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, 2005Commission File Number0-21762                     
                    Gateway Tax Credit Fund III Ltd.         (Exact name of Registrant as specified in its charter)Florida                               59-3090386 (State or other jurisdiction of              (IRS Employer No.)
 incorporation or organization)880 Carillon Parkway,   St. Petersburg,  Florida       33716       (Address of principal executive offices)        (Zip Code)
Registrant's Telephone Number, Including Area Code:(727) 567-4830
Indicate by check mark whether the Registrant: (1) has filed all reports 
required to be filed by Section 13 or 15(d) of the Securities Exchange Act 
of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to 
such filing requirements for the past 90 days.
                                    YESX      NO
                                                       Number of Units
     Title of Each Class                             September 30, 2005Units of Limited Partnership
Interest:  $1,000 per unit                                  33,799

DOCUMENTS INCORPORATED BY REFERENCEParts I and II, 2005 Form 10-K, filed with the
Securities and Exchange Commission on July 13, 2005
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 SHEET

|SERIES 7                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | SEPTEMBER 30,
2005  
----------
(Unaudited)                                                                                                                                                                                                | MARCH 31,
2005  
---------
(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, 2005 and March 31, 2005)
General Partners
  Total Partners' Equity
    Total Liabilities and Partners' Equity | $  351,126 
75,127 
-----------
426,253 
145,615 
917,254 
-----------
$1,489,122 
===========
$   55,544 
-----------
55,544 
-----------
601,203 
-----------
915,330 
(82,955)
-----------
832,375 
-----------
$1,489,122 
=========== | $  383,342 
72,445 
-----------
455,787 
140,326 
965,655 
-----------
$1,561,768 
===========
$   53,630 
-----------
53,630 
-----------
557,979 
-----------
1,031,936 
(81,777)
-----------
950,159 
-----------
$1,561,768 
===========



See accompanying notes to financial statements.

---

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

|SERIES 8                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | SEPTEMBER 30,
2005  
---------
(Unaudited)                                                                                                                                                                                                         | MARCH 31,
2005  
--------
(Audited)                                                                                                                                                                                                                
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ASSETS
Current Assets:
 Cash and Cash Equivalents
 Investments in Securities
 Accounts Receivable
  Total Current Assets
 Investments in Securities
 Investments in Project Partnerships, Net
    Total Assets
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners
  Total Current Liabilities
Long-Term Liabilities:
 Payable to General Partners
Partners' Equity (Deficit):
Limited Partners (10,395 units for Series 7, 9,980 for Series 8, 6,254 for Series 9, 5,043 for Series 10 and 5,127 for Series 11 at September 30, 2005 and March 31, 2005)
General Partners
  Total Partners' Equity
    Total Liabilities and Partners' Equity | $  281,823 
70,287 
24,220 
-----------
376,330 
139,543 
466,367 
-----------
$  982,240 
===========
$   46,530 
-----------
46,530 
-----------
639,352 
-----------
381,020 
(84,662)
-----------
296,358 
-----------
$  982,240 
=========== | $  325,662 
67,927 
24,220 
-----------
417,809 
134,748 
461,161 
-----------
$1,013,718 
===========
$   45,110 
-----------
45,110 
-----------
594,397 
-----------
458,094 
(83,883)
-----------
374,211 
-----------
$1,013,718 
============



See accompanying notes to financial statements.

---

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

|SERIES 9                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | SEPTEMBER 30,
2005  
---------
(Unaudited)                                                                                                                                                                                                 | MARCH 31,
2005  
--------
(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, 2005 and March 31, 2005)
General Partners
  Total Partners' Equity
    Total Liabilities and Partners' Equity | $  205,104 
40,097 
-----------
245,201 
116,172 
749,412 
-----------
$1,110,785 
===========
$   26,539 
-----------
26,539 
-----------
403,893 
-----------
728,385 
(48,032)
-----------
680,353 
-----------
$1,110,785 
=========== | $  229,897 
38,890 
-----------
268,787 
112,579 
798,862 
-----------
$1,180,228 
===========
$   25,407 
-----------
25,407 
-----------
379,140 
-----------
822,760 
(47,079)
-----------
775,681 
-----------
$1,180,228 
===========



See accompanying notes to financial statements.

---

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

|SERIES 10                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | SEPTEMBER 30,
2005  
---------
(Unaudited)                                                                                                                                                                                                      | MARCH 31,
2005  
--------
(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, 2005 and March 31, 2005)
General Partners
  Total Partners' Equity
    Total Liabilities and Partners' Equity | $  130,031 
30,519 
-----------
160,550 
116,795 
1,599,025 
-----------
$1,876,370 
===========
$   29,268 
-----------
29,268 
-----------
28,215 
-----------
1,844,877 
(25,990)
-----------
1,818,887 
-----------
$1,876,370 
=========== | $  142,638 
29,480 
-----------
172,118 
112,721 
1,661,049 
-----------
$1,945,888 
===========
$   28,777 
-----------
28,777 
-----------
11,305 
-----------
1,930,927 
(25,121)
-----------
1,905,806 
-----------
$1,945,888 
===========



See accompanying notes to financial statements.

---

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

|SERIES 11                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | SEPTEMBER 30,
2005  
---------
(Unaudited)                                                                                                                                                                                                   | MARCH 31,
2005  
--------
(Audited)                                                                                                                                                                                                         
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ASSETS
Current Assets:
 Cash and Cash Equivalents
 Investments in Securities
 Receivable from General Partner
  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, 2005 and March 31, 2005)
General Partners
  Total Partners' Equity
    Total Liabilities and Partners' Equity | $  188,228 
35,100 
0 
-----------
223,328 
132,197 
2,603,481 
-----------
$2,959,006 
===========
$    5,900 
-----------
5,900 
-----------
0 
-----------
2,969,566 
(16,460)
-----------
2,953,106 
-----------
$2,959,006 
=========== | $  199,931 
33,838 
8,291 
-----------
242,060 
127,336 
2,664,780 
-----------
$3,034,176 
===========
$        0 
-----------
0 
-----------
0 
-----------
3,049,825 
(15,649)
-----------
3,034,176 
-----------
$3,034,176 
===========



See accompanying notes to financial statements.

---

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

|TOTAL SERIES 7 - 11                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | SEPTEMBER 30,
2005  
---------
(Unaudited)                                                                                                                                                                                                                              | MARCH 31,
2005  
--------
(Audited)                                                                                                                                                                                                                                      
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ASSETS
Current Assets:
 Cash and Cash Equivalents
 Investments in Securities
 Accounts Receivable
 Receivable from General Partner
  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, 2005 and March 31, 2005)
General Partners
  Total Partners' Equity
    Total Liabilities and Partners' Equity | $ 1,156,312 
251,130 
24,220 
0 
------------
1,431,662 
650,322 
6,335,539 
-----------
$ 8,417,523 
===========
$   163,781 
-----------
163,781 
-----------
1,672,663 
-----------
6,839,178 
(258,099)
-----------
6,581,079 
-----------
$ 8,417,523 
=========== | $ 1,281,470 
242,580 
24,220 
8,291 
-----------
1,556,561 
627,710 
6,551,507 
-----------
$ 8,735,778 
===========
$   152,924 
-----------
152,924 
-----------
1,542,821
-----------
7,293,542 
(253,509)
-----------
7,040,033 
-----------
$ 8,735,778 
===========



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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 2005
----                                                                                                                                                                                                                                                                | 2004
----                                                                                                                                                                                                                                                                
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Distribution Income
  Total Revenues
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Losses of Project
 Partnerships and Other Income
Equity in Losses of Project Partnerships
Interest Income
Net Loss
Allocation of Net Loss:
 Limited Partners
 General Partners
Net Loss Per Number of Limited Partnership
Units
Number of Limited Partnership Units
Outstanding | $    8,855 
-----------
8,855 
-----------
21,612 
21,101 
10,135 
1,553 
-----------
54,401 
-----------
(45,546)
(15,453)
6,695 
-----------
$  (54,304)
===========
$  (53,761)
(543)
-----------
$  (54,304)
===========
$    (5.17)
===========
10,395 
=========== | $   10,015 
-----------
10,015 
-----------
21,687 
14,578 
10,012 
1,661 
-----------
47,938 
-----------
(37,923)
(25,188)
5,553 
-----------
$  (57,558)
===========
$  (56,982)
(576)
-----------
$  (57,558)
===========
$    (5.48)
===========
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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 2005
----                                                                                                                                                                                                                                                       | 2004
----                                                                                                                                                                                                                                                           
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Distribution Income
 Total Revenues
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Income (Losses) of   Project Partnerships and Other Income
Equity in Income (Losses) of Project  Partnerships
Interest Income
Net Loss
Allocation of Net Loss:
 Limited Partners
 General Partners
Net Loss Per Number of Limited
Partnership Units
Number of Limited Partnership Units
Outstanding | $        0 
-----------
0 
-----------
22,477 
23,266 
10,933 
567 
-----------
57,243 
-----------
(57,243)
2,799 
5,808 
-----------
$  (48,636)
===========
$  (48,149)
(487)
-----------
$  (48,636)
===========
$    (4.82)
===========
9,980 
=========== | $    2,318 
-----------
2,318 
-----------
22,578 
16,073 
11,097 
768 
-----------
50,516 
-----------
(48,198)
(8,976)
5,064 
-----------
$  (52,110)
===========
$  (51,589)
(521)
-----------
$  (52,110)
===========
$    (5.17)
===========
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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 2005
----                                                                                                                                                                                                                                                        | 2004
----                                                                                                                                                                                                                                                     
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Distribution Income
  Total Revenues
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Losses of Project
 Partnerships and Other Income
Equity in Losses of Project Partnerships
 Interest Income
Net Loss
Allocation of Net Loss:
 Limited Partners
 General Partners
Net Loss Per Number of Limited Partnership
Units
Number of Limited Partnership Units
Outstanding | $        0 
-----------
0 
-----------
12,377 
12,985 
5,309 
594 
-----------
31,265 
-----------
(31,265)
(23,320)
3,981 
-----------
$  (50,604)
===========
$  (50,098)
(506)
-----------
$  (50,604)
===========
$    (8.01)
===========
6,254 
=========== | $        0 
-----------
0 
-----------
12,428 
8,971 
6,216 
771 
-----------
28,386 
-----------
(28,386)
(43,687)
3,252
-----------
$  (68,821)
===========
$  (68,133)
(688)
-----------
$  (68,821)
===========
$   (10.89)
===========
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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 2005
----                                                                                                                                                                                                                                                        | 2004
----                                                                                                                                                                                                                                                         
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Distribution Income
  Total Revenues
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Losses of Project
 Partnerships and Other Income
Equity in Losses of Project Partnerships
 Interest Income
Net Loss
Allocation of Net Loss:
Limited Partners
 General Partners
Net Loss Per Number of Limited Partnership
Units
Number of Limited Partnership Units
Outstanding | $        0 
-----------
0 
-----------
8,455 
8,115 
4,297 
1,192 
-----------
22,059 
-----------
(22,059)
(34,370)
3,580 
-----------
$  (52,849)
===========
$  (52,321)
(528)
-----------
$  (52,849)
===========
$   (10.37)
===========
5,043 
=========== | $      700 
-----------
700 
-----------
8,472 
5,607 
4,211 
1,145 
-----------
19,435 
-----------
(18,735)
(34,849)
3,326 
-----------
$  (50,258)
===========
$  (49,756)
(502)
-----------
$  (50,258)
===========
$    (9.87)
===========
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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 2005
----                                                                                                                                                                                                                                                            | 2004
----                                                                                                                                                                                                                                                          
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Distribution Income
  Total Revenues
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Losses of Project
 Partnerships and Other Income
Equity in Losses of Project Partnerships
 Interest Income
Net Loss
Allocation of Net Loss:
 Limited Partners
 General Partners
Net Loss Per Number of Limited Partnership
Units
Number of Limited Partnership Units
Outstanding | $    1,195 
-----------
1,195 
-----------
7,005 
6,493 
4,369 
1,477 
-----------
19,344 
-----------
(18,149)
(32,334)
4,503 
-----------
$  (45,980)
===========
$  (45,520)
(460)
-----------
$  (45,980)
===========
$    (8.88)
===========
5,127 
=========== | $    2,782 
-----------
2,782 
-----------
7,063 
4,485 
3,562 
1,683 
-----------
16,793 
-----------
(14,011)
(9,191)
3,887 
-----------
$  (19,315)
===========
$  (19,122)
(193)
-----------
$  (19,315)
===========
$    (3.73)
===========
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                                                                                                                                                                                                                                                                                                                                                                         | 2005
----                                                                                                                                                                                                                           | 2004
----                                                                                                                                                                                                                          
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Distribution Income
  Total Revenues
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Losses of Project
 Partnerships and Other Income
Equity in Losses of Project Partnerships
 Interest Income
Net Loss
Allocation of Net Loss:
 Limited Partners
 General Partners | $   10,050 
-----------
10,050 
-----------
71,926 
71,960 
35,043 
5,383 
-----------
184,312 
-----------
(174,262)
(102,678)
24,567 
-----------
$ (252,373)
===========
$ (249,849)
(2,524)
-----------
$ (252,373)
=========== | $   15,815 
-----------
15,815 
-----------
72,228 
49,714 
35,098 
6,028 
-----------
163,068 
-----------
(147,253)
(121,891)
21,082 
-----------
$ (248,062)
===========
$ (245,582)
(2,480)
-----------
$ (248,062)
===========



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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 2005
----                                                                                                                                                                                                                                                                     | 2004
----                                                                                                                                                                                                                                                                   
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Distribution Income
  Total Revenues
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Losses of Project
 Partnerships and Other Income
Equity in Losses of Project Partnerships
Interest Income
Net Loss
Allocation of Net Loss:
 Limited Partners
 General Partners
Net Loss Per Number of Limited Partnership
Units
Number of Limited Partnership Units
Outstanding | $   13,218 
-----------
13,218 
-----------
43,224 
39,003 
15,696 
3,106 
-----------
101,029 
-----------
(87,811)
(42,739)
12,766 
-----------
$ (117,784)
===========
$ (116,606)
(1,178)
-----------
$ (117,784)
===========
$   (11.22)
===========
10,395 
=========== | $   13,428 
-----------
13,428 
-----------
43,374 
27,116 
12,055 
3,322 
-----------
85,867 
-----------
(72,439)
(66,585)
10,754 
-----------
$ (128,270)
===========
$ (126,987)
(1,283)
-----------
$ (128,270)
===========
$   (12.22)
===========
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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 2005
----                                                                                                                                                                                                                                                                   | 2004
----                                                                                                                                                                                                                                                                  
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Distribution Income
 Total Revenues
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Income (Losses) of    Project Partnerships and Other Income
Equity in Income (Losses) of Project  Partnerships
Interest Income
Net Loss
Allocation of Net Loss:
 Limited Partners
 General Partners
Net Loss Per Number of Limited
Partnership Units
Number of Limited Partnership Units
Outstanding | $    9,521 
-----------
9,521 
-----------
44,954 
43,004 
16,931 
1,134 
-----------
106,023 
-----------
(96,502)
7,482 
11,167 
-----------
$   (77,853)
===========
$   (77,074)
(779)
-----------
$   (77,853)
===========
$     (7.72)
===========
9,980 
=========== | $    6,839 
-----------
6,839 
-----------
45,156 
29,897 
12,753 
1,536 
-----------
89,342 
-----------
(82,503)
(25,410)
9,782 
-----------
$   (98,131)
===========
$   (97,150)
(981)
-----------
$   (98,131)
===========
$     (9.73)
===========
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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 2005
----                                                                                                                                                                                                                                                              | 2004
----                                                                                                                                                                                                                                                               
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Distribution Income
  Total Revenues
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Losses of Project
 Partnerships and Other Income
Equity in Losses of Project Partnerships
 Interest Income
Net Loss
Allocation of Net Loss:
 Limited Partners
 General Partners
Net Loss Per Number of Limited Partnership
Units
Number of Limited Partnership Units
Outstanding | $    3,042 
-----------
3,042 
-----------
24,754 
24,002 
9,520 
1,188 
-----------
59,464 
-----------
(56,422)
(46,538)
7,632 
-----------
$  (95,328)
===========
$  (94,375)
(953)
-----------
$  (95,328)
===========
$   (15.09)
===========
6,254 
=========== | $    2,438 
-----------
2,438 
-----------
24,856 
16,687 
7,248 
1,542 
-----------
50,333 
-----------
(47,895)
(94,498)
6,279 
-----------
$ (136,114)
===========
$ (134,753)
(1,361)
-----------
$ (136,114)
===========
$   (21.55)
===========
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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 2005
----                                                                                                                                                                                                                                                              | 2004
----                                                                                                                                                                                                                                                               
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Distribution Income
  Total Revenues
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Losses of Project
 Partnerships and Other Income
Equity in Losses of Project Partnerships
 Interest Income
Net Loss
Allocation of Net Loss:
 Limited Partners
 General Partners
Net Loss Per Number of Limited Partnership
Units
Number of Limited Partnership Units
Outstanding | $    1,380 
-----------
1,380 
-----------
16,910 
15,001 
6,476 
2,383 
-----------
40,770 
-----------
(39,390)
(54,424)
6,895 
-----------
$  (86,919)
===========
$  (86,050)
(869)
-----------
$  (86,919)
===========
$   (17.06)
===========
5,043 
=========== | $    2,080 
-----------
2,080 
-----------
16,944 
10,429 
5,091 
2,290 
-----------
34,754 
-----------
(32,674)
(74,123)
6,374 
-----------
$ (100,423)
===========
$  (99,419)
(1,004)
-----------
$ (100,423)
===========
$   (19.71)
===========
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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 2005
----                                                                                                                                                                                                                                                              | 2004
----                                                                                                                                                                                                                                                            
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Distribution Income
  Total Revenues
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Losses of Project
 Partnerships and Other Income
Equity in Losses of Project Partnerships
 Interest Income
Net Loss
Allocation of Net Loss:
 Limited Partners
 General Partners
Net Loss Per Number of Limited Partnership
Units
Number of Limited Partnership Units
Outstanding | $    2,182 
-----------
2,182 
-----------
14,010 
12,001 
6,379 
2,954 
-----------
35,344 
-----------
(33,162)
(56,558)
8,650 
-----------
$  (81,070)
===========
$  (80,259)
(811)
-----------
$  (81,070)
===========
$   (15.65)
===========
5,127 
=========== | $    2,782 
-----------
2,782 
-----------
14,126 
8,343 
4,352 
3,366 
-----------
30,187 
-----------
(27,405)
(48,114)
7,512 
-----------
$  (68,007)
===========
$  (67,327)
(680)
-----------
$  (68,007)
===========
$   (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 SIX MONTHS ENDED SEPTEMBER 30,
(Unaudited)

|TOTAL SERIES 7 - 11                                                                                                                                                                                                                                                                                                                                                                         | 2005
----                                                                                                                                                                                                                              | 2004
----                                                                                                                                                                                                                            
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Distribution Income
  Total Revenues
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Losses of Project
 Partnerships and Other Income
Equity in Losses of Project Partnerships
 Interest Income
Net Loss
Allocation of Net Loss:
 Limited Partners
 General Partners | $   29,343 
-----------
29,343 
-----------
143,852 
133,011 
55,002 
10,765 
-----------
342,630 
-----------
(313,287)
(192,777)
47,110 
-----------
$ (458,954)
===========
$ (454,364)
(4,590)
-----------
$ (458,954)
=========== | $   27,567 
-----------
27,567 
-----------
144,456 
92,472 
41,499 
12,056 
-----------
290,483 
-----------
(262,916)
(308,730)
40,701 
-----------
$ (530,945)
===========
$ (525,636)
(5,309)
-----------
$ (530,945)
===========



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, 2005 AND 2004:

|SERIES 7                                                                                                                          | Limited
Partners
---------                                                                                                  | General
Partners
--------                                                                                         | Total
-----                                                                                                               
|--------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 2004
Net Loss
Balance at September 30, 2004
Balance at March 31, 2005
Net Loss
Balance at September 30, 2005 | $ 1,290,808 
(126,987)
------------
$ 1,163,821 
============
$ 1,031,936 
(116,606)
------------
$   915,330 
============ | $  (79,162)
(1,283)
-----------
$  (80,445)
===========
$  (81,777)
(1,178)
------------
$  (82,955)
============ | $ 1,211,646 
(128,270)
-----------
$ 1,083,376 
============
$   950,159 
(117,784)
------------
$   832,375 
============



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, 2005 AND 2004:

|SERIES 8                                                                                                                          | Limited
Partners
---------                                                                                                | General
Partners
--------                                                                                     | Total
-----                                                                                                             
|--------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 2004
Net Loss
Balance at September 30, 2004
Balance at March 31, 2005
Net Loss
Balance at September 30, 2005 | $   635,468 
(97,150)
------------
$   538,318 
============
$   458,094 
(77,074)
------------
$   381,020 
============ | $  (82,091)
(981)
-----------
$  (83,072)
===========
$  (83,883)
(779)
------------
$  (84,662)
============ | $   553,377 
(98,131)
-----------
$   455,246 
============
$   374,211 
(77,853)
------------
$   296,358 
============



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, 2005 AND 2004:

|SERIES 9                                                                                                                          | Limited
Partners
---------                                                                                                 | General
Partners
--------                                                                                       | Total
-----                                                                                                           
|--------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 2004
Net Loss
Balance at September 30, 2004
Balance at March 31, 2005
Net Loss
Balance at September 30, 2005 | $ 1,055,258 
(134,753)
------------
$   920,505 
============
$   822,760 
(94,375)
------------
$   728,385 
============ | $  (44,731)
(1,361)
-----------
$  (46,092)
===========
$  (47,079)
(953)
------------
$  (48,032)
============ | $1,010,527 
(136,114)
------------
$  874,413 
============
$  775,681 
(95,328)
------------
$  680,353 
============



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, 2005 AND 2004:

|SERIES 10                                                                                                                         | Limited
Partners
---------                                                                                                | General
Partners
--------                                                                                       | Total
-----                                                                                                               
|--------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 2004
Net Loss
Balance at September 30, 2004
Balance at March 31, 2005
Net Loss
Balance at September 30, 2005 | $ 2,115,390 
(99,419)
------------
$ 2,015,971 
============
$ 1,930,927 
(86,050)
------------
$ 1,844,877 
============ | $  (23,258)
(1,004)
-----------
$  (24,262)
===========
$  (25,121)
(869)
------------
$  (25,990)
============ | $ 2,092,132 
(100,423)
------------
$ 1,991,709 
============
$ 1,905,806 
(86,919)
------------
$ 1,818,887 
============



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, 2005 AND 2004:

|SERIES 11                                                                                                                         | Limited
Partners
---------                                                                                                | General
Partners
--------                                                                                     | Total
-----                                                                                                             
|--------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 2004
Net Loss
Balance at September 30, 2004
Balance at March 31, 2005
Net Loss
Balance at September 30, 2005 | $ 3,202,252 
(67,327)
------------
$ 3,134,925 
============
$ 3,049,825 
(80,259)
------------
$ 2,969,566 
============ | $  (14,109)
(680)
-----------
$  (14,789)
===========
$  (15,649)
(811)
------------
$  (16,460)
============ | $ 3,188,143 
(68,007)
-----------
$ 3,120,136 
============
$ 3,034,176 
(81,070)
------------
$ 2,953,106 
============



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, 2005 AND 2004:

|TOTAL SERIES 7 - 11                                                                                                               | Limited
Partners
---------                                                                                                  | General
Partners
--------                                                                                         | Total
-----                                                                                                               
|--------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 2004
Net Loss
Balance at September 30, 2004
Balance at March 31, 2005
Net Loss
Balance at September 30, 2005 | $ 8,299,176 
(525,636)
------------
$ 7,773,540 
============
$ 7,293,542 
(454,364)
------------
$ 6,839,178 
============ | $ (243,351)
(5,309)
-----------
$ (248,660)
===========
$ (253,509)
(4,590)
------------
$ (258,099)
============ | $ 8,055,825 
(530,945)
-----------
$ 7,524,880 
============
$ 7,040,033 
(458,954)
------------
$ 6,581,079 
============



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
--------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 2005
----                                                                                                                                                                     | 2004
----                                                                                                                                                                    
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|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
   Distribution Income
   Changes in Operating Assets and Liabilities:
    Increase in Payable to General Partners
     Net Cash Used in Operating Activities
Cash Flows from Investing Activities:
 Distributions Received from Project
 Partnerships
     Net Cash Provided by Investing
     Activities
Decrease in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of
Year
Cash and Cash Equivalents at End of Period | $ (117,784)
3,106 
(7,971)
42,739 
(13,218)
45,138 
----------
(47,990)
----------
15,774 
----------
15,774 
----------
(32,216)
383,342 
----------
$  351,126 
=========== | $ (128,270)
3,322 
(9,867)
66,585 
(13,178)
38,425 
----------
(42,983)
----------
17,600 
----------
17,600 
----------
(25,383)
343,873 
----------
$  318,490 
===========



See accompanying notes to financial statements.

---

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

|SERIES 8
--------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 2005
----                                                                                                                                                                     | 2004
----                                                                                                                                                                  
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|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 (Income) Losses of Project
   Partnerships
   Distribution Income
   Changes in Operating Assets and Liabilities:
    Increase in Payable to General Partners
     Net Cash Used in Operating Activities
Cash Flows from Investing Activities:
 Distributions Received from Project
 Partnerships
     Net Cash Provided by Investing
     Activities
Decrease in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of
Year
Cash and Cash Equivalents at End of Period | $  (77,853)
1,134 
(7,155)
(7,482)
(9,521)
46,375 
----------
(54,502)
----------
10,663 
----------
10,663 
----------
(43,839)
325,662 
-----------
$  281,823 
=========== | $  (98,131)
1,536 
(8,833)
25,410 
(6,839)
40,250 
----------
(46,607)
----------
6,834 
----------
6,834 
----------
(39,773)
373,899 
-----------
$  334,126 
===========



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
--------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 2005
----                                                                                                                                                                     | 2004
----                                                                                                                                                                      
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|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
   Distribution Income
   Changes in Operating Assets and Liabilities:
    Decrease in Accounts Receivable
    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 Period | $  (95,328)
1,188 
(4,800)
46,538 
(3,042)
0 
25,885 
----------
(29,559)
----------
4,766 
----------
4,766 
----------
(24,793)
229,897 
----------
$  205,104 
=========== | $ (136,114)
1,542 
(5,644)
94,498 
(2,438)
600 
21,780 
----------
(25,776)
----------
4,162 
----------
4,162 
----------
(21,614)
248,902 
----------
$  227,288 
===========



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
--------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 2005
----                                                                                                                                                                  | 2004
----                                                                                                                                                                  
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|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
   Distribution Income
   Changes in Operating Assets and Liabilities:
    Increase in Payable to General Partners
     Net Cash Used in Operating Activities
Cash Flows from Investing Activities:
  Distributions Received from Project
  Partnerships
     Net Cash Provided by Investing
     Activities
Decrease in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of
Year
Cash and Cash Equivalents at End of Period | $  (86,919)
2,383 
(5,113)
54,424 
(1,380)
17,401 
----------
(19,204)
----------
6,597 
----------
6,597 
----------
(12,607)
142,638 
----------
$  130,031 
=========== | $ (100,423)
2,290 
(5,723)
74,123 
(2,080)
15,916 
----------
(15,897)
----------
11,729 
----------
11,729 
----------
(4,168)
247,847 
----------
$  243,679 
===========



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
--------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 2005
----                                                                                                                                                                        | 2004
----                                                                                                                                                                 
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|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
   Distribution Income
   Changes in Operating Assets and Liabilities:
    Decrease in Accounts Receivable
    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 Period | $  (81,070)
2,954 
(6,123)
56,558 
(2,182)
8,291 
5,900 
----------
(15,672)
----------
3,969 
----------
3,969 
----------
(11,703)
199,931 
----------
$  188,228 
=========== | $  (68,007)
3,366 
(6,863)
48,114 
2,782 
0 
12,495 
----------
(8,113)
----------
5,519 
----------
5,519 
----------
(2,594)
247,638 
----------
$  245,044 
===========



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
-------------------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 2005
----                                                                                                                                                                                     | 2004
----                                                                                                                                                                                 
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|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
   Distribution Income
   Changes in Operating Assets and Liabilities:
    Decrease in Accounts Receivable
    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 Period | $  (458,954)
10,765 
(31,162)
192,777 
(29,343)
8,291 
140,699 
----------
(166,927)
----------
41,769 
----------
41,769 
----------
(125,158)
1,281,470 
----------
$1,156,312 
=========== | $  (530,945)
12,056 
(36,930)
308,730 
(21,753)
600 
128,866 
----------
(139,376)
----------
45,844 
----------
45,844 
----------
(93,532)
1,462,159 
----------
$1,368,627 
===========



See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2005

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, 2005, 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.

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.

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
       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.  Gateway does not guarantee any of the mortgages or other debt of the Project Partnerships.

Cash and Cash Equivalents

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

Concentrations of Credit Risk

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

Use of Estimates in the Preparation of Financial Statements

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

Investment in Securities

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

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.

Reclassifications

For comparability, certain 2004 figures have been reclassified, where appropriate, to conform with the financial statement presentation used in 2005.

Recent Accounting Pronouncements

In January 2003, the FASB issued FASB Interpretation No. 46 ("FIN46"), "Consolidation of Variable Interest Entities, an Interpretation of ARB No. 51." Gateway has adopted FIN 46 and applied its requirements to all Project Partnerships in which Gateway held an interest.  Generally, a variable interest entity, or VIE, is an entity with one or more of the following characteristics, (a) the total equity investment at risk is not sufficient to permit the entity to finance its activities without additional subordinated financial support; (b) as a group the holders of the equity investment at risk lack (i) the ability to make decisions about an entity's activities through voting or similar rights, (ii) the obligation to absorb the expected losses of the entity; or (c) the equity investors have voting rights that are not proportional to their economic interests and substantially all of the entity's activities either involve, or are conducted on behalf of, an investor that has disproportionately few voting rights.  FIN 46 requires a VIE to be consolidated in the financial statements of the entity that is determined to be the primary beneficiary of the VIE.  The primary beneficiary, as is applicable to Gateway's circumstances, is the party in the Project Partnership equity group that is most closely associated with the Project Partnership.
   As of September 30, 2005, Gateway determined that it held variable interests in 128 VIE's, which consist of Project Partnerships, which Gateway is not the primary beneficiary.  Gateway's maximum exposure to loss as a result of its involvement with unconsolidated VIE's is limited to Gateway's recorded investments in and receivables from those VIE's, which is approximately $5,314,388 at September 30, 2005. Gateway may be subject to additional losses to the extent of any financial support that Gateway voluntarily provides to those Project Partnerships in the future.

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, 2005.  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, 2005 Balance Sheets include Investment in Securities consisting of U.S. Treasury Security Strips which represents their cost, plus accreted interest income of $136,416 for Series 7, $122,270 for Series 8, $81,876 for Series 9, $82,183 for Series 10 and $95,768 for Series 11.

|          | Estimated 
Market
Value
----------- | Cost Plus 
Accreted
 Interest
----------- | Gross 
Unrealized
Gains and (Losses)
----------
|--------- | ----------------------------------- | ----------------------------------------- | -----------------------------------------------
|Series 7  | $  230,671                          | $  220,742                                | $   9,929                                      
|Series 8  | 218,323                             | 209,830                                   | 8,493                                          
|Series 9  | 162,859                             | 156,269                                   | 6,590                                          
|Series 10 | 156,437                             | 147,314                                   | 9,123                                          
|Series 11 | 181,052                             | 167,297                                   | 13,755                                         

As of September 30, 2005, the cost and accreted interest of debt securities by contractual maturities is as follows:

|                                        | Series 7
--------   | Series 8
--------   | Series 9
--------  
|--------------------------------------- | ------------------- | ------------------- | -------------------
|Due within 1 year                       | $  75,127           | $  70,287           | $  40,097          
|After 1 year through 5 years            | 145,615             | 139,543             | 116,172            
|                                        | ---------           | ---------           | ---------          
|Total Amount Carried on
  Balance Sheet | $ 220,742
========= | $ 209,830
========= | $ 156,269
=========



|                                        | Series 10
--------  | Series 11
--------  | Total
--------       
|--------------------------------------- | ------------------- | ------------------- | ---------------------
|Due within 1 year                       | $  30,519           | $  35,100           | $  251,130           
|After 1 year through 5 years            | 116,795             | 132,197             | 650,322              
|                                        | ---------           | ---------           | ---------            
|Total Amount Carried on
  Balance Sheet | $ 147,314
========= | $ 167,297
========= | $  901,452
==========

---

NOTE 4 - RELATED PARTY TRANSACTIONS:

The Payable to General Partners primarily represents the asset management fees owed to the General Partners at the end of the period.  It is unsecured, due on demand and, in accordance with the limited partnership agreement, non-interest bearing.  Within the next 12 months, the Managing General Partner does not intend to demand payment on the portion of Asset Management Fees payable classified as long-term on the Balance Sheet.

Value Partners, Inc., an affiliate of Gateway, acquired the general partner interest in Logan Heights, one of the Project Partnerships in Series 8, in 2003.

For the six months ended September 30, 2005 and 2004, the General Partners and affiliates are entitled to compensation and reimbursement for costs and expenses incurred by Gateway as follows:

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

2005             2004
                          -----	            -----
  Series 7              $ 43,224         $ 43,374
  Series 8                44,954           45,156
  Series 9                24,754           24,856
  Series 10               16,910           16,944
  Series 11               14,010	          14,126
                        --------         --------
  Total                 $143,852         $144,456
                        ========	        ========

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             $  39,003        $  27,116
  Series 8                43,004           29,897
  Series 9                24,002           16,687
  Series 10               15,001           10,429
  Series 11               12,001            8,343
                        --------         --------
  Total                 $133,011	        $ 92,472
                        ========         ========

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS:

As of September 30, 2005, 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,
2005
-------------                                                                                 | MARCH 31,
2005
------------                                                                                    
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------
|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 
(7,174,858)
(236,571)
-----------
320,660 
793,335 
(196,741)
-----------
$   917,254 
============ | $ 7,732,089 
(7,132,119)
(234,015)
-----------
365,955 
793,335 
(193,635)
-----------
$   965,655 
===========



(1) In accordance with the Partnership's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $4,440,461 for the period ended September 30, 2005 and cumulative suspended losses of $4,140,409 for the year ended March 31, 2005 are not included.

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

As of September 30, 2005, 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,
2005
------------                                                                                | MARCH 31,
2005
-------------                                                                                  
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------
|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 
(7,377,273)
(172,655)
-----------
36,177 
549,773 
(119,583)
-----------
$   466,367 
=========== | $ 7,586,105 
(7,384,755)
(171,513)
-----------
29,837 
549,773 
(118,449)
-----------
$   461,161 
===========



(1) In accordance with the Partnership's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $5,156,701 for the period ended September 30, 2005 and cumulative suspended losses of $4,846,424 for the year ended March 31, 2005 are not included.

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

As of September 30, 2005, 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,
2005
------------                                                                                 | MARCH 31,
2005
-------------                                                                                   
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------
|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 
(4,204,910)
(143,517)
-----------
565,689 
244,087 
(60,364)
-----------
$   749,412 
============ | $ 4,914,116 
(4,158,372)
(141,793)
-----------
613,951 
244,087 
(59,176)
-----------
$   798,862 
============



(1) In accordance with the Partnership's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $1,651,117 for the period ended September 30, 2005 and cumulative suspended losses of $1,528,748 for the year ended March 31, 2005 are not included.

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

As of September 30, 2005, 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,
2005
--------------                                                                                 | MARCH 31,
2005
-------------                                                                                     
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------
|Capital Contributions to Project Partnerships and purchase price paid for limited partner interests in Project Partnerships
Cumulative equity in losses of Project Partnerships (1)
Cumulative distributions received from Project Partnerships
Investment in Project Partnerships before adjustment
Excess of investment cost over the underlying assets acquired:
 Acquisition fees and expenses
 Accumulated amortization of acquisition
 fees and expenses
Investments in Project Partnerships | $ 3,914,672 
(2,261,791)
(189,609)
-----------
1,463,272 
196,738 
(60,985)
-----------
$ 1,599,025 
============ | $ 3,914,672 
(2,207,367)
(184,392)
-----------
1,522,913 
196,738 
(58,602)
-----------
$ 1,661,049 
============



(1) In accordance with the Partnership's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $228,304 for the period ended September 30, 2005 and cumulative suspended losses of $205,788 for the year ended March 31, 2005 are not included.

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

As of September 30, 2005, 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,
2005
-------------                                                                                  | MARCH 31,
2005
-------------                                                                                     
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------
|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 
(1,564,159)
(166,780)
-----------
2,397,103 
290,335 
(83,957)
-----------
$ 2,603,481 
============ | $ 4,128,042 
(1,507,601)
(164,993)
-----------
2,455,448 
290,335 
(81,003)
-----------
$ 2,664,780 
============



(1) In accordance with the Partnership's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $459,332 for the period September 30, 2005 and cumulative suspended losses of $372,590 for the year ended March 31, 2005 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,
2005
-------------                                                                                       | MARCH 31,
2005
------------                                                                                               
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------
|Capital Contributions to Project Partner-  ships 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 
(22,582,991)
(909,132)
-----------
4,782,901 
2,074,268 
(521,630)
-----------
$ 6,335,539 
============ | $ 28,275,024 
(22,390,214)
(896,706)
------------
4,988,104 
2,074,268 
(510,865)
------------
$  6,551,507 
=============

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

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

|SERIES 7                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 2005
----                                                                                                                                                                                                                                                                                                                                                                                                                                 | 2004
----                                                                                                                                                                                                                                                                                                                                                                                                                                
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|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
  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 | $ 4,081,191 
27,882,864 
21,049 
------------
$31,985,104 
============
$   716,603 
35,849,766 
------------
36,566,369 
------------
(4,271,797)
(309,468)
------------
(4,581,265)
------------
$31,985,104 
============
$ 2,472,841 
------------
1,688,423 
382,812 
747,859 
------------
2,819,094 
------------
$  (346,253)
============
$    (3,462)
============
$  (342,791)
300,052 
------------
$   (42,739)
============ | $ 3,880,430 
29,195,293 
16,088 
------------
$33,091,811 
============
$   745,095 
36,002,235 
------------
36,747,330 
------------
(3,397,229)
(258,290)
------------
(3,655,519)
------------
$33,091,811 
============
$ 2,404,550 
------------
1,589,638 
404,128 
733,294 
------------
2,727,060 
------------
$  (322,510)
============
$    (3,224)
============
$  (319,286)
252,701 
------------
$   (66,585)
============

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

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

|SERIES 8                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 2005
----                                                                                                                                                                                                                                                                                                                                                                                                                                 | 2004
----                                                                                                                                                                                                                                                                                                                                                                                                                                
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|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
  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 Income (Losses) of Project         Partnerships | $ 3,937,978 
29,143,062 
99,780 
------------
$33,180,820 
============
$ 1,045,729 
37,745,148 
------------
38,790,877 
------------
(4,967,719)
(642,338)
------------
(5,610,057)
------------
$33,180,820 
============
$ 2,484,614 
------------
1,615,234 
420,407 
755,915 
------------
2,791,556 
------------
$  (306,942)
============
$    (4,147)
============
$  (302,795)
310,277 
------------
$     7,482 
============ | $ 3,577,759 
30,543,911 
50,918 
------------
$34,172,588 
============
$ 1,006,202 
37,949,865 
------------
38,956,067 
------------
(4,130,794)
(652,685)
------------
(4,783,479)
------------
$34,172,588 
============
$ 2,392,253 
------------
1,544,127 
432,489 
789,013 
------------
2,765,629 
------------
$  (373,376)
============
$    (3,733)
============
$  (368,527)
343,117 
------------
$   (25,410)
============

(1)  An affiliate of the General Partner is the operating general partner in one of the Project Partnerships included above.  The Project Partnership's financial information for the periods ending June 2005 and June 2004 is as follows:

|                       | June 2005  | June 2004 
|---------------------- | ---------- | ----------
|Total Assets           | $ 565,465  | $ 594,352 
|Total Liabilities      | 821,647    | 826,453   
|Gateway Equity         | (139,791)  | (115,951) 
|Other Partner's Equity | (116,391)  | (116,150) 
|Total Revenue          | 47,805     | 42,106    
|Net Loss               | $ (11,264) | $ (10,788)

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

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

|SERIES 9                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 2005
----                                                                                                                                                                                                                                                                                                                                                                                                                              | 2004
----                                                                                                                                                                                                                                                                                                                                                                                                                         
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|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
  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 | $ 2,047,879 
16,771,553 
4,868 
------------
$18,824,300 
============
$   220,397 
20,040,773 
------------
20,261,170 
------------
(1,129,384)
(307,486)
------------
(1,436,870)
------------
$18,824,300 
============
$ 1,263,556 
------------
825,196 
215,958 
393,015 
------------
1,434,169 
------------
$  (170,613)
============
$    (1,706)
============
$  (168,907)
122,369 
------------
$   (46,538)
============ | $ 1,935,761 
17,516,051 
8,464 
------------
$19,460,276 
============
$   280,662 
20,142,793 
------------
20,423,455 
------------
(687,262)
(275,917)
------------
(963,179)
------------
$19,460,276 
============
$ 1,227,211 
------------
786,241 
228,778 
416,266 
------------
1,431,285 
------------
$  (204,074)
============
$    (2,042)
============
$  (202,032)
107,534 
------------
$   (94,498)
============

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

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

|SERIES 10                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 2005
----                                                                                                                                                                                                                                                                                                                                                                                                                       | 2004
----                                                                                                                                                                                                                                                                                                                                                                                                                        
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|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
  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 | $ 1,849,550 
12,418,323 
3,124 
------------
$14,270,997 
============
$   289,768 
13,126,101 
------------
13,415,869 
------------
1,234,655 
(379,527)
------------
855,128 
------------
$14,270,997 
============
$   843,396 
------------
563,954 
122,710 
234,824 
------------
921,488 
------------
$   (78,092)
============
$    (1,152)
============
$   (76,940)
22,516 
------------
$   (54,424)
============ | $ 1,749,959 
12,788,556 
7,703 
------------
$14,546,218 
============
$   273,142 
13,161,837 
------------
13,434,979 
------------
1,448,209 
(336,970)
------------
1,111,239 
------------
$14,546,218 
============
$   826,044 
------------
542,063 
126,900 
248,219 
------------
917,182 
------------
$   (91,138)
============
$    (1,288)
============
$   (89,850)
15,727 
------------
$   (74,123)
============

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

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

|SERIES 11                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 2005
----                                                                                                                                                                                                                                                                                                                                                                                                                          | 2004
----                                                                                                                                                                                                                                                                                                                                                                                                                         
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|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
  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 | $   963,056 
10,539,081 
323,930 
------------
$11,826,067 
============
$   179,820 
9,982,493 
------------
10,162,313 
------------
1,947,356 
(283,602)
------------
1,663,754 
------------
$11,826,067 
============
$   788,763 
------------
578,062 
108,885 
255,290 
------------
942,237 
------------
$  (153,474)
============
$   (10,174)
============
$  (143,300)
86,742 
------------
$   (56,558)
============ | $ 1,281,519 
11,011,838 
60,575 
------------
$12,353,932 
============
$   207,060 
10,099,725 
------------
10,306,785 
------------
2,280,923 
(233,776)
------------
2,047,147 
------------
$12,353,932 
============
$   776,346 
------------
514,295 
115,566 
257,676 
------------
887,537 
------------
$  (111,191)
============
$    (7,129)
============
$  (104,062)
55,948 
------------
$   (48,114)
============

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

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

|TOTAL SERIES 7 - 11                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 2005
----                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 2004
----                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|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
  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 | $ 12,879,654 
96,754,883 
452,751 
------------
$110,087,288 
============
$  2,452,317 
116,744,281 
------------
119,196,598 
------------
(7,186,889)
(1,922,421)
------------
(9,109,310)
------------
$110,087,288 
============
$  7,853,170 
------------
5,270,869 
1,250,772 
2,386,903 
------------
8,908,544 
------------
$ (1,055,374)
============
$    (20,641)
============
$ (1,034,733)
841,956 
------------
$   (192,777)
============ | $ 12,425,428 
101,055,649 
143,748 
------------
$113,624,825 
============
$  2,512,161 
117,356,455 
------------
119,868,616 
------------
(4,486,153)
(1,757,638)
------------
(6,243,791)
------------
$113,624,825 
============
$  7,626,404 
------------
4,976,364 
1,307,861 
2,444,468 
------------
8,728,693 
------------
$ (1,102,289)
============
$    (17,416)
============
$ (1,083,757)
775,027 
------------
$   (308,730)
============

---

Item 4.  Controls and Procedures:

Within 90 days prior to the filing of this report, under the supervision and with the participation of the Partnership's management, including the Partnership's chief executive and chief financial officers, an evaluation of the effectiveness of the Partnership's disclosure controls and procedures (as defined in Rule 13a-14(c) under the Securities Exchange Act of 1934) was performed.  Based on this evaluation, such officers have concluded that the Partnership's disclosure controls and procedures were effective as of the date of that evaluation in alerting them in a timely manner to material information relating to the Partnership required to be included in this report and the Partnership's other reports that it files or submits under the Securities Exchange Act of 1934.  There were no significant changes in the Partnership's internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation.

Item 7.  Management's Discussion and Analysis of Financial Condition and Results of Operations 
Results of Operations, Liquidity and Capital Resources

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

As disclosed on the statement of operations for each Series, interest income increased slightly from the six and three months ended September 30, 2004 to the six and three months ended September 30, 2005.  Equity in Losses of Project Partnerships for the six months ended September 30, 2005 decreased from $308,730 for the six months ended September 30, 2004 to $192,777 as a result of a greater increase in rental and other income when compared with the corresponding increase in total expenses, combined with an increase in suspended losses for the period.  The General and Administrative Expenses - Other increased from $41,499 for the six months ended September 30, 2004 to $55,002 as a result of timing differences of recording various expenses.  However, for the three months ended September 30, 2005 and 2004, these expenses were comparable.  General and Administrative Expenses - General Partner was significantly higher due to increased administrative costs.  Except as described above, there were no unusual variations in the operating results between these two periods.

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

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

Series 7 - Gateway closed this series on October 16, 1992 after receiving $10,395,000 from 635 Limited Partner investors.  Equity in Losses of Project Partnerships for the six months ended September 30, 2005 decreased from $66,585 for the six months ended September 30, 2004 to $42,739 due to an increase in suspended losses.  In general, it is common in the real estate industry to experience losses for financial and tax reporting purposes because of the non-cash expenses of depreciation and amortization.  (These Project Partnerships reported depreciation and amortization of $733,294 and $747,859 for the six months ended June 30, 2004 and 2005, respectively.)  As a result, management expects that this Series, as well as those described below, will report its equity in Project Partnerships as a loss for tax and financial reporting purposes.  Overall, management believes the Project Partnerships are operating as expected and are generating tax credits which meet projections.

At September 30, 2005, the Series had $351,126 of short-term investments (Cash and Cash Equivalents).  It also had $220,742 in Zero Coupon Treasuries with annual maturities providing $77,000 in fiscal year 2006 increasing to $86,000 in fiscal year 2008.  Management believes the sources of funds are sufficient to meet current and ongoing operating costs for the foreseeable future and to pay part of the Asset Management Fee.

As disclosed on the statement of cash flows, the Series had a net loss of ($117,784) for the six months ended September 30, 2005.  However, after adjusting for Equity in Losses of Project Partnerships of $42,739 and the changes in operating assets and liabilities, net cash used in operating activities was $47,990.  Cash provided by investing activities totaled $15,774, consisting of cash distributions from the Project Partnerships.

Series 8 - Gateway closed this Series on September 28, 1993 after receiving $9,980,000 from 664 Limited Partner investors.  Equity in Losses of Project Partnerships for the six months ended September 30, 2005 decreased from $25,410 for the six months ended September 30, 2004 to income of $7,482 as a result of an increase in rental revenue.  (These Project Partnerships reported depreciation and amortization of $789,013 and $755,915 for the six months ended June 30, 2004 and 2005, respectively.)  Overall, management believes the Project Partnerships are operating as expected and are generating tax credits which meet projections.

At September 30, 2005, the Series had $281,823 of short-term investments (Cash and Cash Equivalents).  It also had $209,830 in Zero Coupon Treasuries with annual maturities providing $72,000 in fiscal year 2006 increasing to $82,000 in fiscal year 2008.  Management believes the sources of funds are sufficient to meet current and ongoing operating costs for the foreseeable future and to pay part of the Asset Management Fee.

As disclosed on the statement of cash flows, the Series had a net loss of $77,853 for the six months ended September 30, 2005.  However, after adjusting for Equity in Income of Project Partnerships of $7,482 and the changes in operating assets and liabilities, net cash used in operating activities was $54,502.  Cash provided by investing activities totaled $10,663, consisting of cash distributions from the Project Partnerships.  There were no unusual events or trends to describe.

Series 9 - Gateway closed this Series on December 31, 1993 after receiving $6,254,000 from 406 Limited Partner investors.  Equity in Losses of Project Partnerships for the six months ended September 30, 2005 decreased from $94,498 for the six months ended September 30, 2004 to $46,538 as a result of an increase in suspended losses.  (These Project Partnerships reported depreciation and amortization of $416,266 and $393,015 for the six months ended June 30, 2004 and 2005, respectively.)  Overall, management believes the Project Partnerships are operating as expected and are generating tax credits which meet projections.

At September 30, 2005, the Series had $205,104 of short-term investments (Cash and Cash Equivalents).  It also had $156,269 in Zero Coupon Treasuries with annual maturities providing $41,000 in fiscal year 2006 increasing to $47,000 in fiscal year 2009.  Management believes the sources of funds are sufficient to meet current and ongoing operating costs for the foreseeable future and to pay part of the Asset Management Fee.

As disclosed on the statement of cash flows, the Series had a net loss of $95,328 for the six months ended September 30, 2005.  However, after adjusting for Equity in Losses of Project Partnerships of $46,538 and the changes in operating assets and liabilities, net cash used in operating activities was $29,559.  Cash provided by investing activities totaled $4,766, consisting of cash distributions from the Project Partnerships.  There were no unusual events or trends to describe.

Series 10 - Gateway closed this Series on January 21, 1994 after receiving $5,043,000 from 325 Limited Partner investors.  Equity in Losses of Project Partnerships for the six months ended September 30, 2005 decreased from $74,123 for the six months ended September 30, 2004 to $54,424 as a result of an increase in suspended losses.  (These Project Partnerships reported depreciation and amortization of $248,219 and $234,824 for the six months ended June 30, 2004 and 2005, respectively.)  Overall, management believes the Project Partnerships are operating as expected and are generating tax credits which meet projections.

At September 30, 2005, the Series had $130,031 of short-term investments (Cash and Cash Equivalents).  It also had $147,314 in Zero Coupon Treasuries with annual maturities providing $31,000 in fiscal year 2006 increasing to $40,000 in fiscal year 2010.  Management believes the sources of funds are sufficient to meet current and ongoing operating costs for the foreseeable future and to pay part of the Asset Management Fee.

As disclosed on the statement of cash flows, the Series had a net loss of $86,919 for the six months ended September 30, 2005.  However, after adjusting for Equity in Losses of Project Partnerships of $54,424 and the changes in operating assets and liabilities, net cash used in operating activities was $19,204.  Cash provided by investing activities totaled $6,597, consisting of cash distributions from the Project Partnerships.  There were no unusual events or trends to describe.

Series 11 - Gateway closed this Series on April 29, 1994 after receiving $5,127,000 from 330 Limited investors.  Equity in Losses of Project Partnerships for the six months ended September 30, 2005 increased from $48,114 for the six months ended September 30, 2004 to $56,558 primarily as a result of an increase in maintenance expense.  (These Project Partnerships reported depreciation and amortization of $257,676 and $255,290 for the six months ended June 30, 2004 and 2005, respectively.)  Overall, management believes the Project Partnerships are operating as expected and are generating tax credits which meet projections.

At September 30, 2005, the Series had $188,228 of short-term investments (Cash and Cash Equivalents).  It also had $167,297 in Zero Coupon Treasuries with annual maturities providing $36,000 in fiscal year 2005 increasing to $44,000 in fiscal year 2010.  Management believes the sources of funds are sufficient to meet current and ongoing operating costs for the foreseeable future and to pay part of the Asset Management Fee.

As disclosed on the statement of cash flows, the Series had a net loss of $81,070 for the six months ended September 30, 2005.  However, after adjusting for Equity in Losses of Project Partnerships of $56,558 and the changes in operating assets and liabilities, net cash used in operating activities was $15,672.  Cash provided by investing activities totaled $3,969, consisting of cash distributions from Project Partnerships.  There were no unusual events or trends to describe.

---

Exit Strategy
   The IRS compliance period for low-income housing tax credit properties is generally 15 years from occupancy following construction or rehabilitation completion.  With that in mind, the Partnership is continuing to review the Partnership's holdings, with special emphasis on the properties that are at or very near the satisfaction of the IRS compliance period requirements.  The Partnership's review considers many factors including extended use low-income housing regulation requirements on the property (such as those due to mortgage restrictions or state compliance agreements), the condition of the property, and the tax consequences to the investors from the sale of the property.
   Upon identifying those properties with the highest potential for a successful sale, refinancing or syndication, the Partnership expects to proceed with efforts to liquidate those properties.  The Partnership's objective is to maximize the investors' return wherever possible and, ultimately, to wind down those funds that no longer provide tax benefits to investors.
   Gateway has no direct employees.  The General Partners have full and exclusive discretion in management and control of Gateway.

---

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 14, 2005           By:/s/ Ronald M. Diner                                  Ronald M. Diner
                                  President
Date: November 14, 2005           By:/s/ Jonathan Oorlog
                                  Jonathan Oorlog
                                  Vice President and Chief Financial Officer
Date: November 14, 2005           By:/s/ Sandra Humphreys
                                  Sandra Humphreys
                                  Secretary and Treasurer

---

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 14, 2005           By:/s/ Ronald M. Diner                                  Ronald M. Diner
                                  President

---

I, Jonathan Oorlog, 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 14, 2005           By:/s/ Jonathan Oorlog
                                  Jonathan Oorlog
                                  Vice President and Chief Financial Officer