SECOND AMENDED FORM 10-K/A-2
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, 2005Commission File Number0-21762                         
                         Gateway Tax Credit Fund III Ltd.             (Exact name of Registrant as specified in its charter)Florida                                    59-3090386(State or other jurisdiction of                   (IRS Employer No.)
 incorporation or organization)880 Carillon Parkway,  St. Petersburg,  Florida    33716    (Address of principal executive offices)          (Zip Code)
Registrant's Telephone No., Including Area Code:(727)567-4830Securities 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.
                                            YESX       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, 2005Limited Partnership Interest                               2,254
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

---

EXPLANATORY NOTE

This document is a second amendment of the Form 10-K for the annual period ended March 31, 2005.  This second amendment amends Item 8 Financial Statements and Supplementary Data for the correction of an error in the wording of the reports of the other auditor relied upon by the principal auditor.  Those opinions, as originally filed, incorrectly stated that the audit was conducted in accordance with "the auditing standards of the Public Company Accounting Oversight Board (United States)". The corrected reports contained herein state that the audit was conducted in accordance with "the standards of the Public Company Accounting Oversight Board (United States)".

Item 8.  Financial Statements and Supplementary Data

---



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Partners of Gateway Tax Credit Fund III Ltd.
   We have audited the accompanying balance sheets of each of the five Series (Series 7 through 11) constituting Gateway Tax Credit Fund III Ltd. (a Florida Limited Partnership) as of March 31, 2005 and 2004 and the related statements of operations, partners' equity (deficit), and cash flows of each of the five Series for each of the three years in the period 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 the net investments included on the balance sheets as of March 31, 2005 and 2004 and net losses included on the statements of operations for each of the three years in the period ended March 31, 2005 are:

|          | Net Investment
March 31,
--------- | Partnership Loss
Year Ended March 31,
---------------------
|--------- | ---------------------------------- | -----------------------------------------------------------
|          | 2005
----                          | 2004
----                                                  
|Series 7  | $       0                          | $       0                                                  
|Series 8  | 48,806                             | 69,788                                                     
|Series 9  | 378,066                            | 506,873                                                    
|Series 10 | 1,021,150                          | 1,109,210                                                  
|Series 11 | 0                                  | 1,667,049                                                  

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 the standards of the Public Company Accounting Oversight Board (United States).  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  The Partnership is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting.  Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Partnership's internal control over financial reporting.  Accordingly we express no such opinion.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that 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, 2005 and 2004, and the results of their operations and their cash flows for each of the three years in the period 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.
                                         /s/ Spence, Marston, Bunch, Morris & Co.
                                         SPENCE, MARSTON, BUNCH, MORRIS & CO.
                                         Certified Public Accountants
Clearwater, Florida
September 8, 2005

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)BALANCE SHEET
MARCH 31, 2005 AND 2004

|SERIES 7                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 2005
----                                                                                                                                                                                                                                    | 2004
----                                                                                                                                                                                                                                       
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|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, 2005 and 2004)
General Partners
  Total Partners' Equity
    Total Liabilities and Partners' Equity | $  383,342 
72,445 
-----------
455,787 
140,326 
965,655 
-----------
$1,561,768 
===========
$   53,630 
-----------
53,630 
-----------
557,979 
-----------
1,031,936 
(81,777)
-----------
950,159 
-----------
$1,561,768 
=========== | $  343,873 
67,834 
-----------
411,707 
197,682 
1,127,941 
-----------
$1,737,330 
===========
$   72,070 
-----------
72,070 
-----------
453,614 
-----------
1,290,808 
(79,162)
-----------
1,211,646 
-----------
$1,737,330 
===========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)BALANCE SHEET
MARCH 31, 2005 AND 2004

|SERIES 8
ASSETS
Current Assets:
 Cash and Cash Equivalents
 Investments in Securities
 Accounts Receivable
  Total Current Assets
 Investments in Securities
 Investments in Project Partnerships, Net
    Total Assets
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners
  Total Current Liabilities
Long Term Liabilities:
 Payable to General Partners
Partners' Equity (deficit):
Limited Partners (10,395 units for Series 7, 9,980 for Series 8, 6,254 for Series 9, 5,043
for Series 10 and 5,127 for Series 11 at March 31, 2005 and 2004)
General Partners
  Total Partners' Equity
    Total Liabilities and Partners' Equity | 2005
----
$ 325,662
67,927
24,220
----------417,809
134,748
461,161
----------$1,013,718
==========
$  45,110
----------
45,110
----------
594,397
458,094
(83,883)
----------
374,211
----------
$1,013,718
========== | 2004
----
$ 373,899
63,292
24,220
----------461,411
189,089
512,795
----------$1,163,295
==========
$  56,210
----------
56,210
----------
553,708
635,468
(82,091)
----------
553,377
----------
$1,163,295
==========
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)BALANCE SHEET
MARCH 31, 2005 AND 2004

|SERIES 9                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 2005
----                                                                                                                                                                                                                                     | 2004
----                                                                                                                                                                                                                                          
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ASSETS
Current Assets:
 Cash and Cash Equivalents
 Investments in Securities
 Accounts Receivable
  Total Current Assets
 Investments in Securities
 Investments in Project Partnerships, Net
    Total Assets
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners
  Total Current Liabilities
Long Term Liabilities:
 Payable to General Partners
Partners' Equity (deficit):
Limited Partners (10,395 units for Series 7, 9,980 for Series 8, 6,254 for Series 9, 5,043 for Series 10 and 5,127 for Series 11 at March  31, 2005 and 2004)
General Partners
  Total Partners' Equity
    Total Liabilities and Partners' Equity | $  229,897 
38,890 
0 
-----------
268,787 
112,579 
798,862 
-----------
$1,180,228 
===========
$   25,407 
-----------
25,407 
-----------
379,140 
-----------
822,760 
(47,079)
-----------
775,681 
-----------
$1,180,228 
=========== | $  248,902 
37,028 
600 
-----------
286,530 
142,308 
967,040 
-----------
$1,395,878 
===========
$   24,890 
-----------
24,890 
-----------
360,461 
-----------
1,055,258 
(44,731)
-----------
1,010,527 
-----------
$1,395,878 
===========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)BALANCE SHEET
MARCH 31, 2005 AND 2004

|SERIES 10                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 2005
----                                                                                                                                                                                                                                       | 2004
----                                                                                                                                                                                                                                      
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|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, 2005 and 2004)
General Partners
  Total Partners' Equity
    Total Liabilities and Partners' Equity | $  142,638 
29,480 
-----------
172,118 
112,721 
1,661,049 
-----------
$1,945,888 
===========
$   28,777 
-----------
28,777 
-----------
11,305 
-----------
1,930,927 
(25,121)
-----------
1,905,806 
-----------
$1,945,888 
=========== | $  247,847 
27,571 
-----------
275,418 
132,500 
1,815,475 
-----------
$2,223,393 
===========
$   34,508 
-----------
34,508 
-----------
96,753 
-----------
2,115,390 
(23,258)
-----------
2,092,132 
-----------
$2,223,393 
===========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)BALANCE SHEET
MARCH 31, 2005 AND 2004

|SERIES 11                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 2005
----                                                                                                                                                                                                                                    | 2004
----                                                                                                                                                                                                                                      
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ASSETS
Current Assets:
 Cash and Cash Equivalents
 Investments in Securities
 Receivable from General Partner
  Total Current Assets
 Investments in Securities
 Investments in Project Partnerships, Net
    Total Assets
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners
  Total Current Liabilities
Long Term Liabilities:
 Payable to General Partners
Partners' Equity (deficit):
Limited Partners (10,395 units for Series 7, 9,980 for Series 8, 6,254 for Series 9, 5,043 for Series 10 and 5,127 for Series 11 at March 31, 2005 and 2004
General Partners
  Total Partners' Equity
    Total Liabilities and Partners' Equity | $  199,931 
33,838 
8,291 
-----------
242,060 
127,336 
2,664,780 
-----------
$3,034,176 
===========
$        0 
-----------
0 
-----------
0 
-----------
3,049,825 
(15,649)
-----------
3,034,176 
-----------
$3,034,176 
=========== | $  247,638 
31,987 
0 
-----------
279,625 
149,592 
2,799,412 
-----------
$3,228,629 
===========
$   39,680 
-----------
39,680 
-----------
806 
-----------
3,202,252 
(14,109)
-----------
3,188,143 
-----------
$3,228,629 
===========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)BALANCE SHEET
MARCH 31, 2005 AND 2004

|TOTAL SERIES 7 -11                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 2005
----                                                                                                                                                                                                                                                                      | 2004
----                                                                                                                                                                                                                                                                 
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ASSETS
Current Assets:
 Cash and Cash Equivalents
 Investments in Securities
 Accounts Receivable
 Receivable from General Partner
  Total Current Assets
 Investments in Securities
 Investments in Project Partnerships, Net
    Total Assets
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners
  Total Current Liabilities
Long Term Liabilities:
 Payable to General Partners
Partners' Equity (deficit):
Limited Partners (10,395 units for Series 7, 9,980 for Series 8, 6,254 for Series 9, 5,043 for Series 10 and 5,127 for Series 11 at March 31, 2005 and 2004)
General Partners
  Total Partners' Equity
    Total Liabilities and Partners' Equity | $ 1,281,470 
242,580 
24,220 
8,291 
------------
1,556,561 
627,710 
6,551,507 
------------
$ 8,735,778 
============
$   152,924 
-----------
152,924 
-----------
1,542,821 
-----------
7,293,542 
(253,509)
-----------
7,040,033 
-----------
$ 8,735,778 
============ | $ 1,462,159 
227,712 
24,820 
0 
------------
1,714,691 
811,171 
7,222,663 
------------
$ 9,748,525 
============
$   227,358 
-----------
227,358 
-----------
1,465,342 
-----------
8,299,176 
(243,351)
-----------
8,055,825 
-----------
$ 9,748,525 
============

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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 2005
----                                                                                                                                                                                                                                                                | 2004
----                                                                                                                                                                                                                                                                | 2003
----                                                                                                                                                                                                                                                              
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
  Distribution Income
  Total Revenues
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Losses of  Project Partnerships and Other  Income
Equity in Losses of Project  Partnerships
Interest Income 
Net Loss
Allocation of Net Loss:
 Assignees
 General Partners
Net Loss Per Beneficial Assignee Certificate
Number of Beneficial Assignee Certificates Outstanding | $  24,233 
----------
24,233 
----------
86,447 
56,857 
18,197 
7,089 
----------
168,590 
----------
(144,357)
(139,599)
22,469 
----------
$ (261,487)
===========
$ (258,872)
(2,615)
----------
$ (261,487)
===========
$   (24.90)
===========
10,395 
=========== | $  14,725 
----------
14,725 
----------
86,749 
56,842 
19,538 
6,643 
----------
169,772 
----------
(155,047)
(130,277)
23,962 
----------
$ (261,362)
===========
$ (258,748)
(2,614)
----------
$ (261,362)
===========
$   (24.89)
===========
10,395 
=========== | $ 23,088 
----------
23,088 
----------
87,082 
32,765 
21,107 
6,684 
----------
147,638 
----------
(124,550)
(137,118)
28,612 
----------
$ (233,056)
===========
$ (230,725)
(2,331)
----------
$ (233,056)
===========
$   (22.20)
===========
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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 2005
----                                                                                                                                                                                                                                                      | 2004
----                                                                                                                                                                                                                                                      | 2003
----                                                                                                                                                                                                                                                     
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
  Distribution Income
  Total Revenues
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Losses of  Project Partnerships and Other  Income
Equity in Losses of Project  Partnerships
Interest Income
Net Loss
Allocation of Net Loss:
 Assignees
 General Partners
Net Loss Per Beneficial
Assignee Certificate
Number of Beneficial Assignee
Certificates Outstanding | $  16,447 
----------
16,447 
----------
89,908 
62,689 
19,352 
2,553 
----------
174,502 
----------
(158,055)
(41,395)
20,284 
----------
$(179,166)
==========
$(177,374)
(1,792)
----------
$(179,166)
==========
$  (17.77)
==========
9,980 
========== | $  20,098 
----------
20,098 
----------
90,313 
62,671 
22,850 
3,072 
----------
178,906 
----------
(158,808)
(39,434)
21,800 
----------
$(176,442)
==========
$(174,678)
(1,764)
----------
$(176,442)
==========
$  (17.50)
==========
9,980 
========== | $  19,195 
----------
19,195 
----------
90,730 
36,127 
24,723 
4,740 
----------
156,320 
----------
(137,125)
(82,830)
26,630 
----------
$(193,325)
==========
$(191,392)
(1,933)
----------
$(193,325)
==========
$  (19.18)
==========
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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 2005
----                                                                                                                                                                                                                                                   | 2004
----                                                                                                                                                                                                                                                   | 2003
----                                                                                                                                                                                                                                                  
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
  Distribution Income
  Total Revenues
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Losses of  Project Partnerships and Other  Income
Equity in Losses of Project 
 Partnerships
Interest Income
Net Loss
Allocation of Net Loss:
 Assignees
 General Partners
Net Loss Per Beneficial
Assignee Certificate
Number of Beneficial Assignee
Certificates Outstanding | $  7,752 
----------
7,752 
----------
49,509 
34,990 
11,260 
2,377 
----------
98,136 
----------
(90,384)
(157,684)
13,222 
----------
$(234,846)
==========
$(232,498)
(2,348)
----------
$(234,846)
==========
$  (37.18)
==========
6,254 
========== | $  4,246 
----------
4,246 
----------
49,711 
34,979 
11,731 
3,082 
----------
99,503 
----------
(95,257)
(230,291)
13,607 
----------
$(311,941)
==========
$(308,822)
(3,119)
----------
$(311,941)
==========
$  (49.38)
==========
6,254 
========== | $  4,433 
----------
4,433 
----------
49,865 
20,164 
13,875 
3,256 
----------
87,160 
----------
(82,727)
(279,770)
16,095 
----------
$(346,402)
==========
$(342,938)
(3,464)
----------
$(346,402)
==========
$  (54.84)
==========
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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 2005
----                                                                                                                                                                                                                                                  | 2004
----                                                                                                                                                                                                                                                  | 2003
----                                                                                                                                                                                                                                             
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
  Distribution Income
  Total Revenues
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Losses of  Project Partnerships and Other 
 Income
Equity in Losses of Project
 Partnerships
Interest Income
Net Loss
Allocation of Net Loss:
 Assignees
 General Partners
Net Loss Per Beneficial Assignee Certificate
Number of Beneficial Assignee Certificates Outstanding | $  2,511 
----------
2,511 
----------
33,819 
21,868 
8,149 
4,141 
----------
67,977 
----------
(65,466)
(133,597)
12,737 
----------
$(186,326)
==========
$(184,463)
(1,863)
----------
$(186,326)
==========
$  (36.58)
==========
5,043 
========== | $  1,932 
----------
1,932 
----------
33,890 
21,863 
7,968 
4,578 
----------
68,299 
----------
(66,367)
(175,628)
13,252 
----------
$(228,743)
==========
$(226,456)
(2,287)
----------
$(228,743)
==========
$  (44.91)
==========
5,043 
========== | $  750 
----------
750 
----------
34,013 
12,601 
9,699 
4,812 
----------
61,125 
----------
(60,375)
(201,773)
15,454 
----------
$(246,694)
==========
$(244,227)
(2,467)
----------
$(246,694)
==========
$  (48.43)
==========
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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 2005
----                                                                                                                                                                                                                                                  | 2004
----                                                                                                                                                                                                                                                  | 2003
----                                                                                                                                                                                                                                         
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
  Distribution Income
  Total Revenues
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Losses of  Project Partnerships and Other  Income
Equity in Losses of Project
 Partnerships
Interest Income
Net Loss
Allocation of Net Loss:
 Assignees
 General Partners
Net Loss Per Beneficial
Assignee Certificate
Number of Beneficial Assignee
Certificates Outstanding | $  2,783 
----------
2,783 
----------
28,021 
17,494 
7,404 
6,343 
----------
59,262 
----------
(56,479)
(112,606)
15,118 
----------
$(153,967)
==========
$(152,427)
(1,540)
----------
$(153,967)
==========
$  (29.73)
==========
5,127 
========== | $  2,182 
----------
2,182 
----------
28,254 
17,491 
7,549 
6,726 
----------
60,020 
----------
(57,838)
(101,608)
15,869 
----------
$(143,577)
==========
$(142,141)
(1,436)
----------
$(143,577)
==========
$  (27.72)
==========
5,127 
========== | $  0 
----------
0 
----------
28,518 
10,081 
8,782 
8,296 
----------
55,677 
----------
(55,677)
(169,857)
18,223 
----------
$(207,311)
==========
$(205,238)
(2,073)
----------
$(207,311)
==========
$  (40.03)
==========
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                                                                                                                                                                                                                                                                                                                                                                    | 2005
----                                                                                                                                                                                                                                      | 2004
----                                                                                                                                                                                                                                      | 2003
----                                                                                                                                                                                                                                     
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues:
  Distribution Income
  Total Revenues
Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization
  Total Expenses
Loss Before Equity in Losses
 of Project Partnerships and Other  Income
Equity in Losses of Project
 Partnerships
Interest Income
Net Loss
Allocation of Net Loss:
 Assignees
 General Partners | $    53,726 
-----------
53,726 
-----------
287,704 
193,898 
64,362 
22,503 
-----------
568,467 
-----------
(514,741)
(584,881)
83,830 
-----------
$(1,015,792)
============
$(1,005,634)
(10,158)
------------
$(1,015,792)
============ | $    43,183 
-----------
43,183 
-----------
288,917 
193,846 
69,636 
24,101 
-----------
576,500 
-----------
(533,317)
(677,238)
88,490 
-----------
$(1,122,065)
============
$(1,110,845)
(11,220)
------------
$(1,122,065)
============ | $   47,466 
-----------
47,466 
-----------
290,208 
111,738 
78,186 
27,788 
-----------
507,920 
-----------
(460,454)
(871,348)
105,014 
-----------
$(1,226,788)
============
$(1,214,520)
(12,268)
------------
$(1,226,788)
============

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, 2005, 2004 AND 2003:

|SERIES 7                                                                                                                           | Limited
Partners
---------                                                                                                  | General
Partners
--------                                                                                         | Total
-----                                                                                                                
|---------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 2002
Net Loss
Balance at March 31, 2003
Net Loss
Balance at March 31, 2004
Net Loss
Balance at March 31, 2005 | $1,780,281 
(230,725)
-----------
1,549,556 
(258,748)
-----------
1,290,808 
(258,872)
-----------
$1,031,936 
=========== | $  (74,217)
(2,331)
-----------
(76,548)
(2,614)
-----------
(79,162)
(2,615)
-----------
$  (81,777)
=========== | $1,706,064 
(233,056)
-----------
1,473,008 
(261,362)
-----------
1,211,646 
(261,487)
-----------
$  950,159 
===========

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, 2005, 2004 AND 2003:

|SERIES 8                                                                                                                           | Limited
Partners
---------                                                                                              | General
Partners
--------                                                                                   | Total
-----                                                                                                            
|---------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 2002
Net Loss
Balance at March 31, 2003
Net Loss
Balance at March 31, 2004
Net Loss
Balance at March 31, 2005 | $1,001,538 
(191,392)
-----------
810,146 
(174,678)
-----------
635,468 
(177,374)
-----------
$  458,094 
=========== | $ (78,394)
(1,933)
----------
(80,327)
(1,764)
----------
(82,091)
(1,792)
----------
$ (83,883)
========== | $  923,144 
(193,325)
-----------
729,819 
(176,442)
-----------
553,377 
(179,166)
-----------
$  374,211 
===========

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, 2005, 2004 AND 2003:

|SERIES 9                                                                                                                           | Limited
Partners
---------                                                                                                  | General
Partners
--------                                                                                   | Total
-----                                                                                                                
|---------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 2002
Net Loss
Balance at March 31, 2003
Net Loss
Balance at March 31, 2004
Net Loss
Balance at March 31, 2005 | $1,707,018 
(342,938)
-----------
1,364,080 
(308,822)
-----------
1,055,258 
(232,498)
-----------
$  822,760 
=========== | $ (38,148)
(3,464)
----------
(41,612)
(3,119)
----------
(44,731)
(2,348)
----------
$ (47,079)
========== | $1,668,870 
(346,402)
-----------
1,322,468 
(311,941)
-----------
1,010,527 
(234,846)
-----------
$  775,681 
===========

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, 2005, 2004 AND 2003:

|SERIES 10                                                                                                                          | Limited
Partners
---------                                                                                                  | General
Partners
--------                                                                                   | Total
-----                                                                                                                
|---------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 2002
Net Loss
Balance at March 31, 2003
Net Loss
Balance at March 31, 2004
Net Loss
Balance at March 31, 2005 | $2,586,073 
(244,227)
-----------
2,341,846 
(226,456)
-----------
2,115,390 
(184,463)
-----------
$1,930,927 
=========== | $ (18,504)
(2,467)
----------
(20,971)
(2,287)
----------
(23,258)
(1,863)
----------
$ (25,121)
========== | $2,567,569 
(246,694)
-----------
2,320,875 
(228,743)
-----------
2,092,132 
(186,326)
-----------
$1,905,806 
===========

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, 2005, 2004 AND 2003:

|SERIES 11                                                                                                                          | Limited
Partners
---------                                                                                                  | General
Partners
--------                                                                                   | Total
-----                                                                                                                
|---------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 2002
Net Loss
Balance at March 31, 2003
Net Loss
Balance at March 31, 2004
Net Loss
Balance at March 31, 2005 | $3,549,631 
(205,238)
-----------
3,344,393 
(142,141)
-----------
3,202,252 
(152,427)
-----------
$3,049,825 
=========== | $ (10,600)
(2,073)
----------
(12,673)
(1,436)
----------
(14,109)
(1,540)
----------
$ (15,649)
========== | $3,539,031 
(207,311)
-----------
3,331,720 
(143,577)
-----------
3,188,143 
(153,967)
-----------
$3,034,176 
===========

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, 2005, 2004 AND 2003:

|TOTAL SERIES 7 - 11                                                                                                                | Limited
Partners
---------                                                                                                              | General
Partners
--------                                                                                        | Total
-----                                                                                                                       
|---------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------
|Balance at March 31, 2002
Net Loss
Balance at March 31, 2003
Net Loss
Balance at March 31, 2004
Net Loss
Balance at March 31, 2005 | $10,624,541 
(1,214,520)
------------
9,410,021 
(1,110,845)
------------
8,299,176 
(1,005,634)
------------
$ 7,293,542 
============ | $(219,863)
(12,268)
----------
(232,131)
(11,220)
----------
(243,351)
(10,158)
----------
$(253,509)
========== | $10,404,678 
(1,226,788)
-----------
9,177,890 
(1,122,065)
-----------
8,055,825 
(1,015,792)
-----------
$7,040,033 
===========

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, 2005, 2004 AND 2003:

|SERIES 7
--------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 2005
----                                                                                                                                                                                   | 2004
----                                                                                                                                                                                     | 2003
----                                                                                                                                                                                 
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|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 (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
Cash and Cash Equivalents at End of Year | $(261,487)
7,089 
(19,255)
139,599 
42,284 
(23,983)
85,925 
----------
(29,828)
----------
39,581 
29,716 
----------
69,297 
----------
39,469 
343,873 
----------
$ 383,342 
========== | $(261,362)
6,643 
(22,530)
130,277 
37,353 
(14,725)
18,864 
----------
(105,480)
----------
28,698 
30,647 
----------
59,345 
----------
(46,135)
390,008 
----------
$ 343,873 
========== | $(233,056)
6,684 
(25,226)
137,118 
32,576 
(23,088)
41,651 
----------
(63,341)
----------
37,299 
31,424 
----------
68,723 
----------
5,382 
384,626 
----------
$ 390,008 
==========

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, 2005, 2004 AND 2003:

|SERIES 8
--------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 2005
----                                                                                                                                                                                       | 2004
----                                                                                                                                                                                             | 2003
----                                                                                                                                                                                    
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|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 Accounts Receivable
    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
Decrease in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
Cash and Cash Equivalents at End of Year | $(179,166)
2,553 
(17,293)
41,395 
36,921 
(16,447)
0 
29,589 
----------
(102,448)
----------
24,132 
30,079 
----------
54,211 
----------
(48,237)
373,899 
----------
$ 325,662 
========== | $(176,442)
3,072 
(20,197)
39,434 
32,393 
(20,098)
(24,220)
34,114 
----------
(131,944)
----------
25,030 
30,607 
----------
55,637 
----------
(76,307)
450,206 
----------
$ 373,899 
========== | $(193,325)
4,740 
(22,580)
82,830 
27,883 
(19,195)
0 
56,418 
----------
(63,229)
----------
25,963 
31,116 
----------
57,079 
----------
(6,150)
456,356 
----------
$ 450,206 
==========

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, 2005, 2004 AND 2003:

|SERIES 9
--------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 2005
----                                                                                                                                                                                        | 2004
----                                                                                                                                                                                         | 2003
----                                                                                                                                                                                   
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|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:
    Decrease (Increase) in Accounts     Receivable
    Increase in Payable to General     Partners
     Net Cash Used in Operating      Activities
Cash Flows from Investing Activities:
  Distributions Received from Project   Partnerships
  Redemption of Investment in Securities
     Net Cash Provided by Investing      Activities
Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
Cash and Cash Equivalents at End of Year | $(234,846)
2,377 
(11,133)
157,684 
19,228 
(7,752)
600 
19,196 
----------
(54,646)
----------
15,869 
19,772 
----------
35,641 
----------
(19,005)
248,902 
----------
$ 229,897 
========== | $(311,941)
3,082 
(12,599)
230,291 
16,810 
(4,246)
(600)
31,664 
----------
(47,539)
----------
15,767 
20,189 
----------
35,956 
----------
(11,583)
260,485 
----------
$ 248,902 
========== | $(346,402)
3,256 
(13,821)
279,770 
14,467 
(4,433)
0 
39,866 
----------
(27,297)
----------
15,918 
20,533 
----------
36,451 
----------
9,154 
251,331 
----------
$ 260,485 
==========

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, 2005, 2004 AND 2003:

|SERIES 10
--------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | 2005
----                                                                                                                                                                                      | 2004
----                                                                                                                                                                                 | 2003
----                                                                                                                                                                             
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|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
Decrease in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
Cash and Cash Equivalents at End of Year | $(186,326)
4,141 
(11,128)
133,597 
15,150 
(2,511)
(91,179)
----------
(138,256)
----------
19,197 
13,850 
----------
33,047 
----------
(105,209)
247,847 
----------
$ 142,638 
========== | $(228,743)
4,578 
(12,243)
175,628 
13,525 
(1,932)
9,628 
----------
(39,559)
----------
20,992 
14,473 
----------
35,465 
----------
(4,094)
251,941 
----------
$ 247,847 
========== | $(246,694)
4,812 
(13,191)
201,773 
11,953 
(750)
14,690 
----------
(27,407)
----------
12,151 
15,048 
----------
27,199 
----------
(208)
252,149 
----------
$ 251,941 
==========

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, 2005, 2004 AND 2003:

|SERIES 11
--------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | 2005
----                                                                                                                                                                                         | 2004
----                                                                                                                                                                                  | 2003
----                                                                                                                                                                            
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|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 Accounts Receivable
    (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
Decrease in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
Cash and Cash Equivalents at End of Year | $(153,967)
6,343 
(13,595)
112,606 
18,383 
(2,783)
(8,291)
(40,486)
----------
(81,790)
----------
18,466 
15,617 
---------
34,083 
---------
(47,707)
247,638 
---------
$ 199,931 
========== | $(143,577)
6,726 
(14,856)
101,608 
16,091 
(2,182)
0 
(4,844)
----------
(41,034)
----------
8,564 
15,910 
---------
24,474 
---------
(16,560)
264,198 
---------
$ 247,638 
========== | $(207,311)
8,296 
(15,873)
169,857 
13,863 
0 
0 
(6,106)
----------
(37,274)
----------
19,277 
16,136 
---------
35,413 
---------
(1,861)
266,059 
---------
$ 264,198 
==========

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, 2005, 2004 AND 2003:

|TOTAL SERIES 7 - 11
--------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 2005
----                                                                                                                                                                                                             | 2004
----                                                                                                                                                                                                              | 2003
----                                                                                                                                                                                                      
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|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 Accounts Receivable
    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 (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
Cash and Cash Equivalents at End of Year | $(1,015,792)
22,503 
(72,404)
584,881 
131,966 
(53,476)
(7,691)
3,045 
-----------
(406,968)
-----------
117,245 
109,034 
-----------
226,279 
-----------
(180,689)
1,462,159 
-----------
$1,281,470 
=========== | $(1,122,065)
24,101 
(82,425)
677,238 
116,172 
(43,183)
(24,820)
89,426 
-----------
(365,556)
-----------
99,051 
111,826 
-----------
210,877 
-----------
(154,679)
1,616,838 
-----------
$1,462,159 
=========== | $(1,226,788)
27,788 
(90,691)
871,348 
100,742 
(47,466)
0 
146,519 
-----------
(218,548)
-----------
110,608 
114,257 
-----------
224,865 
-----------
6,317 
1,610,521 
-----------
$1,616,838 
===========

See accompanying notes to financial statements.

---

GATEWAY TAX CREDIT FUND III LTD.(A Florida Limited Partnership)NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2005, 2004 AND 2003

NOTE 1 - ORGANIZATION:   Gateway Tax Credit Fund III Ltd. ("Gateway"), a Florida Limited Partnership, was formed October 17, 1991 under the laws of Florida.  Gateway offered its limited partnership interests in Series.  The first Series for Gateway is Series 7.  Operations commenced on July 16, 1992 for Series 7, January 4, 1993 for Series 8, September 30, 1993 for Series 9, January 21, 1994 for Series 10 and April 29, 1994 for Series 11.  Each Series invests, as a limited partner, in other limited partnerships ("Project Partnerships"), each of which owns and operates apartment complexes eligible for Low-Income Housing Tax Credits ("Tax Credits"), provided for in Section 42 of the Internal Revenue Code of 1986.  Gateway will terminate on December 31, 2040 or sooner, in accordance with the terms of the Limited Partnership Agreement.  As of March 31, 2005, Gateway had received capital contributions of $1,000 from the General Partners and $36,799,000 from the investor Limited Partners.
   Raymond James Partners, Inc. and Raymond James Tax Credit Funds, Inc., wholly-owned subsidiaries of Raymond James Financial, Inc., are the General Partner and Managing General Partner, respectively.

   Gateway received capital contributions of $10,395,000, $9,980,000, $6,254,000, $5,043,000 and $5,127,000 from the investor Limited Partners in Series 7, 8, 9, 10 and 11, respectively.  Each Series will be treated as though it were a separate partnership, investing in a separate and distinct pool of Project Partnerships.  Income or loss and all tax items from the Project Partnerships acquired by each Series will be specifically allocated among the limited partners of such Series.
   Operating profits and losses, cash distributions from operations and Tax Credits from each Series are generally allocated 99% to the Limited Partners in that Series and 1% to the General Partners.  Profit or loss and cash distributions from sales of property by each Series are allocated as formulated in the Limited Partnership Agreement.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 reviews its investments in Project Partnerships to determine if there has been any permanent impairment whenever events or changes in circumstances indicate that the carrying amount of the investment may not be recoverable.  If the sum of the expected future cash flows is less than the carrying amount of the investment, Gateway recognizes an impairment loss. No impairment loss has been recognized in the accompanying financial statements.
   Gateway, as a limited partner in the Project Partnerships, is subject to risks inherent in the ownership of property which are beyond its control, such as fluctuations in occupancy rates and operating expenses, variations in rental schedules, proper maintenance and continued eligibility of tax credits.  If the cost of operating a property exceeds the rental income earned thereon, Gateway may deem it in its best interest to voluntarily provide funds in order to protect its investment.  Gateway does not guarantee any of the mortgages or other debt of the Project Partnerships.Cash and Cash Equivalents   It is Gateway's policy to include short-term investments with an original maturity of three months or less in Cash and Cash Equivalents.  Short-term investments are comprised of money market mutual funds.Concentrations of Credit Risk   Financial instruments which potentially subject Gateway to concentrations of credit risk consist of cash investments in a money market mutual fund that is a wholly-owned subsidiary of Raymond James Financial, Inc.Use of Estimates in the Preparation of Financial Statements   The preparation of financial statements in conformity with generally accepted accounting principles requires the use of estimates that affect certain reported amounts and disclosures.  These estimates are based on management's knowledge and experience.  Accordingly, actual results could differ from these estimates.Investment in Securities   Effective April 1, 1994, Gateway adopted Statement of Financial Accounting Standards No. 115, Accounting for Certain Investments in Debt and Equity Securities ("FAS 115").  Under FAS 115, Gateway is required to categorize its debt securities as held-to-maturity, available-for-sale or trading securities, dependent upon Gateway's intent in holding the securities.  Gateway's intent is to hold all of its debt securities (U. S. Treasury Security Strips) until maturity and to use these reserves to fund Gateway's ongoing operations.  Interest income is recognized ratably on the U.S. Treasury Strips using the effective yield to maturity.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.Reclassifications
   For comparability, the 2003 and 2004 figures have been reclassified, where appropriate, to conform with the financial statement presentation used in 2005.Recent Accounting Pronouncements   In January 2003, the FASB issued FASB Interpretation No. 46 ("FIN46"), "Consolidation of Variable Interest Entities, an Interpretation of ARB No. 51." Gateway has adopted FIN 46 and applied its requirements to all Project Partnerships in which Gateway held an interest.  Generally, a variable interest entity, or VIE, is an entity with one or more of the following characteristics, (a) the total equity investment at risk is not sufficient to permit the entity to finance its activities without additional subordinated financial support; (b) as a group the holders of the equity investment at risk lack (I) the ability to make decisions about an entity's activities through voting or similar rights, (ii) the obligation to absorb the expected losses of the entity; or (c) the equity investors have voting rights that are not proportional to their economic interests and substantially all of the entity's activities either involve, or are conducted on behalf of, an investor that has disproportionately few voting rights.  FIN 46 requires a VIE to be consolidated in the financial statements of the entity that is determined to be the primary beneficiary of the VIE.  The primary beneficiary, as is applicable to Gateway's circumstances, is the party in the Project Partnership equity group that is most closely associated with the Project Partnership.
   As of March 31, 2005, Gateway determined that it held variable interests in 128 VIE's, which consist of Project Partnerships, which Gateway is not the primary beneficiary.  Gateway's maximum exposure to loss as a result of its involvement with unconsolidated VIE's is limited to Gateway's recorded investments in and receivables from those VIE's, which is approximately $5,530,357 at March 31, 2005. Gateway may be subject to additional losses to the extent of any financial support that Gateway voluntarily provides to those Project Partnerships in the future.

---

NOTE 3 - INVESTMENT IN SECURITIES:   The March 31, 2005 Balance Sheet includes Investment in Securities consisting of U.S. Treasury Security Strips which represents their cost, plus accreted interest income of $128,446 for Series 7, $115,115 for Series 8, $77,077 for Series 9, $77,070 for Series 10 and $89,646 for Series 11.

|                                                                                                                 | Estimated Market
Value     
--------------- | Cost Plus Accreted
Interest    
---------------- | Gross Unrealized 
Gains and (Losses)
----------------
|---------------------------------------------------------------------------------------------------------------- | ------------------------------------------- | ------------------------------------------------ | -----------------------------------------------------
|Series 7                                                                                                         | $ 227,272                                   | $ 212,771                                        | $ 14,501                                             
|Series 8                                                                                                         | 215,107                                     | 202,675                                          | 12,432                                               
|Series 9                                                                                                         | 160,381                                     | 151,469                                          | 8,912                                                
|Series 10                                                                                                        | 153,890                                     | 142,201                                          | 11,689                                               
|Series 11                                                                                                        | 178,115                                     | 161,174                                          | 16,941                                               
|As of March 31, 2005, the cost and accreted interest of debt securities by contractual maturities is as follows: | Series 7
--------                           | Series 8
--------                                | Series 9
--------                                    
|Due within 1 year                                                                                                | $  72,445                                   | $  67,927                                        | $  38,890                                            
|After 1 year through 5 years                                                                                     | 140,326                                     | 134,748                                          | 112,579                                              
|After 5 years through 10 years                                                                                   | 0                                           | 0                                                | 0                                                    
|                                                                                                                 | ---------                                   | ---------                                        | ---------                                            
|Total Amount Carried on Balance Sheet                                                                            | $ 212,771 
=========                        | $ 202,675 
=========                             | $ 151,469 
=========                                 
|                                                                                                                 | Series 10
--------                          | Series 11
--------                               | Total
--------                                       
|Due within 1 year                                                                                                | $  29,480                                   | $  33,838                                        | $  242,580                                           
|After 1 year through 5 years                                                                                     | 112,721                                     | 127,336                                          | 627,710                                              
|After 5 years through 10 years                                                                                   | 0                                           | 0                                                | 0                                                    
|                                                                                                                 | ---------                                   | ---------                                        | ---------                                            
|Total Amount Carried on Balance Sheet                                                                            | $ 142,201 
=========                        | $ 161,174 
=========                             | $  870,290 
==========                               

---

NOTE 4 - RELATED PARTY TRANSACTIONS:   The Payable to General Partners primarily represents the asset management fees owed to the General Partners at the end of the period.  It is unsecured, due on demand and, in accordance with the limited partnership agreement, non-interest bearing.  Within the next 12 months, the Managing General Partner does not intend to demand payment on the portion of Asset Management Fees payable classified as long-term on the Balance Sheet.
   Value Partners, Inc., an affiliate of Gateway, acquired the general partner interest in Logan Heights, one of the Project Partnerships in Series 8, in 2003.
   For the periods ended March 31, 2005, 2004, and 2003 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.

|          | 2005 
----           | 2004 
----           | 2003 
----          
|--------- | -------------------- | -------------------- | --------------------
|Series 7  | $ 86,447             | $ 86,749             | $ 87,082            
|Series 8  | 89,908               | 90,313               | 90,730              
|Series 9  | 49,509               | 49,711               | 49,865              
|Series 10 | 33,819               | 33,890               | 34,013              
|Series 11 | 28,021 
---------    | 28,254 
---------    | 28,518 
---------   
|Total     | $ 287,704 
========= | $ 288,917 
========= | $ 290,208 
=========

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.

|          | 2005 
----          | 2004 
----          | 2003 
----         
|--------- | ------------------- | ------------------- | -------------------
|Series 7  | $ 56,857            | $ 56,842            | $ 32,765           
|Series 8  | 62,689              | 62,671              | 36,127             
|Series 9  | 34,990              | 34,979              | 20,164             
|Series 10 | 21,868              | 21,863              | 12,601             
|Series 11 | 17,494 
---------   | 17,491 
---------   | 10,081 
---------  
|Total     | $193,898 
========= | $193,846 
========= | $111,738 
=========

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS:SERIES 7
   As of March 31, 2005, the Partnership had acquired a 99% interest in the profits, losses and tax credits as a limited partner in 39 Project Partnerships which own and operate government assisted multi-family housing complexes.
   Cash flows from operations are allocated according to each Partnership agreement.  Upon dissolution proceeds will be distributed according to each Partnership agreement.
   The following is a summary of Investments in Project Partnerships as of:

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | MARCH 31, 2005
--------------                                                                                    | MARCH 31, 2004
--------------                                                                                   
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ---------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------
|Capital Contributions to Project Partner-  ships and purchase price paid for limited partner interests in Project Partnerships
Cumulative equity in losses of Project Partnerships (1) 
Cumulative distributions received from Project Partnerships
Investment in Project Partnerships before Adjustment
Excess of investment cost over the underlying assets acquired:
 Acquisition fees and expenses
 Accumulated amortization of acquisition  fees and expenses
Investments in Project Partnerships | $ 7,732,089 
(7,132,119)
(234,015)
-----------
365,955 
793,335 
(193,635)
-----------
$   965,655 
============ | $ 7,732,089 
(6,992,520)
(218,417)
-----------
521,152 
793,335 
(186,546)
-----------
$ 1,127,941 
============

In accordance with the Partnership's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $4,140,409 for the year ended March 31, 2005 and cumulative suspended losses of $3,469,144 for the year ended March 31, 2004 are not included.

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):SERIES 8
   As of March 31, 2005, the Partnership had acquired a 99% interest in the profits, losses and tax credits as a limited partner in 43 Project Partnerships which own and operate government assisted multi-family housing complexes.
   Cash flows from operations are allocated according to each Partnership agreement.
Upon dissolution proceeds will be distributed according to each Partnership agreement.
   The following is a summary of Investments in Project Partnerships as of:

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | MARCH 31, 2005
--------------                                                                                  | MARCH 31, 2004
--------------                                                                                 
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------
|Capital Contributions to Project Partner-  ships and purchase price paid for limited partner interests in Project Partnerships
Cumulative equity in losses of Project Partnerships (1) 
Cumulative distributions received from Project Partnerships
Investment in Project Partnerships before Adjustment
Excess of investment cost over the underlying assets acquired:
 Acquisition fees and expenses
 Accumulated amortization of acquisition  fees and expenses
Investments in Project Partnerships | $ 7,586,105 
(7,384,755)
(171,513)
-----------
29,837 
549,773 
(118,449)
-----------
$   461,161 
=========== | $ 7,586,105 
(7,343,360)
(163,828)
-----------
78,917 
549,773 
(115,895)
-----------
$   512,795 
===========

In accordance with the Partnership's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $4,846,424 for the year ended March 31, 2005 and cumulative suspended losses of $4,002,763 for the year ended March 31, 2004 are not included.

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):SERIES 9
   As of March 31, 2005, the Partnership had acquired a 99% interest in the profits, losses and tax credits as a limited partner in 24 Project Partnerships which own and operate government assisted multi-family housing complexes.
   Cash flows from operations are allocated according to each Partnership agreement.
Upon dissolution proceeds will be distributed according to each Partnership agreement.
   The following is a summary of Investments in Project Partnerships as of:

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | MARCH 31, 2005
--------------                                                                                  | MARCH 31, 2004
--------------                                                                                 
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------
|Capital Contributions to Project Partner-  ships and purchase price paid for limited partner interests in Project Partnerships
Cumulative equity in losses of Project Partnerships (1)
Cumulative distributions received from Project Partnerships
Investment in Project Partnerships before Adjustment
Excess of investment cost over the underlying assets acquired:
 Acquisition fees and expenses
 Accumulated amortization of acquisition  fees and expenses
Investments in Project Partnerships | $ 4,914,116 
(4,158,372)
(141,793)
-----------
613,951 
244,087 
(59,176)
-----------
$   798,862 
=========== | $ 4,914,116 
(4,000,688)
(133,676)
-----------
779,752 
244,087 
(56,799)
-----------
$   967,040 
===========

In accordance with the Partnership's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $1,528,748 for the year ended March 31, 2005 and cumulative suspended losses of $1,226,519 for the year ended March 31, 2004 are not included.

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):SERIES 10
   As of March 31, 2005, the Partnership had acquired a 99% interest in the profits, losses and tax credits as a limited partner in 15 Project Partnerships which own and operate government assisted multi-family housing complexes.
   Cash flows from operations are allocated according to each Partnership agreement.
Upon dissolution proceeds will be distributed according to each Partnership agreement.
   The following is a summary of Investments in Project Partnerships as of:

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | MARCH 31, 2005
--------------                                                                                    | MARCH 31, 2004
--------------                                                                                   
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------
|Capital Contributions to Project Partner-  ships and purchase price paid for limited partner interests in Project Partnerships
Cumulative equity in losses of Project Partnerships (1)
Cumulative distributions received from Project Partnerships
Investment in Project Partnerships before Adjustment
Excess of investment cost over the underlying assets acquired:
 Acquisition fees and expenses
 Accumulated amortization of acquisition  fees and expenses
Investments in Project Partnerships | $ 3,914,672 
(2,207,367)
(184,392)
-----------
1,522,913 
196,738 
(58,602)
-----------
$ 1,661,049 
=========== | $ 3,914,672 
(2,073,769)
(167,705)
-----------
1,673,198 
196,738 
(54,461)
-----------
$ 1,815,475 
===========

In accordance with the Partnership's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $204,444 for the year ended March 31, 2005 and cumulative suspended losses of $132,431 for the year ended March 31, 2004 are not included.

---

NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):SERIES 11
   As of March 31, 2005, the Partnership had acquired a 99% interest in the profits, losses and tax credits as a limited partner in 12 Project Partnerships which own and operate government assisted multi-family housing complexes.
   Cash flows from operations are allocated according to each Partnership agreement.
Upon dissolution proceeds will be distributed according to each Partnership agreement.
   The following is a summary of Investments in Project Partnerships as of:

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | MARCH 31, 2005
--------------                                                                                    | MARCH 31, 2004
--------------                                                                                   
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------
|Capital Contributions to Project Partner-  ships and purchase price paid for limited partner interests in Project Partnerships
Cumulative equity in losses of Project Partnerships 
Cumulative distributions received from Project Partnerships
Investment in Project Partnerships before Adjustment
Excess of investment cost over the underlying assets acquired:
 Acquisition fees and expenses
 Accumulated amortization of acquisition  fees and expenses
Investments in Project Partnerships | $ 4,128,042 
(1,507,601)
(164,993)
-----------
2,455,448 
290,335 
(81,003)
-----------
$ 2,664,780 
=========== | $ 4,128,042 
(1,394,995)
(149,310)
-----------
2,583,737 
290,335 
(74,660)
-----------
$ 2,799,412 
===========

In accordance with the Partnership's accounting policy to not carry Investments in Project Partnerships below zero, cumulative suspended losses of $372,590 for the year ended March 31, 2005 are not included and cumulative suspended losses of $208,165 for the year ended March 31, 2004 are not included.

---

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

|TOTAL SERIES 7 - 11                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | MARCH 31, 2005
--------------                                                                                        | MARCH 31, 2004
--------------                                                                                       
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------
|Capital Contributions to Project Partner-  ships 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 
(22,390,214)
(896,706)
-----------
4,988,104 
2,074,268 
(510,865)
-----------
$ 6,551,507 
=========== | $28,275,024 
(21,805,332)
(832,936)
-----------
5,636,756 
2,074,268 
(488,361)
-----------
$ 7,222,663 
===========

---

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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 2004 
-------                                                                                                                                                                                                                                                                                                                                                                                                                                  
|SUMMARIZED BALANCE SHEETS
Assets:
  Current assets
  Investment properties, net
  Other assets
    Total assets
Liabilities and Partners' Equity:
  Current liabilities
  Long-term debt
    Total liabilities
Partners' equity
  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 | (Unaudited)
$ 3,827,640 
28,630,723 
13,204 
-----------
$32,471,567 
===========
$   856,813 
35,849,766 
-----------
36,706,579 
-----------
(3,929,006)
(306,006)
-----------
(4,235,012)
-----------
$32,471,567 
===========
$ 6,666,046 
-----------
3,435,485 
2,558,539 
1,494,903 
-----------
7,488,927 
-----------
$  (822,881)
============
$   (12,017)
============
$  (810,864)
671,265 
------------
$  (139,599)
============

(1)  As of December 31, 2004, the largest Project Partnership constituted 5.1% and 5.7%, and as of December 31, 2003 the largest Project Partnership constituted 5.1% and 5.7% 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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 2004 
-------                                                                                                                                                                                                                                                                                                                                                                                                                                  
|SUMMARIZED BALANCE SHEETS
Assets:
  Current assets
  Investment properties, net
  Other assets
    Total assets
Liabilities and Partners' Equity:
  Current liabilities
  Long-term debt
    Total liabilities
Partners' equity
  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 | (Unaudited)
$ 3,739,242 
29,898,977 
43,322 
-----------
$33,681,541 
===========
$ 1,239,508 
37,745,148 
-----------
38,984,656 
-----------
(4,664,925)
(638,190)
-----------
(5,303,115)
-----------
$33,681,541 
===========
$ 6,504,960 
-----------
3,374,344 
2,511,212 
1,512,305 
-----------
7,397,861 
-----------
$  (892,901)
============
$    (7,845)
============
$  (885,056)
843,661 
------------
$   (41,395)
============

(1)  As of December 31, 2004, the largest Project Partnership constituted 5.3% and 4.0%, and as of December 31, 2003 the largest Project Partnership constituted 5.3% and 4.1% of the combined total assets by series and combined total revenues by series, respectively.
An affiliate of the General Partner is the operating general partner in one of the Project Partnerships included above.  The Project Partnership has total assets of $575,462, total liabilities of $820,380, Gateway equity of ($128,640), other partners equity of ($116,278), total revenue of $86,206, and net loss of $23,605.  The Project Partnership was not a related party as of December 31, 2002 and 2001.

---

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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 2004 
-------                                                                                                                                                                                                                                                                                                                                                                                                                               
|SUMMARIZED BALANCE SHEETS
Assets:
  Current assets
  Investment properties, net
  Other assets
    Total assets
Liabilities and Partners' Equity:
  Current liabilities
  Long-term debt
    Total liabilities
Partners' equity
  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 | (Unaudited)
$ 1,930,617 
17,164,568 
4,302 
-----------
$19,099,487 
===========
$   324,971 
20,040,773 
-----------
20,365,744 
-----------
(960,476)
(305,781)
-----------
(1,266,257)
-----------
$19,099,487 
===========
$ 3,352,708 
-----------
1,715,832 
1,315,209 
786,226 
------------
3,817,267 
------------
$  (464,559)
============
$    (4,646)
============
$  (459,913)
302,229 
------------
$  (157,684)
============

(1)  As of December 31, 2004, the largest Project Partnership constituted 7.7% and 6.5%, and as of December 31, 2003 the largest Project Partnership constituted 7.7% and 6.4% 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 10                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 2004 
-------                                                                                                                                                                                                                                                                                                                                                                                                                   
|SUMMARIZED BALANCE SHEETS
Assets:
  Current assets
  Investment properties, net
  Other assets
    Total assets
Liabilities and Partners' Equity:
  Current liabilities
  Long-term debt
    Total liabilities
Partners' equity
  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 | (Unaudited)
$ 1,724,502 
12,653,063 
1,974 
-----------
$14,379,539 
===========
$   320,218 
13,126,101 
-----------
13,446,319 
-----------
1,311,594 
(378,374)
-----------
933,220 
-----------
$14,379,539 
===========
$ 2,195,063 
-----------
1,153,775 
781,972 
469,719 
-----------
2,405,466 
-----------
$ (210,403)
===========
$   (3,449)
===========
$ (206,954)
73,357 
------------
$  (133,597)
============

(1)  As of December 31, 2004, the largest Project Partnership constituted 10.6% and 12.0%, and as of December 31, 2003 the largest Project Partnership constituted 11.3% and 12.2% 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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 2004 
-------                                                                                                                                                                                                                                                                                                                                                                                                                    
|SUMMARIZED BALANCE SHEETS
Assets:
  Current assets
  Investment properties, net
  Other assets
    Total assets
Liabilities and Partners' Equity:
  Current liabilities
  Long-term debt
    Total liabilities
Partners' equity
  Limited Partner
  General Partners
    Total Partners' equity
    Total liabilities and     partners' equity
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income
Expenses:
  Operating expenses
  Interest expense
  Depreciation and amortization
    Total expenses
      Net loss
Other partners' share of net loss
Partnership's share of net loss
Suspended losses
Equity in Losses of Project Partnerships | (Unaudited)
$   946,787 
10,794,371 
294,853 
-----------
$12,036,011 
===========
$   236,290 
9,982,493 
-----------
10,218,783 
-----------
2,090,653 
(273,425)
-----------
1,817,228 
-----------
$12,036,011 
===========
$ 1,807,439 
-----------
1,113,123 
478,503 
511,998 
-----------
2,103,624 
-----------
$ (296,185)
===========
$  (19,155)
===========
$ (277,030)
164,424 
-----------
$ (112,606)
===========

(1)  As of December 31, 2004, the largest Project Partnership constituted 19.9% and 20.2%, and as of December 31, 2003 the largest Project Partnership constituted 20.2% and 20.7% 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,                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|TOTAL SERIES 7 - 11                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 2004 
-------                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|SUMMARIZED BALANCE SHEETS
Assets:
  Current assets
  Investment properties, net
  Other assets
    Total assets
Liabilities and Partners' Equity:
  Current liabilities
  Long-term debt
    Total liabilities
Partners' equity
  Limited Partner
  General Partners
    Total Partners' equity
    Total liabilities and     partners' equity
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income
Expenses:
  Operating expenses
  Interest expense
  Depreciation and amortization
    Total expenses
      Net loss
Other partners' share of net loss
Partnership's share of net loss
Suspended losses
Equity in Losses of Project Partnerships | (Unaudited)
$ 12,168,788 
99,141,702 
357,655 
------------
$111,668,145 
============
$  2,977,800 
116,744,281 
------------
119,722,081 
------------
(6,152,160)
(1,901,776)
------------
(8,053,936)
------------
$111,668,145 
============
$ 20,526,216 
------------
10,792,559 
7,645,435 
4,775,151 
------------
23,213,145 
------------
$(2,686,929)
============
$   (47,112)
============
$(2,639,817)
2,054,936 
------------
$  (584,881)
============

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 | $(3,929,006)
(4,664,925)
(960,476)
1,311,594 
2,090,653 | $  365,955 
29,837 
613,951 
1,522,913 
2,455,448

---

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                                                                                                                     | 2005
----                         | 2004
----                         | 2003
----                        
|---------------------------------------------------------------------------------------------------------------------------- | --------------------------------- | --------------------------------- | ---------------------------------
|Net Loss per Financial Statements                                                                                            | $(261,487)                        | $(261,362)                        | $(233,056)                       
|Equity in Losses of Project Partnerships for tax purposes less than (in excess of) losses for financial statement purposes   | (923,850)                         | (1,006,515)                       | (927,361)                        
|Adjustments to convert March 31, fiscal year end to December 31, taxable year end                                            | (17,690)                          | 22,774                            | 21,890                           
|Items Expensed for Financial Statement purposes not expensed for Tax purposes:
  Asset Management Fee
  Amortization Expense | 91,474 
6,643 
-----------        | 24,255 
6,655 
-----------        | 43,642 
(9,419)
-----------      
|Partnership loss for tax purposes as of December 31                                                                          | $(1,104,910)
============         | $(1,214,193)
============         | $(1,104,304)
============        
|                                                                                                                             | December 31,
2004   
------------ | December 31,
2003   
------------ | December 31,
2002   
------------
|Federal Low Income Housing Tax Credits  (Unaudited)                                                                          | $   224,290 
===========          | $   975,096 
===========          | $ 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, 2005 are as follows:
                             	Financial         	Tax
                             	Reporting         	Reporting
                             	Purposes	#9;           	Purposes        		DifferencesInvestments in Local
Limited Partnerships          $  965,655         $(5,171,889)        $ 6,137,544
Other Assets                  $  596,113         $ 1,792,288         $(1,196,175)
Liabilities                   $  611,609         $    (6,381)        $   617,990

---

NOTE 6 - TAXABLE INCOME (LOSS)(Continued):   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                                                                                                                     | 2005
----                         | 2004
----                         | 2003
----                        
|---------------------------------------------------------------------------------------------------------------------------- | --------------------------------- | --------------------------------- | ---------------------------------
|Net Loss per Financial Statements                                                                                            | $  (179,166)                      | $  (176,442)                      | $  (193,325)                     
|Equity in Losses of Project Partnerships for tax purposes less than (in excess of) losses for financial statement purposes   | (1,018,059)                       | (1,119,372)                       | (1,046,407)                      
|Adjustments to convert March 31, fiscal year end to December 31, taxable year end                                            | (8,575)                           | 16,451                            | (2,521)                          
|Items Expensed for Financial Statement purposes not expensed for Tax purposes:
  Asset Management Fee
  Amortization Expense | 31,002 
3,072 
-----------        | 43,926 
3,489 
-----------        | 58,766 
2,753 
-----------       
|Partnership loss for tax purposes as of December 31                                                                          | $(1,171,726)
============         | $(1,231,948)
============         | $(1,180,734)
============        
|                                                                                                                             | December 31,
2004   
------------ | December 31,
2003   
------------ | December 31,
2002   
------------
|Federal Low Income Housing Tax Credits  (Unaudited)                                                                          | $   565,711 
===========          | $ 1,417,434 
===========          | $ 1,617,063 
===========         

The differences in the assets and liabilities of the Series for financial reporting purposes and tax reporting purposes for the year ended March 31, 2005 are as follows:
                               Financial          Tax
                               Reporting          Reporting
                               Purposes          Purposes      Differences
Investments in Local
Limited Partnerships           $  461,161         $(5,635,828)     $ 6,096,989
Other Assets                   $  552,557         $ 1,748,450      $ 1,195,893
Liabilities                    $  639,507         $    (6,966)     $   646,473

---

NOTE 6 - TAXABLE INCOME (LOSS)(Continued):   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                                                                                                                     | 2005
----                         | 2004
----                         | 20032
----                       
|---------------------------------------------------------------------------------------------------------------------------- | --------------------------------- | --------------------------------- | ---------------------------------
|Net Loss per Financial Statements                                                                                            | $  (234,846)                      | $  (311,941)                      | $  (346,402)                     
|Equity in Losses of Project Partnerships for tax purposes less than (in excess of) losses for financial statement purposes   | (421,291)                         | (423,589)                         | (460,255)                        
|Adjustments to convert March 31, fiscal year end to December 31, taxable year end                                            | (7,265)                           | 6,255                             | 4,083                            
|Items Expensed for Financial Statement purposes not expensed for Tax purposes:
  Asset Management Fee
  Amortization Expense | 16,737 
3,082 
-----------        | 40,841 
3,127 
-----------        | 41,045 
2,281 
-----------       
|Partnership loss for tax purposes as of December 31                                                                          | $  (643,583)
============         | $  (685,307)
============         | $  (759,248)
============        
|                                                                                                                             | December 31,
2004   
------------ | December 31,
2003   
------------ | December 31,
2002   
------------
|Federal Low Income Housing Tax Credits  (Unaudited)                                                                          | $   644,340 
============         | $   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, 2005 are as follows:
                               Financial         Tax
                               Reporting         Reporting
                               Purposes         Purposes        Differences

Investments in Local
Limited Partnerships          $   798,862        $(1,955,314)      $ 2,754,176
Other Assets                  $   381,366        $ 1,132,192       $  (750,826)
Liabilities                   $   404,547        $     4,037       $   400,510

---

NOTE 6 - TAXABLE INCOME (LOSS)(Continued):   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                                                                                                                    | 2005
----                         | 2004
----                         | 2003
----                        
|---------------------------------------------------------------------------------------------------------------------------- | --------------------------------- | --------------------------------- | ---------------------------------
|Net Loss per Financial Statements                                                                                            | $  (186,326)                      | $  (228,743)                      | $  (246,694)                     
|Equity in Losses of Project Partnerships for tax purposes less than (in excess of) losses for financial statement purposes   | (260,311)                         | (208,567)                         | (206,405)                        
|Adjustments to convert March 31, fiscal year end to December 31, taxable year end                                            | (2,089)                           | 1,856                             | 2,066                            
|Items Expensed for Financial Statement purposes not expensed for Tax purposes:
  Asset Management Fee
  Amortization Expense | (89,867)
4,578 
-----------       | 12,745 
4,639 
-----------        | 15,375 
4,204 
-----------       
|Partnership loss for tax purposes as of December 31                                                                          | $  (534,015)
============         | $  (418,070)
============         | $  (431,454)
============        
|                                                                                                                             | December 31,
2004   
------------ | December 31,
2003   
------------ | December 31,
2002   
------------
|Federal Low Income Housing Tax Credits  (Unaudited)                                                                          | $   540,394 
============         | $   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, 2005 are as follows:
                               Financial          Tax
                               Reporting          Reporting
                               Purposes           Purposes        Differences

Investments in Local
Limited Partnerships           $ 1,661,049        $  (196,175)     $ 1,857,224
Other Assets                   $   284,839        $   888,645      $  (603,806)
Liabilities                    $    40,082        $     2,610      $    37,472

---

NOTE 6 - TAXABLE INCOME (LOSS)(Continued):   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                                                                                                                    | 2005
----                         | 2004
----                         | 2003
----                        
|---------------------------------------------------------------------------------------------------------------------------- | --------------------------------- | --------------------------------- | ---------------------------------
|Net Loss per Financial Statements                                                                                            | $  (153,967)                      | $  (143,577)                      | $  (207,311)                     
|Equity in Losses of Project Partnerships for tax purposes less than (in excess of) losses for financial statement purposes   | (207,948)                         | (225,717)                         | (80,878)                         
|Adjustments to convert March 31, fiscal year end to December 31, taxable year end                                            | (3,760)                           | 1,662                             | 1,090                            
|Items Expensed for Financial Statement purposes not expensed for Tax purposes:
  Asset Management Fee
  Amortization Expense | (131,503)
6,726 
-----------      | (5,493)
7,123 
-----------        | (4,403)
8,295 
-----------       
|Partnership loss for tax purposes as of December 31                                                                          | $  (490,452)
============         | $  (366,002)
============         | $  (283,207)
============        
|                                                                                                                             | December 31,
2004   
------------ | December 31,
2003   
------------ | December 31,
2002   
------------
|Federal Low Income Housing Tax Credits  (Unaudited)                                                                          | $   754,678 
============         | $   754,678 
============         | $   754,678 
============        

The differences in the assets and liabilities of the Series for financial reporting purposes and tax reporting purposes for the year ended March 31, 2005 are as follows:
                                Financial         Tax
                                Reporting         Reporting
                                Purposes         Purposes         Differences

Investments in Local
Limited Partnerships            $ 2,664,780       $ 1,822,136       $   842,644
Other Assets                    $   369,396       $   791,891       $  (422,495)
Liabilities                     $         0       $    60,223       $   (60,223)

---

NOTE 6 - TAXABLE INCOME (LOSS)(Continued):   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                                                                                                           | 2005
----                    | 2004
----                    | 2003
----                  
|---------------------------------------------------------------------------------------------------------------------------- | ---------------------------- | ---------------------------- | ---------------------------
|Net Loss per Financial Statements                                                                                            | $(1,015,792)                 | $(1,122,065)                 | $(1,226,788)               
|Equity in Losses of Project Partnerships for tax purposes less than (in excess of) losses for financial statement purposes   | (2,831,459)                  | (2,983,760)                  | (2,721,306)                
|Adjustments to convert March 31, fiscal year end to December 31, taxable year end                                            | (39,379)                     | 48,998                       | 26,608                     
|Items Expensed for Financial Statement purposes not expensed for Tax purposes:
  Asset Management Fee
  Amortization Expense | (82,157)
24,101 
----------- | 116,274 
25,032 
----------- | 154,425 
8,114 
-----------
|Partnership loss for tax purposes as of December 31                                                                          | $(3,944,686)
============    | $(3,915,521)
============    | $(3,758,947)
============  

The difference in the total value of the Partnership's Investment in Project Partnerships is approximately $5,205,718 higher for Series 7, $5,071,160 higher for Series 8, $2,328,343 higher for Series 9, $1,597,854 higher for Series 10 and $637,661 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, 2005 are as follows:
                               Financial         Tax
                               Reporting         Reporting
                               Purposes         Purposes        Differences

Investments in Local
Limited Partnerships           $ 6,551,507       $(11,137,070)       $17,688,577
Other Assets                   $ 2,184,271       $  6,353,466        $(4,169,195)
Liabilities                    $ 1,695,745       $     53,523        $ 1,642,222

---

NOTE 7 - SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED):
Series 7Year 2005                Quarter 1	     Quarter 2     Quarter 3     Quarter 4
                         6/30/2004     9/30/2004     12/31/2004     3/31/2005
Total Revenues           $   8,614     $   15,568    $    9,642     $   12,878
Net Income (Loss)        $ (70,712)    $  (57,558)   $  (65,174)    $ (68,043)
Earnings (Loss) Per
Weighted Average
Beneficial Assignee
Certificates Outstanding $   (6.73)    $    (5.48)   $    (6.21)    $   (6.48)
Series 8Year 2005               Quarter 1     Quarter 2     Quarter 3     Quarter 4
                         6/30/2004     9/30/2004     2/31/2004     3/31/2005Total Revenues           $   9,239     $   7,382     $  12,156     $   7,954
Net Income (Loss)        $ (46,021)    $ (52,110)    $ (47,086)    $ (33,949)
Earnings (Loss) Per
Weighted Average
Beneficial Assignee
Certificates Outstanding $   (4.57)    $   (5.17)    $   (4.67)    $   (3.37)
Series 9Year 2005                Quarter 1     Quarter 2	     Quarter 3     Quarter 4
                         6/30/2004     9/30/2004     12/31/2004     3/31/2005
Total Revenues           $   5,465     $   3,252     $   6,518     $   5,739
Net Income (Loss)        $ (67,293)    $ (68,821)    $ (14,543)    $ (84,189)
Earnings (Loss) Per
Weighted Average
Beneficial Assignee
Certificates Outstanding $  (10.65)    $  (10.89)    $   (2.30)    $  (13.33)

---

NOTE 7 - SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)(Continued):Series 10
Year 2005                Quarter 1     Quarter 2     Quarter 3     Quarter 4
                         6/30/2004     9/30/2004     12/31/2004     3/31/2005
Total Revenues           $   4,428     $   4,026     $   4,177      $   2,617
Net Income (Loss)        $ (50,165)    $ (50,258)    $ (63,785)     $ (22,118)
Earnings (Loss) Per
Weighted Average
Beneficial Assignee
Certificates Outstanding $   (9.85)    $   (9.87)    $  (12.52)     $   (4.34)

---

NOTE 7 - SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Continued):
Series 7Year 2004                Quarter 1	     Quarter 2     Quarter 3     Quarter 4
                         6/30/2003     9/30/2003     12/31/2003     3/31/2004
Total Revenues           $   7,946     $    6,109    $   13,495     $   11,137
Net Income (Loss)        $ (78,203)    $  (26,171)   $  (84,911)    $ (72,077)
Earnings (Loss) Per
Weighted Average
Beneficial Assignee
Certificates Outstanding $   (7.45)    $    (2.49)   $    (8.09)    $   (6.86)
Series 8Year 2004               Quarter 1     Quarter 2     Quarter 3     Quarter 4
                         6/30/2003     9/30/2003     2/31/2003     3/31/2004Total Revenues           $   5,669     $   6,911     $  16,282     $  13,036
Net Income (Loss)        $ (64,767)    $ (44,859)    $ (53,474)    $ (13,342)
Earnings (Loss) Per
Weighted Average
Beneficial Assignee
Certificates Outstanding $   (6.42)    $   (4.45)    $   (5.30)    $   (1.33)
Series 9Year 2004	                Quarter 1     Quarter 2	     Quarter 3     Quarter 4
                         6/30/2003     9/30/2003     12/31/2003     3/31/2004
Total Revenues           $   4,335     $   5,039     $   4,077     $   4,402
Net Income (Loss)        $ (84,012)    $ (64,015)    $ (69,472)    $ (94,442)
Earnings (Loss) Per
Weighted Average
Beneficial Assignee
Certificates Outstanding $  (13.30)    $  (10.13)    $  (11.00)    $  (14.95)

---

NOTE 7 - SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)(Continued):Series 10
Year 2004                Quarter 1     Quarter 2     Quarter 3     Quarter 4
                         6/30/2003     9/30/2003     12/31/2003     3/31/2004
Total Revenues           $   3,430     $   3,399     $   4,946      $   3,409
Net Income (Loss)        $ (55,433)    $ (59,064)    $ (64,986)     $ (49,260)
Earnings (Loss) Per
Weighted Average
Beneficial Assignee
Certificates Outstanding $  (10.88)    $  (11.59)    $  (12.76)     $   (9.68)

---

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, as of December 31, 2004 and 2003, 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.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted the audits in accordance with the standards of the Public Company Accounting Oversight Board (United States).  Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement.  The partnership has determined that it is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting.  Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the partnership's internal control over financial reporting.  Accordingly, we express no such opinion.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that the audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Lakeshore II, Ltd., as of December 31, 2004 and 2003, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States.

The audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole.  The supplemental information on pages 10 and 11 is presented for purposes of additional analysis and is not a required part of the basic financial statements.  Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in our opinion is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

/s/ Donald W. Causey & Associates, P.C.
Certified Public Accountants
Gadsden, Alabama
February 27, 2005

---

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

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

To the Partners 
Skyview Apartments, Ltd.
Troy, Alabama

We have audited the accompanying balance sheets of Skyview Apartments, Ltd., a limited partnership, as of December 31, 2004 and 2003, 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.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted the audits in accordance with the standards of the Public Company Accounting Oversight Board (United States).  Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement.  The partnership has determined that it is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting.  Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the partnership's internal control over financial reporting.  Accordingly, we express no such opinion.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that the audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Skyview Apartments, Ltd., as of December 31, 2004 and 2003, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States.

The audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole.  The supplemental information on pages 10 and 11 is presented for purposes of additional analysis and is not a required part of the basic financial statements.  Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in our opinion is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

/s/ Donald W. Causey & Associates, P.C.
Certified Public Accountants
Gadsden, Alabama
February 6, 2005

---

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, 2004 and 2003, 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.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted the audits in accordance with the standards of the Public Company Accounting Oversight Board (United States).  Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement.  The partnership has determined that it is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting.  Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the partnership's internal control over financial reporting.  Accordingly, we express no such opinion.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that the audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Meadowview Apartments, Ltd., as of December 31, 2004 and 2003, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States.

The audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole.  The supplemental information on pages 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 23, 2005

---

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, 2004 and 2003, 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.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted the audits in accordance with the standards of the Public Company Accounting Oversight Board (United States).  Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement.  The partnership has determined that it is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting.  Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the partnership's internal control over financial reporting.  Accordingly, we express no such opinion.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that the audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Applegate Apartments, Ltd., as of December 31, 2004 and 2003, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States.

The audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole.  The supplemental information on pages 10 and 11 is presented for purposes of additional analysis and is not a required part of the basic financial statements.  Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in our opinion is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

/s/ Donald W. Causey & Associates, P.C.
Certified Public Accountants
Gadsden, Alabama
February 21, 2005

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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
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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, 2004 and 2003, 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.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted the audits in accordance with the standards of the Public Company Accounting Oversight Board (United States).  Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement.  The partnership has determined that it is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting.  Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the partnership's internal control over financial reporting.  Accordingly, we express no such opinion.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that the audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Heatherwood Apartments, Ltd., as of December 31, 2004 and 2003, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States.

The audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole.  The supplemental information on pages 10 and 11 is presented for purposes of additional analysis and is not a required part of the basic financial statements.  Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in our opinion is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

/s/ Donald W. Causey & Associates, P.C.
Certified Public Accountants
Gadsden, Alabama
February 12, 2005

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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.

Date: January 20, 2006            By:/s/ Ronald M. Diner                                  Ronald M. Diner
                                  President
Date: January 20, 2006            By:/s/ Jonathan Oorlog
                                  Jonathan Oorlog
                                  Vice President and Chief Financial Officer
Date: January 20, 2006            By:/s/ Sandra C. Humphreys                                  Sandra C. Humphreys
                                  Secretary and Treasurer

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EXHIBIT 31.1CERTIFICATIONS*

I, Ron Diner, certify that:
1. I have reviewed this annual report on Form 10-K of Gateway Tax Credit Fund III, Ltd.;
2. Based on my knowledge, this annual report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this annual report;
3. Based on my knowledge, the financial statements, and other financial information include in this annual report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this annual report;
4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:
a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this annual report is being prepared;
b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this annual report (the "Evaluation Date"); and
c) presented in this annual report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date;
5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function):
a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and
b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and
6. The registrant's other certifying officers and I have indicated in this annual report whether there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.
Date: January 20, 2006            By:/s/ Ronald M. Diner                                  Ronald M. Diner
                                  President

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EXHIBIT 31.2CERTIFICATIONS
I, Jonathan Oorlog, certify that:
1. I have reviewed this annual report on Form 10-K of Gateway Tax Credit Fund III, Ltd.;
2. Based on my knowledge, this annual report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this annual report;
3. Based on my knowledge, the financial statements, and other financial information include in this annual report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this annual report;
4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:
a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this annual report is being prepared;
b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this annual report (the "Evaluation Date"); and
c) presented in this annual report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date;
5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function):
a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and
b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and
6. The registrant's other certifying officers and I have indicated in this annual report whether there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.
Date: January 20, 2006            By:/s/ Jonathan Oorlog
                                  Jonathan Oorlog
                                  Vice President and Chief Financial Officer