                                                                                                                                                                                                                                                                                                                                                             | 2002                                                                                                                                                                                                                                   | 2001                                                                                                                                                                                                                                   
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Interest Income
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Losses of Project Partnerships
Equity in Losses of Project Partnerships
Net Loss
Allocation of Net Loss:
 Limited Partners
 General Partners
Net Loss Per Number of Limited Partnership Units
Number of Limited Partnership Units Outstanding | $   13,922 
----------
45,516 
21,905 
12,162 
2,370 
----------
81,953 
----------
(68,031)
(57,753)
----------
$ (125,784)
==========
$ (124,526)
(1,258)
----------
$ (125,784)
==========
$   (12.48)
==========
9,980 
========== | $   19,992 
----------
45,682 
11,967 
11,087 
3,694 
----------
72,430 
----------
(52,438)
(187,174)
----------
$ (239,612)
==========
$ (237,216)
(2,396)
----------
$ (239,612)
==========
$   (23.77)
==========
9,980 
==========

See accompanying notes to financial statements.

---

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

|SERIES 9 | 2002 | 2001
|-------- | ---- | ----

|Revenues:
 Interest Income
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Losses of Project Partnerships
Equity in Losses of Project Partnerships
Net Loss
Allocation of Net Loss:
 Limited Partners
 General Partners
Net Loss Per Number of Limited Partnership Units
Number of Limited Partnership Units Outstanding | $    8,354 
----------
25,014 
12,226 
7,063 
1,628 
----------
45,931 
----------
(37,577)
(143,350)
----------
$ (181,107)
==========
$ (179,296)
(1,811)
----------
$ (181,107)
==========
$   (28.67)
==========
6,254 
========== | $   11,512 
----------
25,089 
6,679 
6,469 
2,276 
----------
40,513 
----------
(29,001)
(166,058)
----------
$ (195,059)
==========
$ (193,108)
(1,951)
----------
$ (195,059)
==========
$   (30.88)
==========
6,254 
==========
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

See accompanying notes to financial statements.

---

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

|SERIES 10                                                                                                                                                                                                                                                                                                                                                                                                                            | 2002                                                                                                                                                                                                                                | 2001                                                                                                                                                                                                                                 
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Interest Income
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Losses of Project Partnerships
Equity in Losses of Project Partnerships
Net Loss
Allocation of Net Loss:
 Limited Partners
 General Partners
Net Loss Per Number of Limited Partnership Units
Number of Limited Partnership Units Outstanding | $    8,092 
----------
17,058 
7,641 
4,746 
2,406 
----------
31,851 
----------
(23,759)
(74,902)
----------
$  (98,661)
==========
$  (97,674)
(987)
----------
$  (98,661)
==========
$   (19.37)
==========
5,043  
========== | $   11,146 
----------
17,106 
4,175 
4,386 
2,811 
----------
28,478 
----------
(17,332)
(122,900)
----------
$ (140,232)
==========
$ (138,830)
(1,402)
----------
$ (140,232)
==========
$   (27.53)
==========
5,043 
==========

See accompanying notes to financial statements.

---

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

|SERIES 11                                                                                                                                                                                                                                                                                                                                                                                                                            | 2002                                                                                                                                                                                                                               | 2001                                                                                                                                                                                                                              
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Interest Income
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Losses of Project Partnerships
Equity in Losses of Project Partnerships
Net Loss
Allocation of Net Loss:
 Limited Partners
 General Partners
Net Loss Per Number of Limited Partnership Units
Number of Limited Partnership Units Outstanding | $    9,435 
----------
14,384 
6,113 
4,239 
4,148 
----------
28,884 
----------
(19,449)
(71,591)
----------
$  (91,040)
==========
$  (90,130)
(910)
----------
$  (91,040)
==========
$   (17.58)
==========
5,127 
========== | $   12,660 
----------
14,543 
3,339 
3,806 
4,147 
----------
25,835 
----------
(13,175)
(83,624)
----------
$  (96,799)
==========
$  (95,831)
(968)
----------
$  (96,799)
==========
$   (18.69)
==========
5,127 
==========

See accompanying notes to financial statements.

---

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

|TOTAL SERIES 7 - 11                                                                                                                                                                                                                                                                                                                 | 2002                                                                                                                                                                                              | 2001                                                                                                                                                                                             
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Interest Income
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Losses of Project Partnerships
Equity in Losses of Project Partnerships
Net Loss
Allocation of Net Loss:
 Limited Partners
 General Partners | $   54,688 
---------
145,670 
67,732 
39,168 
13,894 
----------
266,464 
----------
(211,776)
(419,406)
----------
$ (631,182)
==========
$ (624,869)
(6,313)
----------
$ (631,182)
========== | $   75,229 
---------
146,261 
37,014 
35,976 
24,290 
----------
243,541 
----------
(168,312)
(722,495)
----------
$ (890,807)
==========
$ (881,899)
(8,908)
----------
$ (890,807)
==========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2002 AND 2001

|SERIES 7                                                                                                                          | Limited
Partners
--------                                                                                           | General
Partners
--------                                                                                   | Total
-----                                                                                                        
|--------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 2001
Net Loss
Balance at September 30, 2001
Balance at March 31, 2002
Net Loss
Balance at September 30, 2002 | $ 2,166,589 
(216,914)
----------
$ 1,949,675 
==========
$ 1,780,281 
(133,244)
----------
$ 1,647,037 
========== | $  (70,315)
(2,191)
----------
$  (72,506)
==========
$  (74,217)
(1,346)
----------
$  (75,563)
========== | $ 2,096,274 
(219,105)
----------
$ 1,877,169 
==========
$ 1,706,064 
(134,590)
----------
$ 1,571,474 
==========



See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2002 AND 2001

|SERIES 8                                                                                                                          | Limited
Partners
--------                                                                                             | General
Partners
--------                                                                               | Total
-----                                                                                                            
|--------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 2001
Net Loss
Balance at September 30, 2001
Balance at March 31, 2002
Net Loss
Balance at September 30, 2002 | $ 1,363,645 
(237,216)
-----------
$ 1,126,429
==========
$ 1,001,538 
(124,526)
-----------
$   877,012 
=========== | $ (74,736)
(2,396)
----------
$ (77,132)
==========
$ (78,394)
(1,258)
----------
$ (79,652)
========== | $ 1,288,909 
(239,612)
-----------
$ 1,049,297 
===========
$   923,144 
(125,784)
-----------
$   797,360 
===========



See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2002 AND 2001

|SERIES 9                                                                                                                          | Limited
Partners
--------                                                                                               | General
Partners
--------                                                                               | Total
-----                                                                                                          
|--------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 2001
Net Loss
Balance at September 30, 2001
Balance at March 31, 2002
Net Loss
Balance at September 30, 2002 | $ 2,110,561 
(193,108)
-----------
$ 1,917,453 
===========
$ 1,707,018 
(179,296)
-----------
$ 1,527,722 
=========== | $ (34,072)
(1,951)
----------
$ (36,023)
==========
$ (38,148)
(1,811)
----------
$ (39,959)
========== | $ 2,076,489 
(195,059)
-----------
$ 1,881,430 
===========
$ 1,668,870 
(181,107)
-----------
$ 1,487,763===========



See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2002 AND 2001

|SERIES 10                                                                                                                         | Limited
Partners
--------                                                                                              | General
Partners
--------                                                                             | Total
-----                                                                                                           
|--------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 2001
Net Loss
Balance at September 30, 2001
Balance at March 31, 2002
Net Loss
Balance at September 30, 2002 | $ 2,811,044 
(138,830)
-----------
$ 2,672,214 
===========
$ 2,586,073 
(97,674)
-----------
$ 2,488,399 
=========== | $ (16,232)
(1,402)
----------
$ (17,634)
==========
$ (18,504)
(987)
----------
$ (19,491)
========== | $ 2,794,812 
(140,232)
-----------
$ 2,654,580 
===========
$ 2,567,569 
(98,661)
-----------
$ 2,468,908 
===========



See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2002 AND 2001

|SERIES 11                                                                                                                         | Limited
Partners
--------                                                                                             | General
Partners
--------                                                                           | Total
-----                                                                                                          
|--------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 2001
Net Loss
Balance at September 30, 2001
Balance at March 31, 2002
Net Loss
Balance at September 30, 2002 | $ 3,756,773 
(95,831)
-----------
$ 3,660,942 
===========
$ 3,549,631 
(90,130)
-----------
$ 3,459,501 
=========== | $  (8,508)
(968)
----------
$  (9,476)
==========
$ (10,600)
(910)
----------
$ (11,510)
========== | $ 3,748,265 
(96,799)
-----------
$ 3,651,466 
===========
$ 3,539,031 
(91,040)
-----------
$ 3,447,991 
===========



See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2002 AND 2001

|TOTAL SERIES 7 - 11                                                                                                               | Limited
Partners
--------                                                                                                | General
Partners
--------                                                                                     | Total
-----                                                                                                           
|--------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 2001
Net Loss
Balance at September 30, 2001
Balance at March 31, 2002
Net Loss
Balance at September 30, 2002 | $12,208,612 
(881,899)
-----------
$11,326,713 
===========
$10,624,541 
(624,869)
-----------
$ 9,999,672 
============ | $ (203,863)
(8,908)
----------
$ (212,771)
==========
$ (219,863)
(6,313)
-----------
$ (226,176)
=========== | $12,004,749 
(890,807)
----------
$11,113,942 
===========
$10,404,678 
(631,182)
-----------
$ 9,773,496 
===========



See accompanying notes to financial statements.

---

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

|SERIES 7
-------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 2002                                                                                                                                                                 | 2001                                                                                                                                                                  
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Cash Flows from Operating Activities:
 Net Loss
 Adjustments to Reconcile Net Loss to Net Cash  Used in Operating Activities:
  Amortization
  Accreted Interest Income on Investments in   Securities
  Equity in Losses of Project Partnerships
  Changes in Operating Assets and Liabilities:
   Increase (Decrease) in Payable to General    Partners
     Net Cash Used in Operating Activities
Cash Flows from Investing Activities:
  Distributions Received from Project   Partnerships
     Net Cash Provided by Investing Activities
Decrease in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
Cash and Cash Equivalents at End of Year | $ (134,590)
3,342 
(12,753)
71,630 
23,812 
----------
(48,559)
----------
17,031 
----------
17,031 
----------
(31,528)
384,626 
----------
$  353,098 
========== | $ (219,105)
11,362 
(13,781)
162,739 
(1,161)
----------
(59,946)
----------
18,864 
----------
18,864 
----------
(41,082)
353,838 
----------
$  312,756 
==========

See accompanying notes to financial statements.

---



|SERIES 8
-------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 2002                                                                                                                                                                 | 2001                                                                                                                                                              
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Cash Flows from Operating Activities:
 Net Loss
 Adjustments to Reconcile Net Loss to Net Cash  Used in Operating Activities:
  Amortization
  Accreted Interest Income on Investments in   Securities
  Equity in Losses of Project Partnership 
  Changes in Operating Assets and Liabilities:
   Increase in Payable to General Partners
     Net Cash Used in Operating Activities
Cash Flows from Investing Activities:
  Distributions Received from Project   Partnerships
     Net Cash Provided by Investing Activities
Decrease in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
Cash and Cash Equivalents at End of Year | $ (125,784)
2,370 
(11,396)
57,753 
39,606 
----------
(37,451)
----------
10,257 
----------
10,257 
----------
(27,194)
456,356 
----------
$  429,162 
========== | $ (239,612)
3,694 
(12,312)
187,174 
3,056 
----------
(58,000)
----------
7,175 
----------
7,175 
----------
(50,825)
447,343 
----------
$  396,518 
==========

See accompanying notes to financial statements.

---

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

|SERIES 9
-------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 2002                                                                                                                                                              | 2001                                                                                                                                                             
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------
|Cash Flows from Operating Activities:
 Net Loss
 Adjustments to Reconcile Net Loss to Net Cash  Used in Operating Activities:
  Amortization
  Accreted Interest Income on Investments In   Securities
  Equity in Losses of Project Partnerships
  Changes in Operating Assets and Liabilities:
   Increase in Payable to General Partners
     Net Cash Used in Operating Activities
Cash Flows from Investing Activities:
  Distributions Received from Project   Partnerships
     Net Cash Provided by Investing Activities
Decrease in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
Cash and Cash Equivalents at End of Year | $ (181,107)
1,628 
(6,955)
143,530 
31,011 
----------
(11,893)
----------
6,586 
----------
6,586 
----------
(5,307)
251,331 
----------
$  246,024 
========== | $ (195,059)
2,276 
(7,471)
166,058 
8,497 
----------
(25,699)
----------
8,174 
----------
8,174 
----------
(17,525)
232,688 
----------
$  215,163 
==========

See accompanying notes to financial statements.

---

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

|SERIES 10
-------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 2002                                                                                                                                                              | 2001                                                                                                                                                              
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Cash Flows from Operating Activities:
 Net Loss
 Adjustments to Reconcile Net Loss to Net Cash  Used in Operating Activities:
  Amortization
  Accreted Interest Income on Investments 
  in Securities
  Equity in Losses of Project Partnerships
  Changes in Operating Assets and Liabilities:
   Increase (Decrease) in Payable to General    Partners
     Net Cash Used in Operating Activities
Cash Flows from Investing Activities:
  Distributions Received from Project   Partnerships
     Net Cash Provided by Investing Activities
Decrease in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
Cash and Cash Equivalents at End of Year | $  (98,661)
2,406 
(6,692)
74,902 
(7,377)
----------
(20,668)
----------
5,189 
----------
5,189 
----------
(15,479)
252,149 
----------
$  236,670 
========== | $ (140,232)
2,811 
(7,054)
122,900 
(8,618)
----------
(30,193)
----------
4,989 
----------
4,989 
----------
(25,204)
236,522 
----------
$  211,318 
==========

See accompanying notes to financial statements.

---

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

|SERIES 11
-------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | 2002                                                                                                                                                            | 2001                                                                                                                                                             
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------
|Cash Flows from Operating Activities:
 Net Loss
 Adjustments to Reconcile Net Loss to Net Cash  Provided by (Used in) Operating Activities:
 Amortization
 Accreted Interest Income on Investments in  Securities
 Equity in Losses of Project Partnerships
  Changes in Operating Assets and Liabilities:
   Increase (Decrease) in Payable to General    Partners
     Net Cash Provided by (Used in) Operating      Activities
Cash Flows from Investing Activities:
   Distributions Received from Project    Partnerships
     Net Cash Provided by Investing Activities
Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
Cash and Cash Equivalents at End of Year | $ (91,040)
4,148 
(7,964)
71,591 
(45,406)
----------
22,141 
----------
6,192 
----------
6,192 
----------
28,333 
266,059 
----------
$  294,392 
========== | $ (96,799)
4,147 
(8,337)
83,624 
(16,332)
----------
(33,697)
----------
12,833
----------
12,833 
----------
(20,864)
244,339 
----------
$ 223,475 
==========

See accompanying notes to financial statements.

---

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

|TOTAL SERIES 7 - 11
------------------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 2002                                                                                                                                                                       | 2001                                                                                                                                                                        
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Cash Flows from Operating Activities:
 Net Loss
 Adjustments to Reconcile Net Loss to Net Cash  Used in Operating Activities:
  Amortization
  Accreted Interest Income on Investments in   Securities
  Equity in Losses of Project Partnerships
  Changes in Operating Assets and Liabilities:
   Increase (Decrease) in Payable to General    Partners
     Net Cash Used in Operating Activities
Cash Flows from Investing Activities:
  Distributions Received from Project   Partnerships
     Net Cash Provided by Investing Activities
Decrease in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
Cash and Cash Equivalents at End of Year | $ (631,182)
13,894 
(45,760)
419,406 
147,212 
----------
(96,430)
----------
45,255 
----------
45,255 
----------
(51,175)
1,610,521 
----------
$ 1,559,346 
========== | $ (890,807)
24,290 
(48,955)
722,495 
(14,558)
----------
(207,535)
----------
52,035 
----------
52,035 
----------
(155,500)
1,514,730 
----------
$ 1,359,230 
==========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2002

NOTE 1 - ORGANIZATION:   Gateway Tax Credit Fund III Ltd. ("Gateway"), a Florida Limited Partnership, was formed October 17, 1991 under the laws of Florida.  Gateway offered its limited partnership interests in Series.  The first Series for Gateway is Series 7.  Operations commenced on July 16, 1992 for Series 7, January 4, 1993 for Series 8, September 30, 1993 for Series 9, January 21, 1994 for Series 10 and April 29, 1994 for Series 11.  Each Series invests, as a limited partner, in other limited partnerships ("Project Partnerships"), each of which owns and operates apartment complexes eligible for Low-Income Housing Tax Credits ("Tax Credits"), provided for in Section 42 of the Internal Revenue Code of 1986.  Gateway will terminate on December 31, 2040 or sooner, in accordance with the terms of the Limited Partnership Agreement.  As of September 30, 2002, 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 investments in 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.Offering and Commission Costs
   Offering and commission costs are charged against Limited Partners' Equity upon admission of Limited Partners.Income Taxes   No provision for income taxes has been made in these financial statements, as income taxes are a liability of the partners rather than of Gateway.Basis of Preparation   The unaudited financial statements presented herein have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and note disclosures required by generally accepted accounting principles.  These statements should be read in conjunction with the financial statements and notes thereto included with the Partnership's Form 10-K for the year ended March 31, 2002.  In the opinion of management these financial statements include adjustments, consisting only of normal recurring adjustments, necessary to fairly summarize the Partnership's financial position and results of operations.  The results of operations for the periods may not be indicative of the results to be expected for the year.NOTE 3 - INVESTMENT IN SECURITIES:
   The September 30, 2002 Balance Sheet includes Investment in Securities consisting of U.S. Treasury Security Strips which represents their cost, plus accreted interest income of $186,400 for Series 7, $163,638 for Series 8, $96,985 for Series 9, $87,828 for Series 10 and $101,622 for Series 11.

|          | Estimated Market
Value
---------------- | Cost Plus
Accreted Interest
----------------- | Gross Unrealized
Gains and (Losses)
----------------
|--------- | --------------------------------------- | --------------------------------------------- | ----------------------------------------------------
|Series 7  | $ 417,274                               | $ 362,512                                     | $ 54,762                                            
|Series 8  | 390,942                                 | 343,000                                       | 47,942                                              
|Series 9  | 261,943                                 | 231,872                                       | 30,071                                              
|Series 10 | 228,857                                 | 196,327                                       | 32,530                                              
|Series 11 | 263,687                                 | 220,814                                       | 42,873                                              

As of September 30, 2002, the cost and accreted interest of debt securities 
by contractual maturities is as follows:

|                                        | Series 7
--------  | Series 8
--------  | Series 9
-------- 
|--------------------------------------- | ------------------ | ------------------ | ------------------
|Due within 1 year                       | $  62,570          | $  57,717          | $  34,301         
|After 1 year through 5 years            | 242,163            | 229,024            | 134,153           
|After 5 years through 10 years          | 57,779             | 56,259             | 63,418            
|                                        | --------           | --------           | --------          
|Total Amount Carried on   Balance Sheet | $ 362,512
======== | $ 343,000
======== | $ 231,872
========



|                                        | Series 10
--------  | Series 11
--------  | Total
-------       
|--------------------------------------- | ------------------- | ------------------- | --------------------
|Due within 1 year                       | $  26,534           | $  29,294           | $  210,416          
|After 1 year through 5 years            | 99,228              | 113,468             | 818,036             
|After 5 years through 10 years          | 70,565              | 78,052              | 326,073             
|                                        | --------            | --------            | ---------           
|Total Amount Carried on   Balance Sheet | $ 196,327
========= | $ 220,814
========= | $1,354,525
=========

NOTE 4 - RELATED PARTY TRANSACTIONS:

2002            2001  Series 7                 $ 43,698          $ 43,841
  Series 8                   45,516            45,682
  Series 9                   25,014            25,089
  Series 10                  17,058            17,106
  Series 11                  14,384            14,543
                           --------          --------
  Total                    $145,670          $146,261
                           ========          ========

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                 $ 19,847          $ 10,854
  Series 8                   21,905            11,967
  Series 9                   12,226             6,679
  Series 10                   7,641             4,175
  Series 11                   6,113             3,339
                           --------          --------
  Total                    $ 67,732          $ 37,014
                           ========          ========

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS:   As of September 30, 2002, the Partnership had acquired a 99% interest in the
profits, losses and tax credits as a limited partner in 39 Project Partnerships
which own and operate government assisted multi-family housing complexes.  Cash 
flows from operations are allocated according to each Partnership agreement.  Upon dissolution proceeds will be distributed according to each Partnership agreement.
   The following is a summary of Investments in Project Partnerships as of:

|SERIES 7                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | SEPTEMBER 30,
2002
------------                                                                                 | MARCH 31,
2002
---------                                                                                       
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | --------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------
|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 
(6,796,755)
(207,264)
-----------
728,070 
793,335 
(176,561)
-----------
$ 1,344,844 
=========== | $ 7,732,089 
(6,725,125)
(190,234)
-----------
816,730 
793,335 
(173,218)
-----------
$ 1,436,847 
===========

(1) In accordance with the Partnership's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $2,116,332 for the period ended September 30, 2002 and cumulative suspended losses of $1,932,905 for the year ended March 31, 2002 are not included.

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):   As of September 30, 2002, 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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | SEPTEMBER 30,
2002
---------                                                                                  | MARCH 31,
2002
---------                                                                                        
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------
|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 
(7,278,850)
(162,385)
-----------
144,870 
549,773 
10,454)
-----------
$   584,189 
=========== | $ 7,586,105 
(7,221,095)
(152,130)
-----------
212,880 
549,773 
(108,084)
------------
$   654,569 
===========

(1) In accordance with the Partnership's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $2,588,729 for the period ended September 30, 2002 and cumulative suspended losses of $2,199,653 for the year ended March 31, 2002 are not included.

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):   As of September 30, 2002, 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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | SEPTEMBER 30,
2002
----------                                                                                     | MARCH 31,
2002
---------                                                                                    
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------
|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 
(3,634,157)
(117,256)
-----------
1,162,703 
244,08780
(52,089)
-----------
$ 1,354,701 
=========== | $ 4,914,116 
(3,490,627)
110,670)
---------
1,312,819 
244,087 
(50,462)
----------
$ 1,506,444 
===========

(1) In accordance with the Partnership's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $708,993 for the period ended September 30, 2002 and cumulative suspended losses of $579,368 for the year ended March 31, 2002 are not included.

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):   As of September 30, 2002, 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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | SEPTEMBER 30,
2002
-----------                                                                                  | MARCH 31,
2002
---------                                                                                       
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | --------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------
|Capital Contributions to Project Partnerships and purchase price paid for limited partner interests in Project Partnerships
Cumulative equity in losses of Project Partnerships (1) 
Cumulative distributions received from Project Partnerships
Investment in Project Partnerships before Adjustment
Excess of investment cost over the underlying assets acquired:
  Acquisition fees and expenses
  Accumulated amortization of acquisition fees   and expenses
Investments in Project Partnerships | $ 3,914,672 
(1,771,271)
(142,433)
-----------
2,000,968 
96,738 
(47,477)
-----------
$ 2,150,229 
=========== | $ 3,914,672 
(1,696,369)
(137,244)
----------
2,081,059 
196,738 
(45,069)
-----------
$ 2,232,728 
===========

(1) In accordance with the Partnership's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $85,243 for the period ended September 30, 2002 and cumulative suspended losses of $60,069 for the year ended March 31, 2002 are not included.

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):   As of September 30, 2002, 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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | SEPTEMBER 30,
2002
---------                                                                                     | MARCH 31,
2002
--------                                                                                         
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ---------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------
|Capital Contributions to Project Partnerships and purchase price paid for limited partner interests in Project Partnerships
Cumulative equity in losses of Project Partnerships (1) 
Cumulative distributions received from Project Partnerships
Investment in Project Partnerships before Adjustment
Excess of investment cost over the underlying assets acquired:
  Acquisition fees and expenses
  Accumulated amortization of acquisition fees   and expenses
Investments in Project Partnerships | $ 4,128,042 
(1,195,121)
(129,843)
-----------
2,803,078 
290,335 
(63,786)
-----------
$ 3,029,627 
=========== | $ 4,128,042 
(1,123,530)
(123,651)
-----------
2,880,861 
290,335 
(59,636)
-----------
$ 3,111,560 
===========

(1) In accordance with the Partnership's accounting policy to not carry Investments 
 in Project Partnerships below zero, cumulative suspended losses of $0 for the period September 30, 2002 and cumulative suspended losses of $0 for the year ended March 31, 
 2002 are not included.

---

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

|TOTAL SERIES 7 - 11                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | SEPTEMBER 30,
2002
----------                                                                                        | MARCH 31,
2002
--------                                                                                             
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------
|Capital Contributions to Project Partnerships and purchase price paid for limited partner interests in Project Partnerships
Cumulative equity in losses of Project Partnerships (1) 
Cumulative distributions received from Project Partnerships
Investment in Project Partnerships before Adjustment
Excess of investment cost over the underlying assets acquired:
  Acquisition fees and expenses
  Accumulated amortization of acquisition fees   and expenses
Investments in Project Partnerships | $28,275,024 
(20,676,154)
(759,181)
-----------
6,839,689 
2,074,268 
(450,367)
-----------
$ 8,463,590 
=========== | $28,275,024 
(20,256,746)
(713,929)
-----------
7,304,349 
2,074,268 
(436,469)
-----------
$ 8,942,148 
===========

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

|SERIES 7                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 2002                                                                                                                                                                                                                                                                                                                                                                                                                        | 2001                                                                                                                                                                                                                                                                                                                                                                                                                   
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|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 | $ 3,582,763 
31,740,908 
12,687 
-----------
$35,336,358 
===========
$   641,879 
36,330,807 
-----------
36,972,686 
-----------
(1,468,204)
(168,124)
-----------
(1,636,328)
-----------
$35,336,358 
===========
$ 2,376,355 
-----------
1,485,029 
419,978 
728,981 
-----------
2,633,988 
-----------
$  (257,633)
===========
$    (2,576)
===========
$  (255,057)
183,427 
-----------
$   (71,630)
=========== | $ 3,421,228 
33,068,943 
15,870 
-----------
$36,506,041 
===========
$   801,006 
36,441,924 
-----------
37,242,930 
-----------
(618,907)
(117,982)
-----------
(736,889)
-----------
$36,506,041 
===========
$ 2,164,487 
-----------
1,490,601 
415,562 
733,294 
-----------
2,639,457 
-----------
$  (474,970)
===========
$    (4,750)
===========
$  (470,220)
307,481 
-----------
$  (162,739)
===========

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

|SERIES 8                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 2002                                                                                                                                                                                                                                                                                                                                                                                                                        | 2001                                                                                                                                                                                                                                                                                                                                                                                                                       
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|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 | $ 3,225,417 
33,486,633 
31,427 
-----------
$36,743,477 
===========
$ 1,140,370 
38,315,191 
-----------
39,455,561 
-----------
(2,237,589)
(474,495)
-----------
(2,712,084)
-----------
$36,743,477 
===========
$ 2,210,760 
-----------
1,457,602 
444,971 
761,100 
-----------
2,663,673 
-----------
$  (452,913)
===========
$    (6,084)
===========
$  (446,829)
389,076 
-----------
$   (57,753)
=========== | $ 2,985,618 
34,910,036 
36,534 
-----------
$37,932,188 
===========
$ 1,098,271 
38,447,298 
-----------
39,545,569 
-----------
(1,185,574)
(427,807)
-----------
(1,613,381)
-----------
$37,932,188 
===========
$ 2,179,208 
-----------
1,467,482 
450,373 
789,013 
-----------
2,706,868 
-----------
$  (527,660)
===========
$    (7,433)
===========
$  (520,227)
333,053 
-----------
$  (187,174)
===========

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

|SERIES 9                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 2002                                                                                                                                                                                                                                                                                                                                                                                                               | 2001                                                                                                                                                                                                                                                                                                                                                                                                                
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|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 | $ 1,735,651 
19,033,647 
9,391 
-----------
$20,778,689 
===========
$   245,047 
20,315,565 
-----------
20,560,612 
-----------
426,261 
(208,184)
-----------
218,077 
-----------
$20,778,689 
===========
$ 1,108,561 
-----------
739,094 
235,032 
410,349 
-----------
1,384,475 
-----------
$  (275,914)
===========
$    (2,759)
===========
$  (273,155)
129,625 
-----------
$  (143,530)
=========== | $ 1,768,791 
19,777,405 
8,248 
-----------
$21,554,444 
===========
$   265,717 
20,368,291 
-----------
20,634,008 
-----------
1,097,464 
(177,028)
-----------
920,436 
-----------
$21,554,444 
===========
$ 1,095,455 
-----------
720,771 
234,201 
416,334 
-----------
1,371,306 
-----------
$  (275,851)
===========
$    (2,759)
===========
$  (273,092)
107,034 
-----------
$  (166,058)
===========

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

|SERIES 10                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 2002                                                                                                                                                                                                                                                                                                                                                                                                                | 2001                                                                                                                                                                                                                                                                                                                                                                                                          
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|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 | $ 1,523,429 
13,649,246 
3,284 
-----------
$15,175,959 
===========
$   201,103 
13,284,180 
-----------
13,485,283 
-----------
1,932,041 
(241,365)
-----------
1,690,676 
-----------
$15,175,959 
===========
$   763,618 
-----------
495,688 
130,295 
239,186 
-----------
865,169 
-----------
$  (101,551)
===========
$    (1,475)
===========
$  (100,076)
25,174 
-----------
$   (74,902)
=========== | $ 1,438,100 
14,078,703 
5,319 
-----------
$15,522,122 
===========
$   251,593 
13,320,516 
-----------
13,572,109 
-----------
2,171,653 
(221,640)
-----------
1,950,013 
-----------
$15,522,122 
===========
$   736,367 
-----------
482,389 
130,694 
248,303 
-----------
861,386 
-----------
$  (125,019)
===========
$    (2,119)
===========
$  (122,900)
0 
-----------
$  (122,900)
===========

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

|SERIES 11                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 2002                                                                                                                                                                                                                                                                                                                                                                                                            | 2001                                                                                                                                                                                                                                                                                                                                                                                                         
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|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 | $ 1,243,773 
11,877,762 
56,311 
-----------
$13,177,846 
===========
$   164,776 
10,349,141 
-----------
10,513,917 
-----------
2,818,595 
(154,666)
-----------
2,663,929 
-----------
$13,177,846 
===========
$   807,573 
-----------
492,262 
123,220 
261,727 
-----------
877,209 
-----------
$   (69,636)
===========
$     1,955 
===========
$   (71,591)
0 
-----------
$   (71,591)
=========== | $ 1,307,536 
12,367,376 
12,378 
-----------
$13,687,290 
===========
$   260,662 
10,508,107 
-----------
10,768,769 
-----------
3,015,367 
(96,846)
-----------
2,918,521 
-----------
$13,687,290 
===========
$   734,370 
-----------
449,577 
123,027 
258,062 
-----------
830,666 
-----------
$   (96,296)
===========
$   (12,672)
===========
$   (83,624)
0 
-----------
   (83,624)
===========

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

|TOTAL SERIES 7 - 11                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 2002                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 2001                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|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 | $ 11,311,033 
109,788,196 
113,100 
------------
$121,212,329 
============
$  2,393,175 
118,594,884 
------------
120,988,059
------------
1,471,104 
(1,246,834)
------------
224,270 
------------
$121,212,329 
============
$  7,266,867 
------------
4,669,675 
1,353,496 
2,401,343
------------
8,424,514 
------------
$ (1,157,647)
============
$    (10,939)
============
$ (1,146,708)
727,302 
------------
$   (419,406)
============ | $ 10,921,273 
114,202,463 
78,349 
------------
$125,202,085 
============
$  2,677,249 
119,086,136 
------------
121,763,385 
------------
4,480,003 
(1,041,303)
------------
3,438,700 
------------
$125,202,085 
============
$  6,909,887 
------------
4,610,820 
1,353,857 
2,445,006 
------------
8,409,683 
------------
$ (1,499,796)
============
$    (29,733)
============
$ (1,470,063)
747,568 
------------
$   (722,495)
============

---

Item 4.  Controls and Procedures:

---

SIGNATURES

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

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

Date: November 26, 2002           By:/s/ Ronald M. Diner                                  Ronald M. Diner
                                  President
Date: November 26, 2002           By:/s/ Sandra L. Furey                                  Sandra L. Furey
                                  Secretary and Treasurer
Date: November 26, 2002           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 include 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: November 26, 2002           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 include 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: November 26, 2002           By:/s/ Carol Georges
                                  Carol Georges
                                  Vice President and Director of Accounting