UNITED STATES
                          SECURITIES AND EXCHANGE COMMISSION
                                WASHINGTON, DC 20549



AMENDED FORM 10-K/A                                 (Amendment No. 1)



[X]     ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES 
        EXCHANGE ACT OF 1934

For the fiscal year ended March 31,
2007

OR

[ ]     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15[d] OF THE
SECURITIES 
         EXCHANGE ACT OF 1934

For the transition period fromto

Commission File Number 0-21762

Gateway Tax Credit Fund III
Ltd.                                       (Exact name of Registrant as specified in its charter)Florida                                    59-3090386(State or other jurisdiction of                   (IRS Employer No.)
incorporation or organization)880 Carillon Parkway,  St.
Petersburg,  Florida    33716          (Address of principal executive offices)          (Zip Code)
Registrant's Telephone No., Including Area Code:(727)567-1000Securities registered pursuant to Section 12(b) of the Act:    None
Securities registered pursuant to Section 12(g) of the Act:
Title of Each Class:    Units of Limited Partnership Interest
                                                         Number of Record
Holders
    Title of Each Class                                       March
31, 2007Limited Partnership Interest                                       2,559
General Partner Interest                                               2Indicate by check mark if the registrant is a well-known seasoned issuer, as
defined in Rule 405 of the 
Securities Act.     YES  [ ]    NO  [X]
Indicate by check mark if the registrant is not required to file reports
pursuant to Section 13 or Section 
15(d) of the Act.   YES  [ ]    NO  [X]
Indicate by check mark whether the Registrant: (1) has filed all reports
required to be filed by Section 13 
or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period 
that the Registrant was required to file such reports), and (2) has been subject
to such filing requirements 
for the past 90 days.
                                     YES  [X]    NO  [ ]

---

Indicate by check mark if disclosure of delinquent filers pursuant to item 405
of Regulation S-K (Sec. 229.405 
of this chapter) is not contained herein, and will not be contained to the best
of registrant's knowledge, in 
definitive proxy or information statements incorporated by reference in Part III
of this Form 10-K of any amendment 
to this Form 10-K.   [X]
Indicate by check mark whether the registrant is a large accelerated filer, an
accelerated filer, or a non-
accelerated filer. See definition of "accelerated filer and large accelerated
filer" in Rule 12b-2 of the 
Exchange Act.
            Large accelerated filer  [ ]   Accelerated
Filer  [ ]   Non-accelerated Filer   [X]

Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Act)
                                    YES  [ ]       NO  [X]

State the aggregate market value of the voting and non-voting common equity held
by non-affiliates computed by 
reference to the price at which the common equity was last sold, or the average
bid and asked price of such 
common equity, as of the last business day of the registrants most recently
completed second fiscal quarter.

There is no market for the Registrants Limited
Partnership interests.

DOCUMENTS INCORPORATED BY
REFERENCE
                   Parts I, II, III and IV - Form S-11 Registration Statement
                           and all amendments and supplements thereto.
                                        File No. 33-44238

---



EXPLANATORY NOTE



Item 9A. Controls and Procedures The Company corrected Item 9A
disclosure by reflecting that the evaluation referred to therein occurred as of
the end of the period covered by the report.

Exhibit 31.1 and 31.2 - The Company amended the certification in Exhibit
31.1 and 31.2 to correct the form of certifications.

Independent Auditors' Reports - The Company revised and corrected
the audit reports of Donald W. Causey & Associates, P.C., which are now stated
in accordance with the PCAOB standard, for Meadowview Apartments, Ltd.,
Applegate Apartments, Ltd. and Heatherwood Apartments, Ltd.



---



PART I

Item 1.  Business   Gateway Tax Credit Fund III Ltd. ("Gateway") is a Florida Limited
Partnership. The general partners are Raymond James Tax Credit Funds, Inc., the
Managing General Partner, and Raymond James Partners, Inc., both sponsors of
Gateway Tax Credit Fund III Ltd. and wholly-owned subsidiaries of Raymond James
Financial, Inc. Gateway was formed October 17, 1991 and commenced operations
July 16, 1992 with the first admission of Limited Partners.
   Gateway is engaged in only one industry segment, to acquire limited
partnership interests in unaffiliated limited partnerships ("Project
Partnerships"), each of which owns and operates one or more apartment complexes
eligible for Low-Income Housing Tax Credits under Section 42 of the Internal
Revenue Code ("Tax Credits"), received over a ten year period. Subject to
certain limitations, Tax Credits may be used by Gateway's investors to reduce
their income tax liability generated from other income sources. Gateway will
terminate on December 31, 2040, or sooner, in accordance with the terms of its
Limited Partnership Agreement. As of March 31, 2007, Gateway received capital
contributions of $1,000 from the General Partners and from the Limited Partners:
$10,395,000 in Series 7, $9,980,000 from Series 8, $6,254,000 from Series 9,
$5,043,000 from Series 10 and $5,127,000 from Series 11.
   Gateway offered Limited Partnership units in series. Each series is treated
as though it were a separate partnership, investing in a separate and distinct
pool of Project Partnerships. Net proceeds from each series were used to acquire
Project Partnerships which are specifically allocated to such series. Income or
loss and all tax items from the Project Partnerships acquired by each series are
specifically allocated among the limited partners of such series.
   Operating profits and losses, cash distributions from operations and Tax
Credits are allocated 99% to the Limited Partners and 1% to the General
Partners. Profit or loss and cash distributions from sales of property will be
allocated as described in the Limited Partnership Agreement.
   As of March 31, 2007, Gateway had invested in 133 Project Partnerships in
total. Project Partnership investments by Series are as follows: 39 Project
Partnerships for Series 7, 43 Project Partnerships for Series 8, 24 Project
Partnerships for Series 9, 15 Project Partnerships for Series 10 and 12 Project
Partnerships for Series 11. Gateway acquired its interests in these properties
by becoming a limited partner in the Project Partnerships that own the
properties. The primary source of funds for each series is the capital
contributions from Limited Partner investors.
   All but eight of the properties are financed with mortgage loans from the
Farmers Home Administration (now called United States Department of Agriculture
- Rural Development) ("USDA-RD") under Section 515 of the Housing Act of 1949.
These mortgage loans are made at low interest rates for multi-family housing in
rural and suburban areas, with the requirement that the interest savings be
passed on to low income tenants in the form of lower rents. A significant
portion of the project partnerships also receive rental assistance from USDA-RD
to subsidize certain qualifying tenants. One property in Series 7 received
conventional financing. One property in Series 9, two properties in Series 10
and one property in Series 11 are fully financed through the HOME Investment
Partnerships Program. These HOME Program loans provide financing at rates of 0 %
to 0.5% for a period of 15 to 42 years. One property in Series 11 is partially
financed by HOME. Two properties in Series 11 received conventional financing.
   Risks related to the operations of Gateway are described in detail on pages
29 through 38 of the Prospectus, as supplemented, contained in the Registration
Statement, File No. 33-44238 ("Prospectus"), under the Caption "Risk Factors"
which is incorporated herein by reference. The investment objectives of Gateway
are to:
  1) Provide tax benefits to Limited Partners in the form of Tax Credits during
the period      
     in which each Project is eligible to claim tax credits;
  2) Preserve and protect the capital of each Series.
   The investment objectives and policies of Gateway are described in detail on
pages 39 through 47 of the Prospectus under the caption "Investment Objectives
and Policies" which is incorporated herein by reference.
   Gateway's goal is to invest in a diversified portfolio of Project
Partnerships located in rural and suburban locations with a high demand for low
income housing. As of March 31, 2007 each Series' investor capital contributions
were successfully invested in Project Partnerships which met the investment
criteria. Management anticipates that competition for tenants will only be with
other low income housing projects and not with conventionally financed housing.
With a significant number of rural American households living below the poverty
level in substandard housing, management believes there will be a continuing
demand for affordable low income housing for the foreseeable future.

---

Gateway has no direct employees. Services are performed by
the Managing General Partner and its affiliates and by agents retained by it.
The Managing General Partner has full and exclusive discretion in management and
control of Gateway.
   Exit Strategy Upon expiration of the Project Partnership Tax Credit
Compliance Period   The IRS compliance period for low-income housing tax credit properties is
generally 15 years from occupancy following construction or rehabilitation
completion.
   As of December 31, 2006, only one of the Project Partnerships had reached the
end of its tax credit compliance period. However, all of the other 132 Project
Partnerships will reach the end of the tax credit compliance period during one
of the years ending December 31, 2007 through December 31, 2010.
   When Project Partnerships reach the end of their tax credit compliance
period, Gateway initiates a process of disposing of its investment in the
Project Partnership. The objective of the process is to sell Gateway's interest
in the properties for fair market value and ultimately, when Gateway's last
Project Partnership investment is sold, liquidate Gateway.
Item 1A.  Risk Factors   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. No such contributions have been made in fiscal year
2007, 2006 or 2005.
   Investors eventually may be allocated profits for tax purposes which exceed
any cash Gateway distributes to them. Under these circumstances, unless an
investor has passive losses or credits to reduce such tax liability, the
investor will have to pay federal income tax without a corresponding cash
distribution from Gateway. Similarly, in the event of a sale or foreclosure of
an apartment complex, an investor may be allocated taxable income, resulting in
tax liability, in excess of any cash distributed to the investor as a result of
such event.
   There is no assurance that investors will receive any cash distributions from
the sale or refinancing of a Project Partnership. The price at which a Project
Partnership is sold may not be large enough to pay the mortgage and other
expenses which must be paid at such time.
Item 1B.  Unresolved Staff Comments.   None.

---

Item 2.  Properties   Gateway owns a majority interest in properties through its limited
partnership investments in Project Partnerships. The largest single net
investment as of March 31, 2007 in a Project Partnership for each respective
Series is: Series 7 is 21.6% of the Series' total assets and 3.5% of Gateway's
total assets, Series 8 is 19.4% of the Series' total assets and 2.6% of
Gateway's total assets, Series 9 is 15.4% of the Series' total assets and 1.9%
of Gateway's total assets, Series 10 is 28.5% of the Series' total assets and
7.2% of Gateway's total assets, and Series 11 is 26.8% of the Series' total
assets and 8.8% of Gateway's total assets.
The following tables provides certain summary information regarding the Project
Partnerships in which Gateway had an interest as of December 31, 2006:

SERIES 7

|PARTNERSHIP
    -----------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | LOCATION OF PROPERTY
    -----------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | # OF
    UNIT
    ----                                                                                                                                                                                                                                                       | DATE  
    ACQUIRED
    --------                                                                                                                                                                                                                                                                                                                                 | PROPERTY
    COST  
    --------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | OCCU-PANCY
    RATE
    -----                                                                                                                                                                                                                                                                                                         
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Nottingham
    Cedar Hollow
    Sunrise
    Mountain City
    Burbank
    Washington
    Brookstone
    Tazewell
    N. Irvine
    Horton
    Manchester
    Waynesboro
    Lakeland II
    Mt. Vernon
    Meadow Run
    Spring Creek II
    Warm Springs
    Blue Ridge
    Walnut
    Pioneer
    Dilley
    Elsa
    Clinch View
    Jamestown
    Leander
    Louisa Sr.
    Orchard Commons
    Vardaman
    Heritage Park
    BrooksHollow
    Cavalry Crossing
    Carson City
    Matteson
    Pembroke
    Robynwood
    Atoka
    Coalgate
    Hill Creek
    Cardinal | Pisgah, AL
    Waterloo, NE
    Mission, SD
    Mountain City, TN
    Falls City, NE
    Bloomfield, NE
    McCaysville, GA
    New Tazewell, TN
    Irvine, KY
    Horton, KS
    Manchester, GA
    Waynesboro, GA
    Lakeland, GA
    Mt. Vernon, GA
    Dawson, GA
    Quitman, GA
    Warm Springs, GA
    Blue Ridge, GA
    Elk Point, SD
    Mountain View, AR
    Dilley, TX
    Elsa, TX
    Gate City, VA
    Jamestown, TN
    Leander, TX
    Louisa, KY
    Crab Orchard, KY
    Vardaman, MS
    Paze, AZ
    Jasper, GA
    Ft. Scott, KS
    Carson City, KS
    Capa, KS
    Pembroke, KY
    Cynthiana, KY
    Atoka, OK
    Coalgate, OK
    West Blocton, AL
    Mountain Home, AR | 18
    24
    44
    40
    24
    24
    40
    44
    24
    24
    42
    24
    30
    24
    48
    24
    22
    41
    24
    48
    28
    40
    42
    40
    36
    36
    12
    24
    32
    40
    40
    24
    24
    16
    24
    24
    24
    24
    32 | 6/92
    7/92
    7/92
    8/92
    8/92
    9/92
    9/92
    9/92
    9/92
    9/92
    9/92
    9/92
    9/92
    9/92
    9/92
    9/92
    9/92
    9/92
    9/92
    9/92
    9/92
    9/92
    9/92
    9/92
    9/92
    9/92
    9/92
    9/92
    9/92
    9/92
    9/92
    11/92
    11/92
    12/92
    12/92
    1/93
    1/93
    11/93
    11/93 | 729,584
    1,013,443
    2,675,686
    1,658,014
    1,043,231
    989,726 1,461,449
    1,780,260
    1,029,993
    932,540
    1,474,901
    819,325
    1,009,647
    900,526
    1,744,840
    808,475
    822,934
    1,339,144
    1,059,696
    1,490,047
    890,402
    1,342,015
    1,854,523
    1,584,306
    1,166,234
    1,518,537
    479,661
    925,239
    1,646,234
    1,437,907
    1,853,889
    970,707
    960,793
    623,304
    1,011,684
    835,334
    828,505
    991,547
    785,240 | 100%
    100%
    100%
    100%
    88%
    46%
    100%
    100%
    100%
    83%
    98%
    100%
    93%
    100%
    92%
    100%
    95%
    98%
    96%
    100%
    90%
    95%
    98%
    98%
    100%
    100%
    100%
    100%
    94%
    100%
    85%
    88%
    88%
    88%
    96%
    96%
    100%
    100%
    100%
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | ----                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                  | -----------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                       
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 1,195                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                  | 46,489,522                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                                                                                                                       
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | ====                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                  | ===========                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                       

The average effective rental income per unit for the year ended December 31,
2006 is $4,262 per year ($355 per month).

---

Item 2 - Properties (continued):
SERIES 8

|PARTNERSHIP
    -----------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | LOCATION OF
    PROPERTY
    -----------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | # OF
    UNIT
    -----                                                                                                                                                                                                                                                                                  | DATE  
    ACQUIRED
    --------                                                                                                                                                                                                                                                                                                                                                                           | PROPERTY
    COST  
    --------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | OCCU-
    PANCY
    RATE
    ------                                                                                                                                                                                                                                                                                                                                   
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Purdy
    Galena
    Antlers 2
    Holdenville
    Wetumka
    Mariners Cove
    Mariners Cove Sr.
    Antlers
    Bentonville
    Deerpoint
    Aurora
    Baxter
    Arbor Gate
    Timber Ridge
    Concordia Sr.
    Mountainburg
    Lincoln
    Fox Ridge
    Meadow View
    Sheridan
    Morningside
    Grand Isle
    Meadowview
    Taylor
    Brookwood
    Pleasant Valley
    Reelfoot
    River Rest
    Kirskville
    Cimmaron
    Kenton
    Lovingston
    Pontotoc
    So. Brenchley
    Hustonville
    Northpoint
    Brooks Field
    Brooks Lane
    Brooks Point
    Brooks Run
    Logan Heights
    Lakeshore 2
    Cottondale | Purdy, MO
    Galena, KS
    Antlers, OK
    Holdenville, OK
    Wetumka, OK
    Marine City, MI
    Marine City, MI
    Antlers, OK
    Bentonville, AR
    Elgin, AL
    Aurora, MO
    Baxter Springs, KS
    Bridgeport, AL
    Collinsville, AL
    Concordia, KS
    Mountainburg, AR
    Pierre, SD
    Russellville, AL
    Bridgeport, NE
    Auburn, NE
    Kenton, OH
    Grand Isle, ME
    Van Buren, AR
    Taylor, TX
    Gainesboro, TN
    Lynchburg, TN
    Ridgely, TN
    Newport, TN
    Kirksville, MO
    Arco, ID
    Kenton, OH
    Lovingston, VA
    Pontotoc, MS
    Rexburg, ID
    Hustonville, KY
    Jackson, KY
    Louisville, GA
    Clayton, GA
    Dahlonega, GA
    Jasper, GA
    Russellville, KY
    Tuskegee, AL
    Cottondale, FL | 16
    24
    24
    24
    24
    32
    24
    36
    24
    24
    28
    16
    24
    24
    24
    24
    25
    24
    16
    16
    32
    16
    29
    44
    44
    33
    20
    34
    24
    24
    46
    64
    36
    30
    16
    24
    32
    36
    41
    24
    24
    36
    25 | 12/92
    12/92
    1/93
    1/93
    1/93
    1/93
    1/93
    3/93
    3/93
    3/93
    3/93
    4/93
    5/93
    5/93
    5/93
    6/93
    5/93
    6/93
    6/93
    6/93
    6/93
    6/93
    8/93
    9/93
    9/93
    9/93
    9/93
    9/93
    9/93
    9/93
    9/93
    9/93
    10/93
    10/93
    10/93
    10/93
    10/93
    10/93
    10/93
    10/93
    11/93
    12/93
    1/94 | 613,537
    809,692
    787,859
    892,598
    812,853
    1,318,319
    1,026,699
    1,321,039
    758,489
    948,824
    936,677
    576,162
    943,390
    929,109
    826,389
    883,990
    1,141,490
    902,785
    737,918
    784,810
    1,189,817
    1,200,210
    994,717
    1,529,792
    1,817,225
    1,359,733
    829,848
    1,442,986
    831,492
    1,182,386
    1,781,759
    2,778,712
    1,342,794
    1,585,546
    709,635
    1,103,271
    1,177,691
    1,358,623
    1,659,514
    924,701
    954,580
    1,437,725
    948,319 | 94%
    100%
    100%
    100%
    96%
    94%
    96%
    78%
    100%
    96%
    100%
    100%
    88%
    88%
    92%
    100%
    100%
    92%
    100%
    100%
    94%
    88%
    96%
    100%
    100%
    97%
    95%
    97%
    100%
    83%
    83%
    100%
    100%
    100%
    88%
    96%
    100%
    97%
    100%
    96%
    83%
    92%
    100%
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | -----                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                            | ----------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                                                                                                                                                       
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 1,207                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                            | 48,093,705                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                                                                                                                                                       
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | =====                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                            | ==========                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                                                                                                                                                       

The average effective rental income per unit for the year ended December 31,
2006 is $4,217 per year ($351 per month).

---

Item 2 - Properties (continued):
SERIES 9

|PARTNERSHIP
    -----------                                                                                                                                                                                                                                                                                                          | LOCATION OF
    PROPERTY
    -----------                                                                                                                                                                                                                                                                                                                                                                            | # OF
    UNIT
    -----                                                                                                                                             | DATE  
    ACQUIRED
    --------                                                                                                                                                                                                   | PROPERTY
    COST  
    --------                                                                                                                                                                                                                                                                                      | OCCUPANCY
    RATE
    ------                                                                                                                                                                       
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Jay
    Boxwood
    Stilwell 3
    Arbor Trace
    Arbor Trace 2
    Omega
    Cornell 2
    Elm Creek
    Marionville
    Lamar
    Mt. Glen
    Centreville
    Skyview
    Sycamore
    Bradford
    Cedar Lane
    Stanton
    Abernathy
    Pembroke
    Meadowview
    Town Branch
    Fox Run
    Maple Street
    Manchester | Jay, OK
    Lexington, TX
    Stilwell, OK
    Lake Park, GA
    Lake Park, GA
    Omega, GA
    Watertown, SD
    Pierre, SD
    Marionville, MO
    Lamar, AR
    Heppner, OR
    Centreville, AL
    Troy, AL
    Coffeyville, KS
    Cumberland, KY
    London, KY
    Stanton, KY
    Abernathy, TX
    Pembroke, KY
    Greenville, AL
    Mt. Vernon, KY
    Ragland, AL
    Emporium, PA
    Manchester, GA | 24
    24
    16
    24
    42
    36
    24
    24
    20
    24
    24
    24
    36
    40
    24
    24
    24
    24
    24
    24
    24
    24
    32
    18 | 9/93
    9/93
    9/93
    11/93
    11/93
    11/93
    11/93
    11/93
    11/93
    12/93
    12/93
    12/93
    12/93
    12/93
    12/93
    12/93
    12/93
    1/94
    1/94
    2/94
    12/93
    3/94
    3/94
    5/94 | 810,597
    770,939
    587,132
    918,358
    1,806,434
    1,407,304
    1,239,494
    1,250,635
    774,019
    904,325
    1,083,535
    986,163
    1,423,402
    1,849,005
    1,055,632
    1,008,022
    1,001,158
    781,898
    1,006,295
    1,137,336
    984,410
    978,195
    1,715,881
    735,614 | 100%
    96%
    100%
    100%
    98%
    100%
    96%
    83%
    95%
    92%
    88%
    96%
    97%
    85%
    96%
    100%
    100%
    100%
    88%
    96%
    100%
    96%
    100%
    98%
|                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                     | -----                                                                                                                                                               |                                                                                                                                                                                                                                    | -----------                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                     
|                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                     | 624                                                                                                                                                                 |                                                                                                                                                                                                                                    | 26,215,783                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                     
|                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                     | =====                                                                                                                                                               |                                                                                                                                                                                                                                    | ===========                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                     

The average effective rental income per unit for the year ended
December 31, 2006 is $4,142 per year ($345 per month).

SERIES 10

|PARTNERSHIP
    -----------                                                                                                                                                                                | LOCATION OF
    PROPERTY
    -----------                                                                                                                                                                                                               | # OF
    UNIT
    -----                                                                              | DATE  
    ACQUIRED
    --------                                                                                                    | PROPERTY
    COST  
    --------                                                                                                                                                                        | OCCUPANCY
    RATE
    ------                                                                                              
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ---------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------
|Redstone
    Albany
    Oak Terrace
    Wellshill
    Applegate
    Heatherwood
    Peachtree
    Donna
    Wellsville
    Tecumseh
    Clay City
    Irvine West
    New Castle
    Stigler
    Courtyard | Challis, ID
    Albany, KY
    Bonifay, FL
    West Liberty, KY
    Florence, AL
    Alexander, AL
    Gaffney, SC
    Donna, TX
    Wellsville, NY
    Tecumseh, NE
    Clay City, KY
    Irvine, KY
    New Castle, KY
    Stigler, OK
    Huron, SD | 24
    24
    18
    32
    36
    36
    28
    50
    24
    24
    24
    24
    24
    20
    21 | 11/93
    1/94
    1/94
    1/94
    2/94
    2/94
    3/94
    1/94
    2/94
    4/94
    5/94
    5/94
    5/94
    7/94
    8/94 | 1,167,910
    1,042,529
    664,731
    1,350,944
    1,864,817
    1,642,814
    1,100,996
    1,778,667
    1,438,809
    1,142,972
    1,043,798
    1,113,664
    1,025,932
    754,056
    786,217 | 100%
    100%
    100%
    100%
    97%
    97%
    93%
    98%
    100%
    83%
    100%
    96%
    96%
    100%
    100%
|                                                                                                                                                                                                           |                                                                                                                                                                                                                                                        | ----                                                                                                 |                                                                                                                                     | ----------                                                                                                                                                                                              |                                                                                                                            
|                                                                                                                                                                                                           |                                                                                                                                                                                                                                                        | 409                                                                                                  |                                                                                                                                     | 17,918,856                                                                                                                                                                                              |                                                                                                                            
|                                                                                                                                                                                                           |                                                                                                                                                                                                                                                        | ====                                                                                                 |                                                                                                                                     | ==========                                                                                                                                                                                              |                                                                                                                            

The average effective rental income per unit for the year ended December 31,
2006 is $4,149 per year ($346 per month).

---

Item 2 - Properties (continued):
SERIES 11

|PARTNERSHIP
    -----------                                                                                                                            | LOCATION OF
    PROPERTY
    -----------                                                                                                                                                               | # OF
    UNIT
    -----                                                        | DATE  
    ACQUIRED
    --------                                                                                  | PROPERTY
    COST  
    --------                                                                                                                          | OCCUPANCY
    RATE
    ------                                                                  
|------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------ | ----------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------
|Homestead
    Mountain Oak
    Eloy
    Gila Bend
    Creekstone
    Tifton
    Cass Towne
    Warsaw
    Royston
    Red Bud
    Cardinal
    Parsons | Pinetop, AZ
    Collinsville, AL
    Eloy, AZ
    Gila Bend, AZ
    Dallas, GA
    Tifton, GA
    Cartersville, GA
    Warsaw, VA
    Royston, GA
    Mokane, MO
    Mountain Home, AR
    Parsons, KS | 32
    24
    24
    36
    40
    36
    10
    56
    25
    8
    32
    38 | 9/94
    9/94
    11/94
    11/94
    12/94
    12/94
    12/94
    12/94
    12/94
    12/94
    12/94
    12/94 | 1,816,695
    894,455
    1,030,005
    1,545,966
    2,008,604
    1,706,886
    330,663
    3,404,797
    935,159
    301,564
    512,292
    1,384,172 | 94%
    75%
    92%
    67%
    83%
    92%
    100%
    100%
    100%
    88%
    100%
    66%
|                                                                                                                                                       |                                                                                                                                                                                                        | ----                                                                           |                                                                                                                   | -----------                                                                                                                                               |                                                                                                
|                                                                                                                                                       |                                                                                                                                                                                                        | 361                                                                            |                                                                                                                   | 15,871,258                                                                                                                                                |                                                                                                
|                                                                                                                                                       |                                                                                                                                                                                                        | ====                                                                           |                                                                                                                   | ===========                                                                                                                                               |                                                                                                

The average effective rental income per unit for the year ended December 31,
2006 is $4,496 per year ($375 per month).

A summary of the book value of the fixed assets of the properties at December
31, 2006, 2005 and 2004 is as follows:

12/31/06

|                                                                                                                                                                           | SERIES 7                                                                                                                                                 | SERIES 8                                                                                                                                                | SERIES 9                                                                                                                                                
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------
|Land
    Land Improvements
    Buildings
    Furniture and Fixtures
    Construction in Progress
    Properties, at Cost
    Less: Accum. Depreciation
    Properties, Net | $ 1,628,119
    416,701
    42,317,581
    2,127,121
    0
    -----------
    46,489,522
    20,491,955
    -----------
    $25,997,567
    =========== | $ 1,978,809
    446,554
    43,601,388
    2,066,954
    0
    -----------
    48,093,705
    20,807,872
    -----------
    $27,285,833
    ========== | $ 1,099,659
    214,171
    23,734,613
    1,167,340
    0
    -----------
    26,215,783
    10,415,334
    -----------
    $15,800,449
    ===========



|                                                                                                                                                                           | SERIES 10                                                                                                                                             | SERIES 11                                                                                                                                            | TOTAL                                                                                                                                                            
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------
|Land
    Land Improvements
    Buildings
    Furniture and Fixtures
    Construction in Progress
    Properties, at Cost
    Less: Accum. Depreciation
    Properties, Net | $   648,625
    111,805
    16,457,363
    701,063
    0
    -----------
    17,918,856
    6,027,529
    -----------
    $11,891,327
    =========== | $   599,197
    47,002
    14,647,240
    577,819
    0
    -----------
    15,871,258
    5,562,727
    -----------
    $10,308,531
    =========== | $  5,954,409
    1,236,233
    140,758,185
    6,640,297
    0
    ------------
    154,589,124
    63,305,417
    ------------
    $ 91,283,707
    ============

---

Item 2 - Properties (continued):

12/31/05

|                                                                                                                                                                           | SERIES 7                                                                                                                                                 | SERIES 8                                                                                                                                                | SERIES 9                                                                                                                                               
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------
|Land
    Land Improvements
    Buildings
    Furniture and Fixtures
    Construction in Progress
    Properties, at Cost
    Less: Accum. Depreciation
    Properties, Net | $ 1,635,366
    391,926
    42,278,279
    1,985,906
    0
    -----------
    46,291,477
    19,022,427
    -----------
    $27,269,050
    =========== | $ 1,978,809
    424,067
    43,481,828
    1,976,324
    0
    -----------
    47,861,028
    19,218,334
    -----------
    $28,642,694
    ========== | $ 1,099,659
    207,602
    23,676,553
    1,126,301
    0
    -----------
    26,110,115
    9,640,414
    -----------
    $16,469,701
    ===========



|                                                                                                                                                                           | SERIES 10                                                                                                                                            | SERIES 11                                                                                                                                            | TOTAL                                                                                                                                                            
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------
|Land
    Land Improvements
    Buildings
    Furniture and Fixtures
    Construction in Progress
    Properties, at Cost
    Less: Accum. Depreciation
    Properties, Net | $   648,625
    94,649
    16,425,612
    663,802
    0
    -----------
    17,832,688
    5,569,061
    -----------
    $12,263,627
    =========== | $   599,197
    22,242
    14,415,086
    626,431
    0
    -----------
    15,662,956
    5,314,654
    -----------
    $10,348,302
    =========== | $  5,961,656
    1,140,486
    140,277,358
    6,378,764
    0
    ------------
    153,758,264
    58,764,890
    ------------
    $ 94,993,374
    ============



12/31/04

|                                                                                                                                                                           | SERIES 7                                                                                                                                                 | SERIES 8                                                                                                                                                 | SERIES 9                                                                                                                                                   
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------
|Land
    Land Improvements
    Buildings
    Furniture and Fixtures
    Construction in Progress
    Properties, at Cost
    Less: Accum. Depreciation
    Properties, Net | $ 1,632,366
    387,220
    42,243,157
    1,920,573
    0
    -----------
    46,183,316
    17,552,593
    -----------
    $28,630,723
    =========== | $ 1,978,809
    416,985
    43,408,843
    1,915,791
    0
    -----------
    47,720,428
    17,821,451
    -----------
    $29,898,977
    =========== | $ 1,099,659
    191,080
    23,642,433
    1,096,825
    6,866
    -----------
    26,036,863
    8,872,295
    -----------
    $17,164,568
    ===========



|                                                                                                                                                                           | SERIES 10                                                                                                                                            | SERIES 11                                                                                                                                            | TOTAL                                                                                                                                                                
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Land
    Land Improvements
    Buildings
    Furniture and Fixtures
    Construction in Progress
    Properties, at Cost
    Less: Accum. Depreciation
    Properties, Net | $   648,625
    94,649
    16,376,552
    636,585
    0
    -----------
    17,756,411
    5,103,348
    -----------
    $12,653,063
    =========== | $   599,197
    18,163
    14,401,963
    584,385
    0
    -----------
    15,603,708
    4,809,337
    -----------
    $10,794,371
    =========== | $  5,958,656
    1,108,097
    140,072,948
    6,154,159
    6,866
    ------------
    153,300,726
    54,159,024
    ------------
    $ 99,141,702
    ============

Item 3.  Legal Proceedings   Gateway is not a party to any material pending legal proceedings.
Item 4.  Submission of Matters to a Vote of Security Holders   As of March 31, 2007, no matters were submitted to a vote of security
holders, through the solicitation of proxies or otherwise.

---

PART II

Item 5.  Market for the Registrant's Securities and Related
Security Holder Matters   (a)   Gateway's Limited Partnership interests are not publicly traded.
There is no market for Gateway's Limited Partnership interests and it is
unlikely that any will develop. No transfers of Limited Partnership Interests
are permitted without the prior written consent of the Managing General Partner.
There have been numerous transfers from inception to date with most being from
individuals to their trusts or heirs. The Managing General Partner is not aware
of the price at which Limited Partnership units are transferred. The criteria
for and the details regarding transfers are found on pages A-28 and A-29 of the
Limited Partnership Agreement under ARTICLE XII under the caption "Transfers of
Units" found in the Prospectus, which is incorporated herein by reference.
   There have been no distributions to Limited Partner investors from inception
to date.
   (b)   Approximate Number of Equity Security Holders:
                                               Number of Holders
     Title of Class                           as of March 31, 2007Limited Partner Interest                              2,559
General Partner Interest                                  2
Item 6.  Selected Financial DataFOR THE YEARS ENDED MARCH 31,

|SERIES 7                                                                                                 | 2007
    ----              | 2006
    ----                | 2005
    ----                 | 2004
    ----                 | 2003
    ----               
|-------------------------------------------------------------------------------------------------------- | -------------------------- | ---------------------------- | ----------------------------- | ----------------------------- | ----------------------------
|Total Revenues                                                                                           | $  27,050                  | $  21,470                    | $  24,233                     | $  14,725                     | $  23,088                   
|Net Loss                                                                                                 | (366,648)                  | (467,796)                    | (261,487)                     | (261,362)                     | (233,056)                   
|Equity in Losses of Project Partnerships                                                                 | (78,519)                   | (92,380)                     | (139,599)                     | (130,277)                     | (137,118)                   
|Total Assets                                                                                             | 906,324                    | 1,186,879                    | 1,561,768                     | 1,737,330                     | 1,979,828                   
|Investments In Project Partnerships                                                                      | 442,787                    | 641,745                      | 965,655                       | 1,127,941                     | 1,278,834                   
|Per Weighted Average Limited Partnership Unit: (A)
    Tax Credits
    Portfolio Income
    Passive Loss | .96 
    8.15 
    (98.00) | 8.05 
    6.16 
    (100.77) | 21.36 
    4.56 
    (109.79) | 92.87 
    5.38 
    (121.02) | 163.08
    6.94
    (113.17)
|Net Loss                                                                                                 | (34.92)                    | (44.55)                      | (24.90)                       | (24.89)                       | (22.20)                     



FOR THE YEARS ENDED MARCH 31,

|SERIES 8                                                                                                 | 2007
    ----                 | 2006
    ----                 | 2005
    ----                 | 2004
    ----                  | 2003
    ----                 
|-------------------------------------------------------------------------------------------------------- | ----------------------------- | ----------------------------- | ----------------------------- | ------------------------------ | ------------------------------
|Total Revenues                                                                                           | $   15,890                    | $   16,963                    | $   16,447                    | $   20,098                     | $   19,195                    
|Net Loss                                                                                                 | (240,629)                     | (216,489)                     | (179,166)                     | (176,442)                      | (193,325)                     
|Equity in Losses of Project
    Partnerships                                                             | (15,683)                      | (29,928)                      | (41,395)                      | (39,434)                       | (82,830)                      
|Total Assets                                                                                             | 741,918                       | 893,391                       | 1,013,718                     | 1,163,295                      | 1,305,623                     
|Investments In Project Partnerships                                                                      | 377,733                       | 415,344                       | 461,161                       | 512,795                        | 560,231                       
|Per Weighted Average Limited Partnership Unit: (A)
    Tax Credits
    Portfolio Income
    Passive Loss | 1.55 
    10.68 
    (110.42) | 16.92 
    7.30 
    (110.88) | 56.12 
    5.23 
    (121.46) | 140.61 
    5.04 
    (127.45) | 162.03 
    7.29 
    (125.60)
|Net Loss                                                                                                 | (23.87)                       | (21.48)                       | (17.77)                       | (17.50)                        | (19.18)                       



---

FOR THE YEARS ENDED MARCH 31,

|SERIES 9                                                                                                 | 2007
    ----               | 2006
    ----               | 2005
    ----                  | 2004
    ----                  | 2003
    ----                 
|-------------------------------------------------------------------------------------------------------- | --------------------------- | --------------------------- | ------------------------------ | ------------------------------ | ------------------------------
|Total Revenues                                                                                           | $   6,166                   | $   4,437                   | $   7,752                      | $   4,246                      | $   4,433                     
|Net Loss                                                                                                 | (248,128)                   | (341,082)                   | (234,846)                      | (311,941)                      | (346,402)                     
|Equity in Losses of Project Partnerships                                                                 | (117,893)                   | (101,726)                   | (157,684)                      | (230,291)                      | (279,770)                     
|Total Assets                                                                                             | 694,273                     | 893,314                     | 1,180,228                      | 1,395,878                      | 1,676,155                     
|Investments In Project Partnerships                                                                      | 412,287                     | 550,442                     | 798,862                        | 967,040                        | 1,211,933                     
|Per Weighted Average Limited Partnership Unit: (A)
    Tax Credits
    Portfolio Income
    Passive Loss | .00 
    7.40 
    (103.96) | 6.34 
    5.41 
    (90.51) | 102.00 
    3.98 
    (105.86) | 153.39 
    4.44 
    (112.92) | 154.93 
    6.10 
    (127.50)
|Net Loss                                                                                                 | (39.28)                     | (53.99)                     | (37.18)                        | (49.38)                        | (54.84)                       



FOR THE YEARS ENDED MARCH 31,

|SERIES 10                                                                                                | 2007
    ----              | 2006
    ----               | 2005
    ----                  | 2004
    ----                 | 2003
    ----                
|-------------------------------------------------------------------------------------------------------- | -------------------------- | --------------------------- | ------------------------------ | ----------------------------- | -----------------------------
|Total Revenues                                                                                           | $   2,563                  | $   2,561                   | $   2,511                      | $   1,932                     | $     750                    
|Net Loss                                                                                                 | (261,712)                  | (355,932)                   | (186,236)                      | (228,743)                     | (246,694)                    
|Equity in Losses of Project Partnerships                                                                 | (113,347)                  | (111,553)                   | (133,597)                      | (175,628)                     | (201,773)                    
|Total Assets                                                                                             | 1,398,676                  | 1,626,672                   | 1,945,888                      | 2,223,393                     | 2,442,508                    
|Investments In Project Partnerships                                                                      | 1,159,544                  | 1,360,959                   | 1,661,049                      | 1,815,475                     | 2,014,742                    
|Per Weighted Average Limited Partnership Unit: (A)
    Tax Credits
    Portfolio Income
    Passive Loss | .00 
    8.75 
    (91.68) | 9.58 
    7.55 
    (90.73) | 106.09 
    6.36 
    (111.19) | 151.14 
    6.94 
    (89.01) | 151.14 
    8.34 
    (93.89)
|Net Loss                                                                                                 | (51.38)                    | (69.87)                     | (36.58)                        | (44.91)                       | (48.43)                      

---



FOR THE YEARS ENDED MARCH 31,

|SERIES 11                                                                                                | 2007
    ----               | 2006
    ----                 | 2005
    ----                 | 2004
    ----                 | 2003
    ----                
|-------------------------------------------------------------------------------------------------------- | --------------------------- | ----------------------------- | ----------------------------- | ----------------------------- | -----------------------------
|Total Revenues                                                                                           | $   3,382                   | $   3,382                     | $   2,783                     | $   2,182                     | $       0                    
|Net Loss                                                                                                 | (470,714)                   | (776,165)                     | (153,967)                     | (143,577)                     | (207,311)                    
|Equity in Losses of Project Partnerships                                                                 | (32,981)                    | (96,562)                      | (112,606)                     | (101,608)                     | (169,857)                    
|Total Assets                                                                                             | 1,821,412                   | 2,271,082                     | 3,034,176                     | 3,228,629                     | 3,377,050                    
|Investments In Project Partnerships                                                                      | 1,505,978                   | 1,926,349                     | 2,664,780                     | 2,799,412                     | 2,914,130                    
|Per Weighted Average Limited Partnership Unit: (A)
    Tax Credits
    Portfolio Income
    Passive Loss | 8.57 
    6.61 
    (56.12) | 110.21 
    5.75 
    (52.47) | 145.72 
    4.33 
    (99.03) | 147.19 
    4.71 
    (75.39) | 147.20 
    6.21 
    (61.45)
|Net Loss                                                                                                 | (90.89)                     | (149.87)                      | (29.73)                       | (27.72)                       | (40.03)                      



1. The tax information is as of December 31, the year end for tax purposes.
  The above selected financial data should be read in conjunction with the
  financial statements and related notes appearing elsewhere in this report. 
  This statement is not covered by the auditor's opinion included elsewhere in
  this report.

Item 7.  Management's Discussion and Analysis of Financial
Condition and Results of Operations   This item should be read in conjunction with the financial statements and
other items contained elsewhere in this report.
   The Managing General Partner monitors developments in the area of legal and
regulatory compliance. For example, the Sarbanes-Oxley Act of 2002 (the "Act")
mandates or suggests additional compliance measures with regard to governance,
disclosure, audit and other areas and certain provisions of the Act will require
implementation by Gateway in subsequent years. In light of these additional
requirements of the Act, Gateway has and expects to continue to incur increased
expenses related to compliance with the Act.Results of Operations, Liquidity and Capital Resources
   Operations commenced on July 16, 1992 with the admission of the first Limited
Partners in Series 7. The proceeds from Limited Partner investors' capital
contributions available for investment were used to acquire interests in Project
Partnerships.
   Gateway - All Series -  The following discusses the overall results of
operations, liquidity and capital resources for Gateway as a whole. A summary of
the activity within each specific Series of Gateway then follows.
   Distribution income arises from any cash distributions received from Project
Partnerships which have a zero investment balance for financial reporting
purposes. Distribution income increased 13% in fiscal year 2007 to $55,051, an
increase of $6,238 from the fiscal year 2006 distribution income of $48,813,
which represented a $4,913 or 9% decrease as compared to distribution income of
$53,726 in fiscal year 2005.
   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).
   Total expenses of Gateway are $1,385,068 for the fiscal year ended March 31,
2007, a decrease of $485,465 as compared to the fiscal year 2006 total expenses
of $1,870,533, which represented a $1,302,066 increase in total expenses over
the fiscal year 2005 amount of $568,467. Impairment expense represents a
significant component of total expenses in fiscal year 2007 and 2006. Impairment
expense is a non-cash element of expense that arises whenever events or changes
in circumstances indicate that the recorded carrying value of a respective
Investment in Project Partnership may not be recoverable. During fiscal year
2007, impairment expense was recorded in the aggregate amount of $467,646. In
fiscal year 2006, the impairment expense recorded was $1,078,223. Net of this
impairment expense, expenses of Gateway increased $125,112, or 16% in fiscal
year 2007 versus fiscal year 2006. The increase in fiscal year 2007 results from
increases in the expense of the General Partner in administering the business of
Gateway as well as increases in the cost of third-parties who provide services
such as audit services to Gateway. The fiscal year 2006 expense represented a
$223,843, or 39%, increase over the fiscal year 2005 amount of $568,467.
   The sources of funds to pay the expenses of Gateway are cash and cash
equivalents and short-term investments which are comprised of U.S. Treasury
Security Strips ("Zero Coupon Treasuries") and U.S. Treasury Notes along with
the interest earnings thereon, which were purchased with funds set aside for
this purpose, and cash distributed to the Series from the operations of the
Project Partnerships. Due to the rent limitations applicable to the Project
Partnerships projects as a result of their qualifying for Low-Income Housing Tax
Credits, Gateway does not expect there to be a significant increase in future
rental income of the Project Partnerships. Therefore, cash distributions from
the operations of the Project Partnerships are not expected to increase in the
near future. Management believes these 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.
The financial performance of each respective Series is summarized as follows:
   Series 7 - Gateway closed this series on October 16, 1992 after
receiving $10,395,000 from 635 Limited Partner investors. As of March 31, 2007,
the series had invested $7,732,089 in 39 Project Partnerships located in 14
states containing 1,195 apartment units. Average occupancy of the Project
Partnerships was 95% at December 31, 2006.
   Equity in losses of Project Partnerships for the year ended March 31, 2007 of
$78,519 were $13,861 less than the Equity in Losses of Project Partnerships for
the year ended March 31, 2006 which amounted to $92,380. In general, it is
common in the real estate industry to experience losses for financial and tax
reporting

---

Item 7.  Management's Discussion and Analysis of Financial
Condition and Results of Operations (Continued)
purposes because of the non-cash expenses of depreciation and amortization.
(These Project Partnerships reported depreciation and amortization of
$1,494,903, $1,472,897, and $1,475,207 for the periods ended December 31, 2004,
2005 and 2006, respectively). As a result, management expects that this Series,
as well as the Series described below, will report its equity in Project
Partnerships as a loss for tax and financial reporting purposes. 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. For the fiscal
years ended March 31, 2007 and 2006, impairment expenses of $76,196 and $193,195
were recognized in Series 7, respectively. There was no impairment expense in
fiscal year 2005. Overall management believes the Project Partnerships are
operating as expected and generated Tax Credits which met projections.
   At March 31, 2007, the Series had $179,018 of Cash and Cash Equivalents.
Series 7 also had $80,760 in Zero Coupon Treasuries with annual maturities
providing $81,000 in the current fiscal year and $86,000 in fiscal year 2008. In
addition, the Series had $203,759 in U.S. Treasury Notes with a maturity value
of $203,000 at June 30, 2007.
   As disclosed on the statement of cash flows, the Series had a net loss of
$366,648 for the year ending March 31, 2007. However, after considering the
Equity in Losses of Project Partnerships of $78,519 and the changes in operating
assets and liabilities, net cash used in operating activities was $135,812. Cash
used in investing activities totaled $79,200 consisting of $39,620 in cash
distributions from the Project Partnerships and $81,000 from matured Zero Coupon
Treasuries, offset by $199,820 used to purchase U.S. Treasury Notes in July
2006.   Series 8 - Gateway closed this Series on June 28, 1993 after
receiving $9,980,000 from 664 Limited Partner investors. As of March 31, 2007,
the series had invested $7,586,105 in 43 Project Partnerships located in 18
states containing 1,207 apartment units. Average occupancy of the Project
Partnerships was 94% at December 31, 2006.
   Equity in losses of Project Partnerships for the year ended March 31, 2007 of
$15,683 were $14,245 less than the Equity in Losses of Project Partnerships for
the year ended March 31, 2006 which amounted to $29,928. 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 $1,512,305, $1,485,669, and $1,514,946 for the periods ended December 31,
2004, 2005 and 2006, respectively). 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. There were no impairment expenses in fiscal
years 2007, 2006, and 2005. Overall management believes the Project Partnerships
are operating as expected and generated Tax Credits which met projections.
   At March 31, 2007, the Series had $135,130 of Cash and Cash Equivalents.
Series 8 also had $77,196 in Zero Coupon Treasuries with annual maturities
providing $77,000 in the current fiscal year and $82,000 in fiscal year 2008. In
addition, the Series had $127,639 in U.S. Treasury Notes with a maturity value
of $127,000 at June 30, 2007. 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
$240,629 for the year ending March 31, 2007. However, after adjusting for Equity
in Losses of Project Partnerships of $15,683 and the changes in operating assets
and liabilities, net cash used in operating activities was $151,172. Cash used
in investing activities totaled $23,016 consisting of $24,995 in cash
distributions from the Project Partnerships and $77,000 from matured Zero Coupon
Treasuries, offset by $125,011 used to purchase U.S. Treasury Notes in July
2006.
   Series 9 - Gateway closed this Series on September 30, 1993 after
receiving $6,254,000 from 406 Limited Partner investors. As of March 31, 2007,
the series had invested $4,914,116 in 24 Project Partnerships located in 11
states containing 624 apartment units. Average occupancy of the Project
Partnerships was 96% at December 31, 2006.
   Equity in Losses of Project Partnerships for the year ended March 31, 2007 of
$117,893 were $16,167 higher than the Equity in Losses of Project Partnerships
for the year ended March 31, 2006 which amounted to $101,726. 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 $786,226, $767,851, and $774,921 for the years ended December 31, 2004, 2005
and 2006, respectively). 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.

---

Item 7.  Management's Discussion and Analysis of Financial
Condition and Results of Operations (Continued)
There was no impairment expense in fiscal year 2007. For the fiscal year ended
March 31, 2006 impairment expense of $127,532 was recognized. There was no
impairment expense in fiscal year 2005. Overall management believes the Project
Partnerships are operating as expected and generated Tax Credits which met
projections.
   At March 31, 2007 the Series had $70,044 of Cash and Cash Equivalents. Series
9 also had $84,303 in Zero Coupon Treasuries with annual maturities providing
$42,999 in fiscal year 2007 increasing to $47,000 in fiscal year 2009. In
addition, the Series had $127,639 in U.S. Treasury Notes with a maturity value
of $127,000 at June 30, 2007. 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
$248,128 for the year ending March 31, 2007. However, after considering the
Equity in Losses of Project Partnerships of $117,893 and the changes in
operating assets and liabilities, net cash used in operating activities was
$85,312. Cash used in investing activities totaled $67,637 consisting of $14,375
in cash distributions from the Project Partnerships and $42,999 from matured
Zero Coupon Treasuries, offset by $125,011 used to purchase U.S. Treasury Notes
in July 2006.
   Series 10 - Gateway closed this Series on January 21, 1994 after
receiving $5,043,000 from 325 Limited Partner investors. As of March 31, 2007,
the series had invested $3,914,672 in 15 Project Partnerships located in 10
states containing 409 apartment units. Average occupancy of the Project
Partnerships was 97% at December 31, 2006.
   Equity in losses of Project Partnerships for the year ended March 31, 2007 of
$113,347 were $1,794 higher than the Equity in Losses of Project Partnerships
for the year ended March 31, 2006 which amounted to $111,553. 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 $469,719, $466,542, and $465,986 for the periods ended December 31, 2004,
2005, and 2006, respectively). 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. For the fiscal years ended March 31, 2007 and
2006, impairment expenses of $46,129 and $156,694 were recognized, respectively.
There was no impairment expense in fiscal year 2005. Overall, management
believes the Project Partnerships are operating as expected and generated Tax
Credits which met projections.
   At March 31, 2006, the Series had $40,351 of Cash and Cash Equivalents.
Series 10 also had $97,272 in Zero Coupon Treasuries with annual maturities
providing $32,000 in fiscal year 2007 increasing to $40,000 in fiscal year 2010.
In addition, the Series had $101,509 in U.S. Treasury Notes with a maturity
value of $101,000 at June 30, 2007. Management believes the sources of funds are
sufficient to meet current and ongoing operating costs for the foreseeable
future, and to pay part of the Asset Management Fee.
   As disclosed on the statement of cash flows, the Series had a net loss of
$261,712 for the year ending March 31, 2007. However, after considering the
Equity in Losses of Project Partnerships of $113,347 and the changes in
operating assets and liabilities, net cash used in operating activities was
$57,324. Cash used in investing activities totaled $47,022 consisting of $20,396
in cash distributions from the Project Partnerships and $32,000 from matured
Zero Coupon Treasuries, offset by $99,418 used to purchase U.S. Treasury Notes
in July 2006.
   Series 11 - Gateway closed this Series on April 29, 1994 after
receiving $5,127,000 from 330 Limited investors. As of March 31, 2007 the series
had invested $4,128,042 in 12 Project Partnerships located in 7 states
containing 361 apartment units. Average occupancy of the Project Partnerships
was 87% at December 31, 2006.
   Equity in losses of Project Partnerships for the year ended March 31, 2007 of
$32,981 were $63,581 lower than Equity in Losses of Project Partnerships for the
year ended March 31, 2006 which amounted to $96,562. 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 $511,998,
$506,550, and $498,431 for the periods ended December 31, 2004, 2005, and 2006,
respectively). 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. For the fiscal years ended March 31, 2007 and 2006, impairment
expenses of $345,321 and $600,802 were recognized, respectively. There was no
impairment expense in fiscal year 2005. Overall, management believes the Project
Partnerships are operating as expected and generated Tax Credits which met
projections.
   At March 31, 2006, the Series had $53,170 of Cash and Cash Equivalents.
Series 11 also had $109,498 in Zero Coupon Treasuries with annual maturities
providing $38,000 in fiscal year 2007 increasing to $44,000 in fiscal year 2010. 
In addition, the Series had $152,766 in U.S. Treasury Notes with a maturity
value of

---

Item 7.  Management's Discussion and Analysis of Financial
Condition and Results of Operations (Continued)
$152,000 at June 30, 2007. 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
$470,714 for the year ending March 31, 2007. However, after considering the
Equity in Losses of Project Partnerships of $32,981 and the changes in operating
assets and liabilities, net cash used in operating activities was $54,653. Cash
used in investing activities totaled $99,667, consisting of $11,954 in cash
distributions from Project Partnerships and $37,998 from matured Zero Coupon
Treasuries, offset by $149,619 used to purchase U.S. Treasury Notes in July
2006.Exit Strategy Upon expiration of the Project Partnership Tax Credit
Compliance Period   The IRS compliance period for low-income housing tax credit properties is
generally 15 years from occupancy following construction or rehabilitation
completion.
   As of December 31, 2006, only one of the Project Partnerships had reached the
end of its tax credit compliance period. However, all of the other 132 Project
Partnerships will reach the end of the tax credit compliance period during one
of the years ending December 31, 2007 through December 31, 2010.
   When Project Partnerships reach the end of their tax credit compliance
period, Gateway initiates a process of disposing of its investment in the
Project Partnership, the objective of the process is to sell Gateway's interest
in the properties for fair market value and ultimately, when Gateway's last
Project Partnership investment is sold, liquidate Gateway.Disclosure of Contractual Obligations

|                                                                             |                | Payment due by period
|---------------------------------------------------------------------------- | -------------- | ---------------------
|Contractual Obligations                                                      | Total          | Less than 
    1 year
|Long-Term Debt Obligations                                                   |                |                      
|Capital Lease Obligations                                                    |                |                      
|Operating Lease Obligations                                                  |                |                      
|Purchase Obligations                                                         |                |                      
|Other Liabilities Reflected on the Registrant's Balance
    Sheet under GAAP | $2,267,865 (1) | 207,179              

(1)  The Other Liabilities represent the asset management fees and other general
and administrative expense reimbursements owed to the General Partners as of
March 31, 2007. It is unsecured, due on demand and, in accordance with the
limited partnership agreement, non-interest bearing. As referred to in Note 4,
the Managing General Partner does not intend to demand payment of the portion of
this balance reflected as due later than one year within the next 12 months.Item 7A.  Quantitative and Qualitative Disclosures about Market Risk.   As a small business issuer, no information is required.
Item 8.  Financial Statements and Supplementary Data

---

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Partners of Gateway Tax Credit Fund III Ltd.
   We have audited the accompanying balance sheets of Gateway Tax Credit Fund
III Ltd. (a Florida Limited Partnership) as of March 31, 2007 and 2006 and the
related statements of operations, partners' equity (deficit), and cash flows for
each of the years in the two year period ended March 31, 2007. These financial
statements are the responsibility of Gateway's management. Our responsibility is
to express an opinion on these financial statements based on our audits. We did
not audit the financial statements of certain Project Partnerships for which
$1,075,284 of net investment is included in these financial statements as of
March 31, 2006, and for which net losses of $64,475 are included in these
financial statements for the year ended March 31, 2006. Those financial
statements were audited by other auditors whose reports have been furnished to
us, and our opinion, insofar as it relates to the amounts included for such
underlying partnerships, is based solely on the reports of the other auditors.
The financial statements of Gateway Tax Credit Fund III, Ltd. as of March 31,
2005, were audited by other auditors whose report dated September 8, 2005,
expressed an unqualified opinion on those statements.
   We conducted our audits in accordance with the standards of the Public
Company Accounting Oversight Board (United States). Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. Gateway is not required
to have, nor were we engaged to perform, an audit of its internal control over
financial reporting. Our audits included consideration of internal control over
financial reporting as a basis for designing audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Gateway's internal control over financial
reporting. Accordingly we express no such opinion. An audit also includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements, assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits and the reports of
other auditors provide a reasonable basis for our opinion.
   In our opinion, based on our audits and the reports of other auditors, the
financial statements referred to above present fairly, in all material respects,
the financial position of Gateway Tax Credit Fund III Ltd. at March 31, 2007 and
2006, and the results of its operations and its cash flows for the years then
ended in conformity with accounting principles generally accepted in the United
States of America.
   Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The schedules listed under Item 15(a)(2)
in the index are presented for purposes of complying with the Securities and
Exchange Commission's rules and are not part of the basic financial statements.
These schedules have been subjected to the auditing procedures applied in the
audit of the basic financial statements and, in our opinion, based on our audits
and the reports of other auditors, fairly state in all material respects the
financial data required to be set forth therein in relation to the basic
financial statements taken as a whole.
                                         /s/ Reznick Group, P.C.
                                         REZNICK GROUP, P.C.
Atlanta, Georgia
July 13, 2007

---

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM



To the Partners of Gateway Tax Credit Fund III Ltd.
   We have audited the accompanying statements of operations, partners' equity
(deficit), and cash flows of each of the five Series (Series 7 through 11)
constituting Gateway Tax Credit Fund III Ltd. (a Florida Limited Partnership)
for the year ended March 31, 2005. These financial statements are the
responsibility of Gateway's management. Our responsibility is to express an
opinion on these financial statements based on our audit. We did not audit the
financial statements of certain Project Partnerships for which net losses
included on the statements of operations for the year ended March 31, 2005 are:

|          |  | Partnership Loss         
|--------- |  | -------------------------
|          |  | Year ended March 31, 2005
|Series 7  |  | $           0            
|Series 8  |  | 19,399                   
|Series 9  |  | 55,286                   
|Series 10 |  | 42,327                   
|Series 11 |  | 0                        

Those statements were audited by other auditors whose reports have been
furnished to us, and our opinion, insofar as it relates to the amounts included
for such underlying partnerships, is based solely on the reports of the other
auditors.
   We conducted our audit in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the
statements of operations, partners' equity (deficit), and cash flows are free of
material misstatement. Gateway is not required to have, nor were we engaged to
perform, an audit of its internal control over financial reporting. Our audit
included consideration of internal control over financial reporting as a basis
for designing audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the effectiveness of Gateway's
internal control over financial reporting. Accordingly we express no such
opinion. An audit also includes examining, on a test basis, evidence supporting
the amounts and disclosures in the statements of operations, partners' equity
(deficit), and cash flows, assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
presentation of the statements of operations, partners' equity (deficit), and
cash flows. We believe that our audit and the reports of other auditors provide
a reasonable basis for our opinion.
   In our opinion, based on our audit and the reports of other auditors, the
statements of operations, partners' equity (deficit), and cash flows present
fairly, in all material respects, the results of operations and cash flows of
each of the five Series (Series 7 through 11) constituting Gateway Tax Credit
Fund III Ltd. for the year ended March 31, 2005, in conformity with accounting
principles generally accepted in the United States of America.

SPENCE, MARSTON, BUNCH,
MORRIS & CO.
                                      Certified Public Accountants
Clearwater, Florida
September 8, 2005

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)BALANCE SHEET
MARCH 31, 2007 AND 2006

|SERIES 7                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 2007
    ----                                                                                                                                                                                                                                                                                                             | 2006
    ----                                                                                                                                                                                                                                                                                                                
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|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
    at March 31, 2007 and 2006)
    General Partners
      Total Partners' Equity
        Total Liabilities and Partners' Equity | $  179,018 
    284,519 
    -----------
    463,537 
    0 
    442,787 
    -----------
    $  906,324 
    ===========
    $   60,257 
    -----------
    60,257 
    -----------
    730,352 
    -----------
    205,836 
    (90,121)
    -----------
    115,715 
    -----------
    $  906,324 
    =========== | $  394,030 
    76,135 
    -----------
    470,165 
    74,969 
    641,745 
    -----------
    $1,186,879 
    ===========
    $   60,090 
    -----------
    60,090 
    -----------
    644,426 
    -----------
    568,818 
    (86,455)
    -----------
    482,363 
    -----------
    $1,186,879 
    ===========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)BALANCE SHEET
MARCH 31, 2007 AND 2006

|SERIES 8                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 2007
    ----                                                                                                                                                                                                                                                                                                            | 2006
    ----                                                                                                                                                                                                                                                                                                                  
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ASSETS
    Current Assets:
     Cash and Cash Equivalents
     Investments in Securities
     Receivable - Other
      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 (9,980 units for Series 8
    at March 31, 2007 and 2006)
    General Partners
      Total Partners' Equity (Deficit)
        Total Liabilities and Partners' Equity | $ 135,130 
    204,835 
    24,220 
    ----------
    364,185 
    0 
    377,733 
    ----------
    $ 741,918 
    ==========
    $  51,149 
    ----------
    51,149 
    ----------
    773,676 
    ----------
    5,547 
    (88,454)
    ----------
    (82,907)
    ----------
    $  741,918 
    =========== | $ 309,318 
    72,553 
    24,220 
    ----------
    406,091 
    71,956 
    415,344 
    ----------
    $  893,391 
    ==========
    $  51,363 
    ----------
    51,363 
    ----------
    684,306 
    ----------
    243,770 
    (86,048)
    ----------
    157,722 
    ----------
    $  893,391 
    ===========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)BALANCE SHEET
MARCH 31, 2007 AND 2006

|SERIES 9                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 2007
    ----                                                                                                                                                                                                                                                                                                                  | 2006
    ----                                                                                                                                                                                                                                                                                                                
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|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 (6,254 units for Series 9
    at March 31, 2007 and 2006)
    General Partners
      Total Partners' Equity
        Total Liabilities and Partners' Equity | $   70,044 
    170,233 
    -----------
    240,277 
    41,709 
    412,287 
    -----------
    $  694,273 
    ===========
    $   29,911 
    -----------
    29,911 
    -----------
    477,891 
    -----------
    239,442 
    (52,971)
    -----------
    186,471 
    -----------
    $  694,273 
    =========== | $  222,993 
    40,745 
    -----------
    263,738 
    79,134 
    550,442 
    -----------
    $  893,314 
    ===========
    $   30,066 
    -----------
    30,066 
    -----------
    428,649 
    -----------
    485,089 
    (50,490)
    -----------
    434,599 
    -----------
    $  893,314 
    ===========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)BALANCE SHEET
MARCH 31, 2007 AND 2006

|SERIES 10                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 2007
    ----                                                                                                                                                                                                                                                                                                                       | 2006
    ----                                                                                                                                                                                                                                                                                                                     
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|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 (5,043 units for Series 10
    at March 31, 2007 and 2006)
    General Partners
      Total Partners' Equity
        Total Liabilities and Partners' Equity | $   40,351 
    133,864 
    -----------
    174,215 
    64,917 
    1,159,544 
    -----------
    $1,398,676 
    ===========
    $   31,747 
    -----------
    31,747 
    -----------
    78,767 
    -----------
    1,319,459 
    (31,297)
    -----------
    1,288,162 
    -----------
    $1,398,676 
    =========== | $  144,697 
    30,440 
    -----------
    175,137 
    90,576 
    1,360,959 
    -----------
    $1,626,672 
    ===========
    $   31,675 
    -----------
    31,675 
    -----------
    45,123 
    -----------
    1,578,554 
    (28,680)
    -----------
    1,549,874 
    -----------
    $1,626,672 
    ===========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)BALANCE SHEET
MARCH 31, 2007 AND 2006

|SERIES 11                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 2007
    ----                                                                                                                                                                                                                                                                                           | 2006
    ----                                                                                                                                                                                                                                                                                          
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|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
    Partners' Equity (Deficit):
    Limited Partners (5,127 units for Series 11
    at March 31, 2007 and 2006)
    General Partners
      Total Partners' Equity
        Total Liabilities and Partners' Equity | $   53,170 
    190,291 
    -----------
    243,461 
    71,973 
    1,505,978 
    -----------
    $1,821,412 
    ===========
    $   34,115 
    -----------
    34,115 
    -----------
    1,815,414 
    (28,117)
    -----------
    1,787,297 
    -----------
    $1,821,412 
    =========== | $  207,490 
    35,682 
    -----------
    243,172 
    101,561 
    1,926,349 
    -----------
    $2,271,082 
    ===========
    $   13,071 
    -----------
    13,071 
    -----------
    2,281,421 
    (23,410)
    -----------
    2,258,011 
    -----------
    $2,271,082 
    ===========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)BALANCE SHEET
MARCH 31, 2007 AND 2006

|TOTAL SERIES 7 -11                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | 2007
    ----                                                                                                                                                                                                                                                                                                                                                   | 2006
    ----                                                                                                                                                                                                                                                                                                                                                  
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ASSETS
    Current Assets:
     Cash and Cash Equivalents
     Investments in Securities
     Receivable - Other
      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 March 31, 2007 and
    2006)
    General Partners
      Total Partners' Equity
        Total Liabilities and Partners' Equity | $   477,713 
    983,742 
    24,220 
    ------------
    1,485,675 
    178,599 
    3,898,329 
    ------------
    $ 5,562,603 
    ============
    $   207,179 
    -----------
    207,179 
    -----------
    2,060,686 
    -----------
    3,585,698 
    (290,960)
    -----------
    3,294,738 
    -----------
    $ 5,562,603 
    ============ | $ 1,278,528 
    255,555 
    24,220 
    ------------
    1,558,303 
    418,196 
    4,894,839 
    ------------
    $ 6,871,338 
    ============
    $   186,265 
    -----------
    186,265 
    -----------
    1,802,504 
    -----------
    5,157,652 
    (275,083)
    -----------
    4,882,569 
    -----------
    $ 6,871,338 
    ============

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED MARCH 31,

|SERIES 7                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 2007
    ----                                                                                                                                                                                                                                                                                                                                                                             | 2006
    ----                                                                                                                                                                                                                                                                                                                                                                             | 2005
    ----                                                                                                                                                                                                                                                                                                                                                                      
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
      Distribution Income
      Total Revenues
    Expenses:
     Asset Management Fee-General Partner
     General and Administrative:
      General Partner
      Other
     Amortization
     Impairment of Investment in Project   Partnerships
      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 Limited Partnership Unit
    Number of Limited Partnership Units Outstanding | $  27,050 
    ----------
    27,050 
    ----------
    85,926 
    109,100 
    39,852 
    31,673 
    76,196 
    ----------
    342,747 
    ----------
    (315,697)
    (78,519)
    27,568 
    ----------
    $ (366,648)
    ===========
    $ (362,982)
    (3,666)
    ----------
    $ (366,648)
    ===========
    $   (34.92)
    ===========
    10,395 
    =========== | $  21,470 
    ----------
    21,470 
    ----------
    86,447 
    84,526 
    28,296 
    30,603 
    193,195 
    ----------
    423,067 
    ----------
    (401,597)
    (92,380)
    26,181 
    ----------
    $ (467,796)
    ===========
    $ (463,118)
    (4,678)
    ----------
    $ (467,796)
    ===========
    $   (44.55)
    ===========
    10,395 
    =========== | $  24,233 
    ----------
    24,233 
    ----------
    86,447 
    56,857 
    18,197 
    7,089 
    0 
    ----------
    168,590 
    ----------
    (144,357)
    (139,599)
    22,469 
    ----------
    $ (261,487)
    ===========
    $ (258,872)
    (2,615)
    ----------
    $ (261,487)
    ===========
    $   (24.90)
    ===========
    10,395 
    ===========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED MARCH 31,

|SERIES 8                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 2007
    ----                                                                                                                                                                                                                                                                                                                                                               | 2006
    ----                                                                                                                                                                                                                                                                                                                                                              | 2005
    ----                                                                                                                                                                                                                                                                                                                                                            
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
      Distribution Income
      Total Revenues
    Expenses:
     Asset Management Fee-General Partner
     General and Administrative:
      General Partner
      Other
     Amortization
     Impairment of Investment in Project   Partnerships
      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 Limited Partnership Unit
    Number of Limited Partnership Units Outstanding | $  15,890 
    ----------
    15,890 
    ----------
    89,370 
    120,278 
    40,354 
    12,823 
    0 
    ----------
    262,825 
    ----------
    (246,935)
    (15,683)
    21,989 
    ----------
    $(240,629)
    ==========
    $(238,223)
    (2,406)
    ----------
    $(240,629)
    ==========
    $  (23.87)
    ==========
    9,980 
    ========== | $  16,963 
    ----------
    16,963 
    ----------
    89,908 
    93,195 
    30,409 
    12,823 
    0 
    ----------
    226,335 
    ----------
    (209,372)
    (29,928)
    22,811 
    ----------
    $(216,489)
    ==========
    $(214,324)
    (2,165)
    ----------
    $(216,489)
    ==========
    $  (21.48)
    ==========
    9,980 
    ========== | $  16,447 
    ----------
    16,447 
    ----------
    89,908 
    62,689 
    19,352 
    2,553 
    0 
    ----------
    174,502 
    ----------
    (158,055)
    (41,395)
    20,284 
    ----------
    $(179,166)
    ==========
    $(177,374)
    (1,792)
    ----------
    $(179,166)
    ==========
    $  (17.77)
    ==========
    9,980 
    ==========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED MARCH 31,

|SERIES 9                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 2007
    ----                                                                                                                                                                                                                                                                                                                                                             | 2006
    ----                                                                                                                                                                                                                                                                                                                                                                   | 2005
    ----                                                                                                                                                                                                                                                                                                                                                         
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
      Distribution Income
      Total Revenues
    Expenses:
     Asset Management Fee-General Partner
     General and Administrative:
      General Partner
      Other
     Amortization
     Impairment of Investment in Project   Partnerships
      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 Limited Partnership Unit
    Number of Limited Partnership Units Outstanding | $  6,166 
    ----------
    6,166 
    ----------
    49,242 
    67,132 
    24,841 
    12,053 
    0 
    ----------
    153,268 
    ----------
    (147,102)
    (117,893)
    16,867 
    ----------
    $(248,128)
    ==========
    $(245,647)
    (2,481)
    ----------
    $(248,128)
    ==========
    $  (39.28)
    ==========
    6,254 
    ========== | $  4,437 
    ----------
    4,437 
    ----------
    49,509 
    52,016 
    18,273 
    12,194 
    127,532 
    ----------
    259,524 
    ----------
    (255,087)
    (101,726)
    15,731 
    ----------
    $(341,082)
    ==========
    $(337,671)
    (3,411)
    ----------
    $(341,082)
    ==========
    $  (53.99)
    ==========
    6,254 
    ========== | $  7,752 
    ----------
    7,752 
    ----------
    49,509 
    34,990 
    11,260 
    2,377 
    0 
    ----------
    98,136 
    ----------
    (90,384)
    (157,684)
    13,222 
    ----------
    $(234,846)
    ==========
    $(232,498)
    (2,348)
    ----------
    $(234,846)
    ==========
    $  (37.18)
    ==========
    6,254 
    ==========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED MARCH 31,

|SERIES 10                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 2007
    ----                                                                                                                                                                                                                                                                                                                                                                | 2006
    ----                                                                                                                                                                                                                                                                                                                                                                 | 2005
    ----                                                                                                                                                                                                                                                                                                                                                        
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
      Distribution Income
      Total Revenues
    Expenses:
     Asset Management Fee-General Partner
     General and Administrative:
      General Partner
      Other
     Amortization
     Impairment of Investment in Project   Partnerships
      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 Limited Partnership Unit
    Number of Limited Partnership Units Outstanding | $  2,563 
    ----------
    2,563 
    ----------
    33,643 
    41,958 
    19,835 
    24,106 
    46,129 
    ---------
    165,671 
    ---------
    (163,108)
    (113,347)
    14,743 
    ----------
    $(261,712)
    ==========
    $(259,095)
    (2,617)
    ----------
    $(261,712)
    ==========
    $  (51.38)
    ==========
    5,043 
    ========== | $  2,561 
    ----------
    2,561 
    ----------
    33,819 
    32,510 
    13,039 
    24,700 
    156,694 
    ---------
    260,762 
    ---------
    (258,201)
    (111,553)
    13,822 
    ----------
    $(355,932)
    ==========
    $(352,373)
    (3,559)
    ----------
    $(355,932)
    ==========
    $  (69.87)
    ==========
    5,043 
    ========== | $  2,511 
    ----------
    2,511 
    ----------
    33,819 
    21,868 
    8,149 
    4,141 
    0 
    ----------
    67,977 
    ----------
    (65,466)
    (133,597)
    12,737 
    ----------
    $(186,326)
    ==========
    $(184,463)
    (1,863)
    ----------
    $(186,326)
    ==========
    $  (36.58)
    ==========
    5,043 
    ==========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED MARCH 31,

|SERIES 11                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 2007
    ----                                                                                                                                                                                                                                                                                                                                                                   | 2006
    ----                                                                                                                                                                                                                                                                                                                                                                   | 2005
    ----                                                                                                                                                                                                                                                                                                                                                        
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
      Distribution Income
      Total Revenues
    Expenses:
     Asset Management Fee-General Partner
     General and Administrative:
      General Partner
      Other
     Amortization
     Impairment of Investment in Project   Partnerships
      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 Limited Partnership Unit
    Number of Limited Partnership Units Outstanding | $  3,382 
    ----------
    3,382 
    ----------
    27,989 
    33,565 
    20,185 
    33,497 
    345,321 
    ----------
    460,557 
    ----------
    (457,175)
    (32,981)
    19,442 
    ----------
    $(470,714)
    ==========
    $(466,007)
    (4,707)
    ----------
    $(470,714)
    ==========
    $   (90.89)
    ==========
    5,127 
    ========== | $  3,382 
    ----------
    3,382 
    ----------
    28,021 
    26,008 
    12,519 
    33,495 
    600,802 
    ----------
    700,845 
    ----------
    (697,463)
    (96,562)
    17,860 
    ----------
    $(776,165)
    ==========
    $(768,404)
    (7,761)
    ----------
    $(776,165)
    ==========
    $  (149.87)
    ==========
    5,127 
    ========== | $  2,783 
    ----------
    2,783 
    ----------
    28,021 
    17,494 
    7,404 
    6,343 
    0 
    ----------
    59,262 
    ----------
    (56,479)
    (112,606)
    15,118 
    ----------
    $(153,967)
    ==========
    $(152,427)
    (1,540)
    ----------
    $(153,967)
    ==========
    $  (29.73)
    ==========
    5,127 
    ==========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED MARCH 31,

|TOTAL SERIES 7 - 11                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | 2007
    ----                                                                                                                                                                                                                                                                                                                                          | 2006
    ----                                                                                                                                                                                                                                                                                                                                           | 2005
    ----                                                                                                                                                                                                                                                                                                                            
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
      Distribution Income
      Total Revenues
    Expenses:
     Asset Management Fee-General Partner
     General and Administrative:
      General Partner
      Other
     Amortization
     Impairment of Investment in Project   Partnerships
      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 | $    55,051 
    -----------
    55,051 
    -----------
    286,170 
    372,033 
    145,067 
    114,152 
    467,646 
    -----------
    1,385,068 
    -----------
    (1,330,017)
    (358,423)
    100,609 
    -----------
    $(1,587,831)
    ============
    $(1,571,954)
    (15,877)
    ------------
    $(1,587,831)
    ============ | $    48,813 
    -----------
    48,813 
    -----------
    287,704 
    288,255 
    102,536 
    113,815 
    1,078,223 
    -----------
    1,870,533 
    -----------
    (1,821,720)
    (432,149)
    96,405 
    -----------
    $(2,157,464)
    ============
    $(2,135,890)
    (21,574)
    ------------
    $(2,157,464)
    ============ | $    53,726 
    -----------
    53,726 
    -----------
    287,704 
    193,898 
    64,362 
    22,503 
    0 
    -----------
    568,467 
    -----------
    (514,741)
    (584,881)
    83,830 
    -----------
    $(1,015,792)
    ============
    $(1,005,634)
    (10,158)
    ------------
    $(1,015,792)
    ============

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)STATEMENTS OF PARTNERS' EQUITY (deficit)
FOR THE YEARS ENDED MARCH 31, 2007, 2006 AND 2005:

|SERIES 7                                                                                                                                                   | Limited
    Partners
    ---------                                                                                                                                | General
    Partners
    --------                                                                                                                         | Total
    -----                                                                                                                                                
|---------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 2004
    Net Loss
    Balance at March 31, 2005
    Net Loss
    Balance at March 31, 2006
    Net Loss
    Balance at March 31, 2007 | $1,290,808 
    (258,872)
    -----------
    1,031,936 
    (463,118)
    -----------
    568,818 
    (362,982)
    -----------
    $  205,836 
    =========== | $  (79,162)
    (2,615)
    -----------
    (81,777)
    (4,678)
    -----------
    (86,455)
    (3,666)
    -----------
    $  (90,121)
    =========== | $1,211,646 
    (261,487)
    -----------
    950,159 
    (467,796)
    -----------
    482,363 
    (366,648)
    -----------
    $  115,715 
    ===========

STATEMENTS OF PARTNERS' EQUITY (deficit)
FOR THE YEARS ENDED MARCH 31, 2007, 2006 AND 2005:

|SERIES 8                                                                                                                                                   | Limited
    Partners
    ---------                                                                                                                              | General
    Partners
    --------                                                                                                                   | Total
    -----                                                                                                                                                
|---------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 2004
    Net Loss
    Balance at March 31, 2005
    Net Loss
    Balance at March 31, 2006
    Net Loss
    Balance at March 31, 2007 | $  635,468 
    (177,374)
    -----------
    458,094 
    (214,324)
    -----------
    243,770 
    (238,223)
    -----------
    $    5,547 
    =========== | $ (82,091)
    (1,792)
    ----------
    (83,883)
    (2,165)
    ----------
    (86,048)
    (2,406)
    ----------
    $ (88,454)
    ========== | $  553,377 
    (179,166)
    -----------
    374,211 
    (216,489)
    -----------
    157,722 
    (240,629)
    -----------
    $  (82,907)
    ===========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)STATEMENTS OF PARTNERS' EQUITY (deficit)
FOR THE YEARS ENDED MARCH 31, 2007, 2006 AND 2005:

|SERIES 9                                                                                                                                                   | Limited
    Partners
    ---------                                                                                                                              | General
    Partners
    --------                                                                                                                   | Total
    -----                                                                                                                                               
|---------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 2004
    Net Loss
    Balance at March 31, 2005
    Net Loss
    Balance at March 31, 2006
    Net Loss
    Balance at March 31, 2007 | $1,055,258 
    (232,498)
    -----------
    822,760 
    (337,671)
    -----------
    485,089 
    (245,647)
    -----------
    $  239,442 
    =========== | $ (44,731)
    (2,348)
    ----------
    (47,079)
    (3,411)
    ----------
    (50,490)
    (2,481)
    ----------
    $ (52,971)
    ========== | $1,010,527 
    (234,846)
    -----------
    775,681 
    (341,082)
    -----------
    434,599 
    (248,128)
    ----------
    $  186,471 
    ===========

STATEMENTS OF PARTNERS' EQUITY (deficit)
FOR THE YEARS ENDED MARCH 31, 2007, 2006 AND 2005:

|SERIES 10                                                                                                                                                  | Limited
    Partners
    ---------                                                                                                                                  | General
    Partners
    --------                                                                                                                   | Total
    -----                                                                                                                                                    
|---------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 2004
    Net Loss
    Balance at March 31, 2005
    Net Loss
    Balance at March 31, 2006
    Net Loss
    Balance at March 31, 2007 | $2,115,390 
    (184,463)
    -----------
    1,930,927 
    (352,373)
    -----------
    1,578,554 
    (259,095)
    -----------
    $1,319,459 
    =========== | $ (23,258)
    (1,863)
    ----------
    (25,121)
    (3,559)
    ----------
    (28,680)
    (2,617)
    ----------
    $ (31,297)
    ========== | $2,092,132 
    (186,326)
    -----------
    1,905,806 
    (355,932)
    -----------
    1,549,874 
    (261,712)
    -----------
    $1,288,162 
    ===========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)STATEMENTS OF PARTNERS' EQUITY (deficit)
FOR THE YEARS ENDED MARCH 31, 2007, 2006 AND 2005:

|SERIES 11                                                                                                                                                  | Limited
    Partners
    ---------                                                                                                                                  | General
    Partners
    --------                                                                                                                   | Total
    -----                                                                                                                                                    
|---------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 2004
    Net Loss
    Balance at March 31, 2005
    Net Loss
    Balance at March 31, 2006
    Net Loss
    Balance at March 31, 2007 | $3,202,252 
    (152,427)
    -----------
    3,049,825 
    (768,404)
    -----------
    2,281,421 
    (466,007)
    -----------
    $1,815,414 
    =========== | $ (14,109)
    (1,540)
    ----------
    (15,649)
    (7,761)
    ----------
    (23,410)
    (4,707)
    ----------
    $ (28,117)
    ========== | $3,188,143 
    (153,967)
    -----------
    3,034,176 
    (776,165)
    -----------
    2,258,011 
    (470,714)
    -----------
    $1,787,297 
    ===========

STATEMENTS OF PARTNERS' EQUITY (deficit)
FOR THE YEARS ENDED MARCH 31, 2007, 2006 AND 2005:

|TOTAL SERIES 7 - 11                                                                                                                                        | Limited
    Partners
    ---------                                                                                                                                              | General
    Partners
    --------                                                                                                                        | Total
    -----                                                                                                                                                          
|---------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 2004
    Net Loss
    Balance at March 31, 2005
    Net Loss
    Balance at March 31, 2006
    Net Loss
    Balance at March 31, 2007 | $ 8,299,176 
    (1,005,634)
    ------------
    7,293,542 
    (2,135,890)
    ------------
    5,157,652 
    (1,571,954)
    ------------
    $ 3,585,698 
    ============ | $(243,351)
    (10,158)
    ----------
    (253,509)
    (21,574)
    ----------
    (275,083)
    (15,877)
    ----------
    $(290,960)
    ========== | $8,055,825 
    (1,015,792)
    -----------
    7,040,033 
    (2,157,464)
    -----------
    4,882,569 
    (1,587,831)
    -----------
    $3,294,738 
    ===========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED MARCH 31, 2007, 2006 AND 2005:

|SERIES 7
    --------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | 2007
    ----                                                                                                                                                                                                                                                                                                   | 2006
    ----                                                                                                                                                                                                                                                                                  | 2005
    ----                                                                                                                                                                                                                                                                           
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Cash Flows from Operating Activities:
      Net Loss
      Adjustments to Reconcile Net Loss to Net   
      Cash Used in Operating Activities:
       Amortization
       Impairment of Investment in Project    Partnerships
       Accreted Interest Income on Investments    
       in Securities
       Accreted Discount on Investments in Securities
       Equity in Losses of Project Partnerships
       Distributions Included in Other Income
       Changes in Operating Assets and Liabilities:
        Increase in Interest Receivable
        Increase in Payable to General Partners
         Net Cash Used in Operating Activities
    Cash Flows from Investing Activities:
     Distributions Received from Project Partnerships
     Investment in Securities
     Redemption of Investment in Securities
         Net Cash (Used in) Provided by      
         Investing Activities
    (Decrease) Increase in Cash and Cash Equivalents
    Cash and Cash Equivalents at Beginning of Year
    Cash and Cash Equivalents at End of Year | $(366,648)
    31,673 
    76,196 
    (10,656)
    (813)
    78,519 
    (27,050)
    (3,126)
    86,093 
    ----------
    (135,812)
    ----------
    39,620 
    (199,820)
    81,000 
    ----------
    (79,200)
    ----------
    (215,012)
    394,030 
    ----------
    $ 179,018 
    ========== | $(467,796)
    30,603 
    193,195 
    (15,333)
    0 
    92,380 
    (21,470)
    0 
    92,907 
    ----------
    (95,514)
    ----------
    29,202 
    0 
    77,000 
    ----------
    106,202 
    ----------
    10,688 
    383,342 
    ----------
    $ 394,030 
    ========== | $(261,487)
    7,089 
    0 
    (19,255)
    0 
    139,599 
    (23,983)
    0 
    85,925 
    ----------
    (72,112)
    ----------
    39,581 
    0 
    72,000 
    ----------
    111,581 
    ----------
    39,469 
    343,873 
    ----------
    $ 383,342 
    ==========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED MARCH 31, 2007, 2006 AND 2005:

|SERIES 8
    --------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 2007
    ----                                                                                                                                                                                                                                                                                             | 2006
    ----                                                                                                                                                                                                                                                                             | 2005
    ----                                                                                                                                                                                                                                                                           
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Cash Flows from Operating Activities:
      Net Loss
      Adjustments to Reconcile Net Loss to Net   
      Cash Used in Operating Activities:
       Amortization
       Impairment of Investment in Project    Partnerships
       Accreted Interest Income on Investments 
       in Securities
       Accreted Discount on Investments in Securities
       Equity in Losses of Project Partnerships
       Distributions Included in Other Income
       Changes in Operating Assets and Liabilities:
        Increase in Interest Receivable
        Increase in Payable to General Partners
         Net Cash Used in Operating Activities
    Cash Flows from Investing Activities:
      Distributions Received from Project Partnerships
      Investment in Securities
      Redemption of Investment in Securities
         Net Cash (Used In) Provided by Investing      Activities
    Decrease in Cash and Cash Equivalents
    Cash and Cash Equivalents at Beginning of Year
    Cash and Cash Equivalents at End of Year | $(240,629)
    12,823 
    0 
    (9,687)
    (509)
    15,683 
    (15,890)
    (2,119)
    89,156 
    ----------
    (151,172)
    ----------
    24,995 
    (125,011)
    77,000 
    ----------
    (23,016)
    ----------
    (174,188)
    309,318 
    ----------
    $ 135,130 
    ========== | $(216,489)
    12,823 
    0 
    (13,833)
    0 
    29,928 
    (16,963)
    0 
    96,162 
    ----------
    (108,372)
    ----------
    20,029 
    0 
    71,999 
    ----------
    92,028 
    ----------
    (16,344)
    325,662 
    ----------
    $ 309,318 
    ========== | $(179,166)
    2,553 
    0 
    (17,293)
    0 
    41,395 
    (16,447)
    0 
    29,589 
    ----------
    (139,369)
    ----------
    24,132 
    0 
    67,000 
    ----------
    91,132 
    ----------
    (48,237)
    373,899 
    ----------
    $ 325,662 
    ==========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED MARCH 31, 2007, 2006 AND 2005:

|SERIES 9
    --------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 2007
    ----                                                                                                                                                                                                                                                                                                   | 2006
    ----                                                                                                                                                                                                                                                                                       | 2005
    ----                                                                                                                                                                                                                                                                                   
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Cash Flows from Operating Activities:
      Net Loss
      Adjustments to Reconcile Net Loss to Net   
      Cash Used in Operating Activities:
       Amortization
       Impairment of Investment in Project    Partnerships
       Accreted Interest Income on Investments    
       in Securities
       Accreted Discount on Investments in Securities
       Equity in Losses of Project Partnerships
       Distributions Included in Other Income
       Changes in Operating Assets and Liabilities:
        Increase in Interest Receivable 
        Decrease in Receivable - Other
        Increase in Payable to General Partners
         
    Net Cash Used in Operating Activities
    Cash Flows from Investing Activities:
      Distributions Received from Project Partnerships
      Investment in Securities 
      Redemption of Investment in Securities
         Net Cash (Used in) Provided by      
         Investing Activities
    Decrease in Cash and Cash Equivalents
    Cash and Cash Equivalents at Beginning of Year
    Cash and Cash Equivalents at End of Year | $(248,128)
    12,053 
    0 
    (7,423)
    (509)
    117,893 
    (6,166)
    (2,119)
    0 
    49,087 
    ----------
    (85,312)
    ----------
    14,375 
    (125,011)
    42,999 
    ----------
    (67,637)
    ----------
    (152,949)
    222,993 
    ----------
    $  70,044 
    ========== | $(341,082)
    12,194 
    127,532 
    (9,410)
    0 
    101,726 
    (4,437)
    0 
    0 
    54,168 
    ----------
    (59,309)
    ----------
    11,405 
    0 
    41,000 
    ----------
    52,405 
    ----------
    (6,904)
    229,897 
    ----------
    $ 222,993 
    ========== | $(234,846)
    2,377 
    0 
    (11,133)
    0 
    157,684 
    (7,752)
    0 
    600 
    19,196 
    ----------
    (73,874)
    ----------
    15,869 
    0 
    39,000 
    ----------
    54,869 
    ----------
    (19,005)
    248,902 
    ----------
    $ 229,897 
    ==========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED MARCH 31, 2007, 2006 AND 2005:

|SERIES 10
    --------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 2007
    ----                                                                                                                                                                                                                                                                                                | 2006
    ----                                                                                                                                                                                                                                                                              | 2005
    ----                                                                                                                                                                                                                                                                             
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Cash Flows from Operating Activities:
      Net Loss
      Adjustments to Reconcile Net Loss to Net   
      Cash Used in Operating Activities:
       Amortization
       Impairment of Investment in Project    Partnerships
       Accreted Interest Income on Investments    
       in Securities
       Accreted Discount on Investments in Securities
       Equity in Losses of Project Partnerships
       Distributions Included in Other Income
       Changes in Operating Assets and Liabilities:
        Increase in Interest Receivable 
        Increase (Decrease) in Payable to     
        General Partners
         Net Cash Used in Operating Activities
    Cash Flows from Investing Activities:
      Distributions Received from Project Partnerships
      Investment in Securities
      Redemption of Investment in Securities
         Net Cash (Used in) Provided by      
         Investing Activities
    Increase (Decrease) in Cash and Cash Equivalents
    Cash and Cash Equivalents at Beginning of Year
    Cash and Cash Equivalents at End of Year | $(261,712)
    24,106 
    46,129 
    (8,256)
    (405)
    113,347 
    (2,563)
    (1,686)
    33,716 
    ----------
    (57,324)
    ----------
    20,396 
    (99,418)
    32,000 
    ----------
    (47,022)
    ----------
    (104,346)
    144,697 
    ----------
    $  40,351 
    ========== | $(355,932)
    24,700 
    156,694 
    (9,816)
    0 
    111,553 
    (2,561)
    0 
    36,716 
    ----------
    (38,646)
    ----------
    9,703 
    0 
    31,002 
    ----------
    40,705 
    ----------
    2,059 
    142,638 
    ----------
    $ 144,697 
    ========== | $(186,326)
    4,141 
    0 
    (11,128)
    0 
    133,597 
    (2,511)
    0 
    (91,179)
    ----------
    (153,406)
    ----------
    19,197 
    0 
    29,000 
    ----------
    48,197 
    ----------
    (105,209)
    247,847 
    ----------
    $ 142,638 
    ==========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED MARCH 31, 2007, 2006 AND 2005:

|SERIES 11
    --------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 2007
    ----                                                                                                                                                                                                                                                                                                      | 2006
    ----                                                                                                                                                                                                                                                                                       | 2005
    ----                                                                                                                                                                                                                                                                                     
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Cash Flows from Operating Activities:
      Net Loss
      Adjustments to Reconcile Net Loss to Net   
      Cash Used in Operating Activities:
       Amortization
       Impairment of Investment in Project    Partnerships
       Accreted Interest Income on Investments    
       in Securities
       Accreted Discount on Investments in Securities
       Equity in Losses of Project Partnerships
       Distributions Included in Other Income
       Changes in Operating Assets and Liabilities:
        Increase in Interest Receivable
        Increase (Decrease) in Receivable - Other
        Increase (Decrease) in Payable to     
        General Partners
         Net Cash Used in Operating Activities
    Cash Flows from Investing Activities:
      Distributions Received from Project Partnerships
      Investment in Securities
      Redemption of Investment in Securities
         Net Cash (Used in) Provided by      
         Investing Activities
    Increase (Decrease) in Cash and Cash Equivalents
    Cash and Cash Equivalents at Beginning of Year
    Cash and Cash Equivalents at End of Year | $(470,714)
    33,497 
    345,321 
    (10,253)
    (609)
    32,981 
    (3,382)
    (2,538)
    0 
    21,044 
    ----------
    (54,653)
    ----------
    11,954 
    (149,619)
    37,998 
    ---------
    (99,667)
    ---------
    (154,320)
    207,490 
    ---------
    $  53,170 
    ========== | $(776,165)
    33,495 
    600,802 
    (12,070)
    0 
    96,562 
    (3,382)
    0 
    8,291 
    13,071 
    ----------
    (39,396)
    ----------
    10,954 
    0 
    36,001 
    ---------
    46,955 
    ---------
    7,559 
    199,931 
    ---------
    $ 207,490 
    ========== | $(153,967)
    6,343 
    0 
    (13,595)
    0 
    112,606 
    (2,783)
    0 
    (8,291)
    (40,486)
    ----------
    (100,173)
    ----------
    18,466 
    0 
    34,000 
    ---------
    52,466 
    ---------
    (47,707)
    247,638 
    ---------
    $ 199,931 
    ==========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED MARCH 31, 2007, 2006 AND 2005:

|TOTAL SERIES 7 - 11
    --------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | 2007
    ----                                                                                                                                                                                                                                                                                                                                 | 2006
    ----                                                                                                                                                                                                                                                                                                                 | 2005
    ----                                                                                                                                                                                                                                                                                                       
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Cash Flows from Operating Activities:
      Net Loss
      Adjustments to Reconcile Net Loss to Net   
      Cash Used in Operating Activities:
       Amortization
       Impairment of Investment in Project    Partnerships
       Accreted Interest Income on Investments    
       in Securities
       Accreted Discount on Investments in Securities
       Equity in Losses of Project Partnerships
       Distributions Included in Other Income
       Changes in Operating Assets and Liabilities:
        Increase in Interest Receivable 
        Decrease (Increase) in Receivable - Other
        Increase in Payable to General Partners
         Net Cash Used in Operating Activities
    Cash Flows from Investing Activities:
      Distributions Received from Project Partnerships
      Investment in Securities
      Redemption of Investment in Securities
         Net Cash (Used in) Provided by      
         Investing Activities
    Decrease in Cash and Cash Equivalents
    Cash and Cash Equivalents at Beginning of Year
    Cash and Cash Equivalents at End of Year | $  (1,587,831)
    114,152 
    467,646 
    (46,275)
    (2,845)
    358,423 
    (55,051)
    (11,588)
    0 
    279,096 
    -----------
    (484,273)
    -----------
    111,340 
    (698,879)
    270,997 
    -----------
    (316,542)
    -----------
    (800,815)
    1,278,528 
    -----------
    $  477,713 
    =========== | $  (2,157,464)
    113,815 
    1,078,223 
    (60,462)
    0 
    432,149 
    (48,813)
    0 
    8,291 
    293,024 
    -----------
    (341,237)
    -----------
    81,293 
    0 
    257,002 
    -----------
    338,295 
    -----------
    (2,942)
    1,281,470 
    -----------
    $1,278,528 
    =========== | $(1,015,792)
    22,503 
    0 
    (72,404)
    0 
    584,881 
    (53,476)
    0 
    (7,691)
    3,045 
    -----------
    (538,934)
    -----------
    117,245 
    0 
    241,000 
    -----------
    358,245 
    -----------
    (180,689)
    1,462,159 
    -----------
    $1,281,470 
    ===========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2007, 2006 AND 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 (the "Agreement"). As of
March 31, 2007, 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 Agreement.NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES:
Basis of Accounting   Gateway utilizes an accrual basis of accounting whereby revenues are
recognized as earned and expenses are recognized as obligations are incurred.
   Gateway accounts for its investments as the limited partner in Project
Partnerships ("Investments in Project Partnerships"), using the equity method of
accounting, because management believes that Gateway does not have a majority
control of the major operating and financial policies of the Project
Partnerships in which it invests, and reports the equity in losses of the
Project Partnerships on a 3-month lag in the Statements of Operations. Under the
equity method, the Investments in Project Partnerships initially include:
   1)  Gateway's capital contribution,
   2)  Acquisition fees paid to the General Partner for services rendered in
selecting        
       properties for acquisition, and
   3)  Acquisition expenses including legal fees, travel and other miscellaneous
costs        
       relating to acquiring properties.
Quarterly the Investments in Project Partnerships are increased or decreased as
follows:
   1)  Increased for equity in income or decreased for equity in losses of the
Project        
       Partnerships,
   2)  Decreased for cash distributions received from the Project Partnerships,
and
   3)  Decreased for the amortization of the acquisition fees and expenses.
   For the fiscal year ended March 31, 2006, Gateway changed the period over
which the intangible acquisition fees and expenses are amortized. In all prior
years, the period in which such intangible assets had been amortized was 35
years. In the fiscal year ended March 31, 2006, this amortization period was
changed to 15 years to better approximate the period over which the benefits of
these investments are realized. As a result of this change in estimate, an
additional amortization expense of $24,835 for Series 7, $10,553 for Series 8,
$9,817 for Series 9, $19,964 for Series 10 and $27,587 for Series 11, or $92,756
for all Series of Gateway, was recognized during the year-ended March 31, 2006,
as compared to the amortization expense amount which would have been realized
had the estimated amortization period not changed during the year. The
amortization expense is shown on the Statements of Operations.

---

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (Continued):
   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. Any cash distributions received from Project Partnerships
which have a zero investment balance are accounted for as distribution income in
the period the cash distribution is received by Gateway.
   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. For the fiscal year ended
March 31, 2007, impairment expense was recognized in the Statement of Operations
in the following Series and in the following amounts: Series 7 - $76,196, Series
10 - $46,129, Series 11 - $345,321. The total impairment expense for all Series
in Gateway for fiscal year 2007 was $467,646. For the fiscal year ended March
31, 2006, impairment expense was recognized in the State of Operations in the
following Series and in the following amounts: Series 7 - $193,195, Series 9 -
$127,533, Series 10 - $156,694, Series 11 - $600,802. The total impairment
expense for all Series in Gateway for fiscal year 2006 was $1,078,223. Refer to
Note 5 - Investment in Project Partnerships for further details regarding the
components of the Investment in Project Partnership balance.
   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 for 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. However, Gateway does not guarantee any of the mortgages
or other debt of the Project Partnerships. No such funding to Project
Partnerships occurred during fiscal year 2007, 2006, or 2005.Variable Interest Entities
   In January 2003, the FASB issued FASB Interpretation No. 46 ("FIN46"),
"Consolidation of Variable Interest Entities, an Interpretation of ARB No. 51"
which was subsequently revised in December, 2003. Gateway has adopted FIN 46 and
applied its requirements to all Project Partnerships in which Gateway holds 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.
   Gateway holds variable interests in 128 VIEs, which consist of Project
Partnerships, of which Gateway is not the primary beneficiary. Five of Gateways
Project Partnership investments were determined not to be VIEs. Gateway's
maximum exposure to loss as a result of its involvement with unconsolidated VIEs
is limited to Gateway's recorded investments in and receivables from those VIEs,
which is approximately $3,898,329 at March 31, 2007. 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.Cash and Cash Equivalents   Gateway's policy is 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 whose
investment advisor is a wholly-owned subsidiary of Raymond James Financial, Inc.

---

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (Continued):Investment in Securities   Gateway applies Statement of Financial Accounting Standards No. 115,
Accounting for Certain Investments in Debt and Equity Securities ("FAS
115")(refer to Note 3 below). 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 which are comprised of U.S.
Government Security Strips and U.S. Treasury Notes (collectively the "Gateway
Securities"), until maturity and to use these investments to fund Gateway's
ongoing operations. Interest income is recognized ratably on the Gateway
Securities using the effective yield to maturity. The Gateway Securities are
carried at amortized cost, which approximates market value, and are adjusted for
amortization of premiums and accretion of discounts to maturity. Such
adjustments are included in interest income.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.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.NOTE 3 - INVESTMENT IN SECURITIES:   The March 31, 2007 Balance Sheet includes Gateway Securities at cost,
plus accreted interest income or accreted discounts in the case of U.S. Treasury
Notes, as applicable, of $57,413 for Series 7, $51,165 for Series 8, $50,807 for
Series 9, $61,021 for Series 10 and $71,139 for Series 11. The Gateway
Securities are commonly held in a brokerage account maintained at Raymond James
and Associates, Inc., an affiliate of the General Partners. A separate
accounting is maintained for each series' share of the investments

|                                                                                                                                  | Estimated Market
    Value     
    --------------- | Cost Plus Accreted
    Interest and Accreted Discounts    
    ------------------- | Gross Unrealized 
    Gains and (Losses)
    ----------------
|--------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------- | ---------------------------------------------------------------------------------- | -------------------------------------------------------------
|Series 7                                                                                                                          | $ 284,776                                           | $ 284,519                                                                          | $   257                                                      
|Series 8                                                                                                                          | 205,209                                             | 204,834                                                                            | 375                                                          
|Series 9                                                                                                                          | 212,893                                             | 211,941                                                                            | 952                                                          
|Series 10                                                                                                                         | 201,543                                             | 198,782                                                                            | 2,761                                                        
|Series 11                                                                                                                         | 267,151                                             | 262,264                                                                            | 4,887                                                        
|                                                                                                                                  |                                                     |                                                                                    |                                                              
|As of March 31, 2007, the cost and accreted
    interest/discount of debt securities by contractual maturities is as
    follows: | Series 7
    --------                               | Series 8
    --------                                                              | Series 9
    --------                                        
|Due within 1 year                                                                                                                 | $ 284,519                                           | $ 204,835                                                                          | $ 170,233                                                    
|After 1 year through 5 years                                                                                                      | 0                                                   | 0                                                                                  | 41,709                                                       
|                                                                                                                                  | ---------                                           | ---------                                                                          | ---------                                                    
|Total amount recorded on Balance Sheet                                                                                            | $ 284,519 
    =========                            | $ 204,835 
    =========                                                           | $ 211,942 
    =========                                     
|                                                                                                                                  | Series 10
    --------                              | Series 11
    --------                                                             | Total
    --------                                           
|Due within 1 year                                                                                                                 | $ 133,864                                           | $ 190,291                                                                          | $  983,742                                                   
|After 1 year through 5 years                                                                                                      | 64,917                                              | 71,973                                                                             | 178,599                                                      
|                                                                                                                                  | ---------                                           | ---------                                                                          | ---------                                                    
|Total amount recorded on Balance Sheet                                                                                            | $ 198,781 
    =========                            | $ 262,264 
    =========                                                           | $1,162,341 
    ===========                                  

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.

---

NOTE 4 - RELATED PARTY TRANSACTIONS (Continued):
   For the periods ended March 31, 2007, 2006, and 2005 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.

|          | 2007 
    ----           | 2006 
    ----           | 2005 
    ----          
|--------- | ------------------------ | ------------------------ | ------------------------
|Series 7  | $ 85,926                 | $ 86,447                 | $ 86,447                
|Series 8  | 89,370                   | 89,908                   | 89,908                  
|Series 9  | 49,242                   | 49,509                   | 49,509                  
|Series 10 | 33,643                   | 33,819                   | 33,819                  
|Series 11 | 27,989 
    ---------    | 28,021 
    ---------    | 28,021 
    ---------   
|Total     | $ 286,170 
    ========= | $ 287,704 
    ========= | $ 287,704 
    =========

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.

|          | 2007 
    ----          | 2006 
    ----          | 2005 
    ----         
|--------- | ----------------------- | ----------------------- | -----------------------
|Series 7  | $109,100                | $ 84,526                | $ 56,857               
|Series 8  | 120,278                 | 93,195                  | 62,689                 
|Series 9  | 67,132                  | 52,016                  | 34,990                 
|Series 10 | 41,958                  | 32,510                  | 21,868                 
|Series 11 | 33,565 
    ---------   | 26,008 
    ---------   | 17,494 
    ---------  
|Total     | $372,033 
    ========= | $288,255 
    ========= | $193,898 
    =========

Total unpaid asset management fees and administrative expenses payable to the
General Partners, which are included on the Balance Sheet as of March 31, 2007
and 2006 are as follows.

|          | March 31, 2007
    -------------- | March 31, 2006
    --------------
|--------- | --------------------------------- | ---------------------------------
|Series 7  | $  790,609                        | $  704,516                       
|Series 8  | 824,825                           | 735,669                          
|Series 9  | 507,802                           | 458,715                          
|Series 10 | 110,514                           | 76,798                           
|Series 11 | 34,115 
    -----------           | 13,071 
    -----------          
|Total     | $2,267,865 
    ===========       | $1,988,769 
    ===========      

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS:SERIES 7
   As of March 31, 2007, Gateway 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 the 39 Project Partnerships as
of:

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | MARCH 31, 2007
    --------------                                                                                                                                  | MARCH 31, 2006
    --------------                                                                                                                                 
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------
|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
    Impairment of Investment in Project Partnerships
    Investments in Project Partnerships | $ 7,732,089 
    (7,303,018)
    (254,317)
    -----------
    174,754 
    793,335 
    (255,911)
    (269,391)
    -----------
    $   442,787 
    ============ | $ 7,732,089 
    (7,224,499)
    (241,747)
    -----------
    265,843 
    793,335 
    (224,238)
    (193,195)
    -----------
    $   641,745 
    ============

(1) In accordance with Gateway's accounting policy to not carry Investments
in Project Partnerships below zero, cumulative suspended losses of $5,388,453
for the year ended March 31, 2007 and cumulative suspended losses of $4,825,178
for the year ended March 31, 2006 are not included.

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):SERIES 8
   As of March 31, 2007, Gateway 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 the 43 Project Partnerships as
of:

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | MARCH 31, 2007
    --------------                                                                                                                          | MARCH 31, 2006
    --------------                                                                                                                        
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------
|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
    Impairment of Investment in Project Partnerships
    Investments in Project Partnerships | $ 7,586,105 
    (7,430,366)
    (183,684)
    -----------
    (27,945)
    549,773 
    (144,095)
    0 
    -----------
    $   377,733 
    =========== | $ 7,586,105 
    (7,414,683)
    (174,579)
    -----------
    (3,157)
    549,773 
    (131,272)
    0 
    -----------
    $   415,344 
    ===========

(1) In accordance with Gateway's accounting policy to not carry Investments in
Project Partnerships below zero, cumulative suspended losses of $6,190,831 for
the year ended March 31, 2007 and cumulative suspended losses of $5,547,391 for
the year ended March 31, 2006 are not included.

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):SERIES 9
   As of March 31, 2007, Gateway 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 the 24 Project Partnerships as
of:

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | MARCH 31, 2007
    --------------                                                                                                                                | MARCH 31, 2006
    --------------                                                                                                                               
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------
|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
    Impairment of Investment in Project Partnerships
    Investments in Project Partnerships | $ 4,914,116 
    (4,377,991)
    (156,970)
    -----------
    379,155 
    244,087 
    (83,423)
    (127,532)
    -----------
    $   412,287 
    =========== | $ 4,914,116 
    (4,260,098)
    (148,761)
    -----------
    505,257 
    244,087 
    (71,370)
    (127,532)
    -----------
    $   550,442 
    ===========

(1) In accordance with Gateway's accounting policy to not carry Investments in
Project Partnerships below zero, cumulative suspended losses of $2,054,048 for
the year ended March 31, 2007 and cumulative suspended losses of $1,792,373 for
the year ended March 31, 2006 are not included.

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):SERIES 10
   As of March 31, 2007, Gateway 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 the 15 Project Partnerships as
of:

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | MARCH 31, 2007
    --------------                                                                                                                                   | MARCH 31, 2006
    --------------                                                                                                                                 
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------
|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
    Impairment of Investment in Project Partnerships
    Investments in Project Partnerships | $ 3,914,672 
    (2,432,267)
    (209,368)
    -----------
    1,273,037 
    196,738 
    (107,408)
    (202,823)
    -----------
    $ 1,159,544 
    =========== | $ 3,914,672 
    (2,318,920)
    (191,535)
    -----------
    1,404,217 
    196,738 
    (83,302)
    (156,694)
    -----------
    $ 1,360,959 
    ===========

(1) In accordance with Gateway's accounting policy to not carry Investments in
Project Partnerships below zero, cumulative suspended losses of $421,709 for the
year ended March 31, 2007 and cumulative suspended losses of $346,072 for the
year ended March 31, 2006 are not included.

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):SERIES 11
   As of March 31, 2007, Gateway 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 the 12 Project Partnerships as
of:

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | MARCH 31, 2007
    --------------                                                                                                                                   | MARCH 31, 2006
    --------------                                                                                                                                  
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Capital Contributions to Project Partnerships and purchase
    price paid for limited partner interests in Project Partnerships
    Cumulative equity in losses of Project Partnerships 
    Cumulative distributions received from Project Partnerships
    Investment in Project Partnerships before Adjustment
    Excess of investment cost over the underlying assets acquired:
     Acquisition fees and expenses
     Accumulated amortization of acquisition fees and  expenses
    Impairment of Investment in Project Partnerships
    Investments in Project Partnerships | $ 4,128,042 
    (1,637,144)
    (181,137)
    -----------
    2,309,761 
    290,335 
    (147,995)
    (946,123)
    -----------
    $ 1,505,978 
    =========== | $ 4,128,042 
    (1,604,163)
    (172,565)
    -----------
    2,351,314 
    290,335 
    (114,498)
    (600,802)
    -----------
    $ 1,926,349 
    ===========

(1) In accordance with Gateway's accounting policy to not carry Investments in
Project Partnerships below zero, cumulative suspended losses of $941,227 for the
year ended March 31, 2007 and cumulative suspended losses of $546,725 for the
year ended March 31, 2006 are not included.

---

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

|TOTAL SERIES 7 - 11                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | MARCH 31, 2007
    --------------                                                                                                                                        | MARCH 31, 2006
    --------------                                                                                                                                       
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Capital Contributions to Project Partnerships and purchase
    price paid for limited partner interests in Project Partnerships
    Cumulative equity in losses of Project Partnerships
    Cumulative distributions received from Project Partnerships
    Investment in Project Partnerships before Adjustment
    Excess of investment cost over the underlying assets acquired:
     Acquisition fees and expenses
     Accumulated amortization of acquisition fees and  expenses
    Impairment of Investment in Project Partnerships
    Investments in Project Partnerships | $28,275,024 
    (23,180,786)
    (985,476)
    -----------
    4,108,762 
    2,074,268 
    (738,832)
    (1,545,869)
    -----------
    $ 3,898,329 
    =========== | $28,275,024 
    (22,822,363)
    (929,187)
    -----------
    4,523,474 
    2,074,268 
    (624,680)
    (1,078,223)
    -----------
    $ 4,894,839 
    ===========

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):   In accordance with Gateway'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
December 31 of each year:

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | DECEMBER 31,                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|SERIES 7                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 2006
    ----                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|SUMMARIZED BALANCE SHEETS
    Assets:
      Current assets
      Investment properties, net
      Other assets
        Total assets
    Liabilities and Partners' Equity:
      Current liabilities
      Long-term debt
        Total liabilities
    Partners' equity (deficit)
      Gateway
      General Partners
        Total Partners' equity (deficit)
        Total liabilities and partners'     equity
    SUMMARIZED STATEMENTS OF OPERATIONS
    Rental and other income
    Expenses:
      Operating expenses
      Interest expense
      Depreciation and amortization
        Total expenses
          Net loss
    Other partners' share of net loss
    Gateway's share of net loss
    Suspended losses
    Equity in Losses of Project Partnerships | $ 4,443,999 
    25,997,567 
    13,554 
    -----------
    $30,455,120 
    ===========
    $   863,069 
    35,419,494 
    -----------
    36,282,563 
    -----------
    (5,418,259)
    (409,184)
    -----------
    (5,827,443)
    -----------
    $30,455,120 
    ===========
    $ 7,002,838 
    -----------
    3,675,144 
    2,500,007 
    1,475,207 
    -----------
    7,650,358 
    -----------
    $  (647,520)
    ============
    $    (5,725)
    ============
    $  (641,795)
    563,276 
    ------------
    $   (78,519)
    ============

(1)  As of December 31, 2006, the largest Project Partnership constituted 4.9%
and 5.3%, and as of December 31, 2005 the largest Project Partnership
constituted 5.0% and 5.4% of the combined total assets by series and combined
total revenues by series, respectively.

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):   In accordance with Gateway'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
December 31 of each year:

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | DECEMBER 31,                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|SERIES 8   (1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 2006
    ----                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|SUMMARIZED BALANCE SHEETS
    Assets:
      Current assets
      Investment properties, net
      Other assets
        Total assets
    Liabilities and Partners' Equity:
      Current liabilities
      Long-term debt
        Total liabilities
    Partners' equity (deficit)
      Gateway
      General Partners
        Total Partners' equity (deficit)
        Total liabilities and partners' equity
    SUMMARIZED STATEMENTS OF OPERATIONS
    Rental and other income
    Expenses:
      Operating expenses
      Interest expense
      Depreciation and amortization
        Total expenses
          Net loss
    Other partners' share of net loss
    Gateway's share of net loss
    Suspended losses
    Equity in Losses of Project Partnerships | $ 4,432,607 
    27,285,833 
    36,096 
    -----------
    $31,754,536 
    ===========
    $ 1,307,637 
    37,297,268 
    -----------
    38,604,905 
    -----------
    (6,102,740)
    (747,629)
    -----------
    (6,850,369)
    -----------
    $31,754,536 
    ===========
    $ 7,087,148 
    -----------
    3,618,940 
    2,621,057 
    1,514,946 
    -----------
    7,754,943 
    -----------
    $  (667,795)
    ============
    $    (8,672)
    ============
    $  (659,123)
    643,440 
    ------------
    $   (15,683)
    ============

(1) As discussed in Note 4, an affiliate of the General Partner (Value Partners,
Inc.) is the operating general partner in one of the Project Partnerships
included above (Logan Heights). The Logan Heights Project Partnership is not
consolidated in Gateway's financial statements as Gateway's investment in Logan
Heights is accounted for under the equity method. The information below is
included for related party disclosure purposes. The Project Partnership's
financial information for the years ending December 2006 and December 2005 is as
follows:
                                 December 2006      December 2005
Total Assets                      $ 527,248          $ 583,925 
Total Liabilities                   812,492            826,484 
Gateway Equity (Deficit)           (168,563)          (126,305)
Other Partner's Equity (Deficit)   (116,681)          (116,254)
Total Revenue                       105,272            118,006 
Net Income (Loss)                 $ (42,685)          $ (2,359)
   As of December 31, 2006, the largest Project Partnership constituted 5.1% and
5.6%, and as of December 31, 2005 the largest Project Partnership constituted
5.1% and 5.5% of the combined total assets by series and combined total revenues
by series, respectively.

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):   In accordance with Gateway'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
December 31 of each year:

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | DECEMBER 31,                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|SERIES 9                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | 2006
    ----                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|SUMMARIZED BALANCE SHEETS
    Assets:
      Current assets
      Investment properties, net
      Other assets
        Total assets
    Liabilities and Partners' Equity:
      Current liabilities
      Long-term debt
        Total liabilities
    Partners' equity (deficit)
      Gateway
      General Partners
        Total Partners' equity (deficit)
        Total liabilities and partners'     
        equity
    SUMMARIZED STATEMENTS OF OPERATIONS
    Rental and other income
    Expenses:
      Operating expenses
      Interest expense
      Depreciation and amortization
        Total expenses
          Net loss
    Other partners' share of net loss
    Gateway's share of net loss
    Suspended losses
    Equity in Losses of Project Partnerships | $ 2,249,554 
    15,800,449 
    5,761 
    -----------
    $18,055,764 
    ===========
    $   334,186 
    19,818,860 
    -----------
    20,153,046 
    -----------
    (1,733,811)
    (363,471)
    -----------
    (2,097,282)
    -----------
    $18,055,764 
    ===========
    $ 3,621,179 
    -----------
    1,859,165 
    1,370,495 
    774,921 
    ------------
    4,004,581 
    ------------
    $  (383,402)
    ============
    $    (3,834)
    ============
    $  (379,568)
    261,675 
    ------------
    $  (117,893)
    ============

(1)  As of December 31, 2006, the largest Project Partnership constituted 8.0%
and 8.2%, and as of December 31, 2005 the largest Project Partnership
constituted 7.9% and 8.3% of the combined total assets by series and combined
total revenues by series, respectively.

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):   In accordance with Gateway'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
December 31 of each year:

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | DECEMBER 31,                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|SERIES 10                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | 2006
    ----                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|SUMMARIZED BALANCE SHEETS
    Assets:
      Current assets
      Investment properties, net
      Other assets
        Total assets
    Liabilities and Partners' Equity:
      Current liabilities
      Long-term debt
        Total liabilities
    Partners' equity (deficit)
      Gateway
      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
    Gateway's share of net loss
    Suspended losses
    Equity in Losses of Project Partnerships | $ 1,858,876 
    11,891,327 
    2,116 
    -----------
    $13,752,319 
    ===========
    $   352,954 
    12,982,207 
    -----------
    13,335,161 
    -----------
    843,845 
    (426,687)
    -----------
    417,158 
    -----------
    $13,752,319 
    ===========
    $ 2,304,668 
    -----------
    1,263,208 
    769,303 
    465,986 
    -----------
    2,498,497 
    -----------
    $ (193,829)
    ===========
    $   (4,845)
    ===========
    $ (188,984)
    75,637 
    ------------
    $  (113,347)
    ============

(1)  As of December 31, 2006, the largest Project Partnership constituted 11.6%
and 12.6%, and as of December 31, 2005 the largest Project Partnership
constituted 11.4% and 12.8% of the combined total assets by series and combined
total revenues by series, respectively.

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):   In accordance with Gateway'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
December 31 of each year:

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | DECEMBER 31,                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|SERIES 11                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 2006
    ----                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|SUMMARIZED BALANCE SHEETS
    Assets:
      Current assets
      Investment properties, net
      Other assets
        Total assets
    Liabilities and Partners' Equity:
      Current liabilities
      Long-term debt
        Total liabilities
    Partners' equity (deficit)
      Limited Partner
      General Partners
        Total Partners' equity
        Total liabilities and partners'     
        equity
    SUMMARIZED STATEMENTS OF OPERATIONS
    Rental and other income
    Expenses:
      Operating expenses
      Interest expense
      Depreciation and amortization
        Total expenses
          Net loss
    Other partners' share of net loss
    Gateway's share of net loss
    Suspended losses
    Equity in Losses of Project Partnerships | $ 1,144,097 
    10,308,531 
    256,291 
    -----------
    $11,708,919 
    ===========
    $   312,089 
    10,324,803 
    -----------
    10,636,892 
    -----------
    1,375,171 
    (303,144)
    -----------
    1,072,027 
    -----------
    $11,708,919 
    ===========
    $ 1,980,664 
    -----------
    1,397,288 
    521,968 
    498,431 
    -----------
    2,417,687 
    -----------
    $ (437,023)
    ===========
    $   (9,541)
    ===========
    $ (427,482)
    394,501 
    -----------
    $  (32,981)
    ===========

(1)  As of December 31, 2006, the largest Project Partnership constituted 19.1%
and 21.7%, and as of December 31, 2005 the largest Project Partnership
constituted 19.7% and 19.8% of the combined total assets by series and combined
total revenues by series, respectively.

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):   In accordance with Gateway'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
December 31 of each year:

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | DECEMBER 31,                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|TOTAL SERIES 7 - 11                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 2006
    ----                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|SUMMARIZED BALANCE SHEETS
    Assets:
      Current assets
      Investment properties, net
      Other assets
        Total assets
    Liabilities and Partners' Equity:
      Current liabilities
      Long-term debt
        Total liabilities
    Partners' equity (deficit)
      Limited Partner
      General Partners
        Total Partners' equity (deficit)
        Total liabilities and partners'     equity
    SUMMARIZED STATEMENTS OF OPERATIONS
    Rental and other income
    Expenses:
      Operating expenses
      Interest expense
      Depreciation and amortization
        Total expenses
          Net loss
    Other partners' share of net loss
    Gateway's share of net loss
    Suspended losses
    Equity in Losses of Project Partnerships | $ 14,129,133 
    91,283,707 
    313,818 
    ------------
    $105,726,658 
    ============
    $  3,169,935 
    115,842,632 
    ------------
    119,012,567 
    ------------
    (11,035,794)
    (2,250,115)
    ------------
    (13,285,909)
    ------------
    $105,726,658 
    ============
    $ 21,996,497 
    ------------
    11,813,745 
    7,782,830 
    4,729,491 
    ------------
    24,326,066 
    ------------
    $(2,329,569)
    ============
    $   (32,617)
    ============
    $(2,296,952)
    1,938,529 
    ------------
    $  (358,423)
    ============

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):   Gateway's equity by series as reflected by the Project Partnerships
differs from Gateway's Investments in Project Partnerships before acquisition
fees and expenses and amortization by series primarily because of suspended
losses on Gateway's books.

|                                                               | Equity Per Project Partnership   
    -----------------                 | Equity Per  
    Gateway   
    -----------                       
|-------------------------------------------------------------- | ----------------------------------------------------------------------- | ------------------------------------------------------------------
|Series 7
    Series 8
    Series 9
    Series 10
    Series 11 | $(5,418,259)
    (6,102,740)
    (1,733,811)
    843,845 
    1,375,171 | $  174,752 
    (27,944)
    379,153 
    1,273,039 
    2,309,761

NOTE 6 - TAXABLE INCOME (LOSS):   The following is a reconciliation between Net Loss as described in the
financial statements and Gateway's loss for tax purposes:

|SERIES 7                                                                                                                                                                                  | 2007
    ----                                                 | 2006
    ----                                          | 2005
    ----                                        
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------- | ------------------------------------------------------ | -----------------------------------------------------
|Net Loss per Financial Statements                                                                                                                                                         | $(366,648)                                                    | $(467,796)                                             | $(261,487)                                           
|Equity in Losses of Project Partnerships for tax purposes in excess of
    losses for financial statement purposes                                                                        | (744,619)                                                     | (827,640)                                              | (917,936)                                            
|Adjustments to convert March 31, fiscal year end to December 31, taxable
    year end                                                                                                     | (139,599)                                                     | 232,618                                                | (17,690)                                             
|Items Expensed for Financial Statement purposes not expensed for Tax
    purposes:
      Asset Management Fee
      Amortization Expense
      Impairment Expense
      Other Adjustments | 86,138 
    50,301 
    193,195 
    (22,042)
    ----------- | 86,222 
    6,431 
    0 
    (24,185)
    ----------- | 91,474 
    6,643 
    0 
    (5,914)
    -----------
|Gateway loss for tax purposes as of December 31                                                                                                                                           | $  (943,274)
    ============                                 | $  (994,350)
    ============                          | $(1,104,910)
    ============                        
|                                                                                                                                                                                          | December 31,
    2006   
    ------------                     | December 31,
    2005   
    ------------              | December 31,
    2004   
    ------------            
|Federal Low Income Housing Tax Credits  (Unaudited)                                                                                                                                       | $     9,934 
    ===========                                  | $    84,568 
    ===========                           | $   975,096 
    ===========                         

The differences in the assets and liabilities of the Series for financial
reporting purposes and tax reporting purposes for the year ended March 31, 2007
are as follows:

Financial           Tax
                             
Reporting          Reporting
                             
Purposes           Purposes         DifferencesInvestments in Local
Limited Partnerships        $  442,787           $(6,984,364)       $ 7,427,151
Other Assets                $  463,537           $ 1,673,746        $(1,210,209)
Liabilities                 $  790,609           $    12,861        $   777,748

---

NOTE 6 - TAXABLE INCOME (LOSS) (Continued):   The following is a reconciliation between Net Loss as described in the
financial statements and Gateway's loss for tax purposes:

|SERIES 8                                                                                                                                                         | 2007
    ----                                    | 2006
    ----                                   | 2005
    ----                                 
|---------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------ | ----------------------------------------------- | ----------------------------------------------
|Net Loss per Financial Statements                                                                                                                                | $  (240,629)                                     | $  (216,489)                                    | $  (179,166)                                  
|Equity in Losses of Project Partnerships for tax purposes in excess of
    losses for financial statement purposes                                               | (852,613)                                        | (928,195)                                       | (1,010,034)                                   
|Adjustments to convert March 31, fiscal year end to December 31, taxable
    year end                                                                            | (8,485)                                          | 22,154                                          | (8,575)                                       
|Items Expensed for Financial Statement purposes not expensed for Tax
    purposes:
      Asset Management Fee
      Amortization Expense
      Other Adjustments | 89,592 
    20,740 
    (13,876)
    ----------- | 89,605 
    1,950 
    (14,323)
    ----------- | 31,002 
    3,072 
    (8,025)
    -----------
|Gateway loss for tax purposes as of December 31                                                                                                                  | $(1,005,271)
    ============                    | $(1,045,298)
    ============                   | $(1,171,726)
    ============                 
|                                                                                                                                                                 | December 31,
    2006   
    ------------        | December 31,
    2005   
    ------------       | December 31,
    2004   
    ------------     
|Federal Low Income Housing Tax Credits  (Unaudited)                                                                                                              | $    15,422 
    ===========                     | $   170,591 
    ===========                    | $   565,711 
    ===========                  

The differences in the assets and liabilities of the Series for financial
reporting purposes and tax reporting purposes for the year ended March 31, 2007
are as follows:

Financial          Tax
                               Reporting          Reporting
                               Purposes          Purposes         
  Differences
Investments in Local
Limited
Partnerships           $  377,733         $(7,504,979)         $ 7,882,712
Other
Assets                   $  364,185         $ 1,573,901          $(1,209,716)
Liabilities                    $  824,825         $    13,840          $   810,985

---

NOTE 6 - TAXABLE INCOME (LOSS) Continued):   The following is a reconciliation between Net Loss as described in the
financial statements and Gateway's loss for tax purposes:

|SERIES 9                                                                                                                                                                                  | 2007
    ----                                                | 2006
    ----                                         | 2005
    ----                                        
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------ | ----------------------------------------------------- | -----------------------------------------------------
|Net Loss per Financial Statements                                                                                                                                                         | $  (248,128)                                                 | $  (341,082)                                          | $  (234,846)                                         
|Equity in Losses of Project Partnerships for tax purposes in excess of
    losses for financial statement purposes                                                                        | (417,301)                                                    | (389,575)                                             | (420,083)                                            
|Adjustments to convert March 31, fiscal year end to December 31, taxable
    year end                                                                                                     | (135,479)                                                    | 148,091                                               | (7,265)                                              
|Items Expensed for Financial Statement purposes not expensed for Tax
    purposes:
      Asset Management Fee
      Amortization Expense
      Impairment Expense
      Other Adjustments | 49,353 
    19,451 
    127,532 
    (5,409)
    ----------- | 49,357 
    1,846 
    0 
    (6,176)
    ----------- | 16,737 
    3,082 
    0 
    (1,208)
    -----------
|Gateway loss for tax purposes as of December 31                                                                                                                                           | $  (609,981)
    ============                                | $  (537,539)
    ============                         | $  (643,583)
    ============                        
|                                                                                                                                                                                          | December 31,
    2006   
    ------------                    | December 31,
    2005   
    ------------             | December 31,
    2004   
    ------------            
|Federal Low Income Housing Tax Credits  (Unaudited)                                                                                                                                       | $         0 
    ============                                | $    40,080 
    ============                         | $   644,340 
    ============                        

The differences in the assets and liabilities of the Series for financial
reporting purposes and tax reporting purposes for the year ended March 31, 2007
are as follows:

Financial         Tax
                               Reporting         Reporting
                               Purposes         Purposes          Differences

Investments in Local
Limited Partnerships          $   412,287        $(3,009,879)        $ 3,422,166
Other
Assets                  $   281,986        $ 1,042,892         $  (760,906)
Liabilities                   $   507,802        $     7,691         $   500,111

---

NOTE 6 - TAXABLE INCOME (LOSS) (Continued):   The following is a reconciliation between Net Loss as described in the
financial statements and Gateway's loss for tax purposes:

|SERIES 10                                                                                                                                                                                 | 2007
    ----                                                | 2006
    ----                                         | 2005
    ----                                       
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------ | ----------------------------------------------------- | ----------------------------------------------------
|Net Loss per Financial Statements                                                                                                                                                         | $  (261,712)                                                 | $  (355,932)                                          | $  (186,326)                                        
|Equity in Losses of Project Partnerships for tax purposes in excess of
    losses for financial statement purposes                                                                        | (262,403)                                                    | (285,809)                                             | (259,879)                                           
|Adjustments to convert March 31, fiscal year end to December 31, taxable
    year end                                                                                                     | (125,267)                                                    | 181,059                                               | (2,089)                                             
|Items Expensed for Financial Statement purposes not expensed for Tax
    purposes:
      Asset Management Fee
      Amortization Expense
      Impairment Expense
      Other Adjustments | 33,713 
    39,206 
    156,694 
    (2,562)
    ----------- | 33,768 
    4,281 
    0 
    (1,062)
    ----------- | (89,867)
    4,578 
    0 
    (432)
    -----------
|Gateway loss for tax purposes as of December 31                                                                                                                                           | $  (422,331)
    ============                                | $  (423,695)
    ============                         | $  (534,015)
    ============                       
|                                                                                                                                                                                          | December 31,
    2006   
    ------------                    | December 31,
    2005   
    ------------             | December 31,
    2004   
    ------------           
|Federal Low Income Housing Tax Credits  (Unaudited)                                                                                                                                       | $         0 
    ============                                | $    48,806 
    ============                         | $   540,394 
    ============                       

The differences in the assets and liabilities of the Series for financial
reporting purposes and tax reporting purposes for the year ended March 31, 2007
are as follows:

Financial          Tax
                               Reporting          Reporting
                               Purposes           Purposes             Differences

Investments in Local
Limited
Partnerships           $ 1,159,544        $  (997,098)         $ 2,156,642
Other
Assets                   $   239,132        $   846,143          $  (607,011)
Liabilities                    $   110,514        $     5,209          $   105,305

---

NOTE 6 - TAXABLE INCOME (LOSS) (Continued):   The following is a reconciliation between Net Loss as described in the
financial statements and Gateway's loss for tax purposes:

|SERIES 11                                                                                                                                                                                 | 2007
    ----                                                | 2006
    ----                                          | 2005
    ----                                       
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------ | ------------------------------------------------------ | ----------------------------------------------------
|Net Loss per Financial Statements                                                                                                                                                         | $  (470,714)                                                 | $  (776,165)                                           | $  (153,967)                                        
|Equity in Losses of Project Partnerships for tax purposes in excess of
    losses for financial statement purposes                                                                        | (172,636)                                                    | (216,021)                                              | (208,933)                                           
|Adjustments to convert March 31, fiscal year end to December 31, taxable
    year end                                                                                                     | (276,160)                                                    | 632,332                                                | (3,760)                                             
|Items Expensed for Financial Statement purposes not expensed for Tax
    purposes:
      Asset Management Fee
      Amortization Expense
      Impairment Expense
      Other Adjustments | 11,508 
    54,186 
    600,802 
    (3,382)
    ----------- | 114,970 
    5,725 
    0 
    (2,785)
    ----------- | (131,503)
    6,726 
    0 
    985 
    -----------
|Gateway loss for tax purposes as of December 31                                                                                                                                           | $  (256,396)
    ============                                | $  (241,944)
    ============                          | $  (490,452)
    ============                       
|                                                                                                                                                                                          | December 31,
    2006   
    ------------                    | December 31,
    2005   
    ------------              | December 31,
    2004   
    ------------           
|Federal Low Income Housing Tax Credits  (Unaudited)                                                                                                                                       | $    43,946 
    ============                                | $   570,762 
    ============                          | $   754,678 
    ============                       

The differences in the assets and liabilities of the Series for financial
reporting purposes and tax reporting purposes for the year ended March 31, 2006
are as follows:

Financial         Tax
                                Reporting         Reporting
                                Purposes         Purposes         Differences

Investments in Local
Limited Partnerships            $ 1,505,978       $ 1,282,528       $   223,450
Other Assets                    $   315,434       $   777,448       $  (462,014)
Liabilities                     $    34,115       $     4,509       $    29,606

---

NOTE 6 - TAXABLE INCOME (LOSS) (Continued):   The following is a reconciliation between Net Loss as described in the
financial statements and Gateway's loss for tax purposes:

|TOTAL SERIES 7 -11                                                                                                                                                                        | 2007
    ----                                                     | 2006
    ----                                            | 2005
    ----                                           
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------- | -------------------------------------------------------- | --------------------------------------------------------
|Net Loss per Financial Statements                                                                                                                                                         | $  (1,587,831)                                                    | $  (2,157,464)                                           | $(1,015,792)                                            
|Equity in Losses of Project Partnerships for tax purposes in excess of
    losses for financial statement purposes                                                                        | (2,449,572)                                                       | (2,647,240)                                              | (2,816,865)                                             
|Adjustments to convert March 31, fiscal year end to December 31, taxable
    year end                                                                                                     | (684,990)                                                         | 1,216,254                                                | (39,379)                                                
|Items Expensed for Financial Statement purposes not expensed for Tax
    purposes:
      Asset Management Fee
      Amortization Expense
      Impairment Expense
      Other Adjustments | 270,304 
    183,884 
    1,078,223 
    (47,271)
    ----------- | 373,921 
    20,233 
    0 
    (48,531)
    ----------- | (82,157)
    24,101 
    0 
    (14,594)
    -----------
|Gateway loss for tax purposes as of December 31                                                                                                                                           | $(3,237,253)
    ============                                     | $(3,242,827)
    ============                            | $(3,944,686)
    ============                           

The difference in the total value of Gateway's Investment in Project
Partnerships is approximately $7,427,151 higher for Series 7, $7,882,712 higher
for Series 8, $3,422,166 higher for Series 9, $2,156,642 higher for Series 10
and $223,450 higher for Series 11 for financial reporting purposes than for tax
purposes because (i) there were depreciation differences between financial
reporting purposes and tax return purposes and (ii) certain expenses are not
deductible for tax return purposes.
   The differences in the assets and liabilities of Gateway for financial
reporting purposes and tax reporting purposes for the year ended March 31, 2007
are as follows:

Financial         Tax
                               Reporting         Reporting
                               Purposes         Purposes        Differences

Investments in Local
Limited Partnerships           $ 3,898,329       $(17,213,791)       $21,112,120
Other
Assets                   $ 1,664,274       $  5,914,130        $(4,249,856)
Liabilities                    $ 2,267,865       $     44,110        $ 2,223,755

---

NOTE 7 - SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED):
Series 7Year 2007                Quarter 1      Quarter 2     Quarter
3     Quarter 4
                         6/30/2006     9/30/2006     12/31/2006     3/31/2007
Total Revenues           $    4,626     $  11,320    $   1,560    $    9,544
Net Income (Loss)        $ (54,316)    $ (76,666)   $ (59,253)   $ (176,413)
Earnings (Loss) Per
Weighted Average
Limited Partnership
Units Outstanding        $   (5.17)    $   (7.30)   $   (5.64)   $   (16.81)
Series 8Year 2007               Quarter 1     Quarter 2     Quarter
3     Quarter 4
                         6/30/2006     9/30/2006     12/31/2006     3/31/2007Total Revenues           $   7,529     $     800     $       0     $   7,561
Net Income (Loss)        $ (34,116)    $ (81,988)    $ (73,632)    $ (50,893)
Earnings (Loss) Per
Weighted Average
Limited Partnership
Units Outstanding        $   (3.38)    $   (8.13)    $   (7.30)    $   (5.06)
Series 9Year 2007                Quarter 1     Quarter 2      Quarter
3     Quarter 4
                         6/30/2006     9/30/2006     12/31/2006     3/31/2007
Total Revenues           $   4,809     $       0     $       0     $    1,357
Net Income (Loss)        $ (33,887)    $ (76,479)    $ (34,871)    $ (102,891)
Earnings (Loss) Per
Weighted Average
Limited Partnership
Units Outstanding        $   (5.36)    $  (12.11)    $   (5.52)    $   (16.29)

---

NOTE 7 - SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Continued):Series 10
Year 2007                Quarter 1     Quarter 2     Quarter 3     Quarter 4
                         6/30/2006     9/30/2006     12/31/2006     3/31/2007
Total Revenues           $   1,381     $       0     $       0      $   1,182
Net Income (Loss)        $ (29,540)    $ (71,547)    $ (32,580)     $(128,045)
Earnings (Loss) Per
Weighted Average
Limited Partnership
Units Outstanding        $   (5.80)    $  (14.05)    $   (6.40)     $  (25.13)
Series 11Year 2007                Quarter 1      Quarter 2      Quarter
3     Quarter 4
                         6/30/2006     9/30/2006     12/31/2006     3/31/2007Total
Revenues           $       0      $   2,182     $     600     $     600
Net Income (Loss)        $  (3,750)     $ (43,444)    $ (18,523)    $(404,997)
Earnings (Loss) Per
Weighted Average
Limited Partnership
Units Outstanding        $   (0.72)     $   (8.39)    $   (3.58)    $  (78.20)
Series 7 - 11Year 2007                 Quarter 1     Quarter 2      Quarter
3    Quarter 4
                         6/30/2006     9/30/2006     12/31/2006     3/31/2007Total
Revenues           $  18,345     $  14,302     $   2,160     $   20,244
Net Income (Loss)        $(155,609)    $(350,124)    $(218,859)    $ (863,239)

---

NOTE 7 - SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Continued):
Series 7Year 2006                Quarter 1      Quarter 2     Quarter
3     Quarter 4
                         6/30/2005     9/30/2005     12/31/2005     3/31/2006
Total Revenues           $   10,434    $   15,550    $   10,586    $  11,081
Net Income (Loss)        $ (63,480)    $ (54,304)   $  (49,060)   $(300,952)
Earnings (Loss) Per
Weighted Average
Limited Partnership
Units Outstanding        $   (6.05)    $   (5.17)   $    (4.67)   $  (28.66)
Series 8Year 2006               Quarter 1     Quarter 2     Quarter
3     Quarter 4
                         6/30/2005     9/30/2005     12/31/2005     3/31/2006Total
Revenues           $  14,880     $   5,808      $   7,765     $  11,321
Net Income (Loss)        $ (29,217)    $ (48,636)     $ (39,117)    $ (99,519)
Earnings (Loss) Per
Weighted Average
Limited Partnership
Units Outstanding        $   (2.90)    $   (4.82)     $   (3.88)    $   (9.87)
Series 9Year 2006                Quarter 1     Quarter 2      Quarter
3     Quarter 4
                         6/30/2005     9/30/2005     12/31/2005     3/31/2006
Total Revenues           $   6,693     $   3,981     $   4,867     $    4,627
Net Income (Loss)        $ (44,724)    $ (50,604)    $ (51,742)    $ (194,012)
Earnings (Loss) Per
Weighted Average
Limited Partnership
Units Outstanding        $   (7.08)    $   (8.01)    $   (8.19)    $   (30.71)

---

NOTE 7 - SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Continued):Series 10
Year 2006                Quarter 1     Quarter 2     Quarter 3     Quarter 4
                         6/30/2005     9/30/2005     12/31/2005     3/31/2006
Total Revenues           $   4,695     $   3,580     $   3,663      $   4,445
Net Income (Loss)        $ (34,070)    $ (52,849)    $ (42,389)     $(226,624)
Earnings (Loss) Per
Weighted Average
Limited Partnership
Units Outstanding        $   (6.69)    $  (10.37)    $   (8.32)     $  (44.49)
Series 11Year 2006                Quarter 1      Quarter 2      Quarter
3     Quarter 4
                         6/30/2005     9/30/2005     12/31/2005     3/31/2006Total
Revenues           $   5,134     $   5,698     $   5,255          5,155
Net Income (Loss)        $ (35,090)    $ (45,980)    $ (46,096)    $ (648,999)
Earnings (Loss) Per
Weighted Average
Limited Partnership
Units Outstanding        $   (6.78)    $   (8.88)    $   (8.90)    $  (125.32)
Series 7 - 11Year 2006                 Quarter 1     Quarter 2      Quarter
3     Quarter 4
                         6/30/2005     9/30/2005     12/31/2005      3/31/2006Total
Revenues           $  41,836     $  34,617     $  32,136     $    36,629
Net Income (Loss)        $(206,581)    $(252,373)    $(228,404)    $(1,470,106)

---



Donald W. Causey & Associates, P.C.
516 Walnut Street-P.O. Box 775
Gadsden, AL 35902
PHONE: 256-543-3707 
FAX:  256-543-9800

INDEPENDENT AUDITORS' REPORT
                              -----------------------------

To the Partners 
Lakeshore II, Ltd.
Tuskegee, Alabama
We have audited the accompanying balance sheets of Lakeshore II, Ltd., a limited
partnership, RHS Project No: 01-044-631056927 as of December 31, 2005 and 2004,
and the related statements of operations, partners' capital and cash flows for
the years then ended. These financial statements are the responsibility of the
partnership's management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted the audits in accordance with standards generally accepted in the
United States of America and Government Auditing Standards issued by the
Comptroller General of the United States, the U.S. Department of Agriculture,
Farmers Home Administration Audit Program, and the standards of the Public
Company Accounting Oversight Board (United States). Those standards require that
we plan and perform the audits to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that the
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Lakeshore II, Ltd., RHS Project
No: 01-044-631056927 as of December 31, 2005 and 2004, and the results of its
operations and its cash flows for the years then ended in conformity with
accounting principles generally accepted in the United States.
The audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental information on pages 11
through 14 is presented for purposes of additional analysis and is not a
required part of the basic financial statements. The supplemental information
presented in the Multiple Family Housing Borrower Balance Sheet (Form FmHA
1930-8) Parts I and II for the years ended December 31, 2005 and 2004, is
presented for purposes of complying with the requirements of the Rural Housing
Services and is also not a required part of the basic financial statements. Such
information has been subjected to the audit procedures applied in the audit of
the basic financial statements and, in our opinion is fairly stated in all
material respects in relation to the basic financial statements taken as a
whole.
In accordance with Government Auditing Standards, we have also issued a report
dated February 21, 2006 on our consideration of Lakeshore II, Ltd.'s, internal
control over financial reporting and on our tests of its compliance with certain
provisions of laws and regulations. That report is an integral part of an audit
performed in accordance with Government Auditing Standards and should be read in
conjunction with this report in considering the results of our audit. However,
the partnership has determined that it is not required to have, nor were we
engaged to perform, an audit of its internal control over financial reporting.
Our audit included only the consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the partnership's internal control over financial reporting.
Accordingly, we express no such opinion.
/s/ Donald W. Causey & Associates, P.C.
Certified Public Accountants
Gadsden, Alabama
February 21, 2006

---



Donald W. Causey & Associates, P.C.
516 Walnut Street-P.O. Box 775
Gadsden, AL 35902
PHONE: 256-543-3707
FAX: 256-543-9800

INDEPENDENT AUDITORS' REPORT
                              ----------------------------

To the Partners 
Skyview Apartments, Ltd.
Troy, Alabama
We have audited the accompanying balance sheets of Skyview Apartments, Ltd., a
limited partnership, as of December 31, 2005 and 2004, and the related
statements of operations, partners' capital and cash flows for the years then
ended. These financial statements are the responsibility of the partnership's
management. Our responsibility is to express an opinion on these financial
statements based on our audits.
We conducted the audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audits to obtain reasonable assurance about whether the
financial statements are free of material misstatement. The partnership has
determined that it is not required to have, nor were we engaged to perform, an
audit of its internal control over financial reporting. Our audit included
consideration of internal control over financial reporting as a basis for
designing audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the
partnership's internal control over financial reporting. Accordingly, we express
no such opinion. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that the audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Skyview Apartments, Ltd., as of
December 31, 2005 and 2004, and the results of its operations and its cash flows
for the years then ended in conformity with accounting principles generally
accepted in the United States.
The audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental information on pages 10
and 11 is presented for purposes of additional analysis and is not a required
part of the basic financial statements. Such information has been subjected to
the audit procedures applied in the audit of the basic financial statements and,
in our opinion is fairly stated in all material respects in relation to the
basic financial statements taken as a whole.
/s/ Donald W. Causey & Associates, P.C.
Certified Public Accountants
Gadsden, Alabama
February 6, 2006

---



Donald W. Causey & Associates, P.C.
516 Walnut Street-P.O. Box 775
Gadsden, AL 35902
PHONE: 256-543-3707
FAX: 256-543-9800

INDEPENDENT AUDITORS' REPORT
                                ----------------------------

To the Partners 
Meadowview Apartments, Ltd.
Greenville, Alabama
We have audited the accompanying balance sheets of Meadowview Apartments, Ltd.,
a limited partnership, as of December 31, 2005 and 2004, and the related
statements of operations, partners' capital and cash flows for the years then
ended. These financial statements are the responsibility of the partnership's
management. Our responsibility is to express an opinion on these financial
statements based on our audits.
We conducted the audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audits to obtain reasonable assurance about whether the
financial statements are free of material misstatement. The partnership has
determined that it is not required to have, nor were we engaged to perform, an
audit of its internal control over financial reporting. Our audit included
consideration of internal control over financial reporting as a basis for
designing audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the
partnership's internal control over financial reporting. Accordingly, we express
no such opinion. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that the audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Meadowview Apartments, Ltd., a
limited partnership, as of December 31, 2005 and 2004, and the results of its
operations, changes in partners capital and its cash flows for the years then
ended in conformity with accounting principles generally accepted in the United
States.
/s/ Donald W. Causey and Associates, P.C.
Certified Public Accountant
Gadsden, Alabama
February 23, 2006

---



Donald W. Causey & Associates, P.C.
516 Walnut Street-P.O. Box 775
Gadsden, AL 35902
PHONE: 256-543-3707
FAX: 256-543-9800

INDEPENDENT AUDITORS' REPORT
                                -----------------------------

To the Partners 
Applegate Apartments, Ltd.
Florence, Alabama
We have audited the accompanying balance sheets of Applegate Apartments, Ltd., a
limited partnership, as of December 31, 2005 and 2004, and the related
statements of operations, partners' capital and cash flows for the years then
ended. These financial statements are the responsibility of the partnership's
management. Our responsibility is to express an opinion on these financial
statements based on our audits.
We conducted the audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audits to obtain reasonable assurance about whether the
financial statements are free of material misstatement. The partnership has
determined that it is not required to have, nor were we engaged to perform, an
audit of its internal control over financial reporting. Our audits included
consideration of internal control over financial reporting as a basis for
designing audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the
partnership's internal control over financial reporting. Accordingly, we express
no such opinion. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that the audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Applegate Apartments, Ltd., as
of December 31, 2005 and 2004, and the results of its operations, changes in
partners' capital and its cash flows for the years then ended in conformity with
accounting principles generally accepted in the United States.
The audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental information on pages 10
and 11 is presented for purposes of additional analysis and is not a required
part of the basic financial statements. Such information has been subjected to
the audit procedures applied in the audit of the basic financial statements and,
in our opinion is fairly stated in all material respects in relation to the
basic financial statements taken as a whole.
/s/ Donald W. Causey & Associates, P.C.
Certified Public Accountants
Gadsden, Alabama
February 20, 2006

---

Donald W. Causey & Associates, P.C.
516 Walnut Street-P.O. Box 775
Gadsden, AL 35902
PHONE: 256-543-3707
FAX: 256-543-9800

INDEPENDENT AUDITORS' REPORT
                              ----------------------------

To the Partners 
Heatherwood Apartments, Ltd.
Alexander City, Alabama
We have audited the accompanying balance sheets of Heatherwood Apartments, Ltd.,
a limited partnership, as of December 31, 2005 and 2004, and the related
statements of operations, partners' capital and cash flows for the years then
ended. These financial statements are the responsibility of the partnership's
management. Our responsibility is to express an opinion on these financial
statements based on our audits.
We conducted the audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audits to obtain reasonable assurance about whether the
financial statements are free of material misstatement. The partnership has
determined that it is not required to have, nor were we engaged to perform, an
audit of its internal control over financial reporting. Our audit included
consideration of internal control over financial reporting as a basis for
designing audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the
partnership's internal control over financial reporting. Accordingly, we express
no such opinion. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that the audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Heatherwood Apartments, Ltd.,
as of December 31, 2005 and 2004, and the results of its operations, changes in
partners' capital and its cash flows for the years then ended in conformity with
accounting principles generally accepted in the United States.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental information on pages 9
and 10 is presented for the purposes of additional analysis and is not a
required part of the basic financial statements. Such information has been
subjected to the auditing procedures applied in the audits of the basic
financial statements, and, in our opinion, is fairly stated in all material
respects in relation to the basic financial statements taken as a whole.
/s/ Donald W. Causey & Associates, P.C.
Certified Public Accountants
Gadsden, Alabama
February 28, 2006

---

Item 9.  Changes in and disagreements with Accountants on Accounting and
Financial Disclosures   None
Item 9A.  Controls and Procedures   As of the end of the period covered by this report, under the supervision
and with the participation of Gateway's management, including the chief
executive and chief financial officers of Gateway's Managing General Partner, an
evaluation of the effectiveness of the Gateway's disclosure controls and
procedures (as defined in Rule 13a-14(c) under the Securities and Exchange Act
of 1934) was performed. Based on this evaluation, such officers have concluded
that Gateway'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 Gateway required to be included in this report and Gateway's other
reports that it files or submits under the Securities Exchange Act of 1934.
There were no significant changes in Gateway's internal controls or in other
factors that could significantly affect these controls subsequent to the date of
their evaluation.
Item 9B.  Other Information   None.

---



PART III

Item 10.  Directors, Executive Officers and Corporate
Governance   Gateway has no directors or executive officers. Gateway's affairs are
managed and controlled by the Managing General Partner. Certain information
concerning the directors and certain officers of the Managing General Partner
are set forth below.
Raymond James Tax Credit Funds, Inc. - Managing General Partner
   Raymond James Tax Credit Funds, Inc. is the Managing General Partner and is
responsible for decisions pertaining to the acquisition and sale of Gateway's
interests in the Project Partnerships and other matters related to the business
operations of Gateway. Certain officers and the directors of the Managing
General Partner are as follows:
Ronald M. Diner, age 63, is President and a Director. He is a Senior Vice
President of Raymond James & Associates, Inc., with whom he has been employed
since June 1983. Mr. Diner received an MBA degree from Columbia University
(1968) and a BS degree from Trinity College (1966). Prior to joining Raymond
James & Associates, Inc., he managed the broker-dealer activities of Pittway
Real Estate, Inc., a real estate development firm. He was previously a loan
officer at Marine Midland Realty Credit Corp., and spent three years with
Common, Dann & Co., a New York regional investment firm. He has served as a
member of the Board of Directors of the Council for Rural Housing and
Development, a national organization of developers, managers and syndicators of
properties developed under the RECD Section 515 program, and is a member of the
Board of Directors of the Florida Council for Rural Housing and Development. Mr.
Diner has been a speaker and panel member at state and national seminars
relating to the low-income housing credit.
J. Davenport Mosby III, age 51, is a Vice President and a Director. He is a
Senior Managing Director of Raymond James & Associates, Inc. which he joined in
1982. Mr. Mosby received an MBA from the Harvard Business School (1982). He
graduated magna cum laude with a BA from Vanderbilt University where he was
elected to Phi Beta Kappa.
   Raymond James Tax Credit Funds, Inc. is a wholly owned subsidiary of Raymond
James Financial, Inc. ("RJF"). RJF has adopted a Business Ethics and Corporate
Policy that is applicable to the officers and employees of Raymond James Tax
Credit Funds, Inc., the Managing General Partner of the of Gateway. That policy
is posted on RJF's Internet website at Raymond James dot com under "About Our
Company" --- Investor Relations --- Corporate Governance --- Employee Code of
Ethics.
Raymond James Partners, Inc. -
   Raymond James Partners, Inc. was formed to act as the general partner, with
affiliated corporations, in limited partnerships sponsored by Raymond James
Financial, Inc.
    Information regarding the officers and directors of Raymond
James Partners, Inc. is included on page 68 of the Prospectus under the section
captioned "Management" (consisting of pages 66 through 69 of the Prospectus)
which is incorporated herein by reference.
Item 11.  Executive Compensation    Gateway has no directors or officers.
Item 12.  Security Ownership of Certain Beneficial Owners and Management and
Related Stockholder Matters    Neither of the General Partners own any units of the
outstanding securities of Gateway as of March 31, 2007. Ronald M. Diner,
President of Raymond James Tax Credit Funds, Inc. owns 5 units of Series 7. None
of the other directors and officers own any units of the outstanding securities
of Gateway as of March 31, 2007.
    Gateway is a Limited Partnership and therefore does not have
voting shares of stock. To the knowledge of Gateway, no person owns of record or
beneficially, more than 5% of Gateway's outstanding units.
Item 13.  Certain Relationships and Related Transactions and Director
Independence    Gateway has no officers or directors. However, under the
terms of the public offering, various kinds of compensation and fees are payable
to the General Partners and its affiliates during the organization and
operations of Gateway. Additionally, the General Partners will receive
distributions from Gateway if there is cash available for distribution or
residual proceeds as defined in the Partnership Agreement. The amounts and kinds
of compensation and fees are described on pages 24 to 26 of the Prospectus under
the caption "Management Compensation", which is incorporated herein by
reference.

---

The Payable to General Partners primarily represents the
asset management fees owed to the General Partners at the end of the year. 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.
   For the years ended March 31, 2007, 2006, and 2005 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, as adjusted by the
Consumer Price Index 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.

|          | 2007
    ----         | 2006
    ----         | 2005
    ----        
|--------- | --------------------- | --------------------- | ---------------------
|Series 7  | $ 85,926              | $ 86,447              | $ 86,447             
|Series 8  | 89,370                | 89,908                | 89,908               
|Series 9  | 49,242                | 49,509                | 49,509               
|Series 10 | 33,643                | 33,819                | 33,819               
|Series 11 | 27,989
    --------   | 28,021
    --------   | 28,021
    --------  
|Total     | $286,170
    ======== | $287,704
    ======== | $287,704
    ========

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.

|          | 2007
    ----         | 2006
    ----         | 2005
    ----        
|--------- | --------------------- | --------------------- | ---------------------
|Series 7  | $109,100              | $ 84,526              | $ 56,857             
|Series 8  | 120,278               | 93,195                | 62,689               
|Series 9  | 67,132                | 52,016                | 34,990               
|Series 10 | 41,958                | 32,510                | 21,868               
|Series 11 | 33,565
    --------   | 26,008
    --------   | 17,494
    --------  
|Total     | $372,033
    ======== | $288,255
    ======== | $193,898
    ========

Total unpaid asset management fees and administrative expenses payable to the
General Partners, which are included on the Balance Sheet as of March 31, 2007
and 2006 are as follows:

|          | March 31, 2007
    -------------- | March 31, 2006
    --------------
|--------- | --------------------------------- | ---------------------------------
|Series 7  | $  790,609                        | $  704,516                       
|Series 8  | 824,825                           | 735,669                          
|Series 9  | 507,802                           | 458,715                          
|Series 10 | 110,514                           | 76,798                           
|Series 11 | 34,115 
    -----------           | 13,071 
    -----------          
|Total     | $2,267,865 
    ===========       | $1,988,769 
    ===========      

Item 14.  Principal Accounting Fees & ServicesAudit Fees   The aggregate fees incurred by Gateway's principal accounting firm,
Reznick Group, P.C., for professional services rendered for the audit of the
annual financial statements and review of financial statements included in
Gateway's quarterly report on Form 10-Q was $82,000 and $70,000 for the years
ended March 31, 2007 and 2006, respectively. The aggregate fees incurred by
Gateway's former principal accounting firm, Spence, Marston, Bunch, Morris and
Co., totaled $2,000 for the year ended March 31, 2007 for services pertaining to
prior years audit reports and $1,575 for the year ended March 31, 2006 for
review of certain quarterly reports on Form 10-Q.Tax Fees   During fiscal 2007 and 2006, Spence, Marston, Bunch, Morris & Co. was
engaged to prepare Gateway's federal tax return, for which they billed $9,000
and $7,000 for years ended March 31, 2007 and 2006, respectively.Other Fees   The two members of Raymond James Tax Credit Funds, Inc. Board of
Directors, Ronald M. Diner and J. Davenport Mosby III also serve as the members
of the Audit Committee on behalf of Gateway. The audit committee charter
requires that the committee approve the engagement of the principal accounting
firm prior to the rendering of any audit or non-audit services. During fiscal
2007, 100% of the audit related and other services and 100% of the tax services
were pre-approved by the Audit Committee.

---

PART IV

Item 15. Exhibits, Financial Statement Schedules and Reports on Form 8-Ka.(1) Financial Statements

(2) Financial Statement Schedules -

Schedule III - Real Estate and Accumulated Depreciation of
    Property Owned by Project Partnerships
    Schedule IV - Mortgage loans on real estate
    All other schedules are omitted because they are not applicable or not
    required, or because the required information is shown either in the
    financial statements or the notes thereto.

1. Exhibit Listing

ExhibitNumber   Description3.1    Amended Certificate of Limited Partnership of Gateway Tax Credit
    Fund III, Ltd.        
           (Filed as an Exhibit to Registration Statement on Form S-11, File No.
    33-44238,        
           and incorporated by reference.)
    4.1    The Form of Partnership Agreement of the Partnership (included as
    Exhibit "A" to        
           the Prospectus, File No. 33-44238, and incorporated herein by
    reference.)
    23     The consent of Reznick Group, P.C. (Filed herewith.)
    23     The consent of Spence, Marston, Bunch, Morris & Co. (Filed herewith.)
    31.1   Certification required by Rule 15d-14(a). (Filed herewith.)
    31.2   Certification required by Rule 15d-14(a). (Filed herewith.)
    32     Certification required by Rule 15d-14(b). (Filed herewith.)

---

GATEWAY TAX CREDIT FUND III LTD.
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
OF PROPERTY OWNED BY PROJECT PARTNERSHIPS INVESTED IN
AS OF DECEMBER 31, 2006
SERIES 7
Apartment Properties

|Partnership
    -----------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | Location
    --------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | # of Units
    ----------                                                                                                                                                                                                                                                    | Mortgage  
    Loan Balance
    -------------                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Nottingham
    Cedar Hollow
    Sunrise
    Mountain City
    Burbank
    Washington
    BrookStone
    Tazewell
    N. Irvine
    Horton
    Manchester
    Waynesboro
    Lakeland II
    Mt. Vernon
    Meadow Run
    Spring Creek II
    Warm Springs
    Blue Ridge
    Walnut
    Pioneer
    Dilley
    Elsa
    Clinch View
    Jamestown
    Leander
    Louisa Sr.
    Orchard Commons
    Vardaman
    Heritage Park
    BrooksHollow
    Cavalry Crossing
    Carson City
    Matteson
    Pembroke
    Robynwood
    Atoka
    Coalgate
    Hill Creek
    Cardinal | Pisgah, AL
    Waterloo, NE
    Mission, SD
    Mountain City, TN
    Falls City, NE
    Bloomfield, NE
    McCaysville, GA
    New Tazewell, TN
    Irvine, KY
    Horton, KS
    Manchester, GA
    Waynesboro, GA
    Lakeland, GA
    Mt. Vernon, GA
    Dawson, GA
    Quitman, GA
    Warm Springs, GA
    Blue Ridge, GA
    Elk Point, SD
    Mountain View, AR
    Dilley, TX
    Elsa, TX
    Gate City, VA
    Jamestown, TN
    Leander, TX
    Louisa, KY
    Crab Orchard, KY
    Vardaman, MS
    Paze, AZ
    Jasper, GA
    Ft. Scott, KS
    Carson City, KS
    Capa, KS
    Pembroke, KY
    Cynthiana, KY
    Atoka, OK
    Coalgate, OK
    West Blocton, AL
    Mountain Home. AR | 18
    24
    44
    40
    24
    24
    40
    44
    24
    24
    42
    24
    30
    24
    48
    24
    22
    41
    24
    48
    28
    40
    42
    40
    36
    36
    12
    24
    32
    40
    40
    24
    24
    16
    24
    24
    24
    24
    32 | $   560,076
    742,603
    1,972,950
    1,284,215
    787,047
    781,286
    1,164,196
    1,366,000
    772,394
    750,019
    1,171,595
    654,016
    812,541
    720,277
    1,389,160
    649,724
    658,954
    1,068,590
    802,488
    1,182,344
    708,493
    1,011,834
    1,419,838
    1,190,819
    893,901
    1,161,050
    324,382
    713,560
    1,214,647
    1,149,121
    1,386,082
    769,610
    744,283
    496,889
    753,370
    656,802
    656,830
    755,037
    122,471
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                              | -----------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                              | $35,419,494                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                              | ============                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     

---

GATEWAY TAX CREDIT FUND III LTD.
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
OF PROPERTY OWNED BY PROJECT PARTNERSHIPS INVESTED IN
AS OF DECEMBER 31, 2006

|SERIES 7
    Apartment Properties                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Cost At Acquisition
    --------------------                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Partnership
    -----------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | Land
    ----                                                                                                                                                                                                                                                                                                                                                                                                                            | Buildings, 
    Improvements
    and Equipment
    -------------                                                                                                                                                                                                                                                                                                                                                                                                                            
|Nottingham
    Cedar Hollow
    Sunrise
    Mountain City
    Burbank
    Washington
    BrookStone
    Tazewell
    N. Irvine
    Horton
    Manchester
    Waynesboro
    Lakeland II
    Mt. Vernon
    Meadow Run
    Spring Creek II
    Warm Springs
    Blue Ridge
    Walnut
    Pioneer
    Dilley
    Elsa
    Clinch View
    Jamestown
    Leander
    Louisa Sr.
    Orchard Commons
    Vardaman
    Heritage Park
    BrooksHollow
    Cavalry Crossing
    Carson City
    Matteson
    Pembroke
    Robynwood
    Atoka
    Coalgate
    Hill Creek
    Cardinal | $   21,070
    25,000
    30,000
    67,000
    25,000
    30,000
    45,000
    75,000
    27,600
    15,615
    40,000
    45,310
    30,000
    19,500
    20,000
    40,000
    45,000
    0
    20,000
    30,000
    30,000
    40,000
    99,000
    53,800
    46,000
    90,000
    28,789
    15,000
    199,000
    67,155
    82,300
    86,422
    28,438
    22,000
    35,000
    16,000
    22,500
    29,337
    24,207 | $   695,113
    889,355
    837,000
    1,345,826
    595,780
    401,435
    176,183
    834,811
    696,407
    641,460
    243,179
    107,860
    149,453
    156,335
    241,802
    117,323
    196,691
    234,193
    112,079
    1,092,918
    847,755
    1,286,910
    409,447
    436,875
    1,063,200
    449,409
    452,556
    93,877
    1,243,700
    183,029
    894,246
    354,778
    556,314
    190,283
    315,110
    819,334
    806,005
    622,291
    650,852
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | -----------                                                                                                                                                                                                                                                                                                                                                                                                                              | ------------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | $ 1,666,043                                                                                                                                                                                                                                                                                                                                                                                                                              | $21,441,174                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | ===========                                                                                                                                                                                                                                                                                                                                                                                                                              | ============                                                                                                                                                                                                                                                                                                                                                                                                                                                                                

---

GATEWAY TAX CREDIT FUND III LTD.
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
OF PROPERTY OWNED BY PROJECT PARTNERSHIPS INVESTED IN
AS OF DECEMBER 31, 2006

|SERIES 7
    Apartment Properties                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Gross Amount At Which Carried At December 31, 2006
    --------------------                                                                                                                                                                                                                                                                                                                                                             
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Partnership
    -----------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | Land
    ----                                                                                                                                                                                                                                                                                                                                                                                                                           
|Nottingham
    Cedar Hollow
    Sunrise
    Mountain City
    Burbank
    Washington
    BrookStone
    Tazewell
    N. Irvine
    Horton
    Manchester
    Waynesboro
    Lakeland II
    Mt. Vernon
    Meadow Run
    Spring Creek II
    Warm Springs
    Blue Ridge
    Walnut
    Pioneer
    Dilley
    Elsa
    Clinch View
    Jamestown
    Leander
    Louisa Sr.
    Orchard Commons
    Vardaman
    Heritage Park
    BrooksHollow
    Cavalry Crossing
    Carson City
    Matteson
    Pembroke
    Robynwood
    Atoka
    Coalgate
    Hill Creek
    Cardinal | $   21,070
    25,000
    30,000
    67,000
    25,000
    30,000
    45,000
    75,000
    27,600
    15,615
    49,455
    37,500
    29,600
    19,500
    40,000
    30,000
    20,000
    0
    20,000
    30,000
    30,000
    40,000
    99,000
    53,800
    46,000
    90,000
    28,789
    15,000
    199,000
    67,000
    94,118
    40,028
    39,000
    22,000
    35,000
    16,000
    22,500
    29,337
    24,207
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | -----------                                                                                                                                                                                                                                                                                                                                                                                                                             
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | $ 1,628,119                                                                                                                                                                                                                                                                                                                                                                                                                             
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | ===========                                                                                                                                                                                                                                                                                                                                                                                                                             

---

GATEWAY TAX CREDIT FUND III LTD.
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
OF PROPERTY OWNED BY PROJECT PARTNERSHIPS INVESTED IN
AS OF DECEMBER 31, 2006

|SERIES 7
    Apartment Properties
    Partnership
    -----------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Accumulated
    Depreciation
    ------------                                                                                                                                                                                                                                                                                                                                                                                                                                         | Depreciable
    Life
    -----------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Nottingham
    Cedar Hollow
    Sunrise
    Mountain City
    Burbank
    Washington
    BrookStone
    Tazewell
    N. Irvine
    Horton
    Manchester
    Waynesboro
    Lakeland II
    Mt. Vernon
    Meadow Run
    Spring Creek II
    Warm Springs
    Blue Ridge
    Walnut
    Pioneer
    Dilley
    Elsa
    Clinch View
    Jamestown
    Leander
    Louisa Sr.
    Orchard Commons
    Vardaman
    Heritage Park
    BrooksHollow
    Cavalry Crossing
    Carson City
    Matteson
    Pembroke
    Robynwood
    Atoka
    Coalgate
    Hill Creek
    Cardinal | $   270,130
    394,109
    1,321,888
    861,067
    438,180
    489,333
    677,039
    892,072
    364,810
    520,599
    641,697
    361,421
    461,085
    400,680
    805,102
    359,010
    379,660
    657,887
    415,160
    540,221
    250,938
    437,182
    914,601
    786,520
    585,496
    537,813
    175,630
    327,354
    774,693
    642,217
    648,831
    481,582
    491,880
    225,854
    360,166
    457,316
    455,831
    443,531
    243,370 | 5.0-40.0
    7.0-40.0
    5.0-27.5
    7.0-27.5
    5.0-30.0
    5.0-30.0
    5.0-27.5
    7.0-27.5
    5.0-40.0
    5.0-25.0
    5.0-25.0
    10.0-30.0
    10.0-30.0
    5.0-30.0
    7.0-27.5
    10.0-30.0
    5.0-40.0
    5.0-25.0
    5.0-40.0
    12.0-40.0
    5.0-50.0
    7.0-50.0
    7.0-27.5
    7.0-27.5
    7.0-30.0
    5.0-40.0
    5.0-40.0
    5.0-40.0
    7.0-27.5
    5.0-27.5
    12.0-40.0
    7.0-27.5
    7.0-27.5
    5.0-40.0
    5.0-40.0
    5.0-25.0
    5.0-25.0
    7.0-27.5
    7.0-27.5
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | -----------                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | $20,491,955                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | ===========                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            

---

GATEWAY TAX CREDIT FUND III LTD.
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
OF PROPERTY OWNED BY PROJECT PARTNERSHIPS INVESTED IN
AS OF DECEMBER 31, 2006

|SERIES 8
    Apartment Properties
    Partnership
    -----------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | Location
    --------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | # of Units
    ----------                                                                                                                                                                                                                                                                                | Mortgage  
    Loan Balance
    ------------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Purdy
    Galena
    Antlers 2
    Holdenville
    Wetumka
    Mariners Cove
    Mariners Cove Sr.
    Antlers
    Bentonville
    Deerpoint
    Aurora
    Baxter
    Arbor Gate
    Timber Ridge
    Concordia Sr.
    Mountainburg
    Lincoln
    Fox Ridge
    Meadow View
    Sheridan
    Morningside
    Grand Isle
    Meadowview
    Taylor
    Brookwood
    Pleasant Valley
    Reelfoot
    River Rest
    Kirskville
    Cimmaron
    Kenton
    Lovingston
    Pontotoc
    So. Brenchley
    Hustonville
    Northpoint
    Brooks Field
    Brooks Lane
    Brooks Point
    Brooks Run
    Logan Heights
    Lakeshore 2
    Cottondale | Purdy, MO
    Galena, KS
    Antlers, OK
    Holdenville, OK
    Wetumka, OK
    Marine City, MI
    Marine City, MI
    Antlers, OK
    Bentonville, AR
    Elgin, AL
    Aurora, MO
    Baxter Springs, KS
    Bridgeport, AL
    Collinsville, AL
    Concordia, KS
    Mountainburg, AR
    Pierre, SD
    Russellville, AL
    Bridgeiport, NE
    Auburn, NE
    Kenton, OH
    Grand Isle, ME
    Van Buren, AR
    Taylor, TX
    Gainesboro, TN
    Lynchburg, TN
    Ridgely, TN
    Newport, TN
    Kirksville, MO
    Arco, ID
    Kenton, OH
    Lovingston, VA
    Pontotoc, MS
    Rexburg, ID
    Hustonville, KY
    Jackson, KY
    Louisville, GA
    Clayton, GA
    Dahlonega, GA
    Jasper, GA
    Russellville, KY
    Tuskegee, AL
    Cottondale, FL | 16
    24
    24
    24
    24
    32
    24
    36
    24
    24
    28
    16
    24
    24
    24
    24
    25
    24
    16
    16
    32
    16
    29
    44
    44
    33
    20
    34
    24
    24
    46
    64
    36
    30
    16
    24
    32
    36
    41
    24
    24
    36
    25 | $   447,676
    593,776
    616,872
    701,799
    636,354
    1,011,809
    783,641
    1,064,675
    494,073
    720,188
    709,806
    415,221
    734,292
    717,301
    665,173
    692,444
    870,356
    725,397
    577,409
    592,600
    950,629
    921,238
    730,311
    1,213,020
    1,425,697
    1,073,463
    635,847
    1,121,140
    668,339
    808,345
    1,396,888
    2,169,188
    1,078,641
    1,209,736
    507,633
    875,282
    934,286
    1,079,764
    1,339,529
    742,886
    766,265
    1,129,681
    748,598
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                          | -----------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                          | $37,297,268                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                          | ============                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 

---

GATEWAY TAX CREDIT FUND III LTD.
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
OF PROPERTY OWNED BY PROJECT PARTNERSHIPS INVESTED IN
AS OF DECEMBER 31, 2006

|SERIES 8                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Cost At Acquisition
    --------------------                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Partnership
    -----------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | Land
    ----                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Buildings, 
    Improvements
    and Equipment
    -------------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|Purdy
    Galena
    Antlers 2
    Holdenville
    Wetumka
    Mariners Cove
    Mariners Cove Sr.
    Antlers
    Bentonville
    Deerpoint
    Aurora
    Baxter
    Arbor Gate
    Timber Ridge
    Concordia Sr.
    Mountainburg
    Lincoln
    Fox Ridge
    Meadow View
    Sheridan
    Morningside
    Grand Isle
    Meadowview
    Taylor
    Brookwood
    Pleasant Valley
    Reelfoot
    River Rest
    Kirskville
    Cimmaron
    Kenton
    Lovingston
    Pontotoc
    So. Brenchley
    Hustonville
    Northpoint
    Brooks Field
    Brooks Lane
    Brooks Point
    Brooks Run
    Logan Heights
    Lakeshore 2
    Cottondale | $   64,823
    19,200
    26,000
    15,000
    19,977
    117,192
    72,252
    50,529
    15,220
    33,250
    164,350
    13,800
    43,218
    15,145
    65,000
    20,000
    121,000
    35,000
    29,000
    20,100
    31,163
    20,000
    40,000
    105,335
    28,148
    56,269
    13,000
    50,750
    50,000
    18,000
    61,699
    178,985
    40,500
    99,658
    20,000
    140,000
    45,762
    57,500
    108,000
    50,000
    24,600
    45,000
    36,000 | $   493,596
    362,505
    761,859
    877,598
    792,876
    1,134,974
    901,745
    1,270,510
    743,269
    912,974
    716,471
    418,296
    873,748
    879,334
    776,131
    863,990
    933,872
    867,785
    686,959
    373,018
    1,152,691
    1,180,210
    954,717
    1,185,923
    1,780,090
    1,288,452
    118,127
    431,259
    188,140
    611,963
    785,703
    2,215,782
    312,296
    492,781
    672,270
    942,599
    113,295
    123,401
    135,053
    158,025
    422,778
    273,501
    911,975
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | -----------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | ------------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | $ 2,280,425                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | $32,092,541                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | ===========                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | ============                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       

---

GATEWAY TAX CREDIT FUND III LTD.
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
OF PROPERTY OWNED BY PROJECT PARTNERSHIPS INVESTED IN
AS OF DECEMBER 31, 2006

SERIES 8

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Gross Amount At Which Carried At December 31, 2006
    --------------------                                                                                                                                                                                                                                                                                                                                                                                                                 
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Partnership
    -----------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | Land
    ----                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|Purdy
    Galena
    Antlers 2
    Holdenville
    Wetumka
    Mariners Cove
    Mariners Cove Sr.
    Antlers
    Bentonville
    Deerpoint
    Aurora
    Baxter
    Arbor Gate
    Timber Ridge
    Concordia Sr.
    Mountainburg
    Lincoln
    Fox Ridge
    Meadow View
    Sheridan
    Morningside
    Grand Isle
    Meadowview
    Taylor
    Brookwood
    Pleasant Valley
    Reelfoot
    River Rest
    Kirskville
    Cimmaron
    Kenton
    Lovingston
    Pontotoc
    So. Brenchley
    Hustonville
    Northpoint
    Brooks Field
    Brooks Lane
    Brooks Point
    Brooks Run
    Logan Heights
    Lakeshore 2
    Cottondale | $   12,200
    19,200
    26,000
    15,000
    19,977
    64,000
    46,216
    50,529
    15,220
    19,500
    35,000
    14,845
    43,218
    15,145
    65,000
    20,000
    121,000
    35,000
    18,000
    20,100
    31,163
    20,000
    40,000
    105,334
    28,148
    56,269
    13,827
    52,062
    50,000
    6,000
    61,699
    171,772
    40,500
    99,658
    20,000
    140,000
    45,761
    57,500
    108,000
    50,366
    24,600
    45,000
    36,000
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | -----------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | $ 1,978,809                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | ===========                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 

---

GATEWAY TAX CREDIT FUND III LTD.
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
OF PROPERTY OWNED BY PROJECT PARTNERSHIPS INVESTED IN
AS OF DECEMBER 31, 2006

|SERIES 8
    Apartment Properties
    Partnership
    -----------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | Accumulated 
    Depreciation
    ------------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | Depreciable
    Life   
    -----------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Purdy
    Galena
    Antlers 2
    Holdenville
    Wetumka
    Mariners Cove
    Mariners Cove Sr.
    Antlers
    Bentonville
    Deerpoint
    Aurora
    Baxter
    Arbor Gate
    Timber Ridge
    Concordia Sr.
    Mountainburg
    Lincoln
    Fox Ridge
    Meadow View
    Sheridan
    Morningside
    Grand Isle
    Meadowview
    Taylor
    Brookwood
    Pleasant Valley
    Reelfoot
    River Rest
    Kirskville
    Cimmaron
    Kenton
    Lovingston
    Pontotoc
    So. Brenchley
    Hustonville
    Northpoint
    Brooks Field
    Brooks Lane
    Brooks Point
    Brooks Run
    Logan Heights
    Lakeshore 2
    Cottondale | $   350,409
    426,465
    425,544
    476,223
    432,384
    651,005
    504,081
    697,867
    428,432
    277,964
    508,534
    296,188
    317,697
    324,636
    409,576
    468,283
    508,232
    254,626
    311,238
    292,530
    488,893
    608,946
    515,547
    383,484
    819,833
    609,828
    364,766
    602,554
    399,646
    562,234
    696,217
    1,269,507
    403,289
    723,829
    236,476
    337,380
    500,169
    573,159
    673,782
    391,788
    451,520
    431,267
    401,844 | 7.0-27.5
    7.0-27.5
    5.0-25.0
    5.0-25.0
    5.0-25.0
    7.0-27.5
    7.0-27.5
    10.0-25.0
    5.0-25.0
    5.0-50.0
    7.0-27.5
    7.0-27.5
    5.0-40.0
    5.0-40.0
    5.0-25.0
    5.0-25.0
    7.0-27.5
    5.0-50.0
    5.0-30.0
    5.0-50.0
    5.0-33.0
    7.0-27.5
    5.0-25.0
    5.0-50.0
    5.0-50.0
    5.0-50.0
    7.0-27.5
    7.0-50.0
    5.0-27.5
    7.0-27.5
    5.0-33.0
    7.0-27.5
    5.0-40.0
    7.0-27.5
    5.0-40.0
    5.0-40.0
    5.0-40.0
    5.0-40.0
    5.0-40.0
    5.0-40.0
    7.0-40.0
    5.0-40.0
    5.0-27.5
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | -----------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | $20,807,872                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | ===========                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            

---

GATEWAY TAX CREDIT FUND III LTD.
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
OF PROPERTY OWNED BY PROJECT PARTNERSHIPS INVESTED IN
AS OF DECEMBER 31, 2006

|SERIES 9
    Apartment Properties
    Partnership
    -----------                                                                                                                                                                                                                                                                    | Location
    --------                                                                                                                                                                                                                                                                                                                                                                                               | # of Units
    ----------                                                                                                                                           | Mortgage  
    Loan Balance
    -------------                                                                                                                                                                                                                                                            
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Jay
    Boxwood
    Stilwell 3
    Arbor Trace
    Arbor Trace 2
    Omega
    Cornell 2
    Elm Creek
    Marionville
    Lamar
    Mt. Glen
    Centreville
    Skyview
    Sycamore
    Bradford
    Cedar Lane
    Stanton
    Abernathy
    Pembroke
    Meadowview
    Town Branch
    Fox Run
    Maple Street
    Manchester | Jay, OK
    Lexington, TX
    Stilwell, OK
    Lake Park, GA
    Lake Park, GA
    Omega, GA
    Watertown, SD
    Pierre, SD
    Marionville, MO
    Lamar, AR
    Heppner, OR
    Centreville, AL
    Troy, AL
    Coffeyville, KS
    Cumberland, KY
    London, KY
    Stanton, KY
    Abernathy, TX
    Pembroke, KY
    Greenville, AL
    Mt. Vernon, KY
    Ragland, AL
    Emporium, PA
    Manchester, GA | 24
    24
    16
    24
    42
    36
    24
    24
    20
    24
    24
    24
    36
    40
    24
    24
    24
    24
    24
    24
    24
    24
    32
    18 | $   636,124
    599,487
    452,220
    724,419
    1,426,495
    1,109,650
    901,665
    932,993
    549,556
    695,889
    805,078
    771,843
    1,109,790
    1,384,512
    773,985
    710,457
    783,343
    604,708
    780,566
    643,045
    751,302
    757,241
    1,336,359
    578,133
|                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                     | -----------                                                                                                                                                                                                                                                                                              
|                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                     | $19,818,860                                                                                                                                                                                                                                                                                              
|                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                     | ============                                                                                                                                                                                                                                                                                             

---

SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
OF PROPERTY OWNED BY PROJECT PARTNERSHIPS INVESTED IN
AS OF DECEMBER 31, 2006

|SERIES 9
    Apartment Properties                                                                                                                                                                                                                                                                                                    | Cost At Acquisition
    --------------------                                                                                                                                                                                                                              |                                                                                                                                                                                                                                                                                                   
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Partnership
    -----------                                                                                                                                                                                                                                                                                                          | Land
    ----                                                                                                                                                                                                                                                             | Buildings, 
    Improvements
    and Equipment
    -------------                                                                                                                                                                                                                                  
|Jay
    Boxwood
    Stilwell 3
    Arbor Trace
    Arbor Trace 2
    Omega
    Cornell 2
    Elm Creek
    Marionville
    Lamar
    Mt. Glen
    Centreville
    Skyview
    Sycamore
    Bradford
    Cedar Lane
    Stanton
    Abernathy
    Pembroke
    Meadowview
    Town Branch
    Fox Run
    Maple Street
    Manchester | $   30,000
    22,273
    15,567
    62,500
    100,000
    35,000
    29,155
    71,360
    24,900
    18,000
    23,500
    36,000
    120,000
    64,408
    66,000
    49,750
    41,584
    30,000
    43,000
    46,270
    21,000
    47,467
    85,000
    24,100 | $   103,524
    718,529
    82,347
    185,273
    361,210
    188,863
    576,296
    233,390
    409,497
    202,240
    480,064
    220,952
    220,161
    415,748
    285,025
    952,314
    959,574
    751,898
    955,687
    1,086,351
    942,114
    919,296
    1,178,856
    711,035
|                                                                                                                                                                                                                                                                                                                                     | -----------                                                                                                                                                                                                                                                               | ------------                                                                                                                                                                                                                                                                                      
|                                                                                                                                                                                                                                                                                                                                     | $ 1,106,834                                                                                                                                                                                                                                                               | $13,140,244                                                                                                                                                                                                                                                                                       
|                                                                                                                                                                                                                                                                                                                                     | ===========                                                                                                                                                                                                                                                               | ============                                                                                                                                                                                                                                                                                      

---

GATEWAY TAX CREDIT FUND III LTD.
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
OF PROPERTY OWNED BY PROJECT PARTNERSHIPS INVESTED IN
AS OF DECEMBER 31, 2006

|SERIES 9
    Apartment Properties                                                                                                                                                                                                                                                                                                    | Gross Amount At Which Carried At December 31, 2006
    --------------------                                                                                                                                                                                              
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Partnership
    -----------                                                                                                                                                                                                                                                                                                          | Land
    ----                                                                                                                                                                                                                                                            
|Jay
    Boxwood
    Stilwell 3
    Arbor Trace
    Arbor Trace 2
    Omega
    Cornell 2
    Elm Creek
    Marionville
    Lamar
    Mt. Glen
    Centreville
    Skyview
    Sycamore
    Bradford
    Cedar Lane
    Stanton
    Abernathy
    Pembroke
    Meadowview
    Town Branch
    Fox Run
    Maple Street
    Manchester | $   25,000
    22,273
    10,000
    62,500
    100,000
    35,000
    29,155
    71,360
    25,000
    18,000
    23,500
    36,000
    120,000
    64,600
    66,000
    49,750
    41,584
    30,000
    43,000
    46,270
    21,000
    47,467
    85,000
    27,200
|                                                                                                                                                                                                                                                                                                                                     | -----------                                                                                                                                                                                                                                                              
|                                                                                                                                                                                                                                                                                                                                     | $ 1,099,659                                                                                                                                                                                                                                                              
|                                                                                                                                                                                                                                                                                                                                     | ===========                                                                                                                                                                                                                                                              

---

SCHEDULE III -REAL ESTATE AND ACCUMULATED DEPRECIATION
OF PROPERTY OWNED BY PROJECT PARTNERSHIPS INVESTED IN
AS OF DECEMBER 31, 2006

|SERIES 9
    Apartment Properties
    Partnership
    -----------                                                                                                                                                                                                                                                                    | Accumulated
    Depreciation
    -------------                                                                                                                                                                                                                                                  | Depreciable
    Life   
    -----------                                                                                                                                                                                                                                                                               
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Jay
    Boxwood
    Stilwell 3
    Arbor Trace
    Arbor Trace 2
    Omega
    Cornell 2
    Elm Creek
    Marionville
    Lamar
    Mt. Glen
    Centreville
    Skyview
    Sycamore
    Bradford
    Cedar Lane
    Stanton
    Abernathy
    Pembroke
    Meadowview
    Town Branch
    Fox Run
    Maple Street
    Manchester | $   406,257
    404,090
    300,479
    354,553
    705,962
    575,953
    581,210
    550,951
    382,516
    465,735
    529,118
    485,066
    412,146
    578,323
    341,524
    352,495
    349,776
    399,050
    339,223
    335,285
    317,583
    422,518
    528,207
    297,314 | 5.0-25.0
    5.0-25.0
    5.0-25.0
    10.0-30.0
    10.0-30.0
    5.0-50.0
    5.0-30.0
    5.0-27.5
    7.0-27.5
    5.0-25.0
    7.0-27.5
    5.0-40.0
    5.0-40.0
    12.0-40.0
    5.0-40.0
    5.0-40.0
    5.0-40.0
    5.0-25.0
    7.0-40.0
    5.0-40.0
    7.0-40.0
    7.0-27.5
    7.0-40.0
    5.0-27.5
|                                                                                                                                                                                                                                                                                                                                     | -----------                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                       
|                                                                                                                                                                                                                                                                                                                                     | $10,415,334                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                       
|                                                                                                                                                                                                                                                                                                                                     | ===========                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                       

---

GATEWAY TAX CREDIT FUND III LTD.
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
OF PROPERTY OWNED BY PROJECT PARTNERSHIPS INVESTED IN
AS OF DECEMBER 31, 2006

|SERIES 10
    Apartment Properties
    Partnership
    -----------                                                                                                                                         | Location
    --------                                                                                                                                                                                                                                       | # of Units
    ----------                                                                                                                                                                           | Mortgage
    Loan Balance
    ------------                                                                                                                                                 
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Redstone
    Albany
    Oak Terrace
    Wellshill
    Applegate
    Heatherwood
    Peachtree
    Donna
    Wellsville
    Tecumseh
    Clay City
    Irvine West
    New Castle
    Stigler
    Courtyard | Challis, ID
    Albany, KY
    Bonifay, FL
    West Liberty, KY
    Florence, AL
    Alexander City, AL
    Gaffney, SC
    Donna, TX
    Wellsville, NY
    Tecumseh, NE
    Clay City, KY
    Irvine, KY
    New Castle, KY
    Stigler, OK
    Huron, SD | 24
    24
    18
    32
    36
    36
    28
    50
    24
    24
    24
    24
    24
    20
    21                                                                                                | $   822,454
    753,455
    528,684
    1,059,520
    1,114,105
    869,600
    979,393
    1,387,265
    1,016,709
    871,877
    793,679
    792,056
    786,142
    579,767
    627,501
|                                                                                                                                                                                                           |                                                                                                                                                                                                                                                             |                                                                                                                                                                                                     | ------------                                                                                                                                                                               
|                                                                                                                                                                                                           |                                                                                                                                                                                                                                                             |                                                                                                                                                                                                     | $12,982,207                                                                                                                                                                                
|                                                                                                                                                                                                           |                                                                                                                                                                                                                                                             |                                                                                                                                                                                                     | ============                                                                                                                                                                               
|                                                                                                                                                                                                           | Cost At Acquisition
    --------------------                                                                                                                                                                                                                |                                                                                                                                                                                                    
|Partnership
    -----------                                                                                                                                                                                | Land
    ----                                                                                                                                                                                                                                               | Buildings, 
    Improvements
    and Equipment
    -------------                                                                                                                                    | Net Improvements
    Capitalized
    Subsequent to
    Acquisition
    ----------------                                                                                                    
|Redstone
    Albany
    Oak Terrace
    Wellshill
    Applegate
    Heatherwood
    Peachtree
    Donna
    Wellsville
    Tecumseh
    Clay City
    Irvine West
    New Castle
    Stigler
    Courtyard | $  24,000
    39,500
    27,200
    75,000
    125,000
    55,000
    25,000
    112,000
    38,000
    20,000
    22,750
    25,000
    40,575
    24,000
    12,000                                                                                       | $   747,591
    990,162
    633,284
    1,270,844
    1,467,675
    1,551,679
    1,021,466
    1,661,889
    1,286,389
    1,038,151
    998,334
    1,060,585
    971,520
    730,056
    465,936 | $   396,319
    12,867
    4,247
    5,100
    272,142
    36,135
    54,530
    4,778
    114,420
    84,821
    22,714
    28,079
    13,837
    0
    308,281                           
|                                                                                                                                                                                                           | -------                                                                                                                                                                                                                                                     | ------------                                                                                                                                                                                        | ------------                                                                                                                                                                               
|                                                                                                                                                                                                           | $ 665,025                                                                                                                                                                                                                                                   | $15,895,561                                                                                                                                                                                         | $ 1,358,270                                                                                                                                                                                
|                                                                                                                                                                                                           | ========                                                                                                                                                                                                                                                    | ============                                                                                                                                                                                        | ============                                                                                                                                                                               

---

GATEWAY TAX CREDIT FUND III LTD.
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
OF PROPERTY OWNED BY PROJECT PARTNERSHIPS INVESTED IN
AS OF DECEMBER 31, 2006

|SERIES 10
    Apartment Properties                                                                                                                                                                         | Gross Amount At Which Carried At December 31, 2006
    --------------------                                                                                                        
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Partnership
    -----------                                                                                                                                                                                | Land
    ----                                                                                                                                                                      
|Redstone
    Albany
    Oak Terrace
    Wellshill
    Applegate
    Heatherwood
    Peachtree
    Donna
    Wellsville
    Tecumseh
    Clay City
    Irvine West
    New Castle
    Stigler
    Courtyard | $   7,600
    39,500
    27,200
    75,000
    125,000
    55,000
    25,000
    112,000
    38,000
    20,000
    22,750
    25,000
    40,575
    24,000
    12,000              
|                                                                                                                                                                                                           | -----------                                                                                                                                                                        
|                                                                                                                                                                                                           | $ 648,625                                                                                                                                                                          
|                                                                                                                                                                                                           | ===========                                                                                                                                                                        
|Partnership
    -----------                                                                                                                                                                                | Accumulated
    Depreciation
    ------------                                                                                                                                      
|Redstone
    Albany
    Oak Terrace
    Wellshill
    Applegate
    Heatherwood
    Peachtree
    Donna
    Wellsville
    Tecumseh
    Clay City
    Irvine West
    New Castle
    Stigler
    Courtyard | $   580,562
    368,186
    294,658
    436,222
    533,770
    487,825
    343,153
    430,456
    670,382
    343,869
    335,092
    350,131
    317,253
    240,314
    295,656
|                                                                                                                                                                                                           | -----------                                                                                                                                                                        
|                                                                                                                                                                                                           | $ 6,027,529                                                                                                                                                                        
|                                                                                                                                                                                                           | ===========                                                                                                                                                                        

---

GATEWAY TAX CREDIT FUND III LTD.
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
OF PROPERTY OWNED BY PROJECT PARTNERSHIPS INVESTED IN
AS OF DECEMBER 31, 2006

|SERIES 11
    Apartment Properties
    Partnership
    -----------                                                                                     | Location
    --------                                                                                                                                                                                  | # of Units
    ----------                                                      | Mortgage
    Loan Balance
    -------------                                                                                                   
|------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------ | ----------------------------------------------------------------------------------------------------------------------------------------------
|Homestead
    Mountain Oak
    Eloy
    Gila Bend
    Creekstone
    Tifton
    Cass Towne
    Warsaw
    Royston
    Red Bud
    Cardinal
    Parsons | Pinetop, AZ
    Collinsville, AL
    Eloy, AZ
    Gila Bend, AZ
    Dallas, GA
    Tifton, GA
    Cartersville, GA
    Warsaw, VA
    Royston, GA
    Mokane, MO
    Mountain Home, AR
    Parsons, KS | 32
    24
    24
    36
    40
    36
    10
    56
    25
    8
    32
    38 | $ 1,280,603
    661,436
    635,583
    1,626,636
    631,737
    779,837
    0
    2,595,203
    728,009
    234,051
    79,900
    1,071,808
|                                                                                                                                                       |                                                                                                                                                                                                        |                                                                                | ------------                                                                                                                                  
|                                                                                                                                                       |                                                                                                                                                                                                        |                                                                                | $10,324,803                                                                                                                                   
|                                                                                                                                                       |                                                                                                                                                                                                        |                                                                                | ============                                                                                                                                  



|                                                                                                                                                       | Cost At Acquisition
    --------------------                                                                                         |                                                                                                                                                    
|------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------ | ---------------------------------------------------------------------------------------------------------------------------------------------------
|Partnership
    -----------                                                                                                                            | Land
    ----                                                                                                                        | Buildings, 
    Improvements
    and Equipment
    -------------                                                                                   
|Homestead
    Mountain Oak
    Eloy
    Gila Bend
    Creekstone
    Tifton
    Cass Towne
    Warsaw
    Royston
    Red Bud
    Cardinal
    Parsons | $  126,000
    30,000
    12,000
    18,000
    130,625
    17,600
    22,690
    146,800
    36,000
    5,500
    15,793
    45,188 | $   1,628,502
    473,033
    882,913
    945,233
    170,655
    192,853
    301,458
    3,200,738
    785,602
    295,617
    424,616
    953,512
|                                                                                                                                                       | ----------                                                                                                                           | ------------                                                                                                                                       
|                                                                                                                                                       | $  606,196                                                                                                                           | $10,254,732                                                                                                                                        
|                                                                                                                                                       | ===========                                                                                                                          | ============                                                                                                                                       

---

GATEWAY TAX CREDIT FUND III LTD.
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
OF PROPERTY OWNED BY PROJECT PARTNERSHIPS INVESTED IN
AS OF DECEMBER 31, 2006

|SERIES 11
    Apartment Properties                                                                                                                     | Gross Amount At Which Carried At December 31, 2006
    --------------------                                                                    
|------------------------------------------------------------------------------------------------------------------------------------------------------ | -----------------------------------------------------------------------------------------------------------------------------------------------
|Partnership
    -----------                                                                                                                            | Land
    ----                                                                                                                                  
|Homestead
    Mountain Oak
    Eloy
    Gila Bend
    Creekstone
    Tifton
    Cass Towne
    Warsaw
    Royston
    Red Bud
    Cardinal
    Parsons | $   126,000
    30,000
    12,000
    18,000
    130,650
    17,327
    22,690
    146,800
    36,000
    5,500
    15,793
    38,437          
|                                                                                                                                                       | -----------                                                                                                                                    
|                                                                                                                                                       | $ 599,197                                                                                                                                      
|                                                                                                                                                       | ===========                                                                                                                                    
|Partnership
    -----------                                                                                                                            | Accumulated
    Depreciation
    ------------                                                                                                  
|Homestead
    Mountain Oak
    Eloy
    Gila Bend
    Creekstone
    Tifton
    Cass Towne
    Warsaw
    Royston
    Red Bud
    Cardinal
    Parsons | $   566,547
    394,092
    482,722
    398,018
    765,404
    471,594
    98,078
    1,383,550
    353,367
    85,604
    158,775
    404,976
|                                                                                                                                                       | ------------                                                                                                                                   
|                                                                                                                                                       | $ 5,562,727                                                                                                                                    
|                                                                                                                                                       | ============                                                                                                                                   

---

SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
OF PROPERTY OWNED BY PROJECT PARTNERSHIPS INVESTED IN
AS OF DECEMBER 31, 2006
GATEWAY TAX CREDIT FUND III LTD.
NOTES TO SCHEDULE III

|SERIES 7
    Balance at beginning of period - December 31, 2005
     Additions during period:
      Acquisitions through foreclosure
      Other acquisitions
      Improvements, etc.
      Other
     Deductions during period:
      Cost of real estate sold | $  205,292 
    0 
    0 
    0 
    ---------
    7,247 
    --------- | $46,291,477 
    205,292 
    (7,247) 
    ----------- 
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------- | -------------------------------------------------------
|Balance at end of period - December 31, 2006                                                                                                                                                                                                                     |                                                                         | $46,489,522 
    ============                          
|Reconciliation of Accumulated Depreciation current year
    changes:
    Balance at beginning of period - December 31, 2005
      Current year expense
      Less Accumulated Depreciation of real estate sold                                                   |                                                                         | $19,022,427 
    1,475,208 
    (5,679)
    -----------
|Balance at end of period - December 31, 2006                                                                                                                                                                                                                     |                                                                         | $20,491,956 
    ============                          

---

SCHEDULE III -REAL ESTATE AND ACCUMULATED DEPRECIATION
OF PROPERTY OWNED BY PROJECT PARTNERSHIPS INVESTED IN
AS OF DECEMBER 31, 2006
NOTES TO SCHEDULE III

|Series 8
    Balance at beginning of period - December 31, 2005
     Additions during period:
      Acquisitions through foreclosure
      Other acquisitions
      Improvements, etc.
      Other
     Deductions during period:
      Cost of real estate sold
      Other | $ 232,677 
    0 
    0 
    0 
    -------
    0 
    0 
    ------- | $47,861,028 
    232,677 
    0 
    -----------              
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------- | --------------------------------------------------------------
|Balance at end of period - December 31, 2006                                                                                                                                                                                                                                 |                                                                       | $48,093,705 
    ============                                 
|Reconciliation of Accumulated Depreciation current year
    changes:
    Balance at beginning of period - December 31, 2005
      Current year expense
      Less Accumulated Depreciation of real estate sold
      Other                                                   |                                                                       | $19,218,334 
    1,514,499 
    75,039 
    0 
    -----------
|Balance at end of period - December 31, 2006                                                                                                                                                                                                                                 |                                                                       | $20,807,872 
    ============                                 

---

SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
OF PROPERTY OWNED BY PROJECT PARTNERSHIPS INVESTED IN
AS OF DECEMBER 31, 2006
GATEWAY TAX CREDIT FUND III LTD.
NOTES TO SCHEDULE III

|Series 9
    Balance at beginning of period - December 31, 2005
     Additions during period:
      Acquisitions through foreclosure
      Other acquisitions
      Improvements, etc.
      Other
     Deductions during period:
      Cost of real estate sold
      Other | $ 105,668 
    0 
    0 
    0 
    --------
    0 
    0 
    -------- | $26,110,115 
    105,668 
    0 
    -----------      
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------- | ------------------------------------------------------
|Balance at end of period - December 31, 2006                                                                                                                                                                                                                                 |                                                                         | $26,215,783 
    ============                         
|Reconciliation of Accumulated Depreciation current year
    changes:
    Balance at beginning of period - December 31, 2005
      Current year expense
      Less Accumulated Depreciation of real estate sold
      Other                                                   |                                                                         | 9,640,414 
    774,921 
    (1)
    0 
    -----------
|Balance at end of period - December 31, 2006                                                                                                                                                                                                                                 |                                                                         | $10,415,334 
    ============                         

---

SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
OF PROPERTY OWNED BY PROJECT PARTNERSHIPS INVESTED IN
AS OF DECEMBER 31, 2006
NOTES TO SCHEDULE III

|Series 10
    Balance at beginning of period - December 31, 2005
     Additions during period:
      Acquisitions through foreclosure
      Other acquisitions
      Improvements, etc.
      Other
     Deductions during period:
      Cost of real estate sold
      Other | $ 86,168 
    0 
    0 
    0 
    --------
    0 
    0 
    -------- | $17,832,688 
    86,168 
    0 
    -----------             
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------- | ------------------------------------------------------------
|Balance at end of period - December 31, 2006                                                                                                                                                                                                                                  |                                                                        | $17,918,856 
    ============                               
|Reconciliation of Accumulated Depreciation current year
    changes:
    Balance at beginning of period - December 31, 2005
      Current year expense
      Less Accumulated Depreciation of real estate sold
      Other                                                    |                                                                        | $ 5,569,061 
    465,794 
    (7,326)
    0 
    -----------
|Balance at end of period - December 31, 2006                                                                                                                                                                                                                                  |                                                                        | $ 6,027,529 
    ============                               

---

SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
OF PROPERTY OWNED BY PROJECT PARTNERSHIPS INVESTED IN
AS OF DECEMBER 31, 2006
GATEWAY TAX CREDIT FUND III LTD.
NOTES TO SCHEDULE III

|Series 11
    Balance at beginning of period - December 31, 2005
     Additions during period:
      Acquisitions through foreclosure
      Other acquisitions
      Improvements, etc.
      Other
     Deductions during period:
      Cost of real estate sold
      Other | $ 208,302 
    0 
    0 
    0 
    --------
    0 
    0 
    -------- | $15,662,956 
    208,302 
    0 
    -----------              
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------- | --------------------------------------------------------------
|Balance at end of period - December 31, 2006                                                                                                                                                                                                                                  |                                                                         | $15,871,258 
    ===========                                  
|Reconciliation of Accumulated Depreciation current year
    changes:
    Balance at beginning of period - December 31, 2005
      Current year expense
      Less Accumulated Depreciation of real estate sold
      Other                                                    |                                                                         | $ 5,314,654 
    497,357 
    (249,285)
    0 
    -----------
|Balance at end of period - December 31, 2006                                                                                                                                                                                                                                  |                                                                         | $ 5,562,726 
    ===========                                  

---

GATEWAY TAX CREDIT FUND III LTD.
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE
AS OF DECEMBER 31, 2006

|SERIES 7
    PARTNERSHIP
    -----------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | # OF
    UNITS
    -----                                                                                                                                                                                                                                                     | BALANCE
    -------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | INTEREST
    RATE
    --------                                                                                                                                                                                                                                                                                                                                                                    | MONTHLY
    DEBT
    SERVICE
    -------                                                                                                                                                                                                                                                                                                                                                           | TERM
    (YEARS)
    ------                                                                                                                                                                                                                                                 
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Nottingham
    Cedar Hollow
    Sunrise
    Mountain City
    Burbank
    Washington
    BrookStone
    Tazewell
    N. Irvine
    Horton
    Manchester
    Waynesboro
    Lakeland II
    Mt. Vernon
    Meadow Run
    Spring Creek II
    Warm Springs
    Blue Ridge
    Walnut
    Pioneer
    Dilley
    Elsa
    Clinch View
    Jamestown
    Leander
    Louisa Sr.
    Orchard Commons
    Vardaman
    Heritage Park
    BrooksHollow
    Cavalry Crossing
    Carson City
    Matteson
    Pembroke
    Robynwood
    Atoka
    Coalgate
    Hill Creek
    Cardinal | 18
    24
    44
    40
    24
    24
    40
    44
    24
    24
    42
    24
    30
    24
    48
    24
    22
    41
    24
    48
    28
    40
    42
    40
    36
    36
    12
    24
    32
    40
    40
    24
    24
    16
    24
    24
    24
    24
    32 | 560,076
    742,603
    1,972,950
    1,284,215
    787,047
    781,286
    1,164,196
    1,366,000
    772,394
    750,019
    1,171,595
    654,016
    812,541
    720,277
    1,389,160
    649,724
    658,954
    1,068,590
    802,488
    1,182,344
    708,493
    1,011,834
    1,419,838
    1,190,819
    893,901
    1,161,050
    324,382
    713,560
    1,214,647
    1,149,121
    1,386,082
    769,610
    744,283
    496,889
    753,370
    656,802
    656,830
    755,037
    122,471
    ---------- | 7.75%
    7.75%
    7.25%
    7.75%
    8.25%
    8.25%
    6.50%
    7.25%
    7.75%
    7.75%
    6.50%
    6.50%
    7.25%
    6.50%
    6.50%
    6.50%
    7.25%
    7.25%
    7.75%
    8.25%
    8.25%
    7.75%
    8.75%
    7.25%
    7.75%
    7.25%
    7.75%
    7.25%
    7.75%
    6.50%
    7.75%
    7.25%
    7.25%
    7.25%
    7.25%
    7.25%
    7.25%
    6.50%
    6.50% | 4,182
    3,128
    9,226
    5,399
    2,990
    2,923
    6,491
    6,463
    3,164
    2,845
    6,417
    3,398
    3,800
    3,899
    7,564
    3,623
    2,775
    4,869
    3,401
    4,524
    2,650
    4,347
    7,509
    5,565
    3,506
    6,061
    5,732
    3,006
    5,077
    6,294
    5,676
    3,500
    3,500
    2,951
    5,251
    3,917
    3,793
    3,830 
    5,200 | 50
    50
    50
    50
    50
    50
    50
    50
    50
    50
    50
    50
    50
    50
    50
    50
    50
    50
    50
    50
    50
    50
    50
    50
    50
    50
    50
    50
    50
    50
    50
    50
    50
    50
    50
    50
    50
    50
    50
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                              | $35,419,494
    ===========                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                             

---

GATEWAY TAX CREDIT FUND III LTD.
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE
AS OF DECEMBER 31, 2006

|SERIES 8
    PARTNERSHIP
    -----------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | # OF
    UNITS
    -----                                                                                                                                                                                                                                                                                 | BALANCE
    -------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | INTEREST
    RATE
    --------                                                                                                                                                                                                                                                                                                                                                                                                             | MONTHLY
    DEBT
    SERVICE
    -------                                                                                                                                                                                                                                                                                                                                                                                                    | TERM
    (YEARS)
    ------                                                                                                                                                                                                                                                                             
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Purdy
    Galena
    Antlers 2
    Holdenville
    Wetumka
    Mariners Cove
    Mariners Cove Sr.
    Antlers
    Bentonville
    Deerpoint
    Aurora
    Baxter
    Arbor Gate
    Timber Ridge
    Concordia Sr.
    Mountainburg
    Lincoln
    Fox Ridge
    Meadow View
    Sheridan
    Morningside
    Grand Isle
    Meadowview
    Taylor
    Brookwood
    Pleasant Valley
    Reelfoot
    River Rest
    Kirskville
    Cimmaron
    Kenton
    Lovingston
    Pontotoc
    So. Brenchley
    Hustonville
    Northpoint
    Brooks Field
    Brooks Lane
    Brooks Point
    Brooks Run
    Logan Heights
    Lakeshore 2
    Cottondale | 16
    24
    24
    24
    24
    32
    24
    36
    24
    24
    28
    16
    24
    24
    24
    24
    25
    24
    16
    16
    32
    16
    29
    44
    44
    33
    20
    34
    24
    24
    46
    64
    36
    30
    16
    24
    32
    36
    41
    24
    24
    36
    25 | $   447,676
    593,776
    616,872
    701,799
    636,354
    1,011,809
    783,641
    1,064,675
    494,073
    720,188
    709,806
    415,221
    734,292
    717,301
    665,173
    692,444
    870,356
    725,397
    577,409
    592,600
    950,629
    921,238
    730,311
    1,213,020
    1,425,697
    1,073,463
    635,847
    1,121,140
    668,339
    808,345
    1,396,888
    2,169,188
    1,078,641
    1,209,736
    507,633
    875,282
    934,286
    1,079,764
    1,339,529
    742,886
    766,265
    1,129,681
    748,598
    ---------- | 7.75%
    7.25%
    7.25%
    6.50%
    6.50%
    7.25%
    7.25%
    7.25%
    7.75%
    7.75%
    7.25%
    6.50%
    6.50%
    7.25%
    6.50%
    6.50%
    8.25%
    7.25%
    7.25%
    8.25%
    7.25%
    8.25%
    7.25%
    7.50%
    6.50%
    7.25%
    7.25%
    7.25%
    7.25%
    10.75%
    7.25%
    7.00%
    7.25%
    7.25%
    6.50%
    7.25%
    7.25%
    7.25%
    7.25%
    7.25%
    7.25%
    7.75%
    7.75% | 2,285
    2,776
    4,085
    4,330
    4,314
    4,600
    3,500
    4,619
    14,430
    6,238
    3,236
    2,720
    4,099
    3,446
    3,350
    3,824
    3,351
    3,398
    2,683
    3,211
    4,331
    8,875
    7,575
    6,644
    7,860
    4,893
    3,892
    4,791
    2,591
    4,428
    6,044
    10,920
    4,490
    5,200
    3,187
    4,112
    4,004
    4,297
    4,833
    2,975
    3,072
    4,147
    2,711 | 50
    50
    50
    50
    50
    50
    50
    50
    45
    50
    50
    50
    50
    50
    50
    50
    50
    50
    50
    50
    50
    50
    39
    50
    50
    50
    50
    50
    50
    50
    50
    50
    50
    50
    50
    50
    50
    50
    50
    50
    50
    50
    50
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                          | $37,297,268
    ===========                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                         

---

GATEWAY TAX CREDIT FUND III LTD.
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE
AS OF DECEMBER 31, 2006

SERIES 9

|PARTNERSHIP
    -----------                                                                                                                                                                                                                                                                                                          | # OF
    UNITS
    -----                                                                                                                                            | BALANCE
    -------                                                                                                                                                                                                                                                                                                      | INTEREST
    RATE
    --------                                                                                                                                                                                                              | MONTHLY
    DEBT
    SERVICE
    -------                                                                                                                                                                                                     | TERM
    (YEARS)
    ------                                                                                                                                        
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Jay
    Boxwood
    Stilwell 3
    Arbor Trace
    Arbor Trace 2
    Omega
    Cornell 2
    Elm Creek
    Marionville
    Lamar
    Mt. Glen
    Centreville
    Skyview
    Sycamore
    Bradford
    Cedar Lane
    Stanton
    Abernathy
    Pembroke
    Meadowview
    Town Branch
    Fox Run
    Maple Street
    Manchester | 24
    24
    16
    24
    42
    36
    24
    24
    20
    24
    24
    24
    36
    40
    24
    24
    24
    24
    24
    24
    24
    24
    32
    18 | $   636,124
    599,487
    452,220
    724,419
    1,426,495
    1,109,650
    901,665
    932,993
    549,556
    695,889
    805,078
    771,843
    1,109,790
    1,384,512
    773,985
    710,457
    783,343
    604,708
    780,566
    643,045
    751,302
    757,241
    1,336,359
    578,133
    ---------- | 7.25%
    6.50%
    7.25%
    7.25%
    7.25%
    7.25%
    7.25%
    7.25%
    6.50%
    7.25%
    6.50%
    7.25%
    7.25%
    7.25%
    7.03%
    6.50%
    7.25%
    6.50%
    7.25%
    0.50%
    7.25%
    6.50%
    7.25%
    7.25% | 2,851
    3,894
    2,728
    3,309
    6,157
    4,679
    4,135
    4,223
    2,974
    11,480
    4,344
    3,340
    4,771
    5,914
    3,205
    5,465
    3,892
    3,737
    3,495
    2,162
    4,347
    3,685
    5,421
    2,438 | 50
    50
    50
    50
    50
    50
    50
    50
    50
    50
    50
    50
    50
    50
    50
    50
    50
    50
    50
    20
    50
    50
    50
    50
|                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                     | $19,818,860
    ===========                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                              |                                                                                                                                                                    

---

GATEWAY TAX CREDIT FUND III LTD.
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE
AS OF DECEMBER 31, 2006

|SERIES 10
    PARTNERSHIP
    -----------                                                                                                                                                                  | # OF
    UNITS
    -----                                                                             | BALANCE
    -------                                                                                                                                                                                        | INTEREST
    RATE
    --------                                                                                                                    | MONTHLY
    DEBT
    SERVICE
    -------                                                                                                  | TERM
    (YEARS)
    ------                                                                         
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------
|Redstone
    Albany
    Oak Terrace
    Wellshill
    Applegate
    Heatherwood
    Peachtree
    Donna
    Wellsville
    Tecumseh
    Clay City
    Irvine West
    New Castle
    Stigler
    Courtyard | 24
    24
    18
    32
    36
    36
    28
    50
    24
    24
    24
    24
    24
    20
    21 | $   822,454
    753,455
    528,684
    1,059,520
    1,114,105
    869,600
    979,393
    1,387,265
    1,016,709
    871,877
    793,679
    792,056
    786,142
    579,767
    627,501
    ---------- | 6.50%
    6.50%
    6.50%
    7.25%
    0.50%
    0.50%
    7.25%
    6.50%
    6.50%
    7.25%
    7.25%
    7.25%
    7.25%
    7.25%
    6.50% | 4,505
    4,992
    2,861
    4,437
    0
    0
    4,608
    7,509
    8,231
    3,531
    3,619
    3,361
    5,131
    3,813
    2,386 | 50
    50
    50
    50
    20
    20
    50
    50
    50
    50
    50
    50
    50
    50
    50
|                                                                                                                                                                                                           |                                                                                                      | $12,982,207
    ===========                                                                                                                                                                                |                                                                                                                                                   |                                                                                                                                           |                                                                                                     



|SERIES 11
    PARTNERSHIP
    -----------                                                                                                              | # OF
    UNITS
    -----                                                       | BALANCE
    -------                                                                                                                                           | INTEREST
    RATE
    --------                                                                                       | MONTHLY
    DEBT
    SERVICE
    -------                                                                              | TERM
    (YEARS)
    ------                                                    
|------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------
|Homestead
    Mountain Oak
    Eloy
    Gila Bend
    Creekstone
    Tifton
    Cass Towne
    Warsaw
    Royston
    Red Bud
    Cardinal
    Parsons | 32
    24
    24
    36
    40
    36
    10
    56
    25
    8
    32
    38 | $ 1,280,603
    661,436
    635,583
    1,626,636
    631,737
    779,837
    0
    2,595,203
    728,009
    234,051
    79,900
    1,071,808
    ---------- | 6.50%
    8.00%
    6.00%
    8.00%
    11.00%
    0.00%
    3.00%
    6.50%
    6.75%
    7.25%
    6.50%
    8.00% | 6,408
    4,666
    2,109
    3,070
    56,427
    24,929
    17,000
    12,984
    3,009
    863
    3,392
    3,943 | 50
    50
    50
    50
    30
    42
    10
    50
    50
    50
    50
    50
|                                                                                                                                                       |                                                                                | $ 10,324,803
    ===========                                                                                                                                  |                                                                                                                      |                                                                                                                       |                                                                                



---

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: September 19, 2008          By:/s/ Ronald M. Diner                                  Ronald M. Diner
                                  President, Director
Date: September 19, 2008          By:/s/ J. Davenport Mosby III
                                  J. Davenport Mosby III
                                  Director
Date: September 19, 2008          By:/s/ Jonathan Oorlog
                                  Jonathan Oorlog
                                  Vice President and Chief Financial Officer
Date: September 19, 2008          By:/s/ Sandra C. Humphreys                                  Sandra C. Humphreys
                                  Secretary and Treasurer

---

EXHIBIT 31.1

Rule 13a-14(a)/15d-14(a) Certification

I, Ron Diner, certify that:

1. I have reviewed this Amended Report on Form 10-K/A of Gateway
Tax Credit Fund III, Ltd.;

2. Based on my knowledge, this 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 report;

3. Based on my knowledge, the financial statements, and other
  financial information included in this 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 report;

4. The registrant's other certifying officer and I are
  responsible for establishing and maintaining disclosure controls and
  procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and
  internal control over financial reporting (as defined in Exchange Act Rules
  13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or
    caused such disclosure controls  and procedures to be designed under our
    supervision, 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
    report is being prepared;

(b) Designed such internal control over financial reporting,
    or caused such internal  control over financial reporting to be designed
    under our supervision, to provide  reasonable assurance regarding the
    reliability of financial reporting and the  preparation of financial
    statements for external purposes in accordance with  generally accepted
    accounting principles;

(c) Evaluated the effectiveness of the registrant's
    disclosure controls and procedures and  presented in this report our
    conclusions about the effectiveness of the disclosure  controls and
    procedures, as of the end of the period covered by this report based on
     such evaluation; and

(d) Disclosed in this report any change in the registrant's
    internal control over  financial reporting that occurred during the
    registrant's most recent fiscal quarter  (the registrant's fourth fiscal
    quarter in the case of an annual report) that has  materially affected, or
    is reasonably likely to materially affect, the registrant's  internal
    control over financial reporting; and

5. The registrant's other certifying officer and I have
  disclosed, based on our most recent evaluation of internal control over
  financial reporting, to the registrant's auditors and the audit committee of
  the registrant's board of directors (or persons performing the equivalent
  functions):

(a) All significant deficiencies and material weaknesses in
    the design or operation of  internal control over financial reporting which
    are reasonably likely to adversely  affect the registrant's ability to
    record, process, summarize and report financial  information; and

(b) Any fraud, whether or not material, that involves
    management or other employees who  have a significant role in the
    registrant's internal control over financial  reporting.



|Date: September 19, 2008            
|------------------------------------
|                                    
|By:/s/ Ronald M. Diner              
|President                           
|Raymond James Tax Credit Funds, Inc.
|(the Managing General Partner)      

---

EXHIBIT 31.2

Rule 13a-14(a)/15d-14(a) Certification

I, Jonathan Oorlog, certify that:

1. I have reviewed this Amended Report on Form 10-K/A of Gateway
Tax Credit Fund III, Ltd.;

2. Based on my knowledge, this 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 report;

3. Based on my knowledge, the financial statements, and other
  financial information included in this 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 report;

4. The registrant's other certifying officer and I are
  responsible for establishing and maintaining disclosure controls and
  procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and
  internal control over financial reporting (as defined in Exchange Act Rules
  13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or
    caused such disclosure controls  and procedures to be designed under our
    supervision, 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
    report is being prepared;

(b) Designed such internal control over financial reporting,
    or caused such internal  control over financial reporting to be designed
    under our supervision, to provide  reasonable assurance regarding the
    reliability of financial reporting and the  preparation of financial
    statements for external purposes in accordance with  generally accepted
    accounting principles;

(c) Evaluated the effectiveness of the registrant's
    disclosure controls and procedures  and presented in this report our
    conclusions about the effectiveness of the  disclosure controls and
    procedures, as of the end of the period covered by this  report based on
    such evaluation; and

(d) Disclosed in this report any change in the registrant's
    internal control over  financial reporting that occurred during the
    registrant's most recent fiscal quarter  (the registrant's fourth fiscal
    quarter in the case of an annual report) that has  materially affected, or
    is reasonably likely to materially affect, the registrant's  internal
    control over financial reporting; and

5. The registrant's other certifying officer and I have
  disclosed, based on our most recent evaluation of internal control over
  financial reporting, to the registrant's auditors and the audit committee of
  the registrant's board of directors (or persons performing the equivalent
  functions):

(a) All significant deficiencies and material weaknesses in
    the design or operation of  internal control over financial reporting which
    are reasonably likely to adversely  affect the registrant's ability to
    record, process, summarize and report financial  information; and

(b) Any fraud, whether or not material, that involves
    management or other employees who  have a significant role in the
    registrant's internal control over financial  reporting.



|Date: September 19, 2008                  
|------------------------------------------
|                                          
|By:/s/ Jonathan Oorlog                    
|Vice President and Chief Financial Officer
|Raymond James Tax Credit Funds, Inc.      
|(the Managing General Partner)            

---

EXHIBIT 32



CERTIFICATION PURSUANT TO 18 U.S.C.
SECTION 1350

We, each hereby certify to the best of our knowledge that the Amended
Annual Report of Form 10-K/A of Gateway Tax Credit Fund III Ltd. for the year
ended March 31, 2007 containing the financial statements fully complies with the
requirements of Section 13(a) or 15(d)of the Securities Exchange Act of 1934 (15
U.S.C. 78m or 78o(d)) and that information contained in the periodic report
fairly presents, in all material respects, the financial condition and results
of operations of Gateway.

/s/ Ronald M. DinerPresident
Raymond James Tax Credit Funds, Inc.
(the Managing General Partner)
September 19, 2008/s/ Jonathan OorlogVice President and Chief Financial Officer
Raymond James Tax Credit Funds, Inc.
(the Managing General Partner)
September 19, 2008