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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549

FORM 10-Q

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

For The Quarterly Period Ended              SEPTEMBER 30, 2002                 

Commission File Number                          0-21762                        

                            Gateway Tax Credit Fund III Ltd.                   
                 (Exact name of Registrant as specified in its charter)

         Florida                                            59-3090386         
(State or other jurisdiction of                      (I.R.S. Employer No.)
 incorporation or organization)

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

Registrant's Telephone Number, Including Area Code:         (727) 567-1000     

Indicate by check mark whether the Registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
                                        YES   X        NO      


                                                       Number of Units
Title of Each Class                                  September 30, 2002
Units of Limited Partnership
Interest: $1,000 per unit                                   33,799

DOCUMENTS INCORPORATED BY REFERENCE

Parts I and II, 2001 Form 10-K, filed with the
Securities and Exchange Commission on July 9, 2002
Parts III and IV - Form S-11 Registration Statement
and all amendments and supplements thereto
File No. 33-44238


PART I - Financial Information
Item 1.  Financial Statements

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

SERIES 7

SEPTEMBER 30,
2002
- -------
(Unaudited)

MARCH 31,
2002
- -------
(Audited)

ASSETS
Current Assets:
 Cash and Cash Equivalents
 Investments in Securities

  Total Current Assets

 Investments in Securities
 Investments in Project Partnerships, Net

    Total Assets

LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners

  Total Current Liabilities

Long-Term Liabilities:
 Payable to General Partners

Partners' Equity (Deficit):
Limited Partners (10,395 units for Series 7, 9,980 for Series 8, 6,254 for Series 9, 5,043 for Series 10 and 5,127 for Series 11 at September 30, 2002 and March 31, 2002)
General Partners

  Total Partners' Equity

    Total Liabilities and Partners' Equity


 
$   353,098 
62,570 
- -----------
415,668 

299,942 
1,344,844 
- -----------
$ 2,060,454 
===========


$    87,716 
- -----------
87,716 
- -----------

401,264 
- -----------




1,647,037 
(75,563)
- -----------
1,571,474 
- -----------
$ 2,060,454 
===========


 
$   384,626 
60,470 
- -----------
445,096 

289,290 
1,436,847 
- -----------
$ 2,171,233 
===========


$    68,252 
- -----------
68,252 
- -----------

396,917 
- -----------




1,780,281 
(74,217)
- -----------
1,706,064 
- -----------
$ 2,171,233 
===========


See accompanying notes to financial statements.


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

SERIES 8

SEPTEMBER 30,
2002
- -------
(Unaudited)

MARCH 31,
2002
- -------
(Audited)

ASSETS
Current Assets:
 Cash and Cash Equivalents
 Investments in Securities

  Total Current Assets

 Investments in Securities
 Investments in Project Partnerships, Net

    Total Assets

LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners

  Total Current Liabilities

Long-Term Liabilities:
 Payable to General Partners

Partners' Equity (Deficit):
Limited Partners (10,395 units for Series 7, 9,980 for Series 8, 6,254 for Series 9, 5,043 for Series 10 and 5,127 for Series 11 at September 30, 2002 and March 31, 2002)
General Partners

  Total Partners' Equity

    Total Liabilities and Partners' Equity



 $   429,162 
57,717 
- -----------
486,879 

285,283 
584,189 
- -----------
$ 1,356,351 
===========


$    81,975 
- -----------
81,975 
- -----------

477,016 
- -----------




877,012 
(79,652)
- -----------
797,360 
- -----------
$ 1,356,351 
===========



 $   456,356 
55,888 
- -----------
512,244 

275,718 
654,569 
- -----------
$ 1,442,531 
===========


$    60,485 
- -----------
60,485
- -----------

458,902 
- -----------




1,001,538 
(78,394)
- -----------
923,144 
- -----------
$ 1,442,531 
===========


See accompanying notes to financial statements.


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

SERIES 9

SEPTEMBER 30,
2002
- -------
(Unaudited)

MARCH 31,
2002
- -------
(Audited)

SSETS
Current Assets:
 Cash and Cash Equivalents
 Investments in Securities

  Total Current Assets

 Investments in Securities
 Investments in Project Partnerships, Net

    Total Assets

LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners

    Total Current Liabilities

Long-Term Liabilities:
 Payable to General Partners

Partners' Equity (Deficit):
Limited Partners (10,395 units for Series 7, 9,980 for Series 8, 6,254 for Series 9, 5,043 for Series 10 and 5,127 for Series 11 at September 30, 2002 and March 31, 2002)
General Partners

  Total Partners' Equity

    Total Liabilities and Partners' Equity



$   246,024 
34,301 
- -----------
280,325 

197,571 
1,354,701 
- -----------
$ 1,832,597 
===========


$    46,616 
- -----------
46,616 
- -----------

298,218 
- -----------




1,527,722 
(39,959)
- -----------
1,487,763 
- -----------
$ 1,832,597 
===========

 

$   251,331 
33,325 
- ------------
284,656 

191,591 
1,506,444
- -----------
$ 1,982,691 
===========


$    34,316 
- -----------
34,316 
- -----------

279,505 
- -----------




1,707,018 
(38,148)
- -----------
1,668,870 
- -----------
$ 1,982,691 
===========


See accompanying notes to financial statements.



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

SERIES 10

SEPTEMBER 30,
2002
- -------
(Unaudited)

MARCH 31,
2002
- -------
(Audited)

ASSETS
Current Assets:
 Cash and Cash Equivalents
 Investments in Securities

  Total Current Assets

 Investments in Securities
 Investments in Project Partnerships, Net

    Total Assets

LIABILITIES AND PARTNERS' EQUITY

Current Liabilities:
 Payable to General Partners

    Total Current Liabilities

Long-Term Liabilities:
 Payable to General Partners

Partners' Equity (Deficit):
Limited Partners (10,395 units for Series 7, 9,980 for Series 8, 6,254 for Series 9, 5,043 for Series 10 and 5,127 for Series 11 at September 30, 2002 and March 31, 2002)
General Partners

  Total Partners' Equity

    Total Liabilities and Partners' Equity


 
$   236,670 
26,534 
- -----------
263,204 

169,793 
2,150,229 
- -----------
$ 2,583,226 
===========

 

$    41,959 
- -----------
41,959 
- -----------

72,359 
- -----------




2,488,399 
(19,491)
- -----------
2,468,908 
- -----------
$ 2,583,226 
===========



 $   252,149 
25,668 
- -----------
277,817 

163,967 
2,232,728 
- -----------
$ 2,674,512 
===========

 

$    34,582 
- -----------
34,582 
- -----------

72,361 
- -----------




2,586,073 
(18,504)
- -----------
2,567,569 
- -----------
$ 2,674,512 
===========


See accompanying notes to financial statements.



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

SERIES 11

SEPTEMBER 30,
2002
- -------
(Unaudited)

MARCH 31,
2002
- -------
(Audited)

ASSETS
Current Assets:
 Cash and Cash Equivalents
 Investments in Securities

  Total Current Assets

 Investments in Securities
 Investments in Project Partnerships, Net

    Total Assets

LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners

  Total Current Liabilities

Long-Term Liabilities:
 Payable to General Partners

Partners' Equity (Deficit):
Limited Partners (10,395 units for Series 7, 9,980 for Series 8, 6,254 for Series 9, 5,043 for Series 10 and 5,127 for Series 11 at September 30, 2002 and March 31, 2002)
General Partners

  Total Partners' Equity

    Total Liabilities and Partners' Equity


 
$   294,392 
29,294 
- -----------
323,686 

191,520 
3,029,627 
- -----------
$ 3,544,833 
===========


$    39,010 
- -----------
39,010 
- -----------

57,832 
- -----------




3,459,501 
(11,510)
- -----------
3,447,991 
- -----------
$ 3,544,833 
===========


 
$   266,059 
28,271 
- -----------
294,330 

184,577 
3,111,560 
- -----------
$ 3,590,467 
===========


$    34,342 
- -----------
34,342 
- -----------

7,094 
- -----------




3,549,611 
(10,600)
- -----------
3,539,031 
- -----------
$ 3,590,467 
===========


See accompanying notes to financial statements.


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

TOTAL SERIES 7 - 11

SEPTEMBER 30,
2002
- -------
(Unaudited)

MARCH 31,
2002
- -------
(Audited)

ASSETS
Current Assets:
 Cash and Cash Equivalents
 Investments in Securities

Total Current Assets

 Investments in Securities
 Investments in Project Partnerships, Net

    Total Assets

LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
 Payable to General Partners

  Total Current Liabilities

Long-Term Liabilities:
 Payable to General Partners

Partners' Equity (Deficit):
Limited Partners (10,395 units for Series 7, 9,980 for Series 8, 6,254 for Series 9, 5,043 for Series 10 and 5,127 for Series 11 at September 30, 2002 and March 31, 2002)
General Partners

  Total Partners' Equity

    Total Liabilities and Partners' Equity

 

$ 1,559,346 
210,416 
- -----------
1,769,762 

1,144,109 
8,463,590 
- -----------
$11,377,461 
===========

 
$   297,276 
- -----------
297,276 
- -----------


1,306,689 
- -----------




9,999,672 
(226,176)
- -----------
9,773,496 
- -----------
$11,377,461 
===========



$ 1,610,521 
203,622 
- -----------
1,814,143 

1,105,143 
8,942,148 
- -----------
$11,861,434 
===========


$   231,977 
- -----------
231,977 
- -----------


1,224,779 
- -----------




10,624,541 
(219,863)
- -----------
10,404,678 
- -----------
$11,861,434 
===========


See accompanying notes to financial statements.


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

STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30,
(Unaudited)

SERIES 7

2002

2001

Revenues:
 Interest Income

Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization

  Total Expenses

Loss Before Equity in Losses of Project Partnerships
Equity in Losses of Project Partnerships

Net Loss

Allocation of Net Loss:
 Limited Partners
 General Partners



Net Loss Per Number of Limited Partnership Units
Number of Limited Partnership Units Outstanding


$     7,434 
- ----------

21,849 

11,980 
7,505 
1,671 
- ----------
43,005 
- ----------

(35,571)
(40,934)
- ----------
$   (76,505)
==========

$   (75,740)
(765)
- ----------
$   (76,505)
===========

$     (7.29)
===========
10,395 
===========


$     9,588 
- ----------

21,920 

6,153 
4,549 
9,756 
- ----------
42,378 
- ----------

(32,790)
(82,028)
- ----------
$  (114,818)
==========

$  (113,670)
(1,148)
- -----------
$  (114,818)
===========

$    (10.94)
===========
10,395 
===========


See accompanying notes to financial statements.


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

STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30,
(Unaudited)

SERIES 8

2002

2001

Revenues:
 Interest Income

Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization

  Total Expenses

Loss Before Equity in Losses of Project Partnerships
Equity in Losses of Project Partnerships

Net Loss

Allocation of Net Loss:
 Limited Partners
 General Partners



Net Loss Per Number of Limited Partnership Units
Number of Limited Partnership Units Outstanding


$     6,956 
- -----------

22,758 

13,231 
8,152 
1,185 
- -----------
45,326 
- -----------

(38,370)
(32,608)
- -----------
$   (70,978)
===========

$   (70,268)
(710)
- -----------
$   (70,978)
===========

$     (7.04)
===========
9,980 
===========


$    9,489 
- ----------

22,841 

6,784 
4,892 
1,847 
- ----------
36,364 
- ----------

(26,875)
(89,689)
- ----------
$ (116,564)
==========

$ (115,398)
(1,166)
- ----------
$ (116,564)
==========

$   (11.56)
==========
9,980 
==========


See accompanying notes to financial statements.


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

STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30,
(Unaudited)

SERIES 9

2002

2001

Revenues:
 Interest Income

Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization

  Total Expenses

Loss Before Equity in Losses of Project Partnerships
Equity in Losses of Project Partnerships

Net Loss

Allocation of Net Loss:
 Limited Partners
 General Partners



Net Loss Per Number of Limited Partnership Units
Number of Limited Partnership Units Outstanding


$     4,177 
- -----------

12,507 

7,385 
4,841 
814 
- -----------
25,547 
- -----------

(21,370)
(78,576)
- -----------
$   (99,946)
===========

$   (98,947)
(999)
- -----------
$   (99,946)
===========

$    (15.82)
===========
6,254 
===========


$    5,500  
- -----------

12,544 

3,786 
2,867 
1,138 
- -----------
20,335 
- -----------

(14,835)
(91,299)
- -----------
$  (106,134)
===========

$  (105,073)
(1,061)
- -----------
$  (106,134)
===========

$    (16.80)
===========
6,254 
===========


See accompanying notes to financial statements.


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

STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30,
(Unaudited)

SERIES 10

2002

2001

Revenues:
 Interest Income

Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization

  Total Expenses

Loss Before Equity in Losses of Project Partnerships
Equity in Losses of Project Partnerships

Net Loss

Allocation of Net Loss:
 Limited Partners
 General Partners



Net Loss Per Number of Limited Partnership Units
Number of Limited Partnership Units Outstanding


$    4,065 
- ----------

8,529 

4,615 
3,194 
1,203 
- ----------
17,541 
- ----------

(13,476)
(37,316)
- ----------
$  (50,792)
==========

$  (50,284)
(508)
- ----------
$  (50,792)
==========

$    (9.97)
==========
5,043 
==========


$    5,332 
- ----------

8,553 

2,367 
2,030 
1,406 
- ----------
14,356 
- ----------

(9,024)
(58,277)
- ----------
$  (67,301)
==========

$  (66,628)
(673)
- ----------
$  (67,301)
==========

$   (13.21)
==========
5,043 
==========


See accompanying notes to financial statements.


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

STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30,
(Unaudited)

SERIES 11

2002

2001

Revenues:
 Interest Income

Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization

  Total Expenses

Loss Before Equity in Losses Of Project Partnerships
Equity in Losses of Project Partnerships

Net Loss

Allocation of Net Loss:
 Limited Partners
 General Partners



Net Loss Per Number of Limited Partnership Units
Number of Limited Partnership Units Outstanding


$    4,721 
- ---------

7,192 

3,692 
2,825 
2,074 
- ----------
15,783 
- ----------

(11,062)
(28,650)
- ----------
$  (39,712)
==========

$  (39,315)
(397)
- ----------
$  (39,712)
==========

$    (7.67)
==========
5,127 
==========


$   6,078  
- ---------

7,271 

1,893 
1,849 
2,074 
- ---------
13,087 
- ---------

(7,009)
(60,994)
- ---------
$  (68,003)
==========

$  (67,323)
(680)
- ----------
$  (68,003)
==========

$   (13.13)
==========
5,127 
==========


See accompanying notes to financial statements.


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

STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30,
(Unaudited)

TOTAL SERIES 7 - 11

2002

2001

Revenues:
 Interest Income

Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization

  Total Expenses

Loss Before Equity in Losses of Project Partnerships
Equity in Losses of Project Partnerships

Net Loss

Allocation of Net Loss:
 Limited Partners
 General Partners


$   27,353 
- ----------

72,835 

40,903 
26,517 
6,947 
- ----------
147,202 
- ----------

(119,849)
(218,084)
- ----------
$ (337,933)
==========

$ (334,555)
(3,378)
- ---------
$ (337,933)
=========


$   35,987 
- ----------

73,129 

20,983 
16,187 
16,221 
- ----------
126,520 
- ----------

(90,533)
(382,287)
- ----------
$ (472,820)
==========

$ (468,091)
(4,729)
- ---------
$ (472,820)
=========


See accompanying notes to financial statements.


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

STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED SEPTEMBER 30,
(Unaudited)

SERIES 7

2002

2001

Revenues:
 Interest Income

Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization

  Total Expenses

Loss Before Equity in Losses of Project Partnerships
Equity in Losses of Project Partnerships

Net Loss

Allocation of Net Loss:
 Limited Partners
 General Partners



Net Loss Per Number of Limited Partnership Units

Number of Limited Partnership Units Outstanding


$   14,885 
- ----------

43,698 

19,847 
10,958 
3,342 
- ----------
77,845 
- ----------

(62,960)
(71,630)
- ----------
$ (134,590)
==========

$ (133,244)
(1,346)
- ----------
$ (134,590)
==========

$   (12.82)
==========
10,395 
==========


$   19,919 
- ----------

43,841 

10,854 
10,228 
11,362 
- ----------
76,285 
- ----------

(56,366)
(162,739)
- ----------
$ (219,105)
==========

$ (216,914)
(2,191)
- ----------
$ (219,105)
==========

$   (20.87)
==========
10,395 
==========


See accompanying notes to financial statements.


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

STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED SEPTEMBER 30,
(Unaudited)

SERIES 8

2002

2001

Revenues:
 Interest Income

Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization

  Total Expenses

Loss Before Equity in Losses of Project Partnerships
Equity in Losses of Project Partnerships

Net Loss

Allocation of Net Loss:
 Limited Partners
 General Partners



Net Loss Per Number of Limited Partnership Units
Number of Limited Partnership Units Outstanding


$   13,922 
- ----------

45,516 

21,905 
12,162 
2,370 
- ----------
81,953 
- ----------

(68,031)
(57,753)
- ----------
$ (125,784)
==========

$ (124,526)
(1,258)
- ----------
$ (125,784)
==========

$   (12.48)
==========
9,980 
==========


$   19,992 
- ----------

45,682 

11,967 
11,087 
3,694 
- ----------
72,430 
- ----------

(52,438)
(187,174)
- ----------
$ (239,612)
==========

$ (237,216)
(2,396)
- ----------
$ (239,612)
==========

$   (23.77)
==========
9,980 
==========


See accompanying notes to financial statements.


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

STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED SEPTEMBER 30,
(Unaudited)

SERIES 9

2002

2001

Revenues:
 Interest Income

Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization

  Total Expenses

Loss Before Equity in Losses of Project Partnerships
Equity in Losses of Project Partnerships

Net Loss

Allocation of Net Loss:
 Limited Partners
 General Partners



Net Loss Per Number of Limited Partnership Units
Number of Limited Partnership Units Outstanding


$    8,354 
- ----------

25,014 

12,226 
7,063 
1,628 
- ----------
45,931 
- ----------

(37,577)
(143,350)
- ----------
$ (181,107)
==========

$ (179,296)
(1,811)
- ----------
$ (181,107)
==========

$   (28.67)
==========
6,254 
==========


$   11,512 
- ----------

25,089 

6,679 
6,469 
2,276 
- ----------
40,513 
- ----------

(29,001)
(166,058)
- ----------
$ (195,059)
==========

$ (193,108)
(1,951)
- ----------
$ (195,059)
==========

$   (30.88)
==========
6,254 
==========


See accompanying notes to financial statements.


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

STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED SEPTEMBER 30,
(Unaudited)

SERIES 10

2002

2001

Revenues:
 Interest Income

Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization

  Total Expenses

Loss Before Equity in Losses of Project Partnerships
Equity in Losses of Project Partnerships

Net Loss

Allocation of Net Loss:
 Limited Partners
 General Partners



Net Loss Per Number of Limited Partnership Units
Number of Limited Partnership Units Outstanding


$    8,092 
- ----------

17,058 

7,641 
4,746 
2,406 
- ----------
31,851 
- ----------

(23,759)
(74,902)
- ----------
$  (98,661)
==========

$  (97,674)
(987)
- ----------

$  (98,661)
==========
$   (19.37)
==========
5,043  
==========


$   11,146 
- ----------

17,106 

4,175 
4,386 
2,811 
- ----------
28,478 
- ----------

(17,332)
(122,900)
- ----------
$ (140,232)
==========

$ (138,830)
(1,402)
- ----------

$ (140,232)
==========
$   (27.53)
==========
5,043 
==========


See accompanying notes to financial statements.


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

STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED SEPTEMBER 30,
(Unaudited)

SERIES 11

2002

2001

Revenues:
 Interest Income

Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization

  Total Expenses

Loss Before Equity in Losses of Project Partnerships
Equity in Losses of Project Partnerships

Net Loss

Allocation of Net Loss:
 Limited Partners
 General Partners



Net Loss Per Number of Limited Partnership Units
Number of Limited Partnership Units Outstanding


$    9,435 
- ----------

14,384 

6,113 
4,239 
4,148 
- ----------
28,884 
- ----------

(19,449)
(71,591)
- ----------
$  (91,040)
==========

$  (90,130)
(910)
- ----------
$  (91,040)
==========

$   (17.58)
==========
5,127 
==========


$   12,660 
- ----------

14,543 

3,339 
3,806 
4,147 
- ----------
25,835 
- ----------

(13,175)
(83,624)
- ----------
$  (96,799)
==========

$  (95,831)
(968)
- ----------
$  (96,799)
==========

$   (18.69)
==========
5,127 
==========


See accompanying notes to financial statements.


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

STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED SEPTEMBER 30,
(Unaudited)

TOTAL SERIES 7 - 11

2002

2001

Revenues:
 Interest Income

Expenses:
 Asset Management Fee-General Partner
 General and Administrative:
  General Partner
  Other
 Amortization

  Total Expenses

Loss Before Equity in Losses of Project Partnerships
Equity in Losses of Project Partnerships

Net Loss

Allocation of Net Loss:
 Limited Partners
 General Partners


$   54,688 
- ---------

145,670 

67,732 
39,168 
13,894 
- ----------
266,464 
- ----------

(211,776)
(419,406)
- ----------
$ (631,182)
==========


$ (624,869)
(6,313)
- ----------
$ (631,182)
==========


$   75,229 
- ---------

146,261 

37,014 
35,976 
24,290 
- ----------
243,541 
- ----------

(168,312)
(722,495)
- ----------
$ (890,807)
==========


$ (881,899)
(8,908)
- ----------
$ (890,807)
==========


See accompanying notes to financial statements.


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

STATEMENTS OF PARTNERS' EQUITY (DEFICIT)

FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2002 AND 2001

SERIES 7

Limited
Partners
- --------

General
Partners
- --------


Total
- -----



Balance at March 31, 2001

Net Loss


Balance at September 30, 2001



Balance at March 31, 2002

Net Loss


Balance at September 30, 2002



$ 2,166,589 

(216,914)
- ----------

$ 1,949,675 
==========


$ 1,780,281 

(133,244)
- ----------

$ 1,647,037 
==========



$  (70,315)

(2,191)
- ----------

$  (72,506)
==========


$  (74,217)

(1,346)
- ----------

$  (75,563)
==========



$ 2,096,274 

(219,105)
- ----------

$ 1,877,169 
==========


$ 1,706,064 

(134,590)
- ----------

$ 1,571,474 
==========


See accompanying notes to financial statements.


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

STATEMENTS OF PARTNERS' EQUITY (DEFICIT)

FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2002 AND 2001

SERIES 8

Limited
Partners
- --------

General
Partners
- --------


Total
- -----



Balance at March 31, 2001

Net Loss


Balance at September 30, 2001



Balance at March 31, 2002

Net Loss


Balance at September 30, 2002



$ 1,363,645 

(237,216)
- -----------

$ 1,126,429
==========


$ 1,001,538 

(124,526)
- -----------

$   877,012 
===========



$ (74,736)

(2,396)
- ----------

$ (77,132)
==========


$ (78,394)

(1,258)
- ----------

$ (79,652)
==========



$ 1,288,909 

(239,612)
- -----------

$ 1,049,297 
===========


$   923,144 

(125,784)
- -----------

$   797,360 
===========


See accompanying notes to financial statements.


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

STATEMENTS OF PARTNERS' EQUITY (DEFICIT)

FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2002 AND 2001

SERIES 9

Limited
Partners
- --------

General
Partners
- --------


Total
- -----



Balance at March 31, 2001

Net Loss


Balance at September 30, 2001



Balance at March 31, 2002

Net Loss


Balance at September 30, 2002



$ 2,110,561 

(193,108)
- -----------

$ 1,917,453 
===========


$ 1,707,018 

(179,296)
- -----------

$ 1,527,722 
===========



$ (34,072)

(1,951)
- ----------

$ (36,023)
==========


$ (38,148)

(1,811)
- ----------

$ (39,959)
==========



$ 2,076,489 

(195,059)
- -----------

$ 1,881,430 
===========


$ 1,668,870 

(181,107)
- -----------

$ 1,487,763 
===========


See accompanying notes to financial statements.


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

STATEMENTS OF PARTNERS' EQUITY (DEFICIT)

FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2002 AND 2001

SERIES 10

Limited
Partners
- --------

General
Partners
- --------


Total
- -----



Balance at March 31, 2001

Net Loss


Balance at September 30, 2001



Balance at March 31, 2002

Net Loss


Balance at September 30, 2002



$ 2,811,044 

(138,830)
- -----------

$ 2,672,214 
===========


$ 2,586,073 

(97,674)
- -----------

$ 2,488,399 
===========



$ (16,232)

(1,402)
- ----------

$ (17,634)
==========


$ (18,504)

(987)
- ----------

$ (19,491)
==========



$ 2,794,812 

(140,232)
- -----------

$ 2,654,580 
===========


$ 2,567,569 

(98,661)
- -----------

$ 2,468,908 
===========


See accompanying notes to financial statements.


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

STATEMENTS OF PARTNERS' EQUITY (DEFICIT)

FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2002 AND 2001

SERIES 11

Limited
Partners
- --------

General
Partners
- --------


Total
- -----



Balance at March 31, 2001

Net Loss


Balance at September 30, 2001



Balance at March 31, 2002

Net Loss


Balance at September 30, 2002



$ 3,756,773 

(95,831)
- -----------

$ 3,660,942 
===========


$ 3,549,631 

(90,130)
- -----------

$ 3,459,501 
===========



$  (8,508)

(968)
- ----------

$  (9,476)
==========


$ (10,600)

(910)
- ----------

$ (11,510)
==========



$ 3,748,265 

(96,799)
- -----------

$ 3,651,466 
===========


$ 3,539,031 

(91,040)
- -----------

$ 3,447,991 
===========


See accompanying notes to financial statements.


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

STATEMENTS OF PARTNERS' EQUITY (DEFICIT)

FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2002 AND 2001

TOTAL SERIES 7 - 11

Limited
Partners
- --------

General
Partners
- --------


Total
- -----



Balance at March 31, 2001

Net Loss


Balance at September 30, 2001



Balance at March 31, 2002

Net Loss


Balance at September 30, 2002



$12,208,612 

(881,899)
- -----------

$11,326,713 
===========


$10,624,541 

(624,869)
- -----------

$ 9,999,672 
============



$ (203,863)

(8,908)
- ----------

$ (212,771)
==========


$ (219,863)

(6,313)
- -----------

$ (226,176)
===========



$12,004,749 

(890,807)
- ----------

$11,113,942 
===========


$10,404,678 

(631,182)
- -----------

$ 9,773,496 
===========


See accompanying notes to financial statements.


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

STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED SEPTEMBER 30,
(Unaudited)

SERIES 7
- -------

2002

2001

Cash Flows from Operating Activities:
 Net Loss
 Adjustments to Reconcile Net Loss to Net Cash  Used in Operating Activities:
  Amortization
  Accreted Interest Income on Investments in   Securities
  Equity in Losses of Project Partnerships
  Changes in Operating Assets and Liabilities:
   Increase (Decrease) in Payable to General    Partners

     Net Cash Used in Operating Activities

Cash Flows from Investing Activities:
  Distributions Received from Project   Partnerships

     Net Cash Provided by Investing Activities

Decrease in Cash and Cash Equivalents

Cash and Cash Equivalents at Beginning of Year

Cash and Cash Equivalents at End of Year


$ (134,590)


3,342 

(12,753)
71,630 


23,812 
- ----------
(48,559)
- ----------


17,031 
- ----------
17,031 
- ----------
(31,528)

384,626 
- ----------
$  353,098 
==========


$ (219,105)


11,362 

(13,781)
162,739 


(1,161)
- ----------
(59,946)
- ----------


18,864 
- ----------
18,864 
- ----------
(41,082)

353,838 
- ----------
$  312,756 
==========



See accompanying notes to financial statements.


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

STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED SEPTEMBER 30,
(Unaudited)

SERIES 8
- -------

2002

2001

Cash Flows from Operating Activities:
 Net Loss
 Adjustments to Reconcile Net Loss to Net Cash  Used in Operating Activities:
  Amortization
  Accreted Interest Income on Investments in   Securities
  Equity in Losses of Project Partnership
  Changes in Operating Assets and Liabilities:
   Increase in Payable to General Partners

     Net Cash Used in Operating Activities

Cash Flows from Investing Activities:
  Distributions Received from Project   Partnerships

     Net Cash Provided by Investing Activities

Decrease in Cash and Cash Equivalents

Cash and Cash Equivalents at Beginning of Year

Cash and Cash Equivalents at End of Year


$ (125,784)


2,370 

(11,396)
57,753 

39,606 
- ----------
(37,451)
- ----------


10,257 
- ----------
10,257 
- ----------
(27,194)

456,356 
- ----------
$  429,162 
==========


$ (239,612)


3,694 

(12,312)
187,174 

3,056 
- ----------
(58,000)
- ----------


7,175 
- ----------
7,175 
- ----------
(50,825)

447,343 
- ----------
$  396,518 
==========



See accompanying notes to financial statements.


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

STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED SEPTEMBER 30,
(Unaudited)

SERIES 9
- -------

2002

2001

Cash Flows from Operating Activities:
 Net Loss
 Adjustments to Reconcile Net Loss to Net Cash  Used in Operating Activities:
  Amortization
  Accreted Interest Income on Investments In   Securities
  Equity in Losses of Project Partnerships
  Changes in Operating Assets and Liabilities:
   Increase in Payable to General Partners

     Net Cash Used in Operating Activities

Cash Flows from Investing Activities:
  Distributions Received from Project   Partnerships

     Net Cash Provided by Investing Activities

Decrease in Cash and Cash Equivalents

Cash and Cash Equivalents at Beginning of Year

Cash and Cash Equivalents at End of Year


$ (181,107)


1,628 

(6,955)
143,530 

31,011 
- ----------
(11,893)
- ----------


6,586 
- ----------
6,586 
- ----------
(5,307)

251,331 
- ----------
$  246,024 
==========


$ (195,059)


2,276 

(7,471)
166,058 

8,497 
- ----------
(25,699)
- ----------


8,174 
- ----------
8,174 
- ----------
(17,525)

232,688 
- ----------
$  215,163 
==========



See accompanying notes to financial statements.


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

STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED SEPTEMBER 30,
(Unaudited)

SERIES 10
- -------

2002

2001

Cash Flows from Operating Activities:
 Net Loss
 Adjustments to Reconcile Net Loss to Net Cash  Used in Operating Activities:
  Amortization
  Accreted Interest Income on Investments
  in Securities
  Equity in Losses of Project Partnerships
  Changes in Operating Assets and Liabilities:
   Increase (Decrease) in Payable to General    Partners

     Net Cash Used in Operating Activities

Cash Flows from Investing Activities:
  Distributions Received from Project   Partnerships

     Net Cash Provided by Investing Activities

Decrease in Cash and Cash Equivalents

Cash and Cash Equivalents at Beginning of Year

Cash and Cash Equivalents at End of Year


$  (98,661)


2,406 

(6,692)
74,902 


(7,377)
- ----------
(20,668)
- ----------


5,189 
- ----------
5,189 
- ----------
(15,479)

252,149 
- ----------
$  236,670 
==========


$ (140,232)


2,811 

(7,054)
122,900 


(8,618)
- ----------
(30,193)
- ----------


4,989 
- ----------
4,989 
- ----------
(25,204)

236,522 
- ----------
$  211,318 
==========



See accompanying notes to financial statements.


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

STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED SEPTEMBER 30,
(Unaudited)

SERIES 11
- -------

2002

2001

Cash Flows from Operating Activities:
 Net Loss
 Adjustments to Reconcile Net Loss to Net Cash  Provided by (Used in) Operating Activities:
 Amortization
 Accreted Interest Income on Investments in  Securities
 Equity in Losses of Project Partnerships
  Changes in Operating Assets and Liabilities:
   Increase (Decrease) in Payable to General    Partners

     Net Cash Provided by (Used in) Operating      Activities

Cash Flows from Investing Activities:
   Distributions Received from Project    Partnerships

     Net Cash Provided by Investing Activities

Increase (Decrease) in Cash and Cash Equivalents

Cash and Cash Equivalents at Beginning of Year

Cash and Cash Equivalents at End of Year


$ (91,040)


4,148 

(7,964)
71,591 


(45,406)
- ----------

22,141 
- ----------


6,192 
- ----------
6,192 
- ----------
28,333 

266,059 
- ----------
$  294,392 
==========


$ (96,799)


4,147 

(8,337)
83,624 


(16,332)
- ----------

(33,697)
- ----------


12,833
- ----------
12,833 
- ----------
(20,864)

244,339 
- ----------
$ 223,475 
==========



See accompanying notes to financial statements.


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

STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED SEPTEMBER 30,
(Unaudited)

TOTAL SERIES 7 - 11
- ------------------

2002

2001

Cash Flows from Operating Activities:
 Net Loss
 Adjustments to Reconcile Net Loss to Net Cash  Used in Operating Activities:
  Amortization
  Accreted Interest Income on Investments in   Securities
  Equity in Losses of Project Partnerships
  Changes in Operating Assets and Liabilities:
   Increase (Decrease) in Payable to General    Partners

     Net Cash Used in Operating Activities

Cash Flows from Investing Activities:
  Distributions Received from Project   Partnerships

     Net Cash Provided by Investing Activities

Decrease in Cash and Cash Equivalents

Cash and Cash Equivalents at Beginning of Year

Cash and Cash Equivalents at End of Year


$ (631,182)


13,894 

(45,760)
419,406 


147,212 
- ----------
(96,430)
- ----------


45,255 
- ----------
45,255 
- ----------
(51,175)

1,610,521 
- ----------
$ 1,559,346 
==========


$ (890,807)


24,290 

(48,955)
722,495 


(14,558)
- ----------
(207,535)
- ----------


52,035 
- ----------
52,035 
- ----------
(155,500)

1,514,730 
- ----------
$ 1,359,230 
==========



See accompanying notes to financial statements.


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

NOTES TO FINANCIAL STATEMENTS

SEPTEMBER 30, 2002


NOTE 1 - ORGANIZATION:

   Gateway Tax Credit Fund III Ltd. ("Gateway"), a Florida Limited Partnership, was formed October 17, 1991 under the laws of Florida. Gateway offered its limited partnership interests in Series. The first Series for Gateway is Series 7. Operations commenced on July 16, 1992 for Series 7, January 4, 1993 for Series 8, September 30, 1993 for Series 9, January 21, 1994 for Series 10 and April 29, 1994 for Series 11. Each Series invests, as a limited partner, in other limited partnerships ("Project Partnerships"), each of which owns and operates apartment complexes eligible for Low-Income Housing Tax Credits ("Tax Credits"), provided for in Section 42 of the Internal Revenue Code of 1986. Gateway will terminate on December 31, 2040 or sooner, in accordance with the terms of the Limited Partnership Agreement. As of September 30, 2002, Gateway had received capital contributions of $1,000 from the General Partners and $36,799,000 from the investor Limited Partners.

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

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

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

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES:

Basis of Accounting

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

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

   1) Gateway's capital contribution,
   2) Acquisition fees paid to the General Partner for services rendered in       selecting properties for acquisition, and
   3) Acquisition expenses including legal fees, travel and other miscellaneous       costs relating to acquiring properties.

Quarterly the Investments in Project Partnerships are increased or decreased as follows:

   1) Increased for equity in income or decreased for equity in losses of the       Project Partnerships,
   2) Decreased for cash distributions received from the Project Partnerships, and
   3) Decreased for the amortization of the acquisition fees and expenses.

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

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

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

   Gateway reviews its investments in Project Partnerships to determine if there has been any permanent impairment whenever events or changes in circumstances indicate that the carrying amount of the investment may not be recoverable. If the sum of the expected future cash flows is less than the carrying amount of the investment, Gateway recognizes an impairment loss. No impairment loss has been recognized in the accompanying financial statements.

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

Cash and Cash Equivalents

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

Concentrations of Credit Risk

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

Use of Estimates in the Preparation of Financial Statements

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

Investment in Securities

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

Offering and Commission Costs

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

Income Taxes

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

Basis of Preparation

   The unaudited financial statements presented herein have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and note disclosures required by generally accepted accounting principles. These statements should be read in conjunction with the financial statements and notes thereto included with the Partnership's Form 10-K for the year ended March 31, 2002. In the opinion of management these financial statements include adjustments, consisting only of normal recurring adjustments, necessary to fairly summarize the Partnership's financial position and results of operations. The results of operations for the periods may not be indicative of the results to be expected for the year.

NOTE 3 - INVESTMENT IN SECURITIES:

   The September 30, 2002 Balance Sheet includes Investment in Securities consisting of U.S. Treasury Security Strips which represents their cost, plus accreted interest income of $186,400 for Series 7, $163,638 for Series 8, $96,985 for Series 9, $87,828 for Series 10 and $101,622 for Series 11.

 

Estimated Market
Value
- ----------------

Cost Plus
Accreted Interest
- -----------------

Gross Unrealized
Gains and (Losses)
- ----------------

Series 7

$ 417,274

$ 362,512

$ 54,762

Series 8

390,942

343,000

47,942

Series 9

261,943

231,872

30,071

Series 10

228,857

196,327

32,530

Series 11

263,687

220,814

42,873


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

 

Series 7
- --------

Series 8
- --------

Series 9
- --------

Due within 1 year

$  62,570

$  57,717

$  34,301

After 1 year through 5 years

242,163

229,024

134,153

After 5 years through 10 years

57,779

56,259

63,418

 

--------

--------

--------

  Total Amount Carried on   Balance Sheet


$ 362,512
========


$ 343,000
========


$ 231,872
========

 

Series 10
- --------

Series 11
- --------

Total
- -------

Due within 1 year

$  26,534

$  29,294

$  210,416

After 1 year through 5 years

99,228

113,468

818,036

After 5 years through 10 years

70,565

78,052

326,073

 

--------

--------

---------

  Total Amount Carried on   Balance Sheet


$ 196,327
=========


$ 220,814
=========


$1,354,525
=========


NOTE 4 - RELATED PARTY TRANSACTIONS:

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

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

   For the six months ended September 30, 2002 and 2001 the General Partners and affiliates are entitled to compensation and reimbursement for costs and expenses incurred by Gateway as follows:

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

                              2002              2001 

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

   General and Administrative Expenses - The Managing General Partner is reimbursed for general and administrative expenses of Gateway on an accountable basis. This expense is included in the Statement of Operations.

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


NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS:

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

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

SERIES 7

SEPTEMBER 30,
2002
- ------------

MARCH 31,
2002
- ---------

Capital Contributions to Project Partnerships and purchase price paid for limited partner interests in Project Partnerships

Cumulative equity in losses of Project Partnerships (1)

Cumulative distributions received from Project Partnerships

Investment in Project Partnerships before adjustment

Excess of investment cost over the Underlying assets acquired:
  Acquisition fees and expenses
  Accumulated amortization of acquisition fees   and expenses


Investments in Project Partnerships



$ 7,732,089 


(6,796,755)


(207,264)
- -----------

728,070 



793,335 

(176,561)
- -----------

$ 1,344,844 
===========



$ 7,732,089 


(6,725,125)


(190,234)
- -----------

816,730 



793,335 

(173,218)
- -----------

$ 1,436,847 
===========



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


NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

   As of September 30, 2002, the Partnership had acquired a 99% interest in the profits, losses and tax credits as a limited partner in 43 Project Partnerships which own and operate government assisted multi-family housing complexes. Cash flows from operations are allocated according to each Partnership agreement. Upon dissolution proceeds will be distributed according to each Partnership agreement.

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

SERIES 8

SEPTEMBER 30,
2002
- ---------

MARCH 31,
2002
- ---------

Capital Contributions to Project Partnerships and purchase price paid for limited partner interests in Project Partnerships

Cumulative equity in losses of Project Partnerships (1)

Cumulative distributions received from Project Partnerships

Investment in Project Partnerships before adjustment

Excess of investment cost over the underlying assets acquired:
  Acquisition fees and expenses
  Accumulated amortization of acquisition fees   and expenses


Investments in Project Partnerships



$ 7,586,105 


(7,278,850)


(162,385)
- -----------

144,870 



549,773 

10,454)
- -----------

$   584,189 
===========



$ 7,586,105 


(7,221,095)


(152,130)
- -----------

212,880 



549,773 

(108,084)
- ------------

$   654,569 
===========



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


NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

   As of September 30, 2002, the Partnership had acquired a 99% interest in the profits, losses and tax credits as a limited partner in 24 Project Partnerships which own and operate government assisted multi-family housing complexes. Cash flows from operations are allocated according to each Partnership agreement. Upon dissolution proceeds will be distributed according to each Partnership agreement.

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

SERIES 9

SEPTEMBER 30,
2002
- ----------

MARCH 31,
2002
- ---------

Capital Contributions to Project Partnerships and purchase price paid for limited partner interests in Project Partnerships

Cumulative equity in losses of Project
Partnerships (1)

Cumulative distributions received from Project Partnerships

Investment in Project Partnerships before Adjustment

Excess of investment cost over the underlying assets acquired:
  Acquisition fees and expenses
  Accumulated amortization of acquisition fees   and expenses


Investments in Project Partnerships



$ 4,914,116 


(3,634,157)


(117,256)
- -----------

1,162,703 



244,08780

(52,089)
- -----------

$ 1,354,701 
===========



$ 4,914,116 


(3,490,627)


110,670)
- ---------

1,312,819 



244,087 

(50,462)
- ----------

$ 1,506,444 
===========



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


NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

   As of September 30, 2002, the Partnership had acquired a 99% interest in the profits, losses and tax credits as a limited partner in 15 Project Partnerships which own and operate government assisted multi-family housing complexes. Cash flows from operations 
are allocated according to each Partnership agreement. Upon dissolution proceeds will 
be distributed according to each Partnership agreement.

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

SERIES 10

SEPTEMBER 30,
2002
- -----------

MARCH 31,
2002
- ---------

Capital Contributions to Project Partnerships and purchase price paid for limited partner interests in Project Partnerships

Cumulative equity in losses of Project Partnerships (1)

Cumulative distributions received from Project Partnerships

Investment in Project Partnerships before Adjustment

Excess of investment cost over the underlying assets acquired:
  Acquisition fees and expenses
  Accumulated amortization of acquisition fees   and expenses


Investments in Project Partnerships



$ 3,914,672 


(1,771,271)


(142,433)
- -----------

2,000,968 



96,738 

(47,477)
- -----------

$ 2,150,229 
===========



$ 3,914,672 


(1,696,369)


(137,244)
- ----------

2,081,059 



196,738 

(45,069)
- -----------

$ 2,232,728 
===========



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


NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

   As of September 30, 2002, the Partnership had acquired a 99% interest in the profits, losses and tax credits as a limited partner in 12 Project Partnerships which own and operate government assisted multi-family housing complexes. Cash flows from operations 
are allocated according to each Partnership agreement. Upon dissolution proceeds will 
be distributed according to each Partnership agreement.

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

SERIES 11

SEPTEMBER 30,
2002
- ---------

MARCH 31,
2002
- --------

Capital Contributions to Project Partnerships and purchase price paid for limited partner interests in Project Partnerships

Cumulative equity in losses of Project Partnerships (1)

Cumulative distributions received from Project Partnerships

Investment in Project Partnerships before Adjustment

Excess of investment cost over the underlying assets acquired:
  Acquisition fees and expenses
  Accumulated amortization of acquisition fees   and expenses


Investments in Project Partnerships



$ 4,128,042 


(1,195,121)


(129,843)
- -----------

2,803,078 



290,335 

(63,786)
- -----------

$ 3,029,627 
===========



$ 4,128,042 


(1,123,530)


(123,651)
- -----------

2,880,861 



290,335 

(59,636)
- -----------

$ 3,111,560 
===========



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


NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

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

TOTAL SERIES 7 - 11

SEPTEMBER 30,
2002
- ----------

MARCH 31,
2002
- --------

Capital Contributions to Project Partnerships and purchase price paid for limited partner interests in Project Partnerships

Cumulative equity in losses of Project Partnerships (1)

Cumulative distributions received from Project Partnerships

Investment in Project Partnerships before Adjustment

Excess of investment cost over the underlying assets acquired:
  Acquisition fees and expenses
  Accumulated amortization of acquisition fees   and expenses


Investments in Project Partnerships



$28,275,024 


(20,676,154)


(759,181)
- -----------

6,839,689 



2,074,268 

(450,367)
- -----------

$ 8,463,590 
===========



$28,275,024 


(20,256,746)


(713,929)
- -----------

7,304,349 



2,074,268 

(436,469)
- -----------

$ 8,942,148 
===========


NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

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

SERIES 7

2002

2001

SUMMARIZED BALANCE SHEETS
Assets:
  Current assets
  Investment properties, net
  Other assets

    Total assets

Liabilities and Partners' Equity:
  Current liabilities
  Long-term debt

    Total liabilities

Partners' equity (deficit)
  Limited Partner
  General Partners

    Total Partners' equity

    Total liabilities and partners' equity

SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income
Expenses:
  Operating expenses
  Interest expense
  Depreciation and amortization

    Total expenses

     Net loss

Other partners' share of net loss

Partnerships' share of net loss
Suspended losses

Equity in Losses of Project Partnerships



$ 3,582,763 
31,740,908 
12,687 
- -----------
$35,336,358 
===========

$   641,879 
36,330,807 
- -----------
36,972,686 
- -----------

(1,468,204)
(168,124)
- -----------
(1,636,328)
- -----------
$35,336,358 
===========

$ 2,376,355 
- -----------
1,485,029 
419,978 
728,981 
- -----------
2,633,988 
- -----------
$  (257,633)
===========
$    (2,576)
===========
$  (255,057)
183,427 
- -----------
$   (71,630)
===========



$ 3,421,228 
33,068,943 
15,870 
- -----------
$36,506,041 
===========

$   801,006 
36,441,924 
- -----------
37,242,930 
- -----------

(618,907)
(117,982)
- -----------
(736,889)
- -----------
$36,506,041 
===========

$ 2,164,487 
- -----------
1,490,601 
415,562 
733,294 
- -----------
2,639,457 
- -----------
$  (474,970)
===========
$    (4,750)
===========
$  (470,220)
307,481 
- -----------
$  (162,739)
===========


NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):

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

SERIES 8

2002

2001

SUMMARIZED BALANCE SHEETS
Assets:
  Current assets
  Investment properties, net
  Other assets

    Total assets

Liabilities and Partners' Equity:
  Current liabilities
  Long-term debt

    Total liabilities

Partners' equity (deficit)
  Limited Partner
  General Partners

    Total Partners' equity (deficit)

    Total liabilities and partners' equity

SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income
Expenses:
  Operating expenses
  Interest expense
  Depreciation and amortization

    Total expenses

      Net loss

Other partners' share of net loss

Partnerships' share of net loss
Suspended losses

Equity in Losses of Project Partnerships



$ 3,225,417 
33,486,633 
31,427 
- -----------
$36,743,477 
===========

$ 1,140,370 
38,315,191 
- -----------
39,455,561 
- -----------

(2,237,589)
(474,495)
- -----------
(2,712,084)
- -----------
$36,743,477 
===========

$ 2,210,760 
- -----------
1,457,602 
444,971 
761,100 
- -----------
2,663,673 
- -----------
$  (452,913)
===========
$    (6,084)
===========
$  (446,829)
389,076 
- -----------
$   (57,753)
===========



$ 2,985,618 
34,910,036 
36,534 
- -----------
$37,932,188 
===========

$ 1,098,271 
38,447,298 
- -----------
39,545,569 
- -----------

(1,185,574)
(427,807)
- -----------
(1,613,381)
- --