FORM 10-K

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC  20549

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE
ACT OF 1934 (FEE REQUIRED)

For the fiscal year endedMarch 31, 2001

Commission File Number0-21762

Gateway Tax Credit Fund III Ltd.                           (Exact name of Registrant as specified in its charter)Florida                              59-3090386(State or other jurisdiction of              (I.R.S. Employer No.)
incorporation or organization)

880 Carillon Parkway, St. Petersburg, Florida   33716               (Address of principal executive offices)      (Zip Code)

Registrant's Telephone No., Including Area Code:(727)573-3800

Securities registered pursuant to Section 12(b) of the Act:  None

Securities registered pursuant to Section 12(g) of the Act:
Title of Each Class:  Beneficial Assignee Certificates

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 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 or any amendment to this 
 Form 10-K. X

Number of Record Holders
  Title of Each Class                       March 31, 2001Limited Partnership Interest                      2,389
General Partner Interest                            2

DOCUMENTS INCORPORATED BY REFERENCE

Parts III and IV - Form S-11 Registration Statement and all amendments
and supplements thereto.      File No. 33-44238

---

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, 2001, 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 are 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, 2001, Gateway had invested in 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 recently acquired 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, 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 contribution of Investors;

3) Participate in any capital appreciation in the value of the
     Projects; and

4) Provide passive losses to i) individual investors to offset 
     passive income from other passive activities, and ii) corporate
     investors to offset business income.

The investment objectives and policies of Gateway are described in detail on pages 39 through 47 of the Prospectus, as supplemented, 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, 2001 the 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.

Item 2.  Properties

Gateway owns a majority interest in properties through its limited partnership investments in Project Partnerships.  The largest single net investment in a Project Partnership in Series 7 is 15.6% of the Series' total balance sheet assets, Series 8 is 8.1%, Series 9 is 15.6%, Series 10 is 20.5% and Series 11 is 21.7%.  The following table provides certain summary information regarding the Project Partnerships in which Gateway had an interest as of December 31, 2000:

---

Item 2 - Properties (continued):

SERIES 7

|PARTNERSHIP
-----------                                                                                                                                                                                                                                                                                                                                                                                                | LOCATION
OF PROPERTY
-----------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | # OF
 UNIT
----                                                                                                      | DATE  
ACQUIRED
--------                                                                                                                                                                                 | PROPERTY
COST  
--------                                                                                                                                                                                                                                                                                                                                          | OCCUPANCY
 RATE  
-------                                                                                                                                                    
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Nottingham
Cedar Hollow
Sunrise
Mountain City
Burbank
Washington
BrookStone
Tazewell
N. Irvine
Horton
Manchester
Waynesboro
Lakeland II
Mt. Vernon
Meadow Run
SpringCreek II
Warm Springs
Blue Ridge
Walnut
Pioneer
Dilley
Elsa
Clinch View
Jamestown
Leander
Louisa Sr.
OrchardCommons
Vardaman
Heritage Park
BrooksHollow
CavalryCrossing
Carson City
Matteson
Pembroke
Robynwood
Atoka
Coalgate
Hill Creek
Cardinal | Pisgah, AL
Waterloo, NE
Mission, SD
MountainCity,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
MountainView,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
MountainHome,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 | 719,462
956,702
2,525,387
1,603,213
1,008,422
972,895
1,462,345
1,695,918
1,021,031
932,540
1,475,429
817,498
1,009,647
900,526
1,744,840
808,475
823,327
1,339,143
1,011,026
1,345,647
890,263
1,341,694
1,775,060
1,503,859
1,115,112
1,509,987
479,661
905,694
1,574,946
1,439,985
1,784,492
958,576
938,783
623,304
1,011,684
835,334
828,505
968,228
781,436 | 100%
96%
91%
100%
100%
88%
98%
100%
100%
83%
93%
100%
90%
71%
90%
100%
91%
93%
100%
100%
97%
100%
100%
100%
100%
100%
95%
100%
94%
100%
98%
92%
79%
100%
96%
96%
100%
92%
91%
|                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | -----
1,195
=====                                                                                                    |                                                                                                                                                                                                          | ----------
45,440,076
==========                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                              

An average effective rental per unit is $3,390 per year ($283 per month).

---

Item 2 - Properties (continued):

SERIES 8

|PARTNERSHIP
-----------                                                                                                                                                                                                                                                                                                                                                                                                                                                         | LOCATION OF
PROPERTY
-----------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | # OF UNIT
-----                                                                                                                  | DATE 
ACQUIRED
--------                                                                                                                                                                                                            | PROPERTY
 COST  
--------                                                                                                                                                                                                                                                                                                                                                                     | OCCUPANCY
 RATE  
--------                                                                                                                                                                    
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Purdy
Galena
Antlers 2
Holdenville
Wetumka
Mariners Cove
MarinersCoveSr.
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
BaxterSprings,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 | 577,282
757,710
787,859
892,598
812,853
1,277,169
996,676
1,321,039
758,489
932,474
889,134
536,301
918,303
898,022
826,389
883,990
1,115,110
902,785
721,879
756,609
1,188,967
1,200,210
994,717
1,530,768
1,810,597
1,350,337
814,608
1,403,425
831,492
1,105,664
1,775,497
2,727,920
1,330,474
1,548,673
696,400
1,085,976
1,173,505
1,347,963
1,657,429
923,814
951,730
1,417,128
948,319 | 69%
100%
96%
100%
100%
94%
100%
94%
96%
79%
100%
100%
96%
96%
88%
96%
92%
75%
94%
81%
100%
63%
90%
100%
93%
100%
100%
100%
100%
79%
100%
100%
100%
97%
100%
96%
97%
100%
98%
100%
58%
100%
96%
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | -----
1,207=====                                                                                                                 |                                                                                                                                                                                                                                    | ----------
47,378,284
==========                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                               

An average effective rental per unit is $3,366 per year ($281 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
1,165,049
1,186,834
699,290
904,325
1,061,834
975,033
1,412,352
1,790,348
1,055,632
995,281
1,001,158
781,898
998,687
1,136,913
984,410
975,631
1,701,192
737,525 | 100%
100%
81%
100%
95%
94%
83%
83%
95%
96%
75%
96%
97%
100%
96%
100%
100%
100%
100%
96%
100%
75%
100%
94%
|                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                         | ----
624
====                                                           |                                                                                                                                        | ----------
25,864,156
==========                                                                                                                                                                                      |                                                                                                          

An average effective rental per unit is $3,262 per year ($272 per month).

---

Item 2 - Properties (continued):

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 | 1,131,551
1,035,887
665,588
1,345,844
1,838,637
1,611,756
1,072,467
1,780,076
1,339,343
1,078,906
1,024,376
1,089,546
1,022,311
754,056
768,840 | 83%
88%
94%
100%
97%
100%
100%
100%
100%
75%
96%
88%
88%
100%
100%
|                                                                                                                                                   |                                                                                                                                                                                               | ----
409
====                                |                                                                             | ----------
17,559,184
==========                                                                                                                |                                                                   

An average effective rental per unit is $3,285 per year ($274 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 | 1,771,680
879,424
932,164
1,291,249
2,008,604
1,706,886
327,120
3,336,463
935,906
301,117
509,809
1,344,835 | 100%
92%
100%
83%
88%
97%
100%
100%
100%
100%
91%
100%
|                                                                                                           |                                                                                                                                                          | ----
361
====                      |                                                                       | ----------
15,345,258
==========                                                                            |                                                       

An average effective rental per unit is $3,809 per year ($317 per month).

---

Item 2 - Properties (continued):

A summary of the cost of the properties at December 31, 2000, 1999 and 1998 is as follows:
                                   12/31/00

|                                                                                                                    | SERIES 7                                                                                                       | SERIES 8                                                                                                       | SERIES 9                                                                                                   
|------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------
|Land
Land Improvements
Buildings
Furniture and Fixtures
Properties, at Cost
Less:Accum.Depreciation
Properties, Net | $ 1,629,533
169,981
41,899,148
1,741,414
-----------
45,440,076
11,657,985
-----------
$33,782,091
=========== | $ 1,978,810
434,656
43,329,157
1,635,661
-----------
47,378,284
11,686,945
-----------
$35,691,339
=========== | $ 1,099,659
180,333
23,595,258
988,906
-----------
25,864,156
5,669,383
-----------
$20,194,773
===========

|                                                                                                                    | SERIES 10                                                                                                  | SERIES 11                                                                                             | TOTAL                                                                                                                
|------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------
|Land
Land Improvements
Buildings
Furniture and Fixtures
Properties, at Cost
Less:Accum.Depreciation
Properties, Net | $   648,625
59,331
16,318,322
532,906
-----------
17,559,184
3,232,262
-----------
$14,326,922
=========== | $   599,196
0
14,293,070
452,992
-----------
15,345,258
2,731,802
-----------
$12,613,456
=========== | $  5,955,823
844,301
139,434,955
5,351,879
------------
151,586,958
34,978,377
------------
$116,608,581
============

12/31/99

|                                                                                                                    | SERIES 7                                                                                                         | SERIES 8                                                                                                       | SERIES 9                                                                                                  
|------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------
|Land
Land Improvements
Buildings
Furniture and Fixtures
Properties, at Cost
Less:Accum.Depreciation
Properties, Net | $  1,619,533
168,279
41,891,396
1,654,537
-----------
45,333,745
10,191,396
-----------
$ 35,142,349
=========== | $1,978,810
425,856
43,313,983
1,591,115
 -----------
47,309,764
10,111,399
-----------
$37,198,365
=========== | $1,099,659
178,022
23,585,182
962,595
-----------
25,825,458
4,837,043
-----------
$20,988,415
===========

|                                                                                                                    | SERIES 10                                                                                               | SERIES 11                                                                                            | TOTAL                                                                                                              
|------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------
|Land
Land Improvements
Buildings
Furniture and Fixtures
Properties, at Cost
Less:Accum.Depreciation
Properties, Net | $648,625
59,331
16,293,622
498,951
-----------
17,500,529
2,735,822
-----------
$14,764,707
=========== | $  599,197
0
14,273,888
423,500
-----------
15,296,585
2,218,007
-----------
$13,078,578
=========== | $5,945,824
831,488
139,358,071
5,130,698
------------
151,266,081
30,093,667
------------
$121,172,414
============

---

12/31/98

|                                                                                                                    | SERIES 7                                                                                                       | SERIES 8                                                                                                           | SERIES 9                                                                                                     
|------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------ | -------------------------------------------------------------------------------------------------------------
|Land
Land Improvements
Buildings
Furniture and Fixtures
Properties, at Cost
Less:Accum.Depreciation
Properties, Net | $  1,615,119
80,236
41,955,360
1,604,319
-----------
45,255,034
8,688,650
-----------
$ 36,566,384
=========== | $  1,978,810
425,076
43,302,724
1,547,616
------------
47,254,226
8,013,045
------------
$ 39,241,181
============ | $ 1,099,659
178,022
23,565,995
950,216
-----------
25,793,892
3,996,265
 -----------
$ 21,797,627
===========

|                                                                                                                    | SERIES 10                                                                                                    | SERIES 11                                                                                                  | TOTAL                                                                                                                
|------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------ | ---------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------
|Land
Land Improvements
Buildings
Furniture and Fixtures
Properties, at Cost
Less:Accum.Depreciation
Properties, Net | $ 648,625
59,331
16,293,622
477,090
------------
17,478,668
2,238,601
------------
$ 15,240,067
============ | $ 599,197
0
14,225,668
448,900
-------------
15,273,765
1,745,396
-------------
$ 13,528,369
============= | $  5,941,410
742,665
139,343,369
5,028,141
------------
151,055,585
24,681,957
------------
$126,373,628
============

---

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, 2001, 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 several
     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 HoldersTitle of Class
                   as of March 31, 2001

Limited Partner Interest
                2,389
General Partner Interest
                  2

---

Item 6.  Selected Financial Data

FOR THE YEARS ENDED MARCH 31,

|SERIES 7                                                                                       | 2001
----               | 2000
----                   | 1999
----                       | 1998
----                       | 1997
----                      
|---------------------------------------------------------------------------------------------- | ----------------------- | --------------------------- | ------------------------------- | ------------------------------- | -------------------------------
|Total
Revenues                                                                                 | $  59,053               | $ 51,236                    | $ 43,550                        | $ 44,592                        | $ 43,466                       
|Net Loss                                                                                       | (508,769)               | (555,736)                   | (812,428)                       | (1,010,863)                     | (1,026,918)                    
|Equity in
Losses of
Project
Partnerships                                                       | (434,461)               | (471,721)                   | (718,721)                       | (909,991)                       | (936,184)                      
|Total Assets                                                                                   | 2,509,975               | 2,972,199                   | 3,481,841                       | 4,255,853                       | 5,218,302                      
|Investments
In Project
Partnerships                                                            | 1,773,751               | 2,237,728                   | 2,749,505                       | 3,517,852                       | 4,483,546                      
|Per Weighted
Average
Limited
Partnership
Unit: (A)

Tax Credits
Portfolio  Income
Passive Loss | 161.40 
13.30 
(131.90) | 161.40 
    11.50 
(117.20) | 161.40 
     11.20 
   (112.50) | 161.50 
     10.30 
   (117.30) | 160.60 
      9.80 
   (113.20)
|Net Loss                                                                                       | (48.45)                 | (52.93)                     | (77.37)                         | (96.27)                         | (97.81)                        

---

FOR THE YEARS ENDED MARCH 31,

|SERIES 8                                                                                      | 2001
----               | 2000
----                       | 1999
----                   | 1998
----                       | 1997
----                      
|--------------------------------------------------------------------------------------------- | ----------------------- | ------------------------------- | --------------------------- | ------------------------------- | -------------------------------
|Total
Revenues                                                                                | $  55,568               | $  48,434                       | $  45,764                   | $  46,987                       | $  48,637                      
|Net Loss                                                                                      | (539,766)               | (1,247,292)                     | (1,055,240)                 | (1,060,938)                     | (1,089,189)                    
|Equity in
 Losses of
Project
Partnerships                                                     | (457,729)               | (1,158,932)                     | (960,106)                   | (963,455)                       | (999,833)                      
|Total Assets                                                                                  | 1,749,931               | 2,238,666                       | 3,435,008                   | 4,446,829                       | 5,451,625                      
|Investments
In Project
Partnerships                                                           | 940,463                 | 1,423,188                       | 2,612,574                   | 3,608,229                       | 4,614,122                      
|Per Weighted
Average
Limited
Partnership
Unit: (A)
Tax Credits
Portfolio  Income
Passive Loss | 160.80 
12.30 
(141.80) | 160.80 
     10.70 
   (133.70) | 160.80 
    10.60 
(137.00) | 160.80 
     10.60 
   (130.60) | 159.20 
      8.90 
   (138.30)
|Net Loss                                                                                      | (53.54)                 | (123.73)                        | (104.68)                    | (105.56)                        | (108.37)                       

---

FOR THE YEARS ENDED MARCH 31,

|SERIES 9                                                                                       | 2001
----               | 2000
----                      | 1999
----                       | 1998
----                       | 1997
----                      
|---------------------------------------------------------------------------------------------- | ----------------------- | ------------------------------ | ------------------------------- | ------------------------------- | -------------------------------
|Total
Revenues                                                                                 | $  28,868               | $  25,243                      | $  24,872                       | $  25,209                       | $  25,848                      
|Net Loss                                                                                       | (457,177)               | (547,924)                      | (570,231)                       | (512,506)                       | (557,202)                      
|Equity in
Losses of
Project
Partnerships                                                       | (409,450)               | (496,765)                      | (517,316)                       | (459,629)                       | (506,807)                      
|Total Assets                                                                                   | 2,326,088               | 2,774,157                      | 3,289,179                       | 3,830,465                       | 4,307,579                      
|Investments
In Project
Partnerships                                                            | 1,849,358               | 2,303,872                      | 2,818,653                       | 3,363,377                       | 3,848,367                      
|Per Weighted
Average
Limited
Partnership
Unit: (A)
Tax Credits
Portfolio
  Income
Passive Loss | 153.40 
11.40 
(130.00) | 153.40
     10.40 
   (124.90) | 153.40 
     10.10 
   (106.70) | 153.40 
      9.10 
   (100.80) | 153.30 
      8.10 
   (108.70)
|Net Loss                                                                                       | (72.37)                 | (86.74)                        | (90.27)                         | (81.13)                         | (88.20)                        

---

FOR THE YEARS ENDED MARCH 31,

|SERIES 10                                                                                       | 2001
----               | 2000
----                       | 1999
----                       | 1998
----                       | 1997
----                      
|----------------------------------------------------------------------------------------------- | ----------------------- | ------------------------------- | ------------------------------- | ------------------------------- | -------------------------------
|Total
Revenues                                                                                  | $  26,582               | $  24,705                       | $  24,421                       | $  24,885                       | $   24,953                     
|Net Loss                                                                                        | (321,107)               | (328,409)                       | (264,781)                       | (224,779)                       | (214,923)                      
|Equity in
 Losses of
Project
Partnerships                                                       | (292,747)               | (299,182)                       | (237,276)                       | (195,183)                       | (190,191)                      
|Total Assets                                                                                    | 2,889,469               | 3,202,510                       | 3,523,986                       | 3,784,494                       | 4,006,856                      
|Investments
In Project
Partnerships                                                             | 2,451,287               | 2,764,397                       | 3,086,492                       | 3,352,669                       | 3,571,518                      
|Per Weighted
Average
Limited
Partnership
Unit: (A)

Tax Credits
Portfolio
  Income
Passive Loss | 149.60 
12.50 
(105.00) | 149.60 
     11.30 
   (103.70) | 149.60 
     11.10 
    (89.60) | 149.60 
      9.70 
    (82.30) | 149.60 
      8.88 
    (79.00)
|Net Loss                                                                                        | (63.04)                 | (64.47)                         | (51.98)                         | (44.13)                         | (42.19)                        

---

FOR THE YEARS ENDED MARCH 31,

|SERIES 11                                                                                      | 2001
----              | 2000
----                       | 1999
----                       | 1998
----                       | 1997
----                     
|---------------------------------------------------------------------------------------------- | ---------------------- | ------------------------------- | ------------------------------- | ------------------------------- | ------------------------------
|Total
Revenues                                                                                 | $   29,446             | $  27,431                       | $  27,001                       | $  26,502                       | $  30,465                     
|Net Loss                                                                                       | (202,390)              | (164,613)                       | (152,545)                       | (183,183)                       | (196,029)                     
|Equity in
Losses of
Project
Partnerships                                                       | (181,405)              | (143,181)                       | (128,802)                       | (163,364)                       | (182,485)                     
|Total Assets                                                                                   | 3,797,213              | 3,998,687                       | 4,163,711                       | 4,314,491                       | 4,487,039                     
|Investments
In Project
Partnerships                                                            | 3,328,681              | 3,534,837                       | 3,701,295                       | 3,861,731                       | 4,070,301                     
|Per Weighted
Average
Limited
Partnership
Unit: (A)

Tax Credits
Portfolio  Income
Passive Loss | 145.70 
11.70 
(61.40) | 145.70 
     10.20 
    (51.10) | 145.70 
     10.80 
    (51.20) | 146.20 
      9.50 
    (58.40) | 57.50 
     11.00 
    (57.50)
|Net Loss                                                                                       | (39.08)                | (31.79)                         | (29.46)                         | (35.37)                         | (37.85)                       

(A) 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

Results of Operations, Liquidity and Capital Resources

Operations commenced on July 16, 1992 with the first admission of Limited Partners in Series 7.  The proceeds from Limited Partner investors' capital contributions available for investment are used to acquire interests in Project Partnerships.

As disclosed on the statement of operations for each Series, except as described below, interest income is comparable for the years ended March 31, 2001, March 31, 2000 and March 31, 1999.  General and Administrative expenses - General Partner and General and Administrative expenses - Other for the year ended March 31, 2001 are comparable to March 31, 2000 and March 31, 1999.

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

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

Series 7 - Gateway closed this series on October 16, 1992 after receiving $10,395,000 from 635 Limited Partner investors.  As of March 31, 2001, 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 96% at December 31, 2000.

Equity in losses of Project Partnerships for the year ended March 31, 2001 of $434,461 were comparable to the Equity in losses of Project Partnerships of $471,721 for the year ended March 31, 2000.  The Equity in Losses of Project Partnerships decreased from $718,721 for the year ended March 31, 1999 to $471,721 for the year ended March 31, 2000 as a result of not including losses of $396,875, as these losses would reduce the investment in certain Project Partnerships below zero. 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 $1,525,659, $1,502,758 and $1,466,589 for the periods ended December 31, 1998, 1999 and 2000, 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. Overall management believes the Project Partnerships are operating as expected and are generating tax credits which meet projections. However, one Project Partnership experienced significant operating problems worth noting.

At March 31, 2001, the Series had $353,838 of short-term investments (Cash and Cash Equivalents).  It also had $382,386 in Zero Coupon Treasuries with annual maturities providing $57,000 in fiscal year 2001 increasing to $86,000 in fiscal year 2008.  Management believes the sources of funds are sufficient to meet current and ongoing operating costs for the foreseeable future, and to pay part of the Asset Management Fee.

As disclosed on the statement of cash flows, the Series had a net loss of $508,769 for the year ending March 31, 2001.  However, after adjusting for Equity in Losses of Project Partnerships of $434,461 and the changes in operating assets and liabilities, net cash used in operating activities was $36,234 of which $43,788 was the Asset Management Fee actually paid.  Cash provided by investing activities totaled $65,916 consisting of $32,646 in cash distributions from the Project Partnerships and $33,270 from matured Zero Coupon Treasuries.  There were no unusual events or trends to describe.

A Project Partnership located in Bloomfield, NE experienced cash shortages since 1998 from operations due to low occupancy.  In 2000, the average occupancy rate was 71%.  The local general partner continues to actively market the development.  Management does not expect any materially adverse effect to Gateway from this Project Partnership.

Series 8 - Gateway closed this Series on June 28, 1993 after receiving $9,980,000 from 664 Limited Partner investors.  As of March 31, 2001, 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, 2000.

Equity in Losses of Project Partnerships increased from $960,106 for the year ended March 31, 1999 to $1,158,932 for the year ended March 31, 2000 and decreased to $457,729 for the year ended March 31, 2001.  In 1999, four Project Partnerships had a change in Accounting Principle as a result of changing its method of depreciating buildings.  The effect of the change increased the net loss of the Project Partnerships for the year ended March 31, 2000 by approximately $492,000.  As presented in Note 5, Gateway's share of net loss increased from $1,129,437 in 1999 to $1,588,675 in 2000 and decreased to $1,146,826 in 2001.  Suspended Losses increased from $169,331 for the year ended March 31, 1999 to $429,743 for the year ended March 31, 2000 and to $689,097 for the year ended March 31, 2001.  These losses would reduce the investment in Project Partnerships below zero.  (These Project Partnerships reported depreciation and amortization of $1,609,164, $2,101,828 and $1,578,473 for the periods ended December 31, 1998, 1999 and 2000, respectively.)  Overall management believes the Project Partnerships are operating as expected and are generating tax credits which meet projections.

At March 31, 2001, the Series had $447,343 of short-term investments (Cash and Cash Equivalents).  It also had $362,125 in Zero Coupon Treasuries with annual maturities providing $54,000 in fiscal year 2001 increasing to $82,000 in fiscal year 2008.  Management believes the sources of funds are sufficient to meet current and ongoing operating costs for the foreseeable future, and to pay part of the Asset Management Fee.

As disclosed on the statement of cash flows, the Series had a net loss of $539,766 for the year ending March 31, 2001.  However, after adjusting for Equity in Losses of Project Partnerships of $457,729 and the changes in operating assets and liabilities, net cash used in operating activities was $36,058 of which $43,381 was the Asset Management Fee actually paid.  Cash provided by investing activities totaled $57,954 consisting of $24,621 received in cash distributions from the Project Partnerships and $33,333 from matured Zero Coupon Treasuries.  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.  There were no unusual events or trends to describe.

A Project Partnership located in Russellville, KY experienced cash shortages from operations since 1998 due to low occupancies. The local general partner has funded the deficit by lending $16,400 in previous years and $2,500 in 2000.  However, the local general partner will continue to fund the operating deficits of the partnership as needed.  Management does not expect any materially adverse effect to Gateway from this Project Partnership.

A Project Partnership located in Bridgeport, NE experienced cash shortages from operations in 2000 due to low occupancies.  A new site manager was hired in 2001 who has aggressively advertised and marketed the project.  The occupancy rate has increased from 38% in December of 2000 to 81% in June of 2001.  Management does not expect any materially adverse effect to Gateway from this Project Partnership.

Series 9 - Gateway closed this Series on September 30, 1993 after receiving $6,254,000 from 406 Limited Partner investors.  As of March 31, 2001, 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 95% at December 31, 2000.

The Equity in Losses of Project Partnerships decreased from $496,765 for the year ended March 31, 2000 to $409,450 for the year ended March 31, 2001 as a result of not including losses of $200,607, as these losses would reduce the investment in certain Project Partnerships below zero.  Equity in losses of Project Partnerships for the year ended March 31, 1999 were comparable to the year ended March 31, 2000.  (These Project Partnerships reported depreciation and amortization of $887,635, $842,272 and $832,666 for the years ended December 31, 1998, 1999 and 2000, respectively.)  Overall management believes the Project Partnerships are operating as expected and are generating tax credits which meet projections.

At March 31, 2001, the Series had $232,688 of short-term investments (Cash and Cash Equivalents).  It also had $244,042 in Zero Coupon Treasuries with annual maturities providing $32,000 in fiscal year 2001 increasing to $47,000 in fiscal year 2009.  Management believes the sources of funds are sufficient to meet current and ongoing operating costs for the foreseeable future, and to pay part of the Asset Management Fee.

As disclosed on the statement of cash flows, the Series had a net loss of $457,177 for the period ending March 31, 2001.  After adjusting for Equity in Losses of Project Partnerships of $409,450 and the changes in operating assets and liabilities, net cash used in operating activities was $15,791 of which $17,375 was the Asset Management Fee actually paid.  Cash provided by investing activities totaled $38,515 consisting of $16,992 received in cash distributions from the Project Partnerships and $21,523 from matured Zero Coupon Treasuries.  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.  There were no unusual events or trends to describe.

A Project Partnership located in Pierre, SD experienced cash shortages from operations in 1999 and 2000 due to low occupancy as a result of a reduction of state employees, competition from a new women's prison for low-paying contract and services jobs, and the development of a 150-unit manufactured housing subdivision.  The manufacturer offers houses for rent, rent to own, or for sale with no down payment.  The general partner is actively marketing the project.  Management does not expect any materially adverse effect to Gateway from this Project Partnership.

Series 10 - Gateway closed this Series on January 21, 1994 after receiving $5,043,000 from 325 Limited Partner investors.  As of March 31, 2001, 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 95% at December 31, 2000.

Equity in losses of Project Partnerships of $292,747 for the year ended March 31, 2001 were comparable to $299,182 for the year ended March 31, 2000 and to $237,276 for the year ended March 31, 1999.  (These Project Partnerships reported depreciation and amortization of $511,296, $502,179 and $496,926 for the years ended December 31, 1998, 1999, and 2000 respectively.)  Overall management believes the Project Partnerships are operating as expected and are generating tax credits which meet projections.

At March 31, 2001, the Series had $236,522 of short-term investments (Cash and Cash Equivalents).  It also had $201,660 in Zero Coupon Treasuries with annual maturities providing $25,000 in fiscal year 2001 increasing to $40,000 in fiscal year 2010.  Management believes the sources of funds are sufficient to meet current and ongoing operating costs for the foreseeable future, and to pay part of the Asset Management Fee.

As disclosed on the statement of cash flows, the Series had net loss of $321,107 for the year ending March 31, 2001.  After adjusting for Equity in Losses of Project Partnerships of $292,747 and the changes in operating assets and liabilities, net cash used in operating activities was $20,497 of which $27,226 was the Asset Management Fee actually paid.  Cash provided by investing activities totaled $30,949 consisting of $14,741 received in cash distributions from the Project Partnerships and $16,208 from matured Zero Coupon Treasuries.  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.  There were no unusual events or trends to describe.

Series 11 - Gateway closed this Series on April 29, 1994 after receiving $5,127,000 from 330 Limited investors.  As of March 31, 2001 the series had invested $4,128,042 in 12 Project Partnerships located in 7 states containing 361 apartments.  Average occupancy of the Project Partnerships was 95% at December 31, 2000.

Equity in losses of Project Partnerships were comparable for the years ended March 31, 1999, 2000 and 2001.  (These Project Partnerships reported depreciation and amortization of $510,062, $516,489 and $516,766 for the periods ended December 31, 1998, 1999 and 2000.)  Overall management believes the Project Partnerships are operating as expected and are generating tax credits which meet projections.

At March 31, 2001, the Series had $244,339 of short-term investments (Cash and Cash Equivalents).  It also had $224,193 in Zero Coupon Treasuries with annual maturities providing $26,000 in fiscal year 2001 increasing to $44,000 in fiscal year 2010.  Management believes the sources of funds are sufficient to meet current and ongoing operating costs for the foreseeable future, and to pay part of the Asset Management Fee.

As disclosed on the statement of cash flows, the Series had net loss of $202,390 for the year ending March 31, 2001.  After adjusting for Equity in Losses of Project Partnerships of $181,405 and the changes in operating assets and liabilities, net cash used in operating activities was $19,422 of which $28,781 was the Asset Management Fee actually paid.  Cash provided by investing activities totaled $32,887 consisting of $16,430 from matured Zero Coupon Treasures and $16,457 received in cash distributions from Project Partnerships.  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.  There were no unusual events or trends to describe.

Item 8.  Financial Statements and Supplementary Data

---

INDEPENDENT AUDITOR'S REPORT

To the Partners of Gateway Tax Credit Fund III Ltd.

We have audited the accompanying balance sheets of each of the five Series (Series 7 through 11) constituting Gateway Tax Credit Fund III Ltd. (a Florida Limited Partnership) as of March 31, 2001 and 2000 and the related  statements of operations, members equity, and cash flows of each of the five Series for 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 did not audit the financial statements of certain Project Partnerships for which cumulative equity in losses included on the balance sheets as of March 31, 2001 and 2000 and net losses included on the statements  of operations for each of the three years in the period ended March 31, 2001 are:

|          | Cumulative Equity
 In Losses
March 31,
--------- | Partnership Loss
Year Ended March 31,
---------------------
|--------- | ------------------------------------------------ | -----------------------------------------------------------
|          | 2001                                             | 2000
----                                                  
|Series 7  | $4,096,590                                       | $3,928,570                                                 
|Series 8  | 3,863,392                                        | 3,726,313                                                  
|Series 9  | 879,822                                          | 722,968                                                    
|Series 10 | 400,455                                          | 306,829                                                    
|Series 11 | 878,172                                          | 721,073                                                    

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 audits in accordance with auditing standards generally accepted in the United States of America.  Those standards require that we plan and perform the audit 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 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 each of the five Series (Series 7 through 11) constituting Gateway Tax Credit Fund III Ltd. as of March 31,
2001 and 2000, and the results of their operations and their 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 14(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 stated in all material respects the financial data required to be set forth therein in relation to the basic financial statements taken as a whole.

As discussed in Note 2, four of the Project Partnerships, whose financial statements were audited by other auditors, changed their method of computing depreciation for the year ended December 31, 1999.





/s/ Spence Marston, Bunch, Morris & Co.
                               SPENCE, MARSTON, BUNCH, MORRIS & CO.
                               Certified Public Accountants



Clearwater, Florida
July 5, 2001

---

PART I - Financial Information
Item 1.  Financial Statements

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)BALANCE SHEETSMARCH 31, 2001 AND 2000

|SERIES 7                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 2001
----                                                                                                                                                                                                                                    | 2000
----                                                                                                                                                                                                                             
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ASSETS
Current Assets:
 Cash and Cash Equivalents
 Investments in Securities
  Total Current Assets
  Investments in Securities
 Investments in Project Partnerships, Net
       Total Assets
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:  Payable to General Partners
    Total Current Liabilities
Long-Term Liabilities: Payable to General Partners
Partners' Equity (deficit):
Limited Partners (10,395 units for Series
7, 9,980 for Series 8, 6,254 for Series
9,      5,043 for Series 10 and 5,127 for
Series 11 at March 31, 2001 and 2000)
General Partners
    Total Partners' Equity
       Total Liabilities and Partners' Equity | $  353,838
56,801
 -----------
410,639
     325,585
1,773,751
-----------
$2,509,975
===========
$   57,117
-----------
57,117
-----------
356,584
-----------
  2,166,589
(70,315)
-----------
2,096,274
-----------
$2,509,975
=========== | $  324,156
54,067
 -----------
378,223
 356,248
2,237,728
-----------
$2,972,199
===========
$   54,468
-----------
54,468
-----------
312,688
-----------
2,670,270
(65,227)
-----------
2,605,043
-----------
$2,972,199
===========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)BALANCE SHEETSMARCH 31, 2001 AND 2000

|SERIES 8                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 2001
----                                                                                                                                                                                                                     | 2000
----                                                                                                                                                                                                                       | 
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 
|ASSETS
Current Assets:
 Cash and Cash Equivalents
 Investments in Securities
    Total Current Assets
  Investments in Securities  Investments in Project Partnerships, Net
   Total Assets
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities: Payable to General Partners
    Total Current Liabilities
Long-Term Liabilities: Payable to General Partners
Partners' Equity (deficit):
Limited Partners (10,395 units for Series
7,    9,980 for Series 8, 6,254 for Series 9,
5,043 for Series 10 and 5,127 for Series
11 at March 31, 2001 and 2000)
General Partners
    Total Partners' Equity
       Total Liabilities and Partners' Equity | $ 447,343
52,185
----------
499,528
309,940
940,463
----------
$1,749,931  ==========
$  48,367
----------
48,367
----------
 412,655
----------
1,363,645
(74,736)
-----------
1,288,909
-----------
 $1,749,931
=========== | $ 425,447
51,329
----------
476,776
338,702
1,423,188
----------
$2,238,666   ==========
$  45,318
----------
45,318
----------
 364,673
----------
1,898,013
(69,338)
-----------
1,828,675
-----------
$2,238,666
=========== | 

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)BALANCE SHEETSMARCH 31, 2001 AND 2000

|SERIES 9                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | 2001
----                                                                                                                                                                                                                             | 2000
----                                                                                                                                                                                                                             | 
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 
|ASSETS
Current Assets:
 Cash and Cash Equivalents
 Investments in Securities
    Total Current Assets
  Investments in Securities
 Investments in Project Partnerships, Net
       Total Assets
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners
    Total Current Liabilities
Long-Term Liabilities:
 Payable to General Partners
Partners' Equity (deficit):
Limited Partners (10,395 units for Series 7,
9,980 for Series 8, 6,254 for Series 9,
5,043 for Series 10 and 5,127 for Series 11
at March  31, 2001 and 2000)
General Partners
    Total Partners' Equity
       Total Liabilities and Partners' Equity | $  232,688
32,416
-----------
265,104
 211,626
1,874,596
-----------
$2,351,326
===========
$   27,514
-----------
27,514
-----------
247,323
-----------
2,110,561
(34,072)
-----------
2,076,489
-----------
$2,351,326
=========== | $  209,964
30,560
-----------
240,524
 229,761
2,303,872
-----------
$2,774,157
===========
$   25,970
-----------
25,970
-----------
214,521
-----------
2,563,166
(29,500)
-----------
2,533,666
-----------
$2,774,157
=========== | 

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)BALANCE SHEETSMARCH 31, 2001 AND 2000

|SERIES 10                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 2001
----                                                                                                                                                                                                                         | 2000
----                                                                                                                                                                                                                        | 
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 
|ASSETS
Current Assets:
 Cash and Cash Equivalents
 Investments in Securities
    Total Current Assets
  Investments in Securities
 Investments in Project Partnerships, Net
       Total Assets
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners
      Total Current Liabilities
Long-Term Liabilities:
 Payable to General Partners
Partners' Equity (deficit):
Limited Partners (10,395 units for Series
7,    9,980 for Series 8, 6,254 for Series 9,
5,043 for Series 10 and 5,127 for Series 11
at March 31, 2001 and 2000)
General Partners
    Total Partners' Equity
       Total Liabilities and Partners' Equity | 236,522
24,731
-----------
261,253
176,929
 2,451,287
-----------
$2,889,469
===========
$   30,195
-----------
30,195
-----------
64,462
-----------
2,811,044
(16,232)
-----------
2,794,812
-----------
$2,889,469
=========== | 226,070
23,784
-----------
249,854
188,259
2,764,397
-----------
$3,202,510
===========
$   29,116
-----------
29,116
-----------
57,475
-----------
3,128,940
(13,021)
-----------
3,115,919
-----------
$3,202,510
=========== | 

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)BALANCE SHEETSMARCH 31, 2001 AND 2000

|SERIES 11                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 2001
----                                                                                                                                                                                                                              | 2000
----                                                                                                                                                                                                                              | 
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 
|ASSETS
Current Assets:
 Cash and Cash Equivalents
 Investments in Securities
    Total Current Assets
  Investments in Securities
 Investments in Project Partnerships, Net
       Total Assets
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners
    Total Current Liabilities
Long-Term Liabilities:
 Payable to General Partners
Partners' Equity (deficit):
Limited Partners (10,395 units for Series
7,   9,980 for Series 8, 6,254 for Series 9,
5,043 for Series 10 and 5,127 for Series 11
at March 31, 2001 and 2000
General Partners
    Total Partners' Equity
       Total Liabilities and Partners' Equity | $  244,339
26,421
-----------
270,760
197,772
3,328,681
------------
$3,797,213
============
$  29,452
-----------
29,452
-----------
19,496
-----------
3,756,773
(8,508)
------------
3,748,265
------------
$3,797,213
============ | $  230,874
24,571
-----------
255,445
208,405
3,534,837
------------
$3,998,687
============
$  28,842
-----------
28,842
-----------
19,190
-----------
3,957,139
(6,484)
------------
3,950,655
------------
$3,998,687
============ | 

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)BALANCE SHEETSMARCH 31, 2001 AND 2000

|TOTAL SERIES 7-11                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 2001
----                                                                                                                                                                                                                                                  | 2000
----                                                                                                                                                                                                                                                | 
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 
|ASSETS
Current Assets:
 Cash and Cash Equivalents
 Investments in Securities
    Total Current Assets
  Investments in Securities
 Investments in Project Partnerships, Net
       Total Assets
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:  Payable to General Partners
    Total Current Liabilities
Long-Term Liabilities:  Payable to General Partners
Partners' Equity (deficit):
Limited Partners (10,395 units for Series
7, 9,980 for Series 8, 6,254 for Series 9,
5,043 for Series 10 and 5,127 for Series    11
at March 31, 2001 and 2000)
General Partners
    Total Partners' Equity
       Total Liabilities and Partners' Equity | $ 1,514,730
192,554
------------
1,707,284
1,221,852
10,368,778
------------
$13,297,914
============
$   192,645
-----------
192,645
-----------
1,100,520
-----------
12,208,612
(203,863)
------------
12,004,749
------------
$13,297,914
============ | $ 1,416,511
184,311
------------
1,600,822
1,321,375
12,264,022
------------
$15,186,219
============
$   183,714
-----------
183,714
-----------
968,547
-----------
14,217,528
(183,570)
------------
14,033,958
------------
$15,186,219
============ | 

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                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 2001
----                                                                                                                                                                                                                                                                      | 2000
----                                                                                                                                                                                                                                                                       | 1999
----                                                                                                                                                                                                                                                                   
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Interest Income
 Other Income
    Total Revenues
Expenses:
 Asset Management Fee-General   Partner
 General and Administrative:
  General Partner
  Other
 Amortization
    Total Expenses
Loss Before Equity in Losses  of Project Partnerships
Equity in Losses of Project
 Partnerships
Net Loss
Allocation of Net Loss:
 Assignees
 General Partners
Net Loss Per Beneficial
Assignee Certificate
Number of Beneficial Assignee Certificates Outstanding | $  46,167
12,886
-----------
59,053
-----------
87,683
16,312
19,610
9,756
-----------
133,361
-----------
(74,308)
(434,461)
------------
$  (508,769)
============
$  (503,681)
(5,088)
------------
$  (508,769)
============
$    (48.45)
============
10,395
============ | $  43,650
 7,586
-----------
51,236
-----------
87,952
14,609
18,494
14,196
-----------
135,251
-----------
(84,015)
(471,721)
------------
$  (555,736)
============
$  (550,179)
(5,557)
------------
$  (555,736)
============
$    (52.93)
============
10,395
============ | $    43,550
0
-----------
43,550
-----------
88,207
13,177
16,673
19,200
-----------
137,257
-----------
(93,707)
(718,721)
------------
$  (812,428)
============
$  (804,304)
(8,124)
------------
$  (812,428)
============
$    (77.37)
============
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                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 2001
----                                                                                                                                                                                                                                                      | 2000
----                                                                                                                                                                                                                                                                 | 1999
----                                                                                                                                                                                                                                                          
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Interest Income
 Other Income
    Total Revenues
Expenses:
 Asset Management Fee-General
  Partner
 General and Administrative:
  General Partner
  Other
 Amortization
    Total Expenses
Loss Before Equity in Losses
of Project Partnerships
Equity in Losses of Project
Partnerships
Net Loss
Allocation of Net Loss:
 Assignees
 General Partners
Net Loss Per Beneficial
Assignee Certificate
Number of Beneficial Assignee Certificates Outstanding | $  48,557
7,011
-----------
55,568
-----------
91,364
17,985
20,870
7,386
-----------
137,605
-----------
(82,037)
(457,729)
-----------
$(539,766)
===========
$(534,368)
(5,398)
-----------
$(539,766)
===========
$  (53.54)
===========
9,980
=========== | $  45,674
2,760
-----------
48,434
-----------
91,655
16,108
19,976
9,055
-----------
136,794
-----------
(88,360)
(1,158,932)
-----------
$(1,247,292)
===========
$(1,234,819)
(12,473)
-----------
$(1,247,292)
===========
$   (123.73)
===========
9,980
=========== | $   45,764
0
----------
45,764
----------
91,933
14,528
18,371
16,066
-----------
140,898
-----------
(95,134)
(960,106)
-----------
$(1,055,240)
===========
$(1,044,688)
(10,552)
-----------
$(1,055,240)
===========
$   (104.68)
===========
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                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 2001
----                                                                                                                                                                                                                                                          | 2000
----                                                                                                                                                                                                                                                      | 1999
----                                                                                                                                                                                                                                        
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Interest Income
 Other Income
    Total Revenues
Expenses:
 Asset Management Fee-General
   Partner
 General and Administrative:
  General Partner
  Other
 Amortization
     Total Expenses
Loss Before Equity in Losses
 of Project Partnerships
Equity in Losses of Project
 Partnerships
Net Loss
Allocation of Net Loss:
 Assignees
 General Partners
Net Loss Per Beneficial
Assignee Certificate
Number of Beneficial Assignee Certificates Outstanding | $   27,149
1,719
-----------
28,868
-----------
50,178
10,038
11,826
4,553
-----------
76,595
-----------
(47,727)
(409,450)
-----------
$ (457,177)
===========
$ (452,605)
(4,572)
-----------
$ (457,177)
===========
$   (72.37)
===========
6,254
=========== | $  25,243
0
-----------
25,243
-----------
 50,319
8,991
11,373
5,719
-----------
76,402
-----------
(51,159)
(496,765)
-----------
$ (547,924)
===========
$ (542,445) 
(5,479)
-----------
$ (547,924)
===========
$   (86.74)
===========
6,254
=========== | $    24,872
0
----------
24,872
----------
 50,458
8,109
10,618
8,602
----------
77,787
----------
(52,915)
(517,316)
----------
$(570,231)
==========
$(564,529)
(5,702)
----------
$(570,231)
==========
$  (90.27)
==========
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                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 2001
----                                                                                                                                                                                                                                          | 2000
----                                                                                                                                                                                                                                            | 1999
----                                                                                                                                                                                                                                        | 
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | 
|Revenues:
 Interest Income
 Other Income
    Total Revenues
Expenses:
 Asset Management Fee-General
  Partner
 General and Administrative:
  General Partner
  Other
 Amortization
     Total Expenses
Loss Before Equity in Losses
 of Project Partnerships
Equity in Losses of Project
 Partnerships
Net Loss
Allocation of Net Loss:
 Assignees
 General Partners
Net Loss Per Beneficial
Assignee Certificate
Number of Beneficial Assignee Certificates Outstanding | $   26,582
0
-----------
26,582
-----------
34,212
6,274
8,834
5,622
----------
54,942
----------
(28,360)
(292,747)
----------
$(321,107)
==========
$(317,896)
(3,211)
----------
$(321,107)
  ==========
$  (63.04)
==========
5,043
========== | $   24,705
0
-----------
24,705
-----------
 
34,309
5,619
8,382
5,622
----------
53,932
----------
(29,227)
(299,182)
----------
$(328,409)
==========
$(325,125)
(3,284)
----------
$(328,409)
  ==========
$  (64.47)
==========
5,043
========== | $    24,421
0
----------
24,421
----------
 34,427
5,068
7,500
4,931
----------
51,926
----------
(27,505)
(237,276)
----------
$(264,781)
==========
$(262,133)
(2,648)
----------
$(264,781)
==========
$  (51.98)
==========
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                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 2001
----                                                                                                                                                                                                                                            | 2000
----                                                                                                                                                                                                                                           | 1999
----                                                                                                                                                                                                                                            
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Interest Income
 Other Income
    Total Revenues
Expenses:  Asset Management Fee-General
  Partner General and Administrative:    General Partner
  Other
 Amortization
     Total Expenses
  Loss Before Equity in Losses
 of Project Partnerships
Equity in Losses of Project
 Partnerships
Net Loss
Allocation of Net Loss:
 Assignees
 General Partners
Net Loss Per Beneficial
Assignee Certificate
Number of Beneficial Assignee Certificates Outstanding | $   29,446
0
-----------
29,446
-----------
 
29,087
5,019
8,031
8,294
-----------
50,431
-----------
(20,985)
(181,405)
----------
$(202,390)
==========
$(200,366)
(2,024)
----------
$(202,390)
==========
$  (39.08)
==========
5,127
========== | $   27,431
0
-----------
27,431
-----------
 28,465
4,495
7,609
8,294
-----------
48,863
-----------
(21,432)
(143,181)
----------
$(164,613)
==========
$(162,967)
(1,646)
----------
$(164,613)
==========
$  (31.79)
==========
5,127
========== | $    27,001
0
-----------
27,001
-----------
 27,721
4,054
7,007
11,962
-----------
50,744
-----------
(23,743)
(128,802)
----------
$(152,545)
==========
$(151,020)
(1,525)
----------
$(152,545)
==========
$  (29.46)
==========
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                                                                                                                                                                                                                                                                                                                                                       | 2001
----                                                                                                                                                                                                                                           | 2000
----                                                                                                                                                                                                                                          | 1999
----                                                                                                                                                                                                                              
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
 Interest Income
 Other Income
    Total Revenues
Expenses:
 Asset Management Fee-
  General   Partner
 General and
 Administrative:
  General Partner
  Other
 Amortization
     Total Expenses
Loss Before Equity in
 Losses of Project
 Partnerships
Equity in Losses of Project
 Partnerships
Net Loss
Allocation of Net Loss:
 Assignees
 General Partners | $  177,901
21,616
-----------
199,517
-----------
 
292,524
55,628
69,171
35,611
------------
452,934
------------
(253,417)
(1,775,792)
-------------
$ (2,029,209)
=============
$ (2,008,916)
(20,293)
-------------
$ (2,029,209)
============= | $  166,703
10,346
-----------
177,049
-----------
 292,700
49,822
65,834
42,886
------------
451,242
------------
(274,193)
(2,569,781)
-------------
$ (2,843,974)
=============
$ (2,815,535)
(28,439)
-------------
$ (2,843,974)
============= | $  165,608
0
-----------
165,608
-----------
 
292,746
44,936
60,169
60,761
------------
458,612
------------
(293,004)
(2,562,221)
------------
$(2,855,225)
============
$(2,826,674)
(28,551)
------------
$(2,855,225)
============

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, 2001, 2000 AND 1999:

|SERIES 7                                                                                                                           | Limited
Partners
---------                                                                                                       | General
 Partners
--------                                                                                              | Total
-----                                                                                                                  
|---------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 1998
Net Loss
Balance at March 31, 1999
Net Loss
Balance at March 31, 2000
Net Loss
Balance at March 31, 2001 | $ 4,024,753
(804,304)
------------
 3,220,449
(550,179)
------------
2,670,270
(503,681)
------------
$  2,166,589
============= | $  (51,546)
(8,124)
------------
(59,670)
(5,557)
------------
 (65,227)
(5,088)
------------
$   (70,315)
============ | $ 3,973,207
(812,428)
------------
3,160,779
(555,736)
------------
2,605,043
(508,769)
------------
$ 2,096,274
============

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, 2001, 2000 AND 1999:

|SERIES 8                                                                                                                           | Limited
Partners
---------                                                                                                        | General
 Partners
--------                                                                                                 | Total
-----                                                                                                                      
|---------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 1998
Net Loss
Balance at March 31, 1999
Net Loss
Balance at March 31, 2000
Net Loss
Balance at March 31, 2001 | $ 4,177,520
(1,044,688)
------------
3,132,832
(1,234,819)
------------
1,898,013
(534,368)
------------
$ 1,363,645
============ | $  (46,313)
(10,552)
------------
(56,865)
(12,473)
------------
  (69,338)
(5,398)
------------
$   (74,736)
============ | $ 4,131,207
(1,055,240)
------------
3,075,967
(1,247,292)
------------
1,828,675
(539,766)
------------
$ 1,288,909
============

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, 2001, 2000 AND 1999:

|SERIES 9                                                                                                                           | Limited
Partners
---------                                                                                                    | General
Partners
--------                                                                                                  | Total
-----                                                                                                                  
|---------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 1998
Net Loss
Balance at March 31, 1999
Net Loss
Balance at March 31, 2000
Net Loss
Balance at March 31, 2001 | $ 3,670,140
(564,529)
------------
3,105,611
(542,445)
------------
2,563,166
(452,605)
------------
$ 2,110,561
============ | $ (18,319)
(5,702)
------------
(24,021)
(5,479)
-------------
  (29,500)
(4,572)
-------------
$   (34,072)
============= | $ 3,651,821
(570,231)
------------
3,081,590
(547,924)
------------
2,533,666
(457,177)
------------
$ 2,076,489
============

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, 2001, 2000 AND 1999:

|SERIES 10                                                                                                                             | Limited
Partners
---------                                                                                                    | General
Partners
--------                                                                                                | Total
-----                                                                                                                    
|------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------ | -------------------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 1998
Net Loss
Balance at March 31, 1999
Net Loss
Balance at March 31, 2000
Net Loss
  
Balance at March 31, 2001 | $ 3,716,198
(262,133)
------------
3,454,065
(325,125)
------------
3,128,940
(317,896)
------------
$ 2,811,044
============ | $    (7,089)
(2,648)
------------
(9,737)
(3,284)
------------
  (13,021)
(3,211)
------------
$   (16,232)
============ | $ 3,709,109
(264,781)
------------
3,444,328
(328,409)
------------
 3,115,919
(321,107)
------------
$  2,794,812
============

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, 2001, 2000 AND 1999:

|SERIES 11                                                                                                                          | Limited
Partners
---------                                                                                                    | General
Partners
--------                                                                                                | Total
-----                                                                                                                  
|---------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------ | -----------------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 1998
Net Loss
Balance at March 31, 1999
Net Loss
Balance at March 31, 2000
Net Loss
Balance at March 31, 2001 | $ 4,271,126
(151,020)
------------
4,120,106
(162,967)
------------
3,957,139
(200,366)
------------
$ 3,756,773
============ | $    (3,313)
(1,525)
------------
(4,838)
(1,646)
------------
   (6,484)
(2,024)
------------
$    (8,508)
============ | $ 4,267,813
(152,545)
------------
4,115,268
(164,613)
------------
3,950,655
(202,390)
------------
$ 3,748,265
============

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, 2001, 2000 AND 1999:

|TOTAL SERIES 7 - 11                                                                                                                | Limited
Partners
---------                                                                                                                 | General
Partners
--------                                                                                                    | Total
-----                                                                                                                           
|---------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------ | ---------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 1998
Net Loss
Balance at March 31, 1999
Net Loss
Balance at March 31, 2000
Net Loss
Balance at March 31, 2001 | $ 19,859,737
(2,826,674)
------------
17,033,063
 (2,815,535)
  ------------
14,217,528
(2,008,916)
------------
$ 12,208,612
============ | $  (126,580)
(28,551)
------------
(155,131)
(28,439)
------------
(183,570)
(20,293)
------------
$  (203,863)
============ | $19,733,157
(2,855,225)
------------
16,877,932
(2,843,974)
------------
14,033,958
(2,029,209)
------------
$ 12,004,749
============

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, 2001, 2000 AND 1999:

|SERIES 7
--------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 2001
----                                                                                                                                                                                | 2000
----                                                                                                                                                                                 | 1999
----                                                                                                                                                                       
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Cash Flows from Operating
Activities:
  Net Loss
  Adjustments to Reconcile Net
  Loss to Net Cash Used in
  Operating Activities:
   Amortization
   Accreted Interest Income on
   Investments in Securities
   Equity in Losses of Project
   Partnerships
   Interest Income from
   Redemption of Securities
   Distributions Included in
   Other Income
   Changes in Operating Assets
   and Liabilities:
    Increase in Payable to
    General Partners
          Net Cash Used in
     Operating        Activities

Cash Flows from Investing
Activities:
 Distributions Received from
 Project Partnerships
 Redemption of Investment in
 Securities
          Net Cash Provided by
     Investing Activities
Increase in Cash and
 Cash Equivalents
Cash and Cash Equivalents at
 Beginning of Year
Cash and Cash Equivalents at
 End of Year | $(508,769)
 9,756
(29,071)
434,461
23,730
(12,886)
 46,545
----------
(36,234)
----------
32,646
33,270
-----------
65,916
-----------
29,682
324,156
-----------
$  353,838  ========== | $(555,736)
 14,196
(30,291)
471,721
19,227
(7,586)
 46,093
----------
(42,376)
----------
33,446
33,773
-----------
67,219
-----------
 24,843
299,313
-----------
$  324,156  ========== | $(812,428)
19,200
(31,130)
718,721
15,558
0
38,417
----------
(51,662)
----------
30,427
34,442
-----------
64,869
-----------
13,207
286,106
-----------
$  299,313
===========

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, 2001, 2000 AND 1999:

|SERIES 8
--------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 2001
----                                                                                                                                                                              | 2000
----                                                                                                                                                                                 | 1999
----                                                                                                                                                                      
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Cash Flows from Operating
Activities:
  Net Loss
  Adjustments to Reconcile
  Net      Loss to Net Cash
  Used in          Operating
  Activities:
   Amortization
   Accreted Interest Income
   on       Investments in
   Securities
   Equity in Losses of
   Project       Partnerships
   Interest Income from
   Redemption of Securities
   Distributions Included in
   Other Income
   Changes in Operating
   Assets       and Liabilities:
    Increase in Payable to
    General Partners

Net Cash Used in
     Operating        Activities

Cash Flows from Investing
Activities:
  Distributions Received from
  Project Partnerships
  Redemption of Investment in
  Securities
          Net Cash Provided by
     Investing Activities
Increase in Cash and
 Cash Equivalents
Cash and Cash Equivalents at
 Beginning of Year
Cash and Cash Equivalents at
 End of Year | $(539,766)
7,386
(26,093)
457,729
20,667
(7,011)
51,030
----------
(36,058)
----------
24,621
 33,333
-----------
57,954
-----------
21,896
425,447
-----------
$  447,343
=========== | $(1,247,292)
9,055
(27,199)
1,158,932
15,938
(2,760)
50,950
----------
(42,376)
----------
24,159
32,062
-----------
56,221
-----------
13,845
411,602
-----------
$  425,447
=========== | $(1,055,240)
16,066
(27,959)
960,106
12,705
0
43,419
----------
(50,903)
----------
19,483
32,295
-----------
51,778
-----------
875
410,727
-----------
$  411,602
===========

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, 2001, 2000 AND 1999:

|SERIES 9
--------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | 2001
----                                                                                                                                                                                  | 2000
----                                                                                                                                                                            | 1999
----                                                                                                                                                                         
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Cash Flows from Operating
Activities:
  Net Loss
  Adjustments to Reconcile
  Net      Loss to Net Cash Used
  in          Operating Activities:
   Amortization
   Accreted Interest Income
   on       Investments in
   Securities
   Equity in Losses of
   Project       Partnerships
   Interest Income from
   Redemption of Securities
   Distributions Included in
   Other Income
   Changes in Operating
   Assets       and Liabilities:
    Increase in Payable to
    General Partners
     Net Cash Used in
     Operating         Activities
Cash Flows from Investing Activities:
  Distributions Received from
  Project Partnerships
  Redemption of Investment in
  Securities
          Net Cash Provided by
     Investing Activities
Increase in Cash and
 Cash Equivalents
Cash and Cash Equivalents at
 Beginning of Year
Cash and Cash Equivalents at
 End of Year | $ (457,177)
4,553
(15,723)
409,450
10,477
(1,719)
 34,348
-----------
(15,791)
-----------
 16,992
21,523
-----------
38,515
-----------
22,724
209,964
-----------
$  232,688
=========== | $ (547,924)
5,719
(16,413)
496,765
8,693
0
 
32,902
-----------
(20,258)
-----------
 12,297
22,307
-----------
34,604
-----------
14,346
195,618
-----------
$  209,964
=========== | $(570,231)
8,602
(16,924)
517,316
6,769
0
 
28,946
-----------
(25,522)
-----------
 18,805
22,231
-----------
41,036
----------
15,514
180,104
-----------
$  195,618
===========

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, 2001, 2000 AND 1999:

|SERIES 10
--------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 2001
----                                                                                                                                                                        | 2000
----                                                                                                                                                                       | 1999
----                                                                                                                                                                  
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Cash Flows from Operating
Activities:
  Net Loss
  Adjustments to Reconcile
  Net      Loss to Net Cash Used
  in          Operating Activities:
   Amortization
   Accreted Interest Income
   on       Investments in
   Securities
   Equity in Losses of
   Project       Partnerships
   Interest Income from
   Redemption of Securities
   Distributions Included in
   Other Income
   Changes in Operating
   Assets       and Liabilities:
    Increase in Payable to
    General Partners
          Net Cash Used in
     Operating        Activities
Cash Flows from Investing
Activities:
  Distributions Received from
  Project Partnerships
  Redemption of Investment in
  Securities
          Net Cash Provided by
     Investing Activities
Increase in Cash and
  Cash Equivalents
Cash and Cash Equivalents at
  Beginning of Year
Cash and Cash Equivalents at
  End of Year | $  (321,107)
5,622
 (14,616)
 292,747
8,792
0
8,065
-----------
(20,497)
-----------
14,741
16,208
----------
30,949
----------
10,452
226,070
----------
 $ 236,522  ========== | $  (328,409)
5,622
 (15,114)
 299,182
7,223
0
6,932
-----------
(24,564)
-----------
17,291
16,777
----------
34,068
----------
9,504
216,566
----------
 $ 226,070  ========== | $ (264,781)
4,931
(15,540)
237,276
6,057
0
4,273
-----------
(27,784)
-----------
23,972
17,943
----------
41,915
----------
14,131
202,435
----------
$ 216,566
==========

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, 2001, 2000 AND 1999:

|SERIES 11
--------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 2001
----                                                                                                                                                                     | 2000
----                                                                                                                                                                       | 1999
----                                                                                                                                                                          
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Cash Flows from Operating
Activities:
  Net Loss
  Adjustments to Reconcile
  Net      Loss to Net Cash Used
  in          Operating Activities:
   Amortization
   Accreted Interest Income
   on       Investments in
   Securities
   Equity in Losses of
   Project       Partnerships
   Interest Income from
   Redemption of Securities
   Distributions Included in
   Other Income
   Changes in Operating
   Assets       and Liabilities:
    Increase (Decrease) in
    Payable to General
    Partners
          Net Cash Used in
     Operating        Activities
Cash Flows from Investing
Activities:
  Distributions Received
  from       Project Partnerships
  Redemption of Investment
  in       Securities
          Net Cash Provided by
     Investing Activities
Increase in Cash and
  Cash Equivalents
Cash and Cash Equivalents at
  Beginning of Year
Cash and Cash Equivalents at
  End of Year | $(202,390)
8,294
(17,218)
181,405
9,570
0
917
-----------
(19,422)
------------
16,457
16,430
-----------
32,887
-----------
13,465
230,874
-----------
$ 244,339
=========== | $(164,613)
8,294
(17,584)
143,181
7,629
0
(411)
-----------
(23,504)
------------
14,983
16,371
-----------
31,354
-----------
7,850
223,024
-----------
$  230,874
=========== | $  (152,545)
11,962
(17,832)
128,802
6,127
0
1,765
-----------
(21,721)
------------
19,674
16,873
-----------
36,547
-----------
14,826
208,198
-----------
$  223,024
===========

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, 2001, 2000 AND 1999:

|TOTAL SERIES 7 - 11
--------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | 2001
----                                                                                                                                                                                             | 2000
----                                                                                                                                                                                             | 1999
----                                                                                                                                                                                     
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Cash Flows from Operating
Activities:
  Net Loss
  Adjustments to Reconcile
  Net      Loss to Net Cash Used
  in          Operating Activities:
   Amortization
   Accreted Interest Income
   on       Investments in
   Securities
   Equity in Losses of
   Project       Partnerships
   Interest Income from
   Redemption of Securities
   Distributions Included
   in Other Income
   Changes in Operating
    Assets       and Liabilities:
    Increase in Payable to
    General Partners
          Net Cash Used in
     Operating        Activities
Cash Flows from Investing
Activities:
  Distributions Received
  from       Project Partnerships
  Redemption of Investment
  in       Securities
          Net Cash Provided by
     Investing Activities
Increase in Cash and
  Cash Equivalents
Cash and Cash Equivalents at
Beginning of Year
Cash and Cash Equivalents at
End of Year | $(2,029,209)
35,611
(102,721)
1,775,792
73,236
(21,616)
140,905
-----------
(128,002)
-----------
105,457
120,764
-----------
226,221
-----------
98,219
1,416,511
-----------
$1,514,730
=========== | $(2,843,974)
42,886
(106,601)
2,569,781
58,710
(10,346)
136,466
-----------
(153,078)
-----------
102,176
121,290
-----------
223,466
-----------
70,388
1,346,123
-----------
$1,416,511
=========== | $(2,855,225)
60,761
(109,385)
2,562,221
47,216
0
116,820
-----------
(177,592)
-----------
112,361
123,784
-----------
236,145
-----------
58,553
1,287,570
-----------
$1,346,123
===========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2001, 2000  AND 1999

NOTE 1 - ORGANIZATION:

Gateway Tax Credit Fund III Ltd. ("Gateway"), a Florida Limited Partnership, was formed October 17, 1991 under the laws of Florida.  Gateway offered its limited partnership interests in Series.  The first Series for Gateway is Series 7.  Operations commenced on July 16, 1992 for Series 7, January 4, 1993 for Series 8, September 30, 1993 for Series 9, January 21, 1994 for Series 10 and April 29, 1994 for Series 11.  Each Series invests, as a limited partner, in other limited partnerships ("Project Partnerships"), each of which owns and operates apartment complexes eligible for Low-Income Housing Tax Credits ("Tax Credits"), provided for in Section 42 of the Internal Revenue Code of 1986.  Gateway will terminate on December 31, 2040 or sooner, in accordance with the terms of the Limited Partnership Agreement.  As of March 31, 2001, Gateway had received capital contributions of $1,000 from the General Partners and $36,799,000 from the investor Limited Partners.

Raymond James Partners, Inc. and Raymond James Tax Credit Funds, Inc., wholly-owned subsidiaries of Raymond James Financial, Inc., are the General Partner and Managing General Partner, respectively.  The Managing General Partner manages and controls the business of Gateway.

Gateway received capital contributions of $10,395,000, $9,980,000, $6,254,000, $5,043,000 and $5,127,000 from the investor Limited Partners in Series 7, 8, 9, 10 and 11, respectively.  Each Series will be treated as though it were a separate partnership, investing in a separate and distinct pool of Project Partnerships.  Income or loss and all tax items from the Project Partnerships acquired by each Series will be specifically allocated among the limited partners of such Series.

Operating profits and losses, cash distributions from operations and Tax Credits from each Series are generally allocated 99% to the Limited Partners in that Series and 1% to the General Partners.  Profit or loss and cash distributions from sales of property by each Series are allocated as formulated in the Limited Partnership Agreement.

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES:

Basis of Accounting

Gateway utilizes an accrual basis of accounting whereby revenues are recognized as earned and expenses are recognized as obligations are incurred.

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

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

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

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

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

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

Cash and Cash Equivalents

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

Concentrations of Credit Risk

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

Use of Estimates in the Preparation of Financial Statements

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

Investment in Securities

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

Offering and Commission Costs

Offering and commission costs are charged against Limited Partners' Equity upon admission of Limited Partners.

Income Taxes

No provision for income taxes has been made in these financial statements, as income taxes are a liability of the partners rather than of Gateway.

Change in Accounting Principles

Four of the Project Partnerships changed their method of accounting for depreciating their buildings from the straight line to the declining balance method.  The effect of this change was reported as a cumulative effect of a Change in Accounting Principle.  The change increased the net losses reported by the Project Partnerships by $492,138 for the year ended December 31, 1999.

Reclassifications

For comparability, the 1999 and 2000 figures have been reclassified, where appropriate, to conform with the financial statement presentation used in 2001.

---

NOTE 3 - INVESTMENT IN SECURITIES:

The March 31, 2001 Balance Sheet includes Investment in Securities consisting of U.S. Treasury Security Strips which represents their cost, plus accreted interest income of $174,085 for Series 7, $151,347 for Series 8, $87,806 for Series 9, $77,475 for Series 10 and $88,671 for Series 11.

|          | Estimated Market
Value     
---------------- | Cost Plus
Accreted Interest
---------------- | Gross Unrealized
Gains and    (Losses)   
----------------
|--------- | -------------------------------------------- | -------------------------------------------- | ----------------------------------------------------------
|Series 7  | $  422,601                                   | $  382,386                                   | $   40,215                                                
|Series 8  | 394,610                                      | 362,125                                      | 32,485                                                    
|Series 9  | 260,290                                      | 244,042                                      | 16,248                                                    
|Series 10 | 222,691                                      | 201,660                                      | 21,031                                                    
|Series 11 | 254,610                                      | 224,193                                      | 30,417                                                    

As of March 31, 2001, the cost and accreted interest of debt securities by contractual maturities is as follows:

|                                      | Series 7
--------   | Series 8
--------   | Series 9
--------  
|------------------------------------- | ------------------- | ------------------- | -------------------
|Due with 1 year                       | $  56,801           | $  52,185           | $  32,416          
|After 1 year through 5 years          | 221,210             | 208,067             | 124,065            
|After 5 years through 10 years        | 104,375             | 101,873             | 87,561             
|After 10 years                        | 0
---------         | 0
---------         | 0
---------        
|Total Amount Carried on
Balance Sheet | $ 382,386
========= | $ 362,125
========= | $ 244,042
=========

|                                      | Series 10
--------  | Series 11
--------  | Total
--------      
|------------------------------------- | ------------------- | ------------------- | --------------------
|Due with 1 year                       | $  24,731           | $  26,421           | $  192,554          
|After 1 year through 5 years          | 92,082              | 103,416             | 748,840             
|After 5 years through 10 years        | 84,847              | 94,356              | 473,012             
|After 10 years                        | 0
---------         | 0
---------         | 0
---------         
|Total Amount Carried on
Balance Sheet | $ 201,660
========= | $ 224,193
========= | $1,414,406
=========

NOTE 4 - RELATED PARTY TRANSACTIONS:

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

The Payable to Project Partnerships represents unpaid capital contributions to the Project Partnerships and will be paid after certain performance criteria are met.  Such contributions are in turn payable to the general partners of the Project Partnerships.

---

For the periods ended March 31, 2001, 2000, and 1999 the General Partners and affiliates are entitled to compensation and reimbursement for costs and expenses incurred by Gateway as follows:

Asset Management Fee - The Managing General Partner is entitled to receive an annual asset management fee equal to the greater of (i) $2,000 for each limited partnership in which Gateway invests, 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.

|          | 2001
----           | 2000
----           | 1999
----          
|--------- | ------------------- | ------------------- | -------------------
|Series 7  | $ 87,683            | $ 87,952            | $  88,207          
|Series 8  | 91,364              | 91,655              | 91,933             
|Series 9  | 50,178              | 50,319              | 50,458             
|Series 10 | 34,212              | 34,309              | 34,427             
|Series 11 | 29,087
---------    | 28,465
---------    | 27,721
---------   
|Total     | $ 292,524
========= | $ 292,700
========= | $ 292,746
=========

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.

|          | 2001
----           | 2000
----           | 1999
----          
|--------- | ------------------- | ------------------- | -------------------
|Series 7  | $  16,312           | $  14,609           | $  13,177          
|Series 8  | 17,985              | 16,108              | 14,528             
|Series 9  | 10,038              | 8,991               | 8,109              
|Series 10 | 6,274               | 5,619               | 5,068              
|Series 11 | 5,019
---------     | 4,495
---------     | 4,054
---------    
|Total     | $  55,628
========= | $  49,822
========= | $  44,936
=========

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS:

SERIES 7

As of March 31, 2001, the Partnership had acquired a 99% interest in the profits, losses and tax credits as a limited partner in 39 Project Partnerships which own and operate government assisted multi-family housing complexes.

Cash flows from operations are allocated according to each Partnership agreement.  Upon dissolution proceeds will be distributed according to each Partnership agreement.

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

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | MARCH 31, 2001
--------------                                                                                    | MARCH 31, 2000
--------------                                                                                    | 
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------- | 
|Capital Contributions to Project
Partnerships and purchase price paid
for limited partner interests in
Project Partnerships
Cumulative equity in losses of Project
Partnerships (1)
Cumulative distributions received from
Project Partnerships
Investment in Project Partnerships
before Adjustment
Excess of investment cost over the
underlying assets acquired:
 Acquisition fees and expenses
 Accumulated amortization of
 acquisition    fees and expenses
Investments in Project Partnerships | $ 7,732,089
(6,407,829)
(177,311)
-----------
1,146,949
 793,335
(166,533)
------------
$ 1,773,751
============ | $ 7,732,089
(5,973,368)
(157,551)
-----------
1,601,170
 793,335
(156,777)
------------
$ 2,237,728
============ | 

(1) In accordance with the Partnership's accounting policy to not carry
Investments in Project Partnerships below zero, cumulative suspended
losses of $1,220,839 for the year ended March 31, 2001 and cumulative
suspended losses of $650,567 for the year ended March 31, 2000 are not
included.

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

SERIES 8

As of March 31, 2001, the Partnership had acquired a 99% interest in the profits, losses and tax credits as a limited partner in 43 Project Partnerships which own and operate government assisted multi-family housing complexes.

Cash flows from operations are allocated according to each Partnership agreement.  Upon dissolution proceeds will be distributed according to each Partnership agreement.

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

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | MARCH 31, 2001
--------------                                                                             | MARCH 31, 2000
--------------                                                                              | 
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------- | 
|Capital Contributions to Project
Partnerships and purchase price paid
for limited partner interests in
Project Partnerships
Cumulative equity in losses of Project
Partnerships (1)
Cumulative distributions received from
Project Partnerships
Investment in Project Partnerships
before Adjustment
Excess of investment cost over the
underlying assets acquired:  Acquisition fees and expenses  Accumulated amortization of  acquisition    fees and expenses
Investments in Project Partnerships | $ 7,586,105
(6,948,856)
(143,214)
-----------
494,035
549,773
(103,345)
-----------
$ 940,463
=========== | $ 7,586,105
(6,491,127)
(125,604)
-----------
969,374
549,773
(95,959)
-----------
$ 1,423,188
=========== | 

(1) In accordance with the Partnership's accounting policy to not carry
Investments in Project Partnerships below zero, cumulative suspended
losses of $1,367,552 for the year ended March 31, 2001 and cumulative
suspended losses of $678,455 for the year ended March 31, 2000 are not
included.

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

SERIES 9

As of March 31, 2001, the Partnership had acquired a 99% interest in the profits, losses and tax credits as a limited partner in 24 Project Partnerships which own and operate government assisted multi-family housing complexes.

Cash flows from operations are allocated according to each Partnership agreement.  Upon dissolution proceeds will be distributed according to each Partnership agreement.

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

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | MARCH 31, 2001
--------------                                                                               | MARCH 31, 2000
--------------                                                                              | 
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ----------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------- | 
|Capital Contributions to Project
Partnerships and purchase price paid
for limited partner interests in
Project Partnerships
Cumulative equity in losses of
Project Partnerships (1)
Cumulative distributions received
from Project Partnerships
Investment in Project Partnerships
before Adjustment
Excess of investment cost over the
underlying assets acquired:
 Acquisition fees and expenses   Accumulated amortization of
 acquisition    fees and expenses
Investments in Project Partnerships | $ 4,914,116
(3,135,390)
(101,009)
-----------
1,677,717
244,087
(47,208)
-----------
$1,874,596
=========== | $ 4,914,116
(2,725,940)
(85,736)
-----------
2,102,440
244,087
(42,655)
-----------
$2,303,872
=========== | 

(1) In accordance with the Partnership's accounting policy to not carry
Investments in Project Partnerships below zero, cumulative suspended
losses of $279,195 for the year ended March 31, 2001 and cumulative
suspended losses of $78,588 for the year ended March 31, 2000 are not
included.

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

SERIES 10

As of March 31, 2001, the Partnership had acquired a 99% interest in the profits, losses and tax credits as a limited partner in 15 Project Partnerships which own and operate government assisted multi-family housing complexes.

Cash flows from operations are allocated according to each Partnership agreement.  Upon dissolution proceeds will be distributed according to each Partnership agreement.

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

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | MARCH 31, 2001
--------------                                                                               | MARCH 31, 2000
--------------                                                                               | 
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------- | 
|Capital Contributions to Project
Partnerships and purchase price paid
for limited partner interests in
Project Partnerships
Cumulative equity in losses of
Project Partnerships
Cumulative distributions received
from Project Partnerships
Investment in Project Partnerships
before Adjustment
Excess of investment cost over the
underlying assets acquired:  Acquisition fees and expenses  Accumulated amortization of
 acquisition    fees and expenses
Investments in Project Partnerships | $3,914,672
(1,504,507)
(115,357)
-----------
2,294,808
196,738
(40,259)
-----------
$2,451,287
 =========== | $3,914,672
(1,211,760)
(100,617)
-----------
2,602,295
196,738
(34,636)
-----------
$2,764,397
 =========== | 

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

SERIES 11

As of March 31, 2001, the Partnership had acquired a 99% interest in the profits, losses and tax credits as a limited partner in 12 Project Partnerships which own and operate government assisted multi-family housing complexes.

Cash flows from operations are allocated according to each Partnership agreement.  Upon dissolution proceeds will be distributed according to each Partnership agreement.

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

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | MARCH 31, 2001
--------------                                                                           | MARCH 31, 2000
--------------                                                                           | 
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------- | 
|Capital Contributions to Project
Partnerships and purchase price paid
for limited partner interests in
Project Partnerships
Cumulative equity in losses of
Project Partnerships
Cumulative distributions received
from Project Partnerships
Investment in Project Partnerships
before Adjustment
Excess of investment cost over the
underlying assets acquired:   Acquisition fees and expenses
 Accumulated amortization of
 acquisition    fees and expenses
Investments in Project Partnerships | $4,128,042
(943,431)
(94,923)
-----------
3,089,688
290,335
(51,342)
-----------
$3,328,681
=========== | $4,128,042
(762,026)
(78,466)
-----------
3,287,550
290,335
(43,048)
-----------
$3,534,837
=========== | 

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

The following is a summary of Investments in Project Partnerships:

|TOTAL SERIES 7 - 11                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | MARCH 31, 2001
--------------                                                                                    | MARCH 31, 2000
--------------                                                                                     | 
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------- | 
|Capital Contributions to Project
Partnerships and purchase price paid
for limited partner interests in
Project Partnerships
Cumulative equity in losses of
Project Partnerships
Cumulative distributions received
from Project Partnerships
Investment in Project Partnerships
before Adjustment
Excess of investment cost over the
underlying assets acquired:   Acquisition fees and expenses   Accumulated amortization of
 acquisition    fees and expenses
Investments in Project Partnerships | $28,275,024
(18,940,013)
(631,814)
-----------
8,703,197
2,074,268
(408,687)
-----------
$10,368,778
=========== | $28,275,024
(17,164,221)
(547,974)
-----------
10,562,829
2,074,268
(373,075)
-----------
$12,264,022
=========== | 

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

In accordance with the Partnership's policy of presenting the
financial information of the Project Partnerships on a three month lag,
below is the summarized financial information for the Series' Project
Partnerships as of December 31 of each year:

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | DECEMBER 31,                                                                                                                                                                                                                                                                                                                                                                                                                 
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|SERIES 7                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 2000
----                                                                                                                                                                                                                                                                                                                                                                                                                    
|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
  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
Partnership's share of net
loss
Suspended losses
Equity in Losses of Project
Partnerships | $ 3,324,385
33,782,091
10,922
------------
$37,117,398
============
$   902,946
36,474,343
 ------------
37,377,289
------------
(147,086)
(112,805)
------------
(259,891)
------------
$37,117,398
============
$ 5,883,288
------------
 2,934,848
2,496,733
1,466,589
------------
6,898,170
------------
$(1,014,882)
============
$   (10,149)
============
$(1,004,733)
570,272
------------
$  (434,461)
============

As of December 31, 2000, the largest Project Partnership constituted
5.3% and 5.3%, and as of December 31, 1999 the largest Project
Partnership constituted 5.3% 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 the Partnership's policy of presenting the financial
information of the Project Partnerships on a three month lag, below is
the summarized financial information for the Series' Project
Partnerships as of December 31 of each year:

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | DECEMBER 31,                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                             
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|SERIES 8                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 2000
----                                                                                                                                                                                                                                                                                                                                                                                                                          | 1999
----                                                                                                                                                                                                                                                                                                                                                                                                                 | 1998
----                                                                                                                                                                                                                                                                                                                                                                                                   
|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
 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
Partnership's share of net
loss
Suspended losses
Equity in Losses of Project Partnerships | $ 2,897,105
 35,691,339
27,518
------------
$38,615,962
============
  1,215,026
38,480,477
 ------------
39,695,503
------------
   (662,872)
(416,669)
------------
(1,079,541)
------------
$38,615,962
============
$ 5,851,713
------------
2,911,723
2,524,343
1,578,473
------------
7,014,539
------------
$(1,162,826)
============
$   (16,000)
============
$(1,146,826)
689,097
------------
$  (457,729)
============ | $ 2,763,988
37,198,365
43,163
------------
$40,005,516
============
$ 1,230,881
38,627,538
 ------------
39,858,419
------------
329,035
(181,938)
------------
147,097
------------
$40,005,516
============
$ 5,939,426
------------
 2,693,468
2,746,735
2,101,828
------------
7,542,031
------------
$(1,602,605)
============
$   (13,930)
============
$(1,588,675)
429,743
------------
$(1,158,932)
============ | $ 2,460,610
39,241,181
40,175
-----------
$41,741,966
===========
$ 1,168,937
38,768,476
-----------
39,937,413
-----------
1,940,983
(136,430)
-----------
1,804,553
-----------
$41,741,966
===========
$5,806,108
-----------
2,633,059
2,707,720
1,609,164
-----------
6,949,943
-----------
$(1,143,835)
===========
$   (14,398)
===========
$(1,129,437)
169,331
-----------
$  (960,106)
===========

As of December 31, 2000, the largest Project Partnership constituted
5.6% and 5.8%, and as of December 31, 1999 the largest Project
Partnership constituted 5.8% and 5.8% of the combined total assets by
series and combined total revenues by series, respectively.

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

In accordance with the Partnership's policy of presenting the
financial information of the Project Partnerships on a three month lag,
below is the summarized financial information for the Series' Project
Partnerships as of December 31 of each year:

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | DECEMBER 31,                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                      
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|SERIES 9                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 2000
----                                                                                                                                                                                                                                                                                                                                                                                                                    | 1999
----                                                                                                                                                                                                                                                                                                                                                                                                                   | 1998
----                                                                                                                                                                                                                                                                                                                                                                                                            
|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
 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
Partnership's share of net
loss
Suspended losses
Equity in Losses of
Project Partnerships | $ 1,714,614
20,194,773
5,979
 ------------
$21,915,366
============
$   340,274
20,378,805
-------------
20,719,079
-------------
1,370,557
(174,270)
------------
1,196,287
------------
$21,915,366
============
$ 3,022,359
------------
1,453,869
1,352,043
832,666
------------
3,638,578
------------
$  (616,219)
============
$    (6,162)
===========
 $  (610,057)
 200,607
------------
$  (409,450)
============ | $ 1,649,874
20,988,415
4,865
 ------------
$22,643,154
============
$   337,306
20,450,051
-------------
20,787,357
-------------
2,011,160
(155,363)
------------
1,855,797
------------
$22,643,154
============
$ 2,998,599
------------
1,395,335
1,353,859
842,272
------------
3,591,466
------------
$  (592,867)
============
$   (17,514)
===========
  $ (575,353)
 78,588
------------
$  (496,765)
============ | $ 1,596,913
21,797,627
2,992
------------
$23,397,532
============
$   382,099
20,519,847
-------------
20,901,946
-------------
2,601,324
(105,738)
-------------
2,495,586
------------
$23,397,532
============
$ 3,021,660
------------
1,307,962
1,348,605
887,635
------------
3,544,202
------------
$  (522,542)
============
$    (5,226)
============
$  (517,316)
0
------------
$  (517,316)
============

As of December 31, 2000, the largest Project Partnership constituted
7.5% and 7.1%, and as of December 31, 1999 the largest Project
Partnership constituted 7.4% and 7.0% of the combined total assets by
series and combined total revenues by series, respectively.

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

In accordance with the Partnership's policy of presenting the financial
information of the Project Partnerships on a three month lag, below is
the summarized financial information for the Series' Project
Partnerships as of December 31 of each year:

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | DECEMBER 31,                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|SERIES 10                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 2000
----                                                                                                                                                                                                                                                                                                                                                                                                             | 1999
----                                                                                                                                                                                                                                                                                                                                                                                                            | 1998
----                                                                                                                                                                                                                                                                                                                                                                                                      
|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
 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
Partnership's share of net
loss
Suspended losses
Equity in Losses of
Project Partnerships | $ 1,363,874
14,326,922
2,972
 -----------
$15,693,768
============
 $   277,628
13,324,659
-----------
 13,602,287
-----------
  2,299,451
(207,970)
------------
  2,091,481
------------
$15,693,768
============
$ 1,826,336
------------
961,097
665,521
496,926
 ------------
2,123,544
------------
$  (297,208)
============
$    (4,461)
============
$  (292,747)
0
-------------
$  (292,747)
============= | $ 1,294,767
14,764,707
3,460
 -----------
$16,062,934
============
$   251,800
 13,373,440
-----------
 13,625,240
-----------
 2,608,619
(170,925)
------------
  2,437,694
------------
$16,062,934
============
$ 1,907,138
------------
943,618
764,983
502,179
 ------------
2,210,780
------------
$  (303,642)
============
$    (4,460)
============
$  (299,182)
0
-------------
$  (299,182)
============= | $ 1,270,741
15,240,067
8,016
------------
$16,518,824
============
$   275,876
13,433,274
------------
13,709,150
------------
2,928,985
(119,311)
------------
2,809,674
------------
$16,518,82
============
$ 1,942,492
------------
880,214
791,764
511,296
------------
2,183,274
------------
$  (240,782)
============
$    (3,506)
============
$  (237,276)
0
-------------
$  (237,276)
=============

As of December 31, 2000, the largest Project Partnership constituted
11.0% and 12.8%, and as of December 31, 1999 the largest Project
Partnership constituted 10.9% and 11.9% of the combined total assets by
series and combined total revenues by series, respectively.

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

In accordance with the Partnership's policy of
presenting the
financial information of the Project Partnerships on a three month lag,
below is the summarized financial information for the Series' Project
Partnerships as of December 31 of each year:

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | DECEMBER 31,                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|SERIES 11                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 2000
----                                                                                                                                                                                                                                                                                                                                                                                                           | 1999
----                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 1998
----                                                                                                                                                                                                                                                                                                                                                                                                      
|SUMMARIZED BALANCE SHEETS
Assets:
  Current assets
  Investment properties,net
  Other assets
    Total assets
Liabilities and Partners'
Equity:
  Current liabilities
  Long-term debt
    Total liabilities
Partners' equity
  Limited Partner
  General Partners
    Total Partners' equity
    Total liabilities and
    partners' equity
SUMMARIZED STATEMENTS OF
OPERATIONS
Rental and other income
Expenses:
  Operating expenses
  Interest expense
  Depreciation and
  amortization
    Total expenses
      Net loss
Other partners' share of
net loss
Partnership's share of net
loss
Suspended losses
Equity in Losses of Project
Partnerships | $ 1,225,996
12,613,456
12,136  
 ------------
$13,851,588
============
$   316,341
10,520,430
------------
10,836,771
------------
3,098,992
(84,175)
------------
 3,014,817
------------
$13,851,588
============
 $1,652,984
------------
861,060
471,257
516,766
------------
1,849,083
------------
$  (196,099)
============
 $   (14,694)
============
$  (181,405)
0
------------
$  (181,405)
============ | $ 1,150,315 
  13,078,577 
      15,108   
  ----------
 $14,244,000
  ===========
  
 $    339,188        10,630,905
   ---------
   10,970,093
   ---------
    3,295,200              (21,293)
   ---------          3,273,907
   ---------     $14,244,000
   ==========
   $1,731,125
    --------
      849,882
      522,499
      516,489
    --------          1,888,870
    --------
   $ (157,745)
   ==========
   $  (14,564)
   ==========
   $ (143,181)
            0
    --------
   $ (143,181)
   ========== | $  1,039,049
13,528,369
19,462  
------------
$14,586,880
============
$   347,126
10,743,507
------------
11,090,633
------------
3,454,866
41,381
------------
3,496,247
------------
$14,586,880
============
$ 1,730,200
------------
852,221
510,366
510,062
------------
1,872,649
------------
$  (142,449)
============
$   (13,647)
============
$  (128,802)
0
------------
$  (128,802)
============

As of December 31, 2000, the largest Project Partnership constituted
20.5% and 20.8%, and as of December 31, 1999 the largest Project
Partnership constituted 20.7% and 19.9% of the combined total assets by
series and combined total revenues by series, respectively.

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

In accordance with the Partnership's policy of presenting the
financial information of the Project Partnerships on a three month lag,
below is the summarized financial information for the Series' Projec
Partnerships as of December 31 of each year:

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | DECEMBER 31,                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|TOTAL SERIES 7 - 11                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | 2000
----                                                                                                                                                                                                                                                                                                                                                                                                                                         | 1999
----                                                                                                                                                                                                                                                                                                                                                                                                                                          | 1998
----                                                                                                                                                                                                                                                                                                                                                                                                                                        
|SUMMARIZED BALANCE SHEETS
Assets:
 Current assets
 Investment properties,net
 Other assets
       Total assets
Liabilities and Partners'
Equity:
 Current liabilities
 Long-term debt
       Total liabilities
Partners' equity
 Limited Partner
 General Partners
       Total Partners' equity
       Total liabilities and
   partners' equity
SUMMARIZED STATEMENTS OF
OPERATIONS
Rental and other income
Expenses:
 Operating expenses
 Interest expense
 Depreciation and
 amortization
       Total expenses
           Net loss
Other partners' share of
net loss
Partnership's share of net
loss
Suspended losses
Equity in Losses of
Project Partnerships | $ 10,525,974
116,608,581
59,527
-------------
$127,194,082
=============
$  3,052,215
119,178,714
-------------
122,230,929
-------------
5,959,042
(995,889)
-------------
4,963,153
-------------
$127,194,082
=============
$ 18,236,680
-------------
9,122,597
7,509,897
4,891,420
-------------
21,523,914
-------------
$(3,287,234)
=============
$   (51,466)
============
$(3,235,768)
1,459,976
------------
$(1,775,792)
============ | $ 10,033,460
 121,172,413
94,657
-------------
$131,300,530
=============
$  3,060,112
 119,692,104
-------------
 122,752,216
-------------
9,143,810
(595,496)
-------------
8,548,314
-------------
$131,300,530
=============
$ 18,527,153
-------------
8,598,052
7,998,005
5,465,526
-------------
22,061,583
-------------
$(3,534,430)
=============
$   (59,443)
============
$(3,474,987)
905,206
------------
$(2,569,781)
============ | $  9,185,835
126,373,628
95,003
-------------
$135,654,466
=============
$  3,063,682
120,203,685
-------------
123,267,367
-------------
12,731,092
(343,993)
-------------
12,387,099
-------------
$135,654,466
=============
$ 18,354,106
-------------
8,308,007
7,950,917
5,043,816
-------------
21,302,740
-------------
$(2,948,634)
=============
$   (45,767)
============
$(2,902,867)
340,646
------------
$(2,562,221)
============

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

The Partnership's equity by Series as reflected by the Project
Partnerships differs from the Partnership's Investments in Partnerships
before acquisition fees and expenses and amortization by Series
primarily because of suspended losses on the Partnership's books.

|                                               | Equity Per Project Partnership
------------------      | Equity Per Partnership
----------------------   
|---------------------------------------------- | ------------------------------------------------------ | ------------------------------------------------
|Series 7
Series 8
Series 9
Series 10
Series 11 | $  (147,086)
(662,872)
1,370,557 
2,299,451 
3,098,992 | $1,146,949
494,035
1,677,717
2,294,808
3,089,688

NOTE 6 - TAXABLE INCOME (LOSS):

The following is a reconciliation between Net Income (Loss) as described in the financial statements and the Partnership income (loss) for tax purposes:

|SERIES 7                                                                                                                       | 2001
----                      | 2000
----                      | 1999
----                     
|------------------------------------------------------------------------------------------------------------------------------ | ------------------------------ | ------------------------------ | ------------------------------
|Net Loss per Financial
Statements                                                                                              | $(508,769)                     | $(555,736)                     | $(812,428)                    
|Equity in Losses of Project
Partnerships for tax purposes
less than (in excess of)
losses for financial
statement purposes     | (787,758)                      | (606,891)                      | (332,734)                     
|Adjustments to convert March
31, fiscal year end to
December 31, taxable year end                                              | (5,087)                        | (7,940)                        | (10,732)                      
|Items Expensed for Financial
Statement purposes not
expensed for Tax purposes:    Asset Management Fee    Amortization Expense | 43,842
11,739
------------     | 44,358
15,651
------------     | 49,249
22,001
------------    
|Partnership loss for tax
purposes as of December 31                                                                            | $(1,246,033)
============      | $(1,110,558)
============      | $(1,084,644)
============     
|                                                                                                                               | December 31,
2000
------------ | December 31,
1999
------------ | December 31,
1998
------------
|Federal Low Income Housing
Tax Credits  (Unaudited)                                                                            | $ 1,695,199
===========        | $ 1,695,195
===========        | $ 1,695,195
===========       

---

The differences in the assets and liabilities of the Series for
financial reporting purposes and tax reporting purposes for the year
ended March 31, 2001 are as follows:

Financial
      Tax
                              Reporting
      Reporting
                              Purposes
       Purposes     
Differences
Investments in Local
Limited Partnerships          $1,773,751
     $  (642,071)   $ 2,415,822
Other Assets
                 $   736,224
     $1,917,108    $(1,180,884)
Liabilities
                  $   413,701
     $        5,237    $     408,464

---

NOTE 6 - TAXABLE INCOME (LOSS):

The following is a reconciliation between Net Income (Loss) as
described in the financial statements and the Partnership income (loss)
for tax purposes:

|SERIES 8                                                                                                                     | 2001
----                      | 2000
----                      | 1999
----                     
|---------------------------------------------------------------------------------------------------------------------------- | ------------------------------ | ------------------------------ | ------------------------------
|Net Loss per Financial
Statements                                                                                            | $  (539,766)                   | $(1,247,292)                   | $(1,055,240)                  
|Equity in Losses of Project
Partnerships for tax purposes
less than (in excess of)
losses for financial
statement purposes   | (819,558)                      | (48,737)                       | (277,444)                     
|Adjustments to convert March
31, fiscal year end to
December 31, taxable year end                                            | (433)                          | (8,158)                        | (3,618)                       
|Items Expensed for Financial
Statement purposes not
expensed for Tax purposes:
  Asset Management Fee
  Amortization Expense | 47,922
6,067
------------      | 48,979
15,647
------------     | 51,209
15,237
------------    
|Partnership loss for tax
purposes as of December 31                                                                          | $(1,305,768)
============      | $(1,239,561)
============      | $(1,269,856)
============     
|                                                                                                                             | December 31,
2000
------------ | December 31,
1999
------------ | December 31,
1998
------------
|Federal Low Income Housing
Tax Credits  (Unaudited)                                                                          | $ 1,620,506
===========        | $ 1,620,508
===========        | $ 1,620,511
===========       

The differences in the assets and liabilities of the Series for
financial reporting purposes and tax reporting purposes for the year
ended March 31, 2001 are as follows:

Financial
     Tax
                              Reporting
     Reporting
                              Purposes
      Purposes
      Differences
Investments in Local
  Limited Partnerships          $  940,463
     $  (972,091)    $ 1,912,554
Other Assets
                 $  809,468
     $1,982,669         $(1,173,201)
Liabilities
                  $  461,022
     $    5,821     $
  455,201

---

NOTE 6 - TAXABLE INCOME (LOSS):

The following is a reconciliation between Net Income (Loss) as
described in the financial statements and the Partnership income (loss)
for tax purposes:

|SERIES 9                                                                                                                     | 2001
----                      | 2000
----                      | 1999
----                     
|---------------------------------------------------------------------------------------------------------------------------- | ------------------------------ | ------------------------------ | ------------------------------
|Net Loss per Financial
Statements                                                                                            | $  (457,177)                   | $  (547,924)                   | $  (570,231)                  
|Equity in Losses of Project
Partnerships for tax purposes
less than (in excess of)
losses for financial
statement purposes   | (328,207)                      | (214,022)                      | (79,111)                      
|Adjustments to convert March
31, fiscal year end to
December 31, taxable year end                                            | (938)                          | (2,265)                        | 443                           
|Items Expensed for Financial
Statement purposes not
expensed for Tax purposes:   Asset Management Fee   Amortization Expense | 32,760
4,780
------------      | 31,864
8,602
------------      | 32,811
5,962
------------     
|Partnership loss for tax
purposes as of December 31                                                                          | $  (748,782)
============      | $  (723,745)
============      | $  (610,126)
============     
|                                                                                                                             | December 31,
2000
------------ | December 31,
1999
------------ | December 31,
1998
------------
|Federal Low Income Housing
Tax Credits  (Unaudited)                                                                          | $   968,961
===========        | $   968,960
===========        | $   968,960
===========       

The differences in the assets and liabilities of the Series for
financial reporting purposes and tax reporting purposes for the year
ended March 31, 2001 are as follows:

Financial
      Tax
                            Reporting
      Reporting
                            Purposes
       Purposes
       Differences
Investments in Local
  Limited Partnerships        $1,874,596
     $    837,963      $ 1,036,633
Other Assets
               $   476,730
     $1,219,209      $  (742,479)
Liabilities
                $   274,837
     $    3,320
     $   271,517

---

NOTE 6 - TAXABLE INCOME (LOSS):

The following is a reconciliation between Net Income (Loss) as
described in the financial statements and the Partnership income (loss)
for tax purposes:

|SERIES 10                                                                                                                    | 2001
----                      | 2000
----                      | 1999
----                     
|---------------------------------------------------------------------------------------------------------------------------- | ------------------------------ | ------------------------------ | ------------------------------
|Net Loss per Financial
Statements                                                                                            | $  (321,107)                   | $  (328,409)                   | $  (264,781)                  
|Equity in Losses of Project
Partnerships for tax purposes
less than (in excess of)
losses for financial
statement purposes   | (163,670)                      | (154,419)                      | (145,546)                     
|Adjustments to convert March
31, fiscal year end to
December 31, taxable year end                                            | 863                            | 628                            | (4,081)                       
|Items Expensed for Financial
Statement purposes not
expensed for Tax purposes:   Asset Management Fee   Amortization Expense | 6,943
5,619
------------       | 6,488
4,931
------------       | 8,865
5,657
------------      
|Partnership loss for tax
purposes as of December 31                                                                          | $  (471,352)
============      | $  (470,781)
============      | $  (399,886)
============     
|                                                                                                                             | December 31,
2000
------------ | December 31,
1999
------------ | December 31,
1998
------------
|Federal Low Income Housing
Tax Credits  (Unaudited)                                                                          | $   762,217
===========        | $   762,218
===========        | $   762,218
===========       

The differences in the assets and liabilities of the Series for
financial reporting purposes and tax reporting purposes for the year
ended March 31, 2001 are as follows:

Financial
     Tax
                            Reporting
     Reporting
                            Purposes
      Purposes
        Differences
Investments in Local
  Limited Partnerships        $2,451,287
    $ 1,479,029     $  972,258
Other Assets
               $   438,182            $ 1,030,307         $  (592,125)
Liabilities
                $
  94,657     $         2,203
    $      92,454

---

NOTE 6 - TAXABLE INCOME (LOSS):

The following is a reconciliation between Net Income (Loss) as
described in the financial statements and the Partnership income (loss)
for tax purposes:

|SERIES 11                                                                                                                    | 2001
----                      | 2000
----                      | 1999
----                     
|---------------------------------------------------------------------------------------------------------------------------- | ------------------------------ | ------------------------------ | ------------------------------
|Net Loss per Financial
Statements                                                                                            | $  (202,390)                   | $ (164,613)                    | $  (152,545)                  
|Equity in Losses of Project
Partnerships for tax purposes
less than (in excess of)
losses for financial
statement purposes   | (63,857)                       | (54,220)                       | (71,284)                      
|Adjustments to convert March
31, fiscal year end to
December 31, taxable year end                                            | 494                            | (2,978)                        | 2,628                         
|Items Expensed for Financial
Statement purposes not
expensed for Tax purposes:   Asset Management Fee   Amortization Expense | 202
8,291
------------         | (1,697)
11,962
------------    | 4,892
7,322
------------      
|Partnership loss for tax
purposes as of December 31                                                                          | $  (257,260)
============      | $  (211,546)
============      | $  (208,987)
============     
|                                                                                                                             | December 31,
2000
------------ | December 31,
1999
------------ | December 31,
1998
------------
|Federal Low Income Housing
Tax Credits  (Unaudited)                                                                          | $   754,677
===========        | $   754,677
===========        | $   754,677
===========       

The differences in the assets and liabilities of the Series for
financial reporting purposes and tax reporting purposes for the year
ended March 31, 2001 are as follows:

Financial
       Tax
                           Reporting
       Reporting
                           Purposes
        Purposes
       Differences
Investments in Local
  Limited Partnerships       $3,328,681
      $ 3,021,368     $   307,313
Other Assets
              $
 468,532       $   914,168
    $(445,636)
Liabilities
               $
  48,948       $         2,030
    $     46,918

---

NOTE 6 - TAXABLE INCOME (LOSS):

The following is a reconciliation between Net Income (Loss) as
described in the financial statements and the Partnership income (loss)
for tax purposes:

|TOTAL SERIES 7 - 11                                                                                                          | 2001
----                   | 2000
----                   | 1999
----                  
|---------------------------------------------------------------------------------------------------------------------------- | --------------------------- | --------------------------- | ---------------------------
|Net Loss per Financial
Statements                                                                                            | $(2,029,209)                | $(2,843,974)                | $(2,855,225)               
|Equity in Losses of Project
Partnerships for tax purposes
less than (in excess of)
losses for financial
statement purposes   | (2,163,050)                 | (1,078,289)                 | (906,119)                  
|Adjustments to convert March
31, fiscal year end to
December 31, taxable year end                                            | (5,101)                     | (20,713)                    | (15,360)                   
|Items Expensed for Financial
Statement purposes not
expensed for Tax purposes:   Asset Management Fee   Amortization Expense | 131,669
36,496
------------ | 129,992
56,793
------------ | 147,026
56,179
------------
|Partnership loss for tax
purposes as of December 31                                                                          | $(4,029,195)
============   | $(3,756,191)
============   | $(3,573,499)
============  

The difference in the total value of the Partnership's Investment in
Project Partnerships is approximately $2,416,000 higher for Series 7,
$1,913,000 higher for Series 8, $1,037,000 higher for Series 9, $972,000
higher for Series 10 and $307,000 higher for Series 11 for financial
reporting purposes than for tax return 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 the Fund for
financial reporting purposes and tax reporting purposes for the year
ended March 31, 2001 are as follows:

Financial
     Tax
                            Reporting
     Reporting
                            Purposes
      Purposes
       Differences
Investments in Local
  Limited Partnerships        $10,368,778
   $ 3,724,198     $ 6,644,580
Other Assets
               $ 2,929,136
   $ 7,063,461     $(4,134,325)
Liabilities
                $ 1,293,165
   $       18,611     $ 1,274,554

---

NOTE 7 - SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED):

Series 7Year 2001
              Quarter 1
   Quarter 2    Quarter 3    Quarter 4
                                                          
 6/30/2000    9/30/2000
   12/31/2000   3/31/2001Total Revenues        
  $   11,720    $   11,934    $   11,622
  $ 23,777
Net Income (Loss)        $(180,360)   $(225,497)   $ (32,627) 
$(70,285)
Earnings (Loss) Per
Weighted Average
Beneficial Assignee
Certificates Outstanding $   (17.18)      $  (21.47)
  $   (3.11)  $    (6.69)
Series 8Year 2001
               Quarter 1
   Quarter 2    Quarter 3   Quarter 4
                                                              6/30/2000
   9/30/2000    12/31/2000  3/31/2001Total Revenues           $   12,359
  $  12,650   $   12,236   $   18,323
Net Income (Loss)        $(168,048)
 $(155,643)  $ (47,165)  $(168,910)
Earnings (Loss) Per
Weighted Average
Beneficial Assignee
Certificates Outstanding $   (16.67)      $   (15.44)  $     (4.68)
 $  (16.75)
Series 9Year 2001
               Quarter 1
   Quarter 2   Quarter 3   Quarter 4
                                                               6/30/2000
   9/30/2000   12/31/2000  3/31/2001Total Revenues
          $     6,832
  $     7,015   $     6,869
   $   8,152
Net Income (Loss)        $(157,151)  $(152,279)
 $ (98,315)   $ (49,432)
Earnings (Loss) Per
Weighted Average
Beneficial Assignee
Certificates Outstanding $  (24.88)  $   (24.11)  $   (15.56)
  $     (7.82)

---

NOTE 7 - SELECTED QUARTERLY FINANCIAL DATA
(UNAUDITED)(Continued):

Series 10Year 2001
               Quarter 1
  Quarter 2   Quarter 3    Quarter 4
                         6/30/2000
  9/30/2000   12/31/2000      3/31/2001Total Revenues
          $     6,779   $     6,947
   $   6,721     $     6,135
Net Income (Loss)        $(102,398)
 $(122,831)   $       914     $ (96,792)
Earnings (Loss) Per
Weighted Average
Beneficial Assignee
Certificates Outstanding $  (20.10)  $   (24.12)   $   (0.18)
   $   (19.00)
Series 11Year 2001
               Quarter 1
   Quarter 2   Quarter 3    Quarter 4
                         6/30/2000
   9/30/2000   12/31/2000   3/31/2001Total Revenues
          $    7,456
   $   7,605    $    7,404
   $   6,981
Net Income (Loss)        $(65,832)
  $ (93,747)   $  28,984    $ (71,795)
Earnings (Loss) Per
Weighted Average
Beneficial Assignee
Certificates Outstanding $  (12.72)   $   (18.10)   $
  5.60    $   (13.86)
Series 7 - 11Year 2001
               Quarter 1
  Quarter 2    Quarter 3   Quarter 4
                         6/30/2000
  9/30/2000    12/31/2000  3/31/2001Total Revenues
          $   45,146
  $   46,151    $   44,852   $   63,368
Net Income (Loss)        $(673,789)
 $(749,997)   $(148,209)  $(457,214)
Earnings (Loss) Per
Weighted Average
Beneficial Assignee
Certificates Outstanding $  (91.55)      $ (103.24)   $   (17.93)    $   (64.12)

---

NOTE 7 - SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Continued):

Series 7Year 2000
               Quarter 1
  Quarter 2    Quarter 3   Quarter 4
                         6/30/1999
  9/30/1999    12/31/1999  3/31/2000Total Revenues
          $   10,670
  $   10,835    $   11,144   $   18,587
Net Income (Loss)        $(171,255)  $(284,341)
  $(229,045)  $ 128,905
Earnings (Loss) Per
Weighted Average
Beneficial Assignee
Certificates Outstanding $  (16.31)  $   (27.08)   $
 (21.81)     $     12.27
Series 8Year 2000
               Quarter 1
  Quarter 2    Quarter 3   Quarter 4
                         6/30/1999
  9/30/1999    12/31/1999  3/31/2000
Total Revenues
          $  11,075
  $   11,285    $   11,767   $   14,307
Net Income (Loss)        $(227,851)
 $(262,656)   $(325,280)  $(431,505)
Earnings (Loss) Per
Weighted Average
Beneficial Assignee
Certificates Outstanding $  (22.60)  $  (26.06)   $   (32.26)
 $   (42.81)
Series 9Year 2000
               Quarter 1
  Quarter 2    Quarter 3   Quarter 4
                         6/30/1999
  9/30/1999    12/31/1999  3/31/2000Total Revenues
          $     6,140
  $     6,234    $     6,468
  $    6,401
Net Income (Loss)        $(145,436)  $(186,972)
  $(246,682)  $  31,166
Earnings (Loss) Per
Weighted Average
Beneficial Assignee
Certificates Outstanding $  (23.02)      $   (29.60)   $
 (39.05)  $      4.93

---

NOTE 7 - SELECTED QUARTERLY FINANCIAL DATA
(UNAUDITED)(Continued):

Series 10Year 2000
               Quarter 1
   Quarter 2   Quarter 3   Quarter 4
                         6/30/1999
   9/30/1999      12/31/1999  3/31/2000
Total Revenues
          $     6,009         $     6,119      $     6,364
  $     6,213
Net Income (Loss)        $ (55,500)
  $(111,885)  $ (92,081)  $ (68,943)
Earnings (Loss) Per
Weighted Average
Beneficial Assignee
Certificates Outstanding $  (10.90)   $  (21.96)  $   (18.08)    $   (13.53)
Series 11Year 2000
               Quarter 1
   Quarter 2   Quarter 3   Quarter 4
                         6/30/1999
   9/30/1999   12/31/1999  3/31/2000
Total Revenues
          $     6,666
   $     6,752   $     7,015
  $    6,998
Net Income (Loss)        $ (43,170)
  $ (37,294)  $(138,781)  $  54,632
Earnings (Loss) Per
Weighted Average
Beneficial Assignee
Certificates Outstanding $     (8.34)       $     (7.20)    $   (26.80)    $    10.55
Series 7 - 11Year 2000
               Quarter 1
   Quarter 2   Quarter 3   Quarter 4
                         6/30/1999
   9/30/1999   12/31/1999  3/31/2000
Total Revenues           $   40,560
   $   41,225  $       42,758  $   52,506
Net Income (Loss)        $(643,212)
  $(883,148) $(1,031,869)  $(285,745)
Earnings (Loss) Per
Weighted Average
Beneficial Assignee
Certificates Outstanding $  (81.17)   $ (111.90) $     (138.00)  $   (28.59)

---

Hill, Barth & King LLC
5121 Zuck Road
Erie, PA 16506
PHONE:  814-836-9968
FAX:  814-836-9989

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

To the Partners
Maple Street Apartments Limited Partnership
Emporium, Pennsylvania

We have audited the accompanying balance sheets of Maple Street Apartments
Limited Partnership, as of December 31, 2000 and 1999, and the related
statements of operations, partners' equity (deficit) 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 our audits in accordance with generally accepted auditing
standards and the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the 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 the significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our 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 Maple Street Apartments Limited
Partnership of December 31, 2000 and 1999 and the results of its operations and
its cash flows for the years then ended in conformity with generally accepted
accounting principles.

In accordance with Government Auditing Standards, we have also issued our
report dated January 23, 2001 on our consideration of Maple Street Apartments
Limited Partnership internal control over financial reporting and our tests of
its compliance with certain provisions of laws, regulations, contracts and
grants. 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 audits.

/s/ Hill, Barth & King LLC
Certified Public Accountants

January 23, 2001

---

Habif, Arogeti & Wynne, LLP
5565 Glendridge Connector, Suite 200
Atlanta, GA 30342
PHONE:  404-892-9651
FAX:  404-876-3913

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

To the Partners
Creekstone Apartments, L.P.

We have audited the accompanying balance sheets of CREEKSTONE APARTMENTS,
L.P. (a limited partnership) as of December 31, 2000 and 1999, and the related
statements of operations, changes in partners' equity (deficit), 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 our audits in accordance with generally accepted auditing
standards. 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 our 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 CREEKSTONE APARTMENTS, L.P. as
of December 31, 2000 and 1999, and the results of its operations, its changes in
partners equity (deficit), and its cash flows for the years then ended in
conformity with generally accepted accounting principles.

/s/ Habif, Arogeti & Wynne, LLP
Certified Public Accountants

Atlanta, Georgia
January 25, 2001

---

Blackman & Associates, P.C.
11924 Arbor Street, Suite 200
Omaha, Nebraska 68144
PHONE:  402-330-1040
FAX:  402-333-9189

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

To the Partners of
Gila Bend Housing, Ltd.
(An Arizona Limited Partnership)

We have audited the balance sheet of Gila Bend Housing, Ltd. (an Arizona
Limited Partnership) as of December 31, 2000, and the related statements of
operations, changes in partners' equity, and cash flows for the year 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 audit. The financial statements of Gila Bend Housing,
Ltd. (An Arizona Limited Partnership), as of December 31, 1999, were audited by
other auditors whose report dated February 11, 2000, expressed an unqualified
opinion on those statements.

We conducted our audit in accordance with generally accepted auditing
standards and Government Auditing Standards, issued by the Comptroller
General of the United States, and the Farmers Home Administration regulations as
set forth in the FmHA Audit Guide dated December, 1989 - specifically,
Attachment 2 relating to Rural Rental Housing Loans. Those standards require
that we plan and perform the audit 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 our
audit provides 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 Gila Bend Housing, Ltd. as of
December 31, 2000, and the results of its operations and its cash flows for the
year then ended in conformity with generally accepted accounting principles.

In accordance with Government Auditing Standards, we have also issued
a report dated January 24, 2001, on our consideration of the Partnership's
internal controls and a report dated January 24, 2001, on its compliance with
laws and regulations.

The accompanying supplementary information 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 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 financial statements
taken as a whole.

This report is intended solely for the information of the Partners,
management of Gila Bend Housing, Ltd. and for filing with RD and should not be
used by anyone other than specified parties.

/s/ Blackman & Associates, P.C.
Certified Public Accountants

January 24, 2001
Omaha, Nebraska

---

Dauby O'Connor & Zaleski LLC
698 Pro Med Lane
Carmel, IN 46032
PHONE:  317-848-5700
FAX:  317-815-6140

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

To the Partners of
Gila Bend Housing, Ltd.
(An Arizona Limited Partnership)

We have audited the accompanying balance sheets of Gila Bend Housing, Ltd.
(an Arizona Limited Partnership) as of December 31, 1999 and 1998, and the
related statements of income, changes in partners' equity, 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 our audits in accordance with generally accepted auditing
standards and Government Auditing Standards, issued by the Comptroller
General of the 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 our 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 Gila Bend Housing, Ltd. (an
Arizona Limited Partnership) as of December 31, 1999 and 1998, and the results
of its operations and its cash flows for the years then ended in accordance with
generally accepted accounting principles.

In accordance with Government Auditing Standards, we have also issued
a report dated February 11, 2000, on our consideration of the Partnership's
internal controls and a report dated February 11, 2000, on its compliance with
laws and regulations.

The accompanying supplementary information 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 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 financial statements
taken as a whole.

This report is intended solely for the information of the Partners,
management of Gila Bend Housing, Ltd. and for filing with RD and should not be
used by anyone other than specified parties.

/s/ Dauby O'Connor & Zaleski LLC
Certified Public Accountants
Carmel, Indiana
February, 11, 2000

---

Habif, Arogeti & Wynne, LLP
5565 Glenridge Connector, Suite 200
Atlanta, GA 30342
PHONE:  404-892-9651
FAX:  404-876-3913

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

To the Partners
Manchester Elderly Housing, L.P.

We have audited the accompanying balance sheets of MANCHESTER ELDERLY
HOUSING, L.P. (USDA Rural Development Case No. 10-099-581965616), a limited
partnership, as of December 31, 2000 and 1999, and the related statements of
operations, changes in partners' equity (deficit), 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 our audits in accordance with generally accepted auditing
standards, Government Auditing Standards, issued by the Comptroller
General of the United States, and the U.S. Department of Agriculture, Farmers
Home Administration's Audit Program. 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 our
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 MANCHESTER ELDERLY HOUSING,
L.P. as of December 31, 2000 and 1999, and the results of its operations, its
changes in partners equity (deficit), and its cash flows for the years then
ended in conformity with generally accepted accounting principles.

In accordance with Government Auditing Standards, we have also issued
a report dated January 25, 2001, on our consideration of MANCHESTER ELDERLY
HOUSING, L.P.'s internal control and a report dated January 25, 2001, on its
compliance with laws and regulations applicable to the financial statements.

Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental information on page 13
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
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/ Habif, Arogeti & Wynne, LLP
Certified Public Accountants

Atlanta, Georgia
January 25, 2001

---

Henderson & Godbee, P.C.
3488 N. Valdosta Rd.-P.O. Box 2241
Valdosta, GA 31604-2241
PHONE:  229-245-6040
FAX:  229-245-1669

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

To the Partners
Meadow Run Apartments, L.P.
Valdosta, Georgia

We have audited the accompanying balance sheets of Meadow Run Apartments,
L.P. (a limited partnership), Federal ID #:58-1994614, as of December 31, 2000
and 1999, and the related statements of income, partners' equity (deficit), 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 our audits in accordance with generally accepted auditing
standards and Government Auditing Standards issued by the Comptroller
General of the 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. 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 our 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 Meadow Run Apartments, L.P. as
of December 31, 2000 and 1999, and the results of its operations and its cash
flows for the years then ended in conformity with generally accepted accounting
principles.

In accordance with Government Auditing Standards, we have also issued
reports dated January 25, 2001, on our consideration of Meadow Run Apartments,
L.P.'s internal control structure and its compliance with laws and regulations.

/s/ Henderson & Godbee, P.C.
Certified Public Accountants

January 25, 2001

---

Henderson & Godbee, P.C.
3488 N. Valdosta Rd.-P.O. Box 2241
Valdosta, GA 31604-2241
PHONE:  229-245-6040
FAX:  229-245-1669

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

To the Partners
Lakeland II L.P.
Lakeland, Georgia

We have audited the accompanying balance sheets of Lakeland II L.P. (a
limited partnership), Federal ID #58-1965624, as of December 31, 2000 and 1999,
and the related statements of income, partners' equity (deficit) 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 our audits in accordance with generally accepted auditing
standards and Government Auditing Standards issued by the Comptroller
General of the 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 our 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 Lakeland II L.P. as of December
31, 2000 and 1999, and the results of its operations and its cash flows for the
years then ended in conformity with generally accepted accounting principles.

In accordance with Government Auditing Standards, we have also issued
reports dated January 25, 2001 on our consideration of Lakeland II, L.P.'s
internal control structure and its compliance with laws and regulations.

/s/ Henderson & Godbee, P.C.
Certified Public Accountants

January 25, 2001

---

Henderson & Godbee, P.C.
3488 N. Valdosta Rd.-P.O. Box 2241
Valdosta, GA 31604-2241
PHONE:  229-245-6040
FAX:  229-245-1669

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

To the Partners
Blue Ridge Elderly Housing, L.P.
Valdosta, Georgia

We have audited the accompanying balance sheets of Blue Ridge Elderly
Housing, L.P. (a limited partnership), Federal ID No.: 58-1936981 as of December
31, 2000 and 1999, and the related statements of income, partners' equity
(deficit), 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 our audits in accordance with generally accepted auditing
standards and Government Auditing Standards issued by the Comptroller
General of the 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 our 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 Blue Ridge Elderly Housing,
L.P. as of December 31, 2000 and 1999, and the results of its operations and its
cash flows for the years then ended in conformity with generally accepted
accounting principles.

In accordance with Government Auditing Standards we have also issued a
report dated January 25, 2001 on our consideration of Blue Ridge Elderly
Housing, L.P.'s internal control structure and a report dated January 25, 2001
on its compliance with laws and regulations.

/s/ Henderson & Godbee, P.C.
Certified Public Accountants

January 25, 2001

---

Henderson & Godbee, P.C.
3488 N. Valdosta Rd.-P.O. Box 2241
Valdosta, GA 31604-2241
PHONE:  229-245-6040
FAX:  229-245-1669

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

To the Partners
Arbor Trace Apartments Phase II, L.P.
Lake Park, Georgia

We have audited the accompanying balance sheets of Arbor Trace Apartments
Phase II, L.P. (a limited partnership), Federal ID No. 58-2032771 as of December
31, 2000 and 1999, and the related statements of income, partners' equity
(deficit), 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 our audits in accordance with generally accepted auditing
standards and Government Auditing Standards issued by the Comptroller
General of the 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 our 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 Arbor Trace Apartments Phase
II, L.P. as of December 31, 2000 and 1999, and the results of its operations and
its cash flows for the years then ended in conformity with generally accepted
accounting principles.

In accordance with Government Auditing Standards, we have also issued
a report dated January 25, 2001 on our consideration of Arbor Trace Apartments
Phase II, L.P.'s internal control structure and a report dated January 25, 2001
on its compliance with laws and regulations.

/s/ Henderson & Godbee, P.C.
Certified Public Accountants

January 25, 2001

---

Habif, Arogeti & Wynne, LLP
5565 Glenridge Connector, Suite 200
Atlanta, GA 30342
PHONE:  404-892-9651
FAX:  404-876-3913

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

To the Partners
Omega Rental Housing, L.P.

We have audited the accompanying balance sheets of OMEGA RENTAL HOUSING,
L.P., (RHS Project No.11-037-582031602) as of December 31, 2000 and 1999, and
the related statements of operations, changes in partners' equity, 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 our audits in accordance with generally accepted auditing
standards, Government Auditing Standards, issued by the Comptroller
General of the United States, and the U.S. Department of Agriculture, Farmers
Home Administration's Audit Program. 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 our
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 OMEGA RENTAL HOUSING, L.P. as
of December 31, 2000 and 1999, and the results of its operations, its changes in
partners equity, and its cash flows for the years then ended in conformity with
generally accepted accounting principles.

In accordance with Government Auditing Standards, we have also issued
a report dated January 16, 2001 on our consideration of OMEGA RENTAL HOUSING,
L.P.'s internal control and a report dated January 16, 2001 on its compliance
with laws and regulations applicable to the financial statements.

Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental information on page 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
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/ Habif, Arogeti & Wynne, LLP
Certified Public Accountants

Atlanta, Georgia
January 16, 2001

---

Habif, Arogeti & Wynne, LLP
5565 Glenridge Connector, Suite 200
Atlanta, GA 30342
PHONE:  404-892-9651
FAX:  404-876-3913

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

To the Partners
Magnolia Place, L.P.

We have audited the accompanying balance sheets of MAGNOLIA PLACE, L.P. (a
limited partnership) as of December 31, 2000 and 1999, and the related
statements of operations, changes in partners' equity, 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 our audits in accordance with generally accepted auditing
standards. 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 our 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 MAGNOLIA PLACE, L.P. as of
December 31, 2000 and 1999, and the results of its operations, its changes in
partners' equity, and its cash flows for the years then ended in conformity
with generally accepted accounting principles.

/s/ Habif, Arogeti & Wynne, LLP
Certified Public Accountants

Atlanta, Georgia
January 16, 2001

---

Baird, Kurtz & Dobson
5000 Rogers Avenue, Suite 700
Fort Smith, AR 72903-2079
PHONE:  501-452-1040
FAX:  501-452-5542

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

Partners
Antlers Properties I, A Limited Partnership
D/B/A Woodbine Apartments
Fort Smith, Arkansas

We have audited the accompanying balance sheets of ANTLERS PROPERTIES I, A
LIMITED PARTNERSHIP, D/B/A WOODBINE APARTMENTS as of December 31, 2000
and 1999, and the related statements of operations, changes in partners' equity
(deficit) 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 our audits in accordance with generally accepted auditing
standards and the standards for financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the 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. 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 our 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 ANTLERS PROPERTIES I, A LIMITED
PARTNERSHIP, D/B/A WOODBINE APARTMENTS as of December 31, 2000 and 1999, and
the results of its operations and its cash flows for the years then ended in
conformity with generally accepted accounting principles.

In accordance with Government Auditing Standards, we have also issued
our report dated February 8, 2001, on our consideration of the Partnership's
internal control over financial reporting and our tests of its compliance with
certain provisions of laws, regulations, contracts and grants. That report is an
integral part of an audit performed in accordance with Government Auditing
Standardsand should be read in conjunction with this report in considering
the results of our audit.

/s/ Baird, Kurtz & Dobson
Certified Public Accountants

February 8, 2001

---

Baird, Kurtz & Dobson
5000 Rogers Avenue, Suite 700
Fort Smith, AR 72903-2079
PHONE:  501-452-1040
FAX:  501-452-5542

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

Partners
Meadowview Properties, A Limited Partnership
D/B/A Meadowview Apartments
Fort Smith, Arkansas

We have audited the accompanying balance sheets of MEADOWVIEW PROPERTIES,
A LIMITED PARTNERSHIP, D/B/A MEADOWVIEW APARTMENTS as of December 31,
2000 and 1999, and the related statements of operations, changes in partners'
equity (deficit) 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 our audits in accordance with generally accepted auditing
standards and the standards for financial audits contained in GovernmentAuditing Standards, issued by the Comptroller General of the 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. 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 our 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 PROPERTIES, A
LIMITED PARTNERSHIP, D/B/A MEADOWVIEW APARTMENTS as of December 31, 2000
and 1999, and the results of its operations and its cash flows for the years
then ended in conformity with generally accepted accounting principles.

In accordance with Government Auditing Standards, we have also issued
our report dated February 8, 2001, on our consideration of the Partnership's
internal control over financial reporting and our tests of its compliance with
certain provisions of laws, regulations, contracts and grants. That report is an
integral part of an audit performed in accordance with Government Auditing
Standardsand should be read in conjunction with this report in considering
the results of our audit.

/s/ Baird, Kurtz & Dobson
Certified Public Accountants

February 8, 2001

---

Eide Bailly LLP
200 E. 10th Street S., Suite 500-P.O. Box 5126
Sioux Falls, SD 57117-5126
PHONE:  605-339-1999
FAX:  605-339-1306

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

The PartnersSunrise I Apartments Limited PartnershipSioux Falls, South Dakota

We have audited the accompanying balance sheets of Sunrise I Apartments
Limited Partnership as of December 31, 2000 and 1999, and the related
statements of operations, changes in partners' deficit 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 our audits in accordance with generally accepted auditing
standards and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the 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. 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 our 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 Sunrise I Apartments Limited
Partnership as of December 31, 2000 and 1999, and the results of its
operations and its cash flows for the years then ended in conformity with
generally accepted accounting principles.

In accordance with Government Auditing Standards, we have also issued
our report dated February 5, 2001 on our consideration of Sunrise I
Apartments Limited Partnership's internal control over financial
reporting and our tests of its compliance with certain provisions of laws,
regulations, contracts and grants.

Our audits were performed for the purpose of forming an opinion on the
financial statements taken as a whole. The accompanying supplementary
information on pages 11 and 12 is presented for the purposes of additional
analysis and is not a required part of the financial statements of Sunrise I
Apartments Limited Partnership. Such information has been subjected to
the auditing procedures applied in the audits of the financial statements and,
in our opinion, is fairly stated in all material respects in relation to the
financial statements taken as a whole.

/s/ Eide Bailly LLP
Certified Public Accountants

Sioux Falls, South Dakota
February 5, 2001

---

Miller & Rose, P.L.L.C.
1309 E. Race Avenue
Searcy, AR 72143
PHONE:  501-268-8356
FAX:  501-268-9362

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

Partners
Pioneer Apartments, An Arkansas Limited Partnership
D/B/A Pioneer Apartments
351 E. 4th Street
Mountain Home, AR 72653

We have audited the accompanying financial statements of Pioneer Apartments,
An Arkansas Limited Partnership D/B/A Pioneer Apartments as of December 31, 2000
and 1999, and for the years then ended, as listed in the table of contents.
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 audit.

We conducted our audit in accordance with generally accepted auditing
standards and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the 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. 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 statements presentation.
We believe that our audit provides 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 Pioneer Apartments, An Arkansas
Limited Partnership D/B/A Pioneer Apartments as of December 31, 2000 and 1999,
and the results of its operations and its cash flows for the years then ended in
conformity with generally accepted accounting principles.

In accordance with Government Auditing Standards, we have also issued
a report dated February 9, 2001 on our consideration of Pioneer Apartments, An
Arkansas Limited Partnership D/B/A Pioneer Apartments' internal control over
financial reporting and our tests of its compliance with certain provisions of
laws, regulations, contracts and grants.

/s/ Miller & Rose, P.L.L.C.
Certified Public Accountants

February 9, 2001

---

Miller & Rose, P.L.L.C.
1309 E. Race Avenue
Searcy, AR 72143
PHONE:  501-268-8356
FAX:  501-268-9362

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

Partners
Cardinal Apartments, An Arkansas Limited Partnership
D/B/A Cardinal Apartments
351 E. 4th Street
Mountain Home, AR 72653

We have audited the accompanying financial statements of Cardinal Apartments,
An Arkansas Limited Partnership D/B/A Cardinal Apartments as of December 31,
2000 and 1999, and for the years then ended, as listed in the table of contents.
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 audit.

We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit 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 statements presentation.
We believe that our audit provides 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 Cardinal Apartments, An
Arkansas Limited Partnership, D/B/A Cardinal Apartments as of December 31, 2000
and 1999, and the results of its operations and its cash flows for the years
then ended in conformity with generally accepted accounting principles.

/s/ Miller & Rose, P.L.L.C.
Certified Public Accountants

February 23, 2001

---

Bernard Robinson & Company, L.L.P.
109 Muirs Chapel Rd.-P.O. Box 19608
Greensboro, NC 27419-9608
PHONE:  336-294-4494
FAX:  336-547-0840

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

To the Partners
Peachtree Associates Limited Partnership
Charlotte, North Carolina

We have audited the accompanying balance sheets of Peachtree Associates
Limited Partnership (a South Carolina limited partnership) as of December 31,
2000 and 1999, and the related statements of operations, partners' equity, 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 our audits in accordance with generally accepted auditing
standards and the standards applicable to financial audits contained in Government
Auditing Standards issued by the Comptroller General of the 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 our 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 Peachtree Associates Limited
Partnership as of December 31, 2000 and 1999, and the results of its operations
and its cash flows for the years then ended in conformity with generally
accepted accounting principles.

In accordance with Government Auditing Standards, we have also issued
our report dated January 31, 2001, on our consideration of the Partnership's
internal control over financial reporting and our tests of its compliance with
certain provisions of laws, regulations, contracts and grants.

Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplementary information listed in
the table of contents is presented for purposes of additional analysis and is
not a required part of the basic financial statements of the Partnership. 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/ Bernard Robinson & Company, L.L.P.
Certified Public Accountants

January 31, 2001

---

Thomas C. Cunningham, CPA PC
23 Moore Street
Bristol, VA 24201
PHONE:  540-669-5531
FAX:  540-669-5576

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

To the Partners
Mountain City Manor Limited Partnership

I have audited the accompanying balance sheets of Mountain City Manor Limited
Partnership as of December 31, 2000 and 1999, and the related statements of
operations, partners' deficit and cash flows for the years then ended. These
financial statements are the responsibility of the Partnership's management. My
responsibility is to express an opinion on these financial statements based on
my audits.

I conducted my audits in accordance with generally accepted auditing
standards and Government Auditing Standards issued by the Comptroller
General of the United States, and the U.S. Department of Agriculture, Farmers
Home Administration Audit Program. Those standards require that I 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. I believe that my audits provide a reasonable
basis for my opinion.

In my opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Mountain City Manor Limited
Partnership as of December 31, 2000 and 1999, and the results of its operations,
changes in partners' deficit, and its cash flows for the years then ended in
conformity with generally accepted accounting principles.

In accordance with Government Auditing Standards, I have also issued
my report dated March 19, 2001 on my consideration of Mountain City Manor
Limited Partnership's internal control over financial reporting and on my tests
of its compliance with certain laws and regulations.

/s/ Thomas C. Cunningham, CPA PC
Certified Public Accountants

March 19, 2001

---

Thomas C. Cunningham, CPA PC
23 Moore Street
Bristol, VA 24201
PHONE:  540-669-5531
FAX:  540-669-5576

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

To the Partners
Tazewell Village Limited Partnership

I have audited the accompanying balance sheets of Tazewell Village Limited
Partnership as of December 31, 2000 and 1999, and the related statements of
operations, partners' deficit and cash flows for the years then ended. These
financial statements are the responsibility of the Partnership's management. My
responsibility is to express an opinion on these financial statements based on
my audits.

I conducted my audits in accordance with generally accepted auditing
standards and Government Auditing Standards issued by the Comptroller
General of the United States, and the U.S. Department of Agriculture, Farmers
Home Administration Audit Program. Those standards require that I 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. I believe that my audits provide a reasonable
basis for my opinion.

In my opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Tazewell Village Limited
Partnership as of December 31, 2000 and 1999, and the results of its operations,
changes in partners' deficit, and its cash flows for the years then ended in
conformity with generally accepted accounting principles.

In accordance with Government Auditing Standards, I have also issued
my report dated March 19, 2001 on my consideration of Tazewell Village Limited
Partnership's internal control over financial reporting and on my tests of its
compliance with certain provisions of laws and regulations.

/s/ Thomas C. Cunningham, CPA PC
Certified Public Accountants

March 19, 2001

---

Thomas C. Cunningham, CPA PC
23 Moore Street
Bristol, VA 24201
PHONE:  540-669-5531
FAX:  540-669-5576

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

To the Partners
Jamestown Village Limited Partnership

I have audited the accompanying balance sheets of Jamestown Village Limited
Partnership as of December 31, 2000 and 1999, and the related statements of
operations, partners' deficit and cash flows for the years then ended. These
financial statements are the responsibility of the Partnership's management. My
responsibility is to express an opinion on these financial statements based on
my audits.

I conducted my audits in accordance with generally accepted auditing
standards and Government Auditing Standards issued by the Comptroller
General of the United States, and the U.S. Department of Agriculture, Farmers
Home Administration Audit Program. Those standards require that I 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. I believe that my audits provide a reasonable
basis for my opinion.

In my opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Jamestown Village Limited
Partnership as of December 31, 2000 and 1999, and the results of its operations,
changes in partners' deficit, and its cash flows for the years then ended in
conformity with generally accepted accounting principles.

In accordance with Government Auditing Standards, I have also issued
my report dated March 19, 2001 on my consideration of Jamestown Village Limited
Partnership's internal control over financial reporting and on my tests of its
compliance with certain provisions of laws and regulations.

/s/ Thomas C. Cunningham, CPA PC
Certified Public Accountants

March 19, 2001

---

Thomas C. Cunningham, CPA PC
23 Moore Street
Bristol, VA 24201
PHONE:  540-669-5531
FAX:  540-669-5576

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

To the Partners
Clinchview Manor Limited Partnership

I have audited the accompanying balance sheets of Clinchview Manor Limited
Partnership as of December 31, 2000 and 1999, and the related statements of
operations, partners' deficit and cash flows for the years then ended. These
financial statements are the responsibility of the Partnership's management. My
responsibility is to express an opinion on these financial statements based on
my audits.

I conducted my audits in accordance with generally accepted auditing
standards and Government Auditing Standards issued by the Comptroller
General of the United States, and the U.S. Department of Agriculture, Farmers
Home Administration Audit Program. Those standards require that I 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. I believe that my audits provide a reasonable
basis for my opinion.

In my opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Clinchview Manor Limited
Partnership as of December 31, 2000 and 1999, and the results of its operations,
changes in partners' deficit, and its cash flows for the years then ended in
conformity with generally accepted accounting principles.

In accordance with Government Auditing Standards, I have also issued
my report dated March 19, 2001 on my consideration of Clinchview Manor Limited
Partnership's internal control over financial reporting and on my tests of its
compliance with certain provisions of laws and regulations.

/s/ Thomas C. Cunningham, CPA PC
Certified Public Accountants

March 19, 2001

---

Thomas C. Cunningham, CPA PC
23 Moore Street
Bristol, VA 24201
PHONE:  540-669-5531
FAX:  540-669-5576

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

To the Partners
Warsaw Manor Limited Partnership

I have audited the accompanying balance sheets of Warsaw Manor Limited
Partnership as of December 31, 2000 and 1999, and the related statements of
operations, partners' equity and cash flows for the years then ended. These
financial statements are the responsibility of the Partnership's management. My
responsibility is to express an opinion on these financial statements based on
my audits.

I conducted my audits in accordance with generally accepted auditing
standards and Government Auditing Standards issued by the Comptroller
General of the United States, and the U.S. Department of Agriculture, Farmers
Home Administration Audit Program. Those standards require that I 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. I believe that my audits provide a reasonable
basis for my opinion.

In my opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Warsaw Manor Limited
Partnership as of December 31, 2000 and 1999, and the results of its operations,
changes in partners' equity, and its cash flows for the years then ended in
conformity with generally accepted accounting principles.

In accordance with Government Auditing Standards, I have also issued
my report dated March 19, 2001 on my consideration of Warsaw Manor Limited
Partnership's internal control over financial reporting and on my tests of its
compliance with certain provisions of laws and regulations.

/s/ Thomas C. Cunningham, CPA PC
Certified Public Accountant

March 19, 2001

---

Lou Ann Montey and Associates, P.C.
8400 N. Mopac Expressway, Suite 304
Austin, TX 78759
PHONE:  512-338-0044
FAX:  512-338-5395

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

To The Partners
Elsa Retirement, Ltd.-(A Texas Limited Partnership)
Burnet, Texas

We have audited the accompanying balance sheets of Elsa Retirement, Ltd.- (A
Texas Limited Partnership) as of December 31, 2000 and 1999, and the related
statements of income (loss), partners' equity, 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 our audits in accordance with Generally Accepted Auditing
Standards and Government Auditing Standards as issued by the Comptroller
General of the United States and the U.S. Department of Agriculture, Farmers
Home Administration Audit Program. Those standards require that we plan
and perform the audit 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 our 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 Elsa Retirement, Ltd.-(A Texas
Limited Partnership) as of December 31, 2000 and 1999, and the results of its
operations and its cash flows for the years then ended in conformity with
Generally Accepted Accounting Principles.

In accordance with Government Auditing Standards, we have also issued
a report dated February 5, 2001, on our consideration of the internal control
structure of Elsa Retirement, Ltd.-(A Texas Limited Partnership)and a report
dated February 5, 2001, on its compliance with laws and regulations.

/s/ Lou Ann Montey and Associates, P.C.
Certified Public Accountants

Austin, Texas
February 5, 2001

---

Lou Ann Montey and Associates, P.C.
8400 N. Mopac Expressway, Suite 304
Austin, TX 78759
PHONE:  512-338-0044
FAX:  512-338-5395

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

To The Partners
Dilley Retirement, Ltd.-(A Texas Limited Partnership)
Burnet, Texas

We have audited the accompanying balance sheets of Dilley Retirement, Ltd. (A
Texas Limited Partnership) as of December 31, 2000 and 1999, and the related
statements of income (loss), partners' equity, 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 our audits in accordance with Generally Accepted Auditing
Standards and Government Auditing Standards, as issued by the Comptroller
General of the United States and the U.S. Department of Agriculture, Farmers
Home Administration Audit Program. Those standards require that we plan
and perform the audit 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 our 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 Dilley Retirement, Ltd. (A
Texas Limited Partnership) as of December 31, 2000 and 1999, and the results of
its operations and its cash flows for the years then ended in conformity with
Generally Accepted Accounting Principles.

In accordance with Government Auditing Standards, we have also issued
a report dated February 2, 2001, on our consideration of the internal control
structure of Dilley Retirement, Ltd.-(A Texas Limited Partnership) and a report
dated February 2, 2001, on its compliance with laws and regulations.

/s/ Lou Ann Montey and Associates, P.C.
Certified Public Accountants

Austin, Texas
February 2, 2001

---

Lou Ann Montey and Associates, P.C.
8400 N. Mopac Expressway, Suite 304
Austin, TX 78759
PHONE:  512-338-0044
FAX:  512-338-5395

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

To The Partners
Taylor Retirement, Ltd.-(A Texas Limited Partnership)
Burnet, Texas

We have audited the accompanying balance sheets of Taylor Retirement, Ltd. (A
Texas Limited Partnership) as of December 31, 2000 and 1999, and the related
statements of income (loss) and partners' equity, 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 our audits in accordance with Generally Accepted Auditing
Standards and Government Auditing Standards as issued by the Comptroller
General of the United States and the U.S. Department of Agriculture, Farmers
Home Administration Audit Program. Those standards require that we plan
and perform the audit 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 our 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 Taylor Retirement, Ltd.- (A
Texas Limited Partnership) as of December 31, 2000 and 1999, and the results of
its operations and its cash flows for the years then ended in conformity with
Generally Accepted Accounting Principles.

In accordance with Government Auditing Standards, we have also issued
a report dated February 6, 2001, on our consideration of the internal control
structure of Taylor Retirement, Ltd.-(A Texas Limited Partnership)and a report
dated February 6, 2001, on its compliance with laws and regulations.

/s/ Lou Ann Montey and Associates, P.C.
Certified Public Accountants

Austin, Texas
February 6, 2001

---

Lou Ann Montey and Associates, P.C.
8400 N. Mopac Expressway, Suite 304
Austin, TX 78759
PHONE:  512-338-0044
FAX:  512-338-5395

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

To The Partners
Donna Retirement, Ltd.-(A Texas Limited Partnership)
Burnet, Texas

We have audited the accompanying balance sheets of Donna Retirement, Ltd.- (A
Texas Limited Partnership) as of December 31, 2000 and 1999, and the related
statements of income (loss), partners' equity, and cash flows for the years
ended December 31, 2000 and 1999. 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 audit.

We conducted our audits in accordance with Generally Accepted Auditing
Standards and Government Auditing Standards, as issued by the Comptroller
General of the United States and the U.S. Department of Agriculture, Farmers
Home Administration Audit Program. Those standards require that we plan
and perform the audit 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 our 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 Donna Retirement, Ltd.- (A
Texas Limited Partnership) as of December 31, 2000 and 1999, and the results of
its operations and its cash flows for the years then ended in conformity with
Generally Accepted Accounting Principles.

In accordance with Government Auditing Standards, we have also issued
a report dated February 1, 2001, on our consideration of the internal control
structure of Donna Retirement, Ltd.- (A Texas Limited Partnership)and a report
dated February 1, 2001, on its compliance with laws and regulations.

/s/ Lou Ann Montey and Associates, P.C.
Certified Public Accountants

Austin, Texas
February 1, 2001

---

David G. Pelliccione, C.P.A., P.C.
340 Eisenhower Dr., Suite 220
Savannah, GA 31406
PHONE:  912-354-2334
FAX:  912-354-2443

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

To The Partners
Brooks Lane Apartments, L.P.

We have audited the accompanying balance sheets of BROOKS LANE APARTMENTS,
L.P., as of December 31, 2000 and 1999 and the related statement of operations,
changes in partners' equity 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 audit.

We conducted our audit in accordance with generally accepted auditing
standards and Government Auditing Standards issued by the
Comptroller General of the 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. 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 our audit provides 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 BROOKS LANE APARTMENTS, L.P.,
as of December 31, 2000 and 1999, and the results of its operations and its cash
flows for the years then ended in conformity with generally accepted accounting
principles.

In accordance with Government Auditing Standards, we have also
issued our report dated February 23, 2001, on our consideration of BROOKS LANE
APARTMENTS, L.P.'s internal control over financial reporting and our tests of
its compliance with certain provisions of laws, regulations, contracts and
grants. 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.

Our audit was made for the purpose of forming an opinion on the basic
financial statements of BROOK LANE APARTMENTS, L.P., taken as a whole. The
supplemental information on pages 9 and 10 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 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/ David G. Pelliccione, C.P.A., P.C.
Certified Public Accountants

Savannah, Georgia
February 23, 2001

---

David G. Pelliccione, C.P.A., P.C.
340 Eisenhower Dr., Suite 220
Savannah, GA 31406
PHONE:  912-354-2334
FAX:  912-354-2443

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

To The Partners
Brooks Field Apartments, L.P.

We have audited the accompanying balance sheets of BROOKS FIELD APARTMENTS,
L.P., as of December 31, 2000 and 1999 and the related statements of operations,
changes in partners' equity 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 audit.

We conducted our audit in accordance with generally accepted auditing
standards and Government Auditing Standards issued by the
Comptroller General of the 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. 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 our audit provides 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 BROOKS FIELD APARTMENTS, L.P.,
as of December 31, 2000 and 1999, and the results of its operations and its cash
flows for the years then ended in conformity with generally accepted accounting
principles.

In accordance with Government Auditing Standards, we have also
issued our report dated February 23, 2001, on our consideration of BROOKS FIELD
APARTMENTS, L.P.'s internal control over financial reporting and our tests of
its compliance with certain provisions of laws, regulations, contracts and
grants. 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.

Our audit was made for the purpose of forming an opinion on the basic
financial statements of BROOKS FIELD APARTMENTS, L.P., taken as a whole. The
supplemental information on pages 9 and 10 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 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/ David G. Pelliccione, C.P.A., P.C.
Certified Public Accountants

Savannah, Georgia
February 23, 2001

---

David G. Pelliccione, C.P.A., P.C.
340 Eisenhower Dr., Suite 220
Savannah, GA 31406
PHONE:  912-354-2334
FAX:  912-354-2443

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

To The Partners
Brooks Point Apartments, L.P.

We have audited the accompanying balance sheets of BROOKS POINT APARTMENTS,
L.P., as of December 31, 2000 and 1999, and the related statements of
operations, changes in partners' equity 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 audit.

We conducted our audit in accordance with generally accepted auditing
standards and Government Auditing Standards issued by the
Comptroller General of the 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. 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 our audit provides 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 BROOKS POINT APARTMENTS, L.P.,
as of December 31, 2000 and 1999 and the results of its operations and its cash
flows for the years then ended in conformity with generally accepted accounting
principles.

In accordance with Government Auditing Standards, we have also
issued our report dated February 23, 2001, on our consideration of BROOKS POINT
APARTMENTS, L.P.'s internal control over financial reporting and our tests of
its compliance with certain provisions of laws, regulations, contracts and
grants. 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.

Our audit was made for the purpose of forming an opinion on the basic
financial statements of BROOK POINT APARTMENTS, L.P., taken as a whole. The
supplemental information on pages 9 and 10 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 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/ David G. Pelliccione, C.P.A., P.C.
Certified Public Accountants

Savannah, Georgia
February 23, 2001

---

McCartney & Company, P.C.
2121 University Park Drive - Suite 150
Okemos, MI 48864
PHONE:  517-347-5000
FAX:  517-347-5007

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

Partners
Mariner Cove Apartments Limited Partnership
DeWitt, Michigan

We have audited the accompanying balance sheets of Mariner Cove Apartments
Limited Partnership as of December 31, 2000 and 1999, and the related statements
of operations, partners' equity 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 our audits in accordance with generally accepted auditing
standards and Government Auditing Standards, issued by the Comptroller
General of the 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 our 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 Mariner Cove Apartments Limited
Partnership as of December 31, 2000 and 1999, and the results of its operations
and its cash flows for the years then ended in conformity with generally
accepted accounting principles.

In accordance with Government Auditing Standards, we have also issued
a report dated March 12, 2001, on our consideration of Mariner Cove Apartments
Limited Partnership's internal control over financial reporting and our tests of
its compliance with certain provisions of laws, regulations, contracts and
grants. 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 considering the results of our audit.

/s/ McCartney & Company, P.C.
Certified Public Accountants

March 12, 2001

---

Simmons and Clubb
410 S. Orchard, Suite 156
Boise, ID 83705
PHONE:  208-336-6800
FAX:  208-343-2381

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

General Partner
South Brenchley Housing Limited Partnership
Boise, Idaho

We have audited the accompanying balance sheets of South Brenchley Housing
Limited Partnership as of December 31, 2000 and 1999, and the related statements
of operations, partners' equity 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 our audit in accordance with generally accepted auditing
Standards and Government Auditing Standards, issued by the Comptroller
General of the 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. 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 our audit provides 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 South Brenchley Housing Limited
Partnership as of December 31, 2000 and 1999, and the results of its operations
and its cash flows for the years then ended in conformity with generally
accepted accounting principles.

In accordance with Government Auditing Standards, we have also issued
a report dated February 1, 2001, on our consideration of South Brenchley's
internal control structure, and a report dated February 1, 2001, on its
compliance with specific requirements applicable to major programs.

The partnership's tax returns have been filed allowing the partners to claim
a benefit of a low income housing tax credit. Because the compliance and
qualification standards of the low income tax housing tax credit are not related
to the interest credit agreement and loan agreement, and because the low income
housing tax credit relates to income taxes which are the responsibility of each
individual partner, the scope of our audit was not designed or intended to audit
the partnerships compliance with the low income housing tax credit laws.
Accordingly, our audit cannot be relied upon to give assurance with regard to
the partnerships compliance with any of the low income housing tax credit laws.

/s/ Roger Clubb
Simmons and Clubb
Certified Public Accountants

Boise, Idaho
February 1, 2001

---

Gubler and Carter, P.C.
7001 South 900 East, Suite 240
Midvale, UT 84047
PHONE:  801-566-5866
FAX:  801-561-8693

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

TO THE PARTNERS
HOMESTEAD WEST LIMITED PARTNERSHIP

We have audited the accompanying balance sheets of Homestead West Limited
Partnership, as of December 31, 2000 and 1999 and the related statements of
income, changes in 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 our audits in accordance with generally accepted auditing
standards and Government Auditing Standards issued by the Comptroller
General of the United States, and the U.S. Department of Agriculture, Farmers
Home Administration Audit Program. 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 statements presentation. We believe that our
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 Homestead West Limited
Partnership, as of December 31, 2000 and 1999 and the results of its operations,
changes in partners' capital, and its cash flows for the years then ended, in
conformity with generally accepted accounting principles.

In accordance with Government Auditing Standards, we have also issued
our reports dated February 13, 2001 on our consideration of Homestead West
Limited Partnership's internal control and on its compliance with laws and
regulations.

Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The accompanying supplementary
information shown on pages 13 through 15 is presented for purposes of additional
analysis and is not a required part of the basic financial statements of
Homestead West Limited Partnership. Such information has been subjected to the
auditing 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/ Gubler and Carter, P.C.
Certified Public Accountants
Salt Lake City, Utah
February 13, 2001

---

Miller, Mayer, Sullivan & Stevens LLP
2365 Harrodsburg Rd.
Lexington, KY 40504-3399
PHONE:  859-223-3095
FAX:  859-223-2143

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

To the Partners                                  
Rural Development
Louisa Senior Apartments,
Ltd.                    Morehead,
Kentucky

We have audited the accompanying balance sheets of Louisa Senior Apartments,
Ltd., (a limited partnership) Case No. 20-064-407447188, as of December 31, 2000
and 1999 and the related statements of operations, changes in partners' equity
(deficit), 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 our audits in accordance with generally accepted auditing
standards and the standards for financial audits contained in GovernmentAuditing Standards issued by the Comptroller General of the 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 our 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 Louisa Senior Apartments, Ltd.
as of December 31, 2000 and 1999, and the results of its operations and its cash
flows for the years then ended in conformity with generally accepted accounting
principles.

In accordance with Government Auditing Standards, we have also issued
our report dated February 2, 2001 on our consideration of Louisa Senior
Apartments, Ltd.'s internal control over financial reporting and our tests of
its compliance with certain provisions of laws, regulations, contracts and
grants. 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 audits.

Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental data included in this
report 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 auditing procedures applied in the audits of the basic financial statements,
and in our opinion, is presented fairly, in all material respects, in relation
to the basic financial statements taken as a whole.

/s/ Miller, Mayer, Sullivan & Stevens, LLP
Certified Public Accountants

Lexington, Kentucky
February 2, 2001

---

Miller, Mayer, Sullivan & Stevens LLP
2365 Harrodsburg Rd.
Lexington, KY 40504-3399
PHONE:  859-223-3095
FAX:  859-223-2143

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

To the Partners                                  
Rural Development
Wells Hill Apartments,Ltd.      
                 Morehead,
Kentucky

We have audited the accompanying balance sheets of Wells Hill Apartments,
Ltd., (a limited partnership) Case No. 20-086-611204241, as of December 31, 2000
and 1999 and the related statements of operations, changes in partners' equity
(deficit), 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 our audits in accordance with generally accepted auditing
standards and the standards for financial audits contained in GovernmentAuditing Standards issued by the Comptroller General of the 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 our 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 Wells Hill Apartments, Ltd. as
of December 31, 2000 and 1999, and the results of its operations and its cash
flows for the years then ended in conformity with generally accepted accounting
principles.

In accordance with Government Auditing Standards, we have also issued
our report dated February 6, 2001 on our consideration of Wells Hill Apartments,
Ltd.'s internal control over financial reporting and our tests of its compliance
with certain provisions of laws, regulations, contracts and grants. 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 audits.

Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental data included in this
report 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 auditing procedures applied in the audit of the basic financial statements,
and in our opinion, is presented fairly, in all material respects, in relation
to the basic financial statements taken as a whole.

/s/ Miller, Mayer, Sullivan & Stevens LLP
Certified Public Accountants

Lexington, Kentucky
February 6, 2001

---

Eide Bailly LLP
200 E. 10th Street S., Suite 500-P.O. Box 5126
Sioux Falls, SD 57117-5126
PHONE:  605-339-1999
FAX:  605-339-1306

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

The PartnersLincoln, Ltd.Pierre, South Dakota

We have audited the accompanying balance sheets of Lincoln, Ltd. (a
limited partnership) as of December 31, 2000 and 1999, and the related
statements of operations, changes in partners' equity (deficit) 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 our audits in accordance with generally accepted auditing
standards and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the 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. 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 our 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 Lincoln, Ltd. as of
December 31, 2000 and 1999, and the results of its operations and its cash flows
for the years then ended in conformity with generally accepted accounting
principles.

Our audits were performed for the purpose of forming an opinion on the
financial statements taken as a whole. The accompanying supplementary
information on pages 11 and 12 is presented for purposes of additional analysis
and is not a required part of the basic financial statements of Lincoln, Ltd.
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 financial statements taken as a
whole.

In accordance with Government Auditing Standards, we have also issued
a report dated January 25, 2001 on our consideration of Lincoln, Ltd.'s
internal control over financial reporting and on our tests of its compliance
with certain provisions of laws, regulations, contracts and grants.

/s/ Eide Bailly LLP
Certified Public Accountants

Sioux Falls, South Dakota
January 25, 2001

---

Eide Bailly LLP
200 E. 10th Street S., Suite 500-P.O. Box 5126
Sioux Falls, SD 57117-5126
PHONE:  605-339-1999
FAX:  605-339-1306

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

The PartnersCourtyard, Ltd.Huron, South Dakota

We have audited the accompanying balance sheets of Courtyard, Ltd. (a
limited partnership) as of December 31, 2000 and 1999, and the related
statements of operations, changes in partners' equity (deficit) 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 our audits in accordance with generally accepted auditing
standards and the standards applicable to financial audits contained inGovernment
Auditing Standards,issued by the Comptroller General of the 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. 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 our 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 Courtyard, Ltd. as of
December 31, 2000 and 1999, and the results of its operations and its cash flows
for the years then ended in conformity with generally accepted accounting
principles.

In accordance with Government Auditing Standards, we have also issued
our report dated January 26, 2001, on our consideration of Courtyard, Ltd.'s
internal control over financial reporting and our tests of its compliance with
certain provisions of laws, regulations, contracts and grants.

Our audits were performed for the purpose of forming an opinion on the
financial statements taken as a whole. The accompanying supplementary
information on pages 13 and 14 is presented for purposes of additional analysis
and is not a required part of the 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/ Eide Bailly LLP
Certified Public Accountants

Sioux Falls, South Dakota
January 26, 2001

---

Brockway, Gersbach & Niemeier, P.C.
P.O. Box 4083
Temple, TX 76505-4083
PHONE:  254-773-9907
FAX:  254-773-1570

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

The Partners
Leander Housing 1990, Ltd.
Leander, Texas

We have audited the accompanying balance sheet of Leander Housing 1990, Ltd.
(a Texas limited partnership) as of December 31, 2000 and 1999 and the related
statements of operations, partners' capital (deficit), 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 our audits in accordance with generally accepted auditing
standards and Government Auditing Standards issued by the Comptroller
General of the United States, and the U.S. Department of Agriculture, Farmers
Home Administration Audit Program. 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 our 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 Leander Housing 1990, Ltd. as
of December 31, 2000 and 1999, and the results of its operations and its cash
flows for the years then ended in conformity with generally accepted accounting
principles.

In accordance with Government Auditing Standards, we have also issued
our report dated January 25, 2001, on our consideration of Leander Housing 1990,
Ltd.'s internal control and on its compliance with laws and regulations
applicable to the financial statements.

Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental information on pages 9
through 17 is presented for purposes of additional analysis and is not a
required part of the basic financial statements. The supplemental information
presented in the Year End Report/Analysis (Form FmHA 1930-8); the Statement of
Actual Budget and Income (Form FmHA 1930-7) for the year ended December 31,
2000, and the Supplemental Data Required by the Rural Housing and Community
Development Services, is presented for purposes of complying with the
requirements of the Rural Housing and Community Development Services and is not
a required part of the basic financial statements. Such information has been
subjected to the auditing 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/ Brockway, Gersbach & Niemeier, P.C.
Certified Public Accountants

January 25, 2001

---

Johnson, Hickey & Murchison, P.C.
651 East Fourth Street, Suite 200
Chattanooga, TN 37403-1924
PHONE:  423-756-0052
FAX:  423-267-5945

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

To the General Partners of
Pleasant Valley Apartments, L.P.:

We have audited the accompanying balance sheets of Pleasant Valley
Apartments, L.P. as of December 31, 2000 and 1999, and the related statements of
operations, changes in partners' equity 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 our audits in accordance with generally accepted auditing
standards and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the 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 our 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 Pleasant Valley Apartments,
L.P. as of December 31, 2000 and 1999, and the results of its operations,
changes in partners' equity and its cash flows for the years then ended in
conformity with generally accepted accounting principles.

As discussed in Note 9, management has changed its method of computing
depreciation for the year ended December 31, 1999.

In accordance with Government Auditing Standards, we have also issued
our report dated January 19, 2001, on our consideration of the partnership's
internal control structure over financial reporting and on its compliance with
certain provisions of laws, regulations, contracts and grants. 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.

/s/ Johnson, Hickey & Murchison, P.C.
Certified Public Accountants

January 19, 2001

---

Johnson, Hickey & Murchison, P.C.
651 East Fourth Street, Suite 200
Chattanooga, TN 37403-1924
PHONE:  423-756-0052
FAX:  423-267-5945

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

To the General Partners of
Brookwood Apartments, L.P.:

We have audited the accompanying balance sheets of Brookwood Apartments, L.P.
as of December 31, 2000 and 1999, and the related statements of operations,
changes in partners' equity 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 our audits in accordance with generally accepted auditing
standards and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the 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 our 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 Brookwood Apartments, L.P. as
of December 31, 2000 and 1999, and the results of its operations, changes in
partners' equity and its cash flows for the years then ended in conformity with
generally accepted accounting principles.

As discussed in Note 9, management changed its method of computing
depreciation for the year ended December 31, 1999.

In accordance with Government Auditing Standards, we have also issued
our report dated January 17, 2001, on our consideration of the partnership's
internal control over financial reporting and on its compliance with certain
provisions of laws, regulations, contracts and grants. 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.

/s/ Johnson, Hickey & Murchison, P.C.
Certified Public Accountants

January 17, 2001

---

Johnson, Hickey & Murchison, P.C.
651 East Fourth Street, Suite 200
Chattanooga, TN 37403-1924
PHONE:  423-756-0052
FAX:  423-267-5945

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

To the General Partners of
River Rest Apartments, L.P.:

We have audited the accompanying balance sheets of River Rest Apartments,
L.P. as of December 31, 2000 and 1999, and the related statements of operations,
changes in partners' equity 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 our audits in accordance with generally accepted auditing
standards and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the 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 our 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 River Rest Apartments, L.P. as
of December 31, 2000 and 1999, and the results of its operations, changes in
partners' equity and its cash flows for the years then ended in conformity with
generally accepted accounting principles.

As discussed in Note 9, management has changed its method of computing
depreciation for the year ended December 31, 1999.

In accordance with Government Auditing Standards, we have also issued
our report dated January 23, 2001, on our consideration of the partnership's
internal control over financial reporting and on its compliance with certain
provisions of laws, regulations, contracts and grants. 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.

/s/ Johnson, Hickey & Murchison, P.C.
Certified Public Accountants

January 23, 2001

---

Habif, Arogeti & Wynne, LLP
5565 Glenridge Connector, Suite 200
Atlanta, GA 30342
PHONE:  404-892-9651
FAX:   404-876-3913

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

To the Partners
Royston Elderly Housing, L.P.

We have audited the accompanying balance sheets of ROYSTON ELDERLY HOUSING,
L.P. (USDA Rural Development Case No. 10-059-582088484), a limited partnership,
as of December 31, 2000 and 1999, and the related statements of operations,
changes in partners' equity (deficit) 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 our audits in accordance with generally accepted auditing
standards, Government Auditing Standards, issued by the Comptroller
General of the United States, and the U.S. Department of Agriculture, Farmers
Home Administration's Audit Program. 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 our
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 ROYSTON ELDERLY HOUSING, L.P.
as of December 31, 2000 and 1999, and the results of its operations, its changes
in partners' equity (deficit), and its cash flows for the years then ended in
conformity with generally accepted accounting principles.

In accordance with Government Auditing Standards, we have also issued
a report dated January 25, 2001 on our consideration of ROYSTON ELDERLY HOUSING,
L.P.'s internal control and a report dated January 25, 2001 on its compliance
with laws and regulations applicable to the financial statements.

Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental information on page 13
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
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/ Habif, Arogeti & Wynne, LLP
Certified Public Accountants

Atlanta, Georgia
January 25, 2001

---

Leavitt, Christensen & Co.
9100 W. Blackeagle Drive
Boise, ID 83709
PHONE:  208-322-6769
FAX:  208-322-7307

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

Managing General Partner
Heritage Park Associates Limited Partnership
Boise, Idaho

We have audited the accompanying balance sheets of Heritage Park Associates
Limited Partnership, as of December 31, 2000 and 1999, and the related
statements of operations, partners' capital (deficit), 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 our audits in accordance with generally accepted auditing
standards and Government Auditing Standards, issued by the Comptroller
General of the United States and the Rural Development Audit Program issued in
December 1989. Those standards require that we plan and perform the audit 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 our 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 Heritage Park Associates
Limited Partnership as of December 31, 2000 and 1999, and the results of its
operations and its cash flows for the years then ended in conformity with
generally accepted accounting principles.

In accordance with Government Auditing Standards, we have also issued reports
dated February 9, 2001 on our consideration of Heritage Park Associates Limited
Partnership's internal control and on its compliance with laws and regulations.

The partnership has filed tax returns with the Internal Revenue Service which
allow the partners to receive the benefit of a low income housing tax credit.
Because the qualifying standards of the low income housing tax credit are
different than the requirements of the loan agreement and the interest credit
agreements, and due to the fact that the low income housing tax credit relates
to income taxes which are the responsibility of the individual partners, the
scope of these audits were not designed or intended to audit the compliance with
the various low income housing tax credit laws. Therefore, these audits can not
be relied on to give assurances with regard to compliance with any low income
housing tax credit laws.

/s/ Leavitt, Christensen & Co.
Certified Public Accountants

February 9, 2001

---

Bob T. Robinson
2084 Dunbarton Drive
Jackson, MS 39216
PHONE:  601-982-3875
FAX: 601-982-3876

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

To the Partners
Elderly Housing of Pontotoc, L.P.

I have audited the accompanying balance sheet of Elderly Housing of Pontotoc,
L.P., (RD Case number 28-058-640818315), as of December 31, 2000 and 1999, and
the related statements of income, partners' equity and cash flows for the
years then ended. These financial statements are the responsibility of the
partnership's management. My responsibility is to express an opinion on these
financial statements based on my audit.

I conducted my audits in accordance with generally accepted auditing
standards and Government Auditing Standards, issued by the Comptroller
General of the United States. Those standards require that I plan and perform
the audit 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. I believe that my audits provide a reasonable basis for
my opinion.

In my opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Elderly Housing of Pontotoc,
L.P. as of December 31, 2000 and 1999 and the results of its operations and its
cash flows for the years then ended in conformity with generally accepted
accounting principles.

In accordance with Government Auditing Standards, I have also issued a report
dated February 27, 2001 on my consideration of the partnership's internal
control structure and a report dated February 27, 2001 on its compliance with
laws and regulations.

My audits were made for the purpose of forming an opinion on the financial
statements taken as a whole. The supplemental information is presented for the
purposes of additional analysis and is not a required part of the financial
statements of Elderly Housing of Pontotoc, L.P. Such information has been
subjected to the auditing procedures applied in the audit of the financial
statements and, in my opinion, is fairly presented in all material respects in
relation to the financial statements taken as a whole.

The annual budgets of Elderly Housing of Pontotoc, L.P. included in the
accompanying prescribed form RD 1930-7 (Rev 10-96) have not been compiled or
examined by me, and, accordingly, I do not express an opinion or any other form
of assurance on them.

/s/ Bob T. Robinson
Certified Public Accountant

February 27, 2001
Jackson, Mississippi

---

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, 2000
and 1999, 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 generally accepted auditing
standards and Government Auditing Standards issued by the Comptroller
General of the United States, and the U.S. Department of Agriculture, Farmers
Home Administration Audit Program. 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, 2000 and 1999, and the results of its
operations and its cash flows for the years then ended in conformity with
generally accepted accounting principles.

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
through 13 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 year ended December 31, 2000 and 1999, 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 16, 2001 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.

/s/ Donald W. Causey & Associates, P.C.
Certified Public Accountants

Gadsden, Alabama
February 16, 2001

---

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, RHS Project No.: 01-055-631086473 as of December 31, 2000
and 1999, 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 generally accepted auditing
standards and Government Auditing Standards issued by the Comptroller
General of the United States, and the U.S. Department of Agriculture, Farmers
Home Administration Audit Program. 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 Skyview Apartments, Ltd., RHS
Project No.: 01-055-631086473 as of December 31, 2000 and 1999, and the results
of its operations and its cash flows for the years then ended in conformity with
generally accepted accounting principles.

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
through 13 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 year ended December 31, 2000 and 1999, 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 17, 2001 on our consideration of Skyview Apartments,
Ltd.'s., internal control over financial reporting and on our tests of its
compliance with certain provisions of laws and regulations.

/s/ Donald W. Causey & Associates, P.C.
Certified Public Accountants

Gadsden, Alabama
February 17, 2001

---

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, 2000 and 1999, and the related
statement 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 generally accepted auditing
standards. 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 Meadowview Apartments, Ltd., as
of December 31, 2000 and 1999, and the results of its operations and its cash
flows for the years then ended in conformity with generally accepted accounting
principles.

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 9
and 10 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 and Associates, P.C.
Certified Public Accountant

Gadsden, Alabama
February 25, 2001

---

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, 2000 and 1999, 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 generally accepted auditing
standards. 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 Applegate Apartments, Ltd., as
of December 31, 2000 and 1999, and the results of its operations and its cash
flows for the years then ended in conformity with generally accepted accounting
principles.

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 9
and 10 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 17, 2001

---

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, 2000 and 1999, and the related
statement of operations, partners' capital and cash flows for the years then
ended. These financial statements are the responsibility of the partnership's
management. My responsibility is to express an opinion on these financial
statements based on our audits.

We conducted the audits in accordance with generally accepted auditing
standards. 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 Heatherwood Apartments, Ltd.,
as of December 31, 2000 and 1999, and the results of its operations and its cash
flows for the years then ended in conformity with generally accepted accounting
principles.

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 9
and 10 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 my 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 19, 2001

---

Turk & Giles, CPAs, P.C.
2026 Connecticut-P.O. Box 3766
Joplin, MO 64803
PHONE:  417-623-8666
FAX:  417-623-4075

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

To the Partners
Galena Seniors, L.P.
Joplin, Missouri 64804

We have audited the accompanying balance sheets of Galena Seniors, L.P. (a
limited partnership) as of December 31, 2000 and 1999, 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 audit.

We conducted our audit in accordance with generally accepted auditing
standards and GOVERNMENT AUDITING STANDARDS, issued by the Comptroller General
of the 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 our audit provides 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 Galena Seniors L.P. as of
December 31, 2000 and 1999, and the results of its operations and its cash flows
for the years then ended in conformity with generally accepted accounting
principles.

In accordance with GOVERNMENT AUDITING STANDARDS, we have also issued our
report dated February 28, 2001 on our consideration of Galena Seniors, L.P.'s
internal control over financial reporting and our tests of its compliance with
certain provisions of laws and regulations.

Our audit was conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The Supplemental Letter on pages 14-16 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 auditing
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/ Turk & Giles, CPAs, P.C.
Certified Public Accountants

February 28, 2001

---

Turk & Giles, CPAs, P.C.
2026 Connecticut-P.O. Box 3766
Joplin, MO 64803
PHONE:  417-623-8666
FAX:  417-623-4075

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

To the Partners
Purdy Apartments, L.P.
Joplin, Missouri

We have audited the accompanying balance sheets of Purdy Apartments L.P. (a
limited partnership) as of December 31, 2000 and 1999, 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 audit.

We conducted our audit in accordance with generally accepted auditing
standards and GOVERNMENT AUDITING STANDARDS, issued by the Comptroller General
of the 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 our audit provides 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 Purdy Apartments, L.P. as of
December 31, 2000 and 1999, and the results of its operations and its cash flows
for the years then ended in conformity with generally accepted accounting
principles.

In accordance with GOVERNMENT AUDITING STANDARDS, we have also issued our
report dated February 28, 2001 on our consideration of Purdy Apartments, L.P.'s
internal control over financial reporting and our tests of its compliance with
certain provisions of laws and regulations.

Our audit was conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The Supplemental Letter on pages 14-16 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 auditing
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/ Turk & Giles, CPAs, P.C.
Certified Public Accountants

February 28, 2001

---

Turk & Giles, CPAs, P.C.
2026 Connecticut-P.O. Box 3766
Joplin, MO 64803
PHONE:  417-623-8666
FAX:  417-623-4075

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

To the Partners
Aurora Seniors, L.P.
Joplin, Missouri 64804

We have audited the accompanying balance sheets of Aurora Seniors, L.P. (a
limited partnership) as of December 31, 2000 and 1999, 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 audit.

We conducted our audit in accordance with generally accepted auditing
standards and GOVERNMENT AUDITING STANDARDS, issued by the Comptroller General
of the 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 our audit provides 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 Aurora Seniors L.P. as of
December 31, 2000 and 1999, and the results of its operations and its cash flows
for the years then ended in conformity with generally accepted accounting
principles.

In accordance with GOVERNMENT AUDITING STANDARDS, we have also issued our
report dated February 27, 2001 on our consideration of Aurora Seniors, L.P.'s
internal control over financial reporting and our tests of its compliance with
certain provisions of laws and regulations.

Our audit was conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The Supplemental Letter on pages 14-16 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 auditing
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/ Turk & Giles, CPAs, P.C.
Certified Public Accountants

February 27, 2001

---

Turk & Giles, CPAs, P.C.
2025 Connecticut-P.O. Box 3766
Joplin, MO 64803
PHONE:  417-623-8666
FAX:  417-623-4075

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

To the Partners
Baxter Springs Seniors, L.P.
Joplin, Missouri 64804

We have audited the accompanying balance sheets of Baxter Springs Seniors,
L.P. (a limited partnership) as of December 31, 2000 and 1999, 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 audit.

We conducted our audit in accordance with generally accepted auditing
standards and GOVERNMENT AUDITING STANDARDS, issued by the Comptroller General
of the 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 our audit provides 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 Baxter Springs Seniors L.P. as
of December 31, 2000 and 1999, and the results of its operations and its cash
flows for the years then ended in conformity with generally accepted accounting
principles.

In accordance with GOVERNMENT AUDITING STANDARDS, we have also issued our
report dated February 27, 2001 on our consideration of Baxter Springs Seniors,
L.P.'s internal control over financial reporting and our tests of its compliance
with certain provisions of laws and regulations.

Our audit was conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The Supplemental Letter on pages 14-16 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 auditing
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/ Turk & Giles, CPAs, P.C.
Certified Public Accountants

February 27, 2001

---

Turk & Giles, CPAs, P.C.
2026 Connecticut-P.O. Box 3766
Joplin, MO 64803
PHONE:  417-623-8666
FAX:  417-623-4075

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

To the Partners
Marionville Seniors, L.P.
Joplin, Missouri 64804

We have audited the accompanying balance sheets of Marionville Seniors, L.P.
(a limited partnership) as of December 31, 2000 and 1999, 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 audit.

We conducted our audit in accordance with generally accepted auditing
standards and GOVERNMENT AUDITING STANDARDS, issued by the Comptroller General
of the 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 our audit provides 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 Marionville Seniors, L.P. as of
December 31, 2000 and 1999, and the results of its operations and its cash flows
for the years then ended in conformity with generally accepted accounting
principles.

In accordance with GOVERNMENT AUDITING STANDARDS, we have also issued our
report dated February 28, 2001 on our consideration of Marionville Seniors,
L.P.'s internal control over financial reporting and our tests of its compliance
with certain provisions of laws and regulations.

Our audit was conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The Supplemental Letter on pages 14-16 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 auditing
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/ Turk & Giles, CPAs, P.C.
Certified Public Accountants

February 28, 2001

---

Suellen Doubet, CPA
226 East Cherokee
Wagoner, OK 74467
PHONE:  918-485-8085
FAX:  918-485-3092

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

To the Partners
of Cavalry Crossing:

I have audited the accompanying balance sheets of Cavalry Crossing (a Kansas
Limited Partnership) as of December 31, 2000 and 1999 and the related statements
of income, partners' equity, and cash flows for the years then ended. These
financial statements are the responsibility of the Company's management. My
responsibility is to express an opinion on these financial statements based on
my audit.

I conducted my audit in accordance with generally accepted auditing standards
and Government Auditing Standards issued by the Comptroller General of the
United States. Those standards require that I plan and perform the audit 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. I believe that my audit provides a reasonable basis for my
opinion.

In my opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Cavalry Crossing as of December
31, 2000, and December 31, 1999 and the results of its operations and its cash
flows for the years then ended in conformity with generally accepted accounting
principles.

My audit was made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental information is presented
for purposes of additional analysis and is not a required part of the basic
financial statements. The supplementary information, The Schedule of Maintenance
Expenses has been subjected to the audit procedures applied in the audit of the
basic financial statements and, in my 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, I have also issued a report
dated March 15, 2001 on my consideration of Cavalry Crossing's compliance and on
internal control over financial reporting. 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 my audit.

/s/ Suellen Doubet, CPA
Certified Public Accountant
Wagoner, OK 74467
March 15, 2001

---

Suellen Doubet, CPA
226 East Cherokee
Wagoner, OK 74467
PHONE:  918-485-8085
FAX:  918--485-3092

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

To the Partners
of Sycamore Landing:

I have audited the accompanying balance sheets of Sycamore Landing (a Kansas
Limited Partnership) as of December 31, 2000, and 1999 and the related
statements of income, partners' equity, and cash flows for the years then ended.
These financial statements are the responsibility of the Company's management.
My responsibility is to express an opinion on these financial statements based
on my audits.

I conducted my audits in accordance with generally accepted auditing
standards and Government Auditing Standards issued by the Comptroller General of
the United States. Those standards require that I plan and perform the audit 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. I believe that my audit provides a reasonable basis for my opinion

In my opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Sycamore Landing as of December
31, 2000, and 1999 and the results of its operations and its cash flows for the
years then ended in conformity with generally accepted accounting principles.

My audit was made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental information is presented
for purposes of additional analysis and is not a required part of the basic
financial statements. The supplementary information, The Schedule of Maintenance
Expenses has been subjected to the audit procedures applied in the audit of the
basic financial statements and, in my 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, I have also issued a report
dated March 18, 2001 on my consideration of Sycamore Landing's compliance and on
internal control over financial reporting. 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 my audit.

/s/ Suellen Doubet, CPA
Certified Public Accountan
Wagoner, OK 74467
March 18, 2001

---

Suellen Doubet, CPA
226 East Cherokee
Wagoner, OK 74467
PHONE:  918-485-8085
FAX:  918-485-3092

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

To the Partners of
Parsons Village:

I have audited the accompanying balance sheets of Parsons Village (a Kansas
Limited Partnership) as of December 31, 2000, and 1999 and the related
statements of operations, partners' equity, and cash flows for the years then
ended. These financial statements are the responsibility of the Company's
management. My responsibility is to express an opinion on these financial
statements based on my audits.

I conducted my audits in accordance with generally accepted auditing
standards and Government Auditing Standards issued by the Comptroller General of
the United States. Those standards require that I plan and perform the audit 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. I believe that my audit provides a reasonable basis for my
opinion.

In my opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Parsons Village as of December
31, 2000, and December 31, 1999 and the results of its operations and its cash
flows for the years then ended in conformity with generally accepted accounting
principles.

My audit was made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental information is presented
for purposes of additional analysis and is not a required part of the basic
financial statements. The supplementary information, The Schedule of Maintenance
Expenses has been subjected to the audit procedures applied in the audit of the
basic financial statements and, in my 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, I have also issued a report
dated March 20, 2001 on my consideration of Parsons Village's compliance and on
internal control over financial reporting. 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 my audit.

/s/ Suellen Doubet, CPA
Certified Public Accountant

Wagoner, OK 74467
March 20, 2001

---

David G. Pelliccione, C.P.A., P.C.
340 Eisenhower Drive, Suite 220
Savannah, GA 31406
PHONE:  912-354-2334
FAX:  912-354-2443

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

To The Partners
Brookstone Apartments, L.P.

We have audited the accompanying balance sheet of BROOKSTONE APARTMENTS,
L.P., as of December 31, 2000 and 1999 and the related statement of operations,
changes in partners' equity 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 audit.

We conducted our audit in accordance with generally accepted auditing
standards and Government Auditing Standards issued by the
Comptroller General of the 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. 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 our audit provides 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 BROOKSTONE APARTMENTS, L.P. as
of December 31, 2000 and 1999, and the results of its operations and its cash
flows for the year then ended in conformity with generally accepted accounting
principles.

In accordance with Government Auditing Standards, we have also
issued our report dated February 23, 2001, on our consideration of BROOKSTONE
APARTMENTS, L.P.'s internal control over financial reporting and our tests of
its compliance with certain provisions of laws, regulations, contracts and
grants. 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.

Our audit was made for the purpose of forming an opinion on the basic
financial statements of BROOKSTONE APARTMENTS, L.P.'s taken as a whole. The
supplemental information on pages 9 and 10 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 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/ David G. Pelliccione, C.P.A., P.C.
Certified Public Accountants
Savannah, Georgia
February 23, 2001

---

David G. Pelliccione, C.P.A., P.C.
340 Eisenhower Drive, Suite 220
Savannah, GA 31406
PHONE:  912-354-2334
FAX:  912-354-2443

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

To The Partners
Brooks Hollow Apartments, L.P.

We have audited the accompanying balance sheet of BROOKS HOLLOW APARTMENTS,
L.P., as of December 31, 2000 and 1999 and the related statements of operations,
changes in partners' equity 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 audit.

We conducted our audit in accordance with generally accepted auditing
standards and Government Auditing Standards issued by the
Comptroller General of the 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. 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 our audit provides 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 BROOKS HOLLOW APARTMENTS, L.P.,
as of December 31, 2000 and 1999, and the results of its operations and its cash
flows for the year then ended in conformity with generally accepted accounting
principles.

In accordance with Government Auditing Standards, we have also
issued our report dated February 23, 2001, on our consideration of BROOKS HOLLOW
APARTMENTS, L.P.'s internal control over financial reporting and our tests of
its compliance with certain provisions of laws, regulations, contracts and
grants. 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.

Our audit was made for the purpose of forming an opinion on the basic
financial statements of BROOKS HOLLOW APARTMENTS, L.P., taken as a whole. The
supplemental information on pages 9 and 10 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 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/ David G. Pelliccione, C.P.A., P.C.
Certified Public Accountants
Savannah, Georgia
February 23, 2001

---

Fentress, Brown, CPAs & Associates, LLC
8001 Ravines Edge Court, Suite 112
Columbus, OH 43235-5421
PHONE:  614-825-0011
FAX:  614-825-0014

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

To the Partners of                                Rural
Housing Service
Morningside Villa Limited Partnership             Servicing
Office
DBA Morningside Villa Apartments                  Findlay,
Ohio
Mansfield, Ohio

We have audited the accompanying balance sheets of Morningside Villa Limited
Partnership (a limited partnership), DBA Morningside Villa Apartments, Case No.
41-033-341622448, as of December 31, 2000 and 1999, and the related income
statements, changes in partners' equity (deficit), 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 our audits in accordance with generally accepted auditing
standards, Government Auditing Standards, issued by the Comptroller
General of the United States, and the U.S. Department of Agriculture, Farmers
Home Administration "Audit Program" issued in December 1989. Those
standards require that we plan and perform our 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 our 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 Morningside Villa Limited
Partnership, DBA Morningside Villa Apartments, Case No. 41-033-341622448, at
December 31, 2000 and 1999, and the results of its operations, changes in
partners' equity (deficit) and cash flows for the years then ended in conformity
with generally accepted accounting principles.

In accordance with Government Auditing Standards, we have also issued
a report dated January 19, 2001, on our consideration of Morningside Villa
Limited Partnership's internal control and a report dated January 19, 2001, on
its compliance with specific requirements applicable to Rural Housing Service
Programs.

/s/ Fentress, Brown, CPAs & Associates, LLC
Certified Public Accountants

Columbus, Ohio
January 19, 2001

---

Fentress, Brown, CPAs & Associates, LLC
8001 Ravines Edge Court, Suite 112
Columbus, OH 43235-5421
PHONE:  614-825-0011
FAX:   614-825-0014

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

To the Partners
of                                
Rural Housing Service
Kenton Apartments Company Limited Partnership      Servicing
Office
DBA Springbrook Commons                            Findlay,
Ohio
Mansfield, Ohio

We have audited the accompanying balance sheets of Kenton Apartments Company
Limited Partnership (a limited partnership), DBA Springbrook Commons, Case No.
41-033-0382999141, as of December 31, 2000 and 1999, and the related income
statements, changes in partners' equity (deficit) 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 our audits in accordance with generally accepted auditing
standards, Government Auditing Standards, issued by the Comptroller
General of the United States, and the U.S. Department of Agriculture, Farmers
Home Administration "Audit Program" issued in December, 1989. Those
standards require that we plan and perform our 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 our 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 Kenton Apartments Company
Limited Partnership, DBA Springbrook Commons, Case No. 41-033-0382999141, at
December 31, 2000 and 1999, and the results of its operations, changes in
partners' equity (deficit) and cash flows for the years then ended in conformity
with generally accepted accounting principles.

In accordance with Government Auditing Standards, we have also issued
a report dated January 19, 2001, on our consideration of Kenton Apartments
Company Limited Partnership's internal control and a report dated January 19,
2001, on its compliance with specific requirements applicable to Rural Housing
Service Programs.

/s/ Fentress, Brown, CPAs & Associates, LLC
Certified Public Accountants

Columbus, Ohio
January 19, 2001

---

Burrus, Paul & Turnbull, CPAs
1230 Crestar Bank Bldg.
Norfolk, VA 23510-2276
PHONE:  757-623-3236
FAX:  757-627-8603

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

To the Partners
Lovingston Ridge
(A Limited Partnership)
Yorktown, Virginia

We have audited the balance sheets of Lovingston Ridge (A Limited Partnership),
as of December 31, 2000 and 1999, and the related statements of operations,
partners' equity 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 our audits in accordance with generally accepted auditing
standards and Government Auditing Standards issued by the Comptroller
General of the 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 our 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 Lovingston Ridge (A Limited
Partnership) as of December 31, 2000 and 1999, and the results of its operations
and its cash flows for the years then ended in conformity with generally
accepted accounting principles.

/s/ Burrus, Paul & Turnbull CPAs
Certified Public Accountants

February 28, 2001

---

Henderson & Godbee, P.C.
3488 N. Valdosta Rd. - P.O. Box 2241
Valdosta, GA 31604-2241
PHONE:  229-245-6040
FAX:  229-245-1669

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

To the Partners
Mt. Vernon Rental Housing, L.P.
Valdosta, Georgia

We have audited the accompanying balance sheets of Mt. Vernon Rental Housing,
L.P. (a limited partnership), Federal ID No. 58-1965613, as of December 31, 2000
and 1999, and the related statements of income, partners' equity (deficit) 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 our audits in accordance with generally accepted auditing
standards and Government Auditing Standards issued by the Comptroller
General of the 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 our 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 Mt. Vernon Rental Housing, L.P.
as of December 31, 1999 and 1998, and the results of its operations and its cash
flows for the years then ended in conformity with generally accepted accounting
principles.

In accordance with Government Auditing Standards, we have also issued
a report dated January 25, 2001 on our consideration of Mt. Vernon Rental
Housing, L.P.'s internal control structure and a report dated January 25, 2001
on its compliance with laws and regulations.

/s/ Henderson & Godbee, P.C.
Certified Public Accountants

January 25, 2001

---

Item 9.  Disagreements on Accounting and Financial Disclosures

None.

PART III

Item 10.  Directors and Executive Officers of Gateway

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 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.  The officers and directors of the Managing General Partner are as follows:

Ronald M. Diner, age 57, 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, age 45, is a Vice President and a Director.  He is a Senior Vice President 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.

Sandra L. Furey, age 38, is Secretary, Treasurer.  Ms. Furey has been employed by Raymond James & Associates, Inc. since 1980 and currently serves as Closing Administrator for the Gateway Tax Credit Funds.

Raymond James Partners, Inc. -

Raymond James Partners, Inc. has been formed to act as the general partner, with affiliated corporations, in limited partnerships sponsored by Raymond James Financial, Inc.  Raymond James Partners, Inc. is a general partner for purposes of assuring that Gateway and other partnerships sponsored by affiliates have sufficient net worth to meet the minimum net worth requirements of state securities administrators.

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

Neither of the General Partners own any units of the outstanding securities of Gateway as of March 31, 2000.  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, 2001.

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

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

The Payable to Project Partnerships represents unpaid capital contributions to the Project Partnerships and will be paid after certain performance criteria are met.  Such contributions are in turn payable to the general partners of the Project Partnerships.

For the periods ended March 31, 2001, 2000, and 1999 the General Partners and affiliates are entitled to compensation and reimbursement for costs and expenses incurred by Gateway as follows:

Asset Management Fee - The Managing General Partner is entitled to receive an annual asset management fee equal to the greater of (i) $2,000 for each limited partnership in which Gateway invests, 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.

|          | 2001
----           | 2000
----           | 1999
----          
|--------- | ------------------- | ------------------- | -------------------
|Series 7  | $  87,683           | $  87,952           | $  88,207          
|Series 8  | 91,364              | 91,655              | 91,933             
|Series 9  | 50,178              | 50,319              | 50,458             
|Series 10 | 34,212              | 34,309              | 34,427             
|Series 11 | 29,087
---------    | 28,465
---------    | 27,721
---------   
|Total     | $ 292,524
========= | $ 292,700
========= | $ 292,746
=========

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.

|          | 2001
----          | 2000
----           | 1999
----          
|--------- | ------------------ | ------------------- | -------------------
|Series 7  | $  16,312          | $  14,609           | $  13,177          
|Series 8  | 17,985             | 16,108              | 14,528             
|Series 9  | 10,038             | 8,991               | 8,109              
|Series 10 | 6,274              | 5,619               | 5,068              
|Series 11 | 5,019
---------    | 4,495
---------     | 4,054
---------    
|Total     | $ 55,628
========= | $  49,822
========= | $  44,936
=========

---

PART IV

Item 14.  Exhibits, Financial Statement Schedules and Reports on Form 8-K

a.(1)  Financial Statements - see accompanying index to financial statements, Item 8.

(2)  Financial Statement Schedules -

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 in the notes thereto.

(3) Exhibit Index -

TableNumber

Page

1.1     Form of Dealer Manager Agreement, including Soliciting Dealer
        Agreement
1.2     Form of Escrow Agreement between Gateway Tax Credit Fund III
        Ltd. and First Union National Bank
3.1     The form of Partnership Agreement of the Partnership is included
        as Exhibit "A" to the Prospectus
3.1.1   Certificate of Limited Partnership of Gateway Tax Credit Fund
        III Ltd.
3.2     Articles of Incorporation of Raymond James Partners, Inc.
3.2.1   Bylaws of Raymond James Partners, Inc.*
3.3     Articles of Incorporation of Raymond James Tax Credit Funds,
        Inc.
3.3.1   Bylaws of Raymond James Tax Credit Funds, Inc.
3.4     Amended and Restated Agreement of Limited Partnership of
        Nottingham Apartments, Ltd.
3.5     Amended and Restated Agreement of Limited Partnership of Cedar
        Hollow Apartments Limited Partnership
3.6     Amended and Restated Agreement of Limited Partnership of Sunrise
        I Apartments Limited Partnership
5.1     Legality opinion of Riden, Earle & Kiefner, P.A. is included in
        Exhibit 8.1
8.1     Tax opinion and consent of Riden, Earle & Kiefner, P.A.
24.1    The consent of Spence, Marston, Bunch, Morris & Co.
24.1.1  The consent of Spence, Marston, Bunch, Morris & Co. to all
        references made to them in the Registration Statement and the
        inclusion therein of the financial statements of Raymond James
        Tax Credit Funds, Inc. and Raymond James Partners, Inc. for the
        fiscal year ended September 25, 1992
24.1.2  The consent of Spence, Marston, Bunch, Morris & Co. to all
        references made to them in the Registration Statement and the
        inclusion therein of the financial statements of Raymond James
        Tax Credit Funds, Inc. and Raymond James Partners, Inc. for the
        fiscal year ended September 25, 1992 and the Registrant for the
        period ended March 31, 1992
24.4    The consent of Riden, Earle, & Kiefner, PA to all references
        made to them in the Prospectus included as a part of the
        Registration Statement of Gateway Tax Credit Fund III Ltd., and
        all amendments thereto is included in their opinions filed as
        Exhibit 8.1 to the Registration Statement.
28.1    Table VI (Acquisition of Properties by Program) of Appendix II
        to Industry Guide 5, Preparation of Registration Statements
        Relating to Interests in Real Estate Limited Partnerships

* Included with Form S-11, Registration No. 33-44238 and amendments and
       supplements thereto previously filed with the Securities and
       Exchange Commission.

b. Reports filed on Form 8-K - NONE

---

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, 2000

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 | 584,430
761,126
2,026,746
1,315,656
805,030
798,587
1,202,134
1,403,685
791,138
768,149
1,209,100
675,202
834,696
743,062
1,433,365
670,896
675,759
1,096,980
822,290
1,208,659
723,905
1,037,148
1,463,625
1,223,272
915,959
1,196,466
357,765
732,704
1,244,210
1,185,906
1,419,133
790,459
764,577
513,876
784,140
681,795
681,033
778,921
152,759
|                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                      | -----------
$36,474,343
===========                                                                                                                                                                                                                                                                                                                  

---

GATEWAY TAX CREDIT FUND II LTD.
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
OF PROPERTY OWNED BY PROJECT PARTNERSHIPS INVESTED IN
AS OF DECEMBER 31, 2000

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 II LTD.
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
OF PROPERTY OWNED BY PROJECT PARTNERSHIPS INVESTED IN
AS OF DECEMBER 31, 2000

SERIES 7
Apartment Properties

|                                                                                                                                                                                                                                                                                                                                                                                                                          | Gross Amount At Which Carried At December 31, 2000
--------------------                                                                                                                                                                                                      
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|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
27,097
31,702
67,000
37,000
53,933
45,000
75,000
27,600
15,615
49,455
34,500
29,600
19,500
40,000
30,000
20,000
0
62,700
34,414
30,000
40,000
99,000
53,800
133,549
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
|                                                                                                                                                                                                                                                                                                                                                                                                                          | ----------
$1,799,514
==========                                                                                                                                                                                                                                             

---

GATEWAY TAX CREDIT FUND II LTD.
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
OF PROPERTY OWNED BY PROJECT PARTNERSHIPS INVESTED IN
AS OF DECEMBER 31, 2000

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 | 165,802
211,528
719,029
484,589
257,634
290,019
367,555
502,710
211,389
309,225
356,087
202,574
262,641
207,228
433,959
200,408
223,032
372,288
238,643
309,553
145,960
267,952
506,434
447,089
343,720
327,926
112,314
188,572
454,803
344,562
366,327
287,071
292,197
140,847
221,014
269,795
271,797
232,820
110,892 | 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
|                                                                                                                                                                                                                                                                                                                                                                                                                          | -----------
$11,657,985
===========                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                    

---

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, 2000

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
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 | 466,759
609,947
642,934
729,484
663,934
1,038,518
804,327
1,094,146
585,991
756,511
728,997
431,116
758,251
737,394
686,591
716,891
889,844
745,176
593,020
611,670
975,886
942,166
778,649
1,251,849
1,472,403
1,102,487
658,930
1,149,555
684,602
834,219
1,432,131
2,239,411
1,104,822
1,240,061
526,277
899,257
957,634
1,104,818
1,369,825
760,234
785,548
1,153,829
764,383
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                  | -----------
$38,480,477
===========                                                                                                                                                                                                                                                                                                                                              

---

GATEWAY TAX CREDIT FUND II LTD.
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
OF PROPERTY OWNED BY PROJECT PARTNERSHIPS INVESTED IN
AS OF DECEMBER 31, 2000

|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 II LTD.
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
OF PROPERTY OWNED BY PROJECT PARTNERSHIPS INVESTED IN
AS OF DECEMBER 31, 2000

SERIES 8

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Gross Amount At Which Carried At December 31, 2000
--------------------                                                                                                                                                                                                                                           
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|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 | 65,351
82,599
26,000
15,000
19,977
122,656
87,718
50,529
15,220
19,500
165,130
45,275
43,218
15,145
65,000
20,000
132,188
35,000
29,000
32,300
31,163
20,000
40,000
105,335
28,148
56,269
13,827
52,062
50,000
6,000
61,699
194,772
40,500
99,658
20,000
140,000
45,761
57,500
108,000
50,366
24,600
45,000
36,000
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | ----------
$2,413,466
==========                                                                                                                                                                                                                                                                                  

---

GATEWAY TAX CREDIT FUND II LTD.
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
OF PROPERTY OWNED BY PROJECT PARTNERSHIPS INVESTED IN
AS OF DECEMBER 31, 2000

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 | 209,917
248,019
251,337
275,536
250,878
363,896
281,941
390,313
259,887
169,976
290,903
164,419
182,593
186,837
234,884
270,429
274,961
153,369
199,501
159,113
280,231
377,794
286,415
208,820
503,878
378,243
212,667
356,453
219,955
288,163
376,713
735,687
208,623
398,897
135,132
196,677
254,409
293,283
337,575
205,479
192,126
218,268
202,748 | 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
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | -----------
$11,686,945
===========                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                    

---

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, 2000

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 | 654,320
624,381
469,630
743,711
1,462,396
1,136,933
925,777
957,622
566,940
718,502
830,465
791,317
1,137,609
1,418,995
793,543
741,991
805,679
628,599
800,636
652,718
776,501
780,222
1,367,971
592,347
|                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                         |                                                                         | -----------
$20,378,805
===========                                                                                                                                                                      

---

GATEWAY TAX CREDIT FUND II LTD.
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
OF PROPERTY OWNED BY PROJECT PARTNERSHIPS INVESTED IN
AS OF DECEMBER 31, 2000

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 II LTD.
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
OF PROPERTY OWNED BY PROJECT PARTNERSHIPS INVESTED IN
AS OF DECEMBER 31, 2000

SERIES 9
Apartment Properties

|                                                                                                                                                                                                                                         | Gross Amount At Which Carried At December 31, 2000
--------------------                                                                                                   
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|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
86,281
128,817
90,750
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
|                                                                                                                                                                                                                                         | ----------
$1,279,992
==========                                                                                                                                          

---

GATEWAY TAX CREDIT FUND II LTD.
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
OF PROPERTY OWNED BY PROJECT PARTNERSHIPS INVESTED IN
AS OF DECEMBER 31, 2000

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 | 226,570
232,990
167,684
174,820
348,243
301,495
322,912
331,751
216,393
262,498
292,821
254,810
209,637
296,783
196,242
209,432
212,141
226,227
193,194
169,294
172,848
215,159
278,829
156,610 | 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
|                                                                                                                                                                                                                                         | ----------
$5,669,383
==========                                                                                                                                                                |                                                                                                                                                                                                                           

---

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, 2000

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 | 848,782
782,241
545,409
1,084,997
1,114,105
900,750
1,006,286
1,431,149
1,064,811
869,202
814,785
811,656
808,376
594,993
647,117
|                                                                                                                                                   |                                                                                                                                                                                                     |                                              | -----------
$13,324,659
===========                                                                                              



|                                                                                                                                                   | Cost At Acquisition
--------------------                                                                   |                                                                                                                                        
|-------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------
|Partnership
-----------                                                                                                                            | Land
----                                                                                                  | Buildings,
Improvements
and Equipment
-------------                                                                                    
|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
|                                                                                                                                                   | --------
$665,025
========                                                                                 | -----------
$15,895,561
===========                                                                                                    

---

GATEWAY TAX CREDIT FUND II LTD.
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
OF PROPERTY OWNED BY PROJECT PARTNERSHIPS INVESTED IN
AS OF DECEMBER 31, 2000

SERIES 10
Apartment Properties

|                                                                                                                                                   | Gross Amount At Which Carried At December 31, 2000
--------------------                                  
|-------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------
|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
71,331
|                                                                                                                                                   | --------
$707,956
========                                                                               



|Partnership
-----------                                                                                                                            | Accumulated Depreciation
------------------------                                                                       | Depreciable Life
----------------                                                                                                     
|-------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------
|Redstone
Albany
Oak Terrace
Wellshill
Applegate
Heatherwood
Peachtree
Donna
Wellsville
Tecumseh
Clay City
Irvine West
New Castle
Stigler
Courtyard | 308,575
216,436
156,159
245,853
263,998
247,921
175,419
231,130
359,588
189,235
177,929
191,164
171,861
135,680
161,314 | 7.0-27.5
5.0-40.0
5.0-27.5
5.0-40.0
5.0-40.0
5.0-40.0
5.0-40.0
7.0-50.0
7.0-27.5
5.0-50.0
5.0-40.0
5.0-40.0
5.0-40.0
5.0-25.0
5.0-40.0
|                                                                                                                                                   | ----------
$3,232,262
==========                                                                                        |                                                                                                                                       

---

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, 2000

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 | 1,318,051
688,589
649,386
973,164
983,497
929,409
127,417
2,671,085
745,917
239,462
99,660
1,094,793
|                                                                                                           |                                                                                                                                                            |                                    | -----------
$10,520,430
===========                                                                 



|                                                                                                           | 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 II LTD.
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
OF PROPERTY OWNED BY PROJECT PARTNERSHIPS INVESTED IN
AS OF DECEMBER 31, 2000

SERIES 11
Apartment Properties

|                                                                                                           | Gross Amount At Which Carried At December 31, 2000
--------------------              
|---------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------
|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
------------------------                                            | Depreciable Life
----------------                                                                           
|---------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------
|Homestead
Mountain Oak
Eloy
Gila Bend
Creekstone
Tifton
Cass Towne
Warsaw
Royston
Red Bud
Cardinal
Parsons | 283,447
203,094
215,122
301,668
355,670
218,300
49,716
644,922
168,436
40,954
72,346
178,127 | 5.0-40.0
5.0-27.5
5.0-27.5
5.0-40.0
7.0-27.5
5.0-25.0
7.0-27.5
7.0-27.5
7.0-40.0
7.0-40.0
7.0-27.5
12.0-40.0
|                                                                                                           | ----------
$2,731,802
==========                                                             |                                                                                                             

---

SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
OF PROPERTY OWNED BY PROJECT PARTNERSHIPS INVESTED IN
AS OF DECEMBER 31, 2000
GATEWAY TAX CREDIT FUND III LTD.
NOTES TO SCHEDULE III

SERIES 7

|Balance at beginning of period -
December 31, 1999  Additions during period:
  Acquisitions through foreclosure
  Other acquisitions
  Improvements, etc.
  Other
  Deductions during period:
  Cost of real estate sold
  Other | $      0
106,331
0
0
---------
0
 0
--------- | $ 45,333,745
106,331
0
-----------
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------- | ----------------------------------
|Balance at end of period -
December 31, 2000                                                                                                                                                                                     |                                               | $ 45,440,076
============         

Reconciliation of Accumulated Depreciation current year changes:

|Balance at beginning of period -
December 31, 1999
    Current year expense     Less Accumulated Depreciation
  of    real estate sold
  Other |  | $  10,191,396
1,466,589
0
0
-----------
|---------------------------------------------------------------------------------------------------------------------------------------------- |  | ---------------------------------------
|Balance at end of period -
December 31, 2000                                                                                                   |  | $  11,657,985
============             

---

SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
OF PROPERTY OWNED BY PROJECT PARTNERSHIPS INVESTED IN
AS OF DECEMBER 31, 2000
GATEWAY TAX CREDIT FUND III LTD.
NOTES TO SCHEDULE III

Series 8

|Balance at beginning of period -
December 31, 1999
 Additions during period:
  Acquisitions through foreclosure
  Other acquisitions
  Improvements, etc.
  Other
  Deductions during period:
  Cost of real estate sold
  Other | $      0
71,000
0
0
-------
2,480
0
------- | $ 47,309,764
71,000
(2,480)
----------
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------- | --------------------------------------
|Balance at end of period -
December 31, 2000                                                                                                                                                                                     |                                             | $  47,378,284
============            

Reconciliation of Accumulated Depreciation current year changes:

|Balance at beginning of period -
December 31, 1999
    Current year expense
  Less Accumulated Depreciation
  of    real estate sold
  Other |  | $ 10,111,399
1,578,026
(2,480)
0
----------
|-------------------------------------------------------------------------------------------------------------------------------------------- |  | -------------------------------------------
|Balance at end of period -
December 31, 2000                                                                                                 |  | $ 11,686,945
============                  

---

SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
OF PROPERTY OWNED BY PROJECT PARTNERSHIPS INVESTED IN
AS OF DECEMBER 31, 2000
GATEWAY TAX CREDIT FUND III LTD.
NOTES TO SCHEDULE III

Series 9

|Balance at beginning of period -
December 31, 1999
 Additions during period:
  Acquisitions through foreclosure
  Other acquisitions
  Improvements, etc.
  Other
  Deductions during period:
  Cost of real estate sold
  Other | $     0
38,698
0
0
--------
0
0
-------- | $ 25,825,458
38,698
0
----------
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------- | --------------------------------
|Balance at end of period -
December 31, 2000                                                                                                                                                                                     |                                          | $25,864,156
============        

Reconciliation of Accumulated Depreciation current year changes:

|Balance at beginning of period -
December 31, 1999
    Current year expense
  Less Accumulated Depreciation
  of    real estate sold
  Other |  | 4,837,043
832,340
0
0
-----------
|-------------------------------------------------------------------------------------------------------------------------------------------- |  | ---------------------------------
|Balance at end of period -
December 31, 2000                                                                                                 |  | $ 5,669,383
 ============        

---

SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
OF PROPERTY OWNED BY PROJECT PARTNERSHIPS INVESTED IN
AS OF DECEMBER 31, 2000
GATEWAY TAX CREDIT FUND III LTD.
NOTES TO SCHEDULE III

Series 10

|Balance at beginning of period -
December 31, 1999
 Additions during period:
  Acquisitions through foreclosure
  Other acquisitions
  Improvements, etc.
  Other
  Deductions during period:
  Cost of real estate sold
  Other | $             0
58,653
0
2
--------
0
0
-------- | $ 17,500,529
58,655
0
----------
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------ | --------------------------------
|Balance at end of period -
December 31, 2000                                                                                                                                                                                     |                                                  | $ 17,559,184
============       

Reconciliation of Accumulated Depreciation current year changes:

|Balance at beginning of period -
December 31, 1999
    Current year expense
  Less Accumulated Depreciation
  of    real estate sold
  Other |  | $ 2,735,822
496,438
0
2
-----------
|-------------------------------------------------------------------------------------------------------------------------------------------- |  | -----------------------------------
|Balance at end of period -
December 31, 2000                                                                                                 |  | $  3,232,262
     ============     

---

SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
OF PROPERTY OWNED BY PROJECT PARTNERSHIPS INVESTED IN
AS OF DECEMBER 31, 2000
GATEWAY TAX CREDIT FUND III LTD.
NOTES TO SCHEDULE III

Series 11

|Balance at beginning of period -
December 31, 1999
 Additions during period:
  Acquisitions through foreclosure
  Other acquisitions
  Improvements, etc.
  Other
  Deductions during period:
  Cost of real estate sold
  Other | $            0
50,231
0
0
--------
1,557
0
-------- | $ 15,296,584
50,231
(1,557)
-----------
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------- | ---------------------------------------
|Balance at end of period -
December 31, 2000                                                                                                                                                                                     |                                                     | $  15,345,258
 ===========             

Reconciliation of Accumulated Depreciation current year changes:

|Balance at beginning of period -
December 31, 1999
    Current year expense
  Less Accumulated Depreciation
  of    real estate sold
  Other |  | $  2,218,007
515,352
(1,557)
0
------------
|-------------------------------------------------------------------------------------------------------------------------------------------- |  | -------------------------------------------
|Balance at end of period -
December 31, 2000                                                                                                 |  | $ 2,731,802
   ===========                 

---

GATEWAY TAX CREDIT FUND III LTD.
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE
AS OF DECEMBER 31, 2000

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 | 584,430
761,126
2,026,746
1,315,656
805,030
798,587
1,202,134
1,403,685
791,138
768,149
1,209,100
675,202
834,696
743,062
1,433,365
670,896
675,759
1,096,980
822,290
1,208,659
723,905
1,037,148
1,463,625
1,223,272
915,959
1,196,466
357,765
732,704
1,244,210
1,185,906
1,419,133
790,459
764,577
513,876
784,140
681,795
681,033
778,921
152,759
----------
  $36,474,343
=========== | 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% | 4,041
5,115
12,842
8,853
5,725
5,674
6,970
8,916
5,311
5,160
6,991
3,899
5,290
4,294
8,284
3,835
4,276
2,372
5,528
8,516
5,143
6,976
11,046
7,770
6,755
7,622
2,676
4,634
8,360
6,854
9,545
5,005
4,845
3,296
5,078
4,392
4,384
4,491
948 | 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

---

GATEWAY TAX CREDIT FUND III LTD.
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE
AS OF DECEMBER 31, 2000

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
Kirksville
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 | 466,759
609,947
642,934
729,484
663,934
1,038,518
804,327
1,094,146
585,991
756,511
728,997
431,116
758,251
737,394
686,591
716,891
889,844
745,176
593,020
611,670
975,886
942,166
778,649
1,251,849
1,472,403
1,102,487
658,930
1,149,555
684,602
834,219
1,432,131
2,239,411
1,104,822
1,240,061
526,277
899,257
957,634
1,104,818
1,369,825
760,234
785,548
1,153,829
764,383
----------
$38,480,477 =========== | 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% | 5,242
6,410
4,174
4,267
3,911
6,572
5,105
6,938
4,835
5,250
7,652
4,086
4,380
4,679
3,963
4,162
6,330
4,732
3,757
3,527
6,177
6,703
5,243
7,223
8,499
6,978
4,234
7,256
4,320
4,905
9,045
12,917
6,927
7,728
3,062
5,700
6,046
6,954
8,613
4,786
4,960
7,716
5,115 | 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

---

GATEWAY TAX CREDIT FUND III LTD.
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE
AS OF DECEMBER 31, 2000

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 | 654,320
624,381
469,630
743,711
1,462,396
1,136,933
925,777
957,622
566,940
718,502
830,465
791,317
1,137,609
1,418,995
793,543
741,991
805,679
628,599
800,636
652,718
776,501
780,222
1,367,971
592,347
---------
$20,378,805
=========== | 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% | 4,167
3,666
3,038
4,700
9,235
7,193
5,862
6,060
5,308
4,593
4,797
4,998
7,199
8,979
5,008
4,383
5,120
3,673
5,070
3,006
4,973
4,510
8,632
3,740 | 50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
20
50
50
50
50

---

GATEWAY TAX CREDIT FUND III LTD.
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE
AS OF DECEMBER 31, 2000

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 | 848,782
782,241
545,409
1,084,997
1,114,105
900,750
1,006,286
1,431,149
1,064,811
869,202
814,785
811,656
808,376
594,993
647,117
---------
$13,324,659
=========== | 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% | 4,905
4,570
3,150
6,843
4,937
4,301
6,379
8,252
6,316
5,481
5,158
5,137
5,131
3,764
3,729 | 50
50
50
50
20
20
50
50
50
50
50
50
50
50
50



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 | 1,318,051
688,589
649,386
973,164
983,497
929,409
127,417
2,671,085
745,917
239,462
99,660
1,094,793
---------
$10,520,430
=========== | 6.50%
8.00%
6.00%
8.00%
11.00%
0.00%
3.00%
6.50%
6.75%
7.25%
6.50%
8.00% | 7,411
2,745
3,460
6,428
5,235
2,077
1,417
15,387
4,414
1,458
1,348
6,243 | 50
50
50
50
30
42
10
50
50
50
50
50

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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.
                                Raymond James Tax Credit Funds, Inc.
Date: July 31, 2001             By:/s/ Ronald M. Diner                                Ronald M. Diner
                                President
Date: July 31, 2001             By:/s/ Sandra L. Furey

---



SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused to be signed on its behalf by the undersigned hereunto duly authorized.
                               GATEWAY TAX CREDIT FUND III LTD.
                               (A Florida Limited Partnership)
                               By:  Raymond James Tax Credit
Funds, Inc.
                               Managing General Partner
Date: July 31, 2001            By:/s/ Ronald M. Diner                               Ronald M. Diner
                               President
Date: July 31, 2001   
        By:/s/ Sandra L. Furey                               Sandra L. Furey
                               Secretary and Treasurer