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, 1997
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:
(813)573-3800
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, 1997
Units of Limited Partnership
Interest: $1,000 per unit 33,799
DOCUMENTS INCORPORATED BY REFERENCE
Parts I and II, 1995 Form 10-K, filed with the
Securities and Exchange Commission on June 25, 1997
Parts III and IV - Form S-11 Registration Statement
and all amendments and supplements thereto
File No. 33-44238
<PAGE>
PART I - Financial Information
Item 1. Financial Statements
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
SEPTEMBER 30, MARCH 31,
1997 1997
----------- -----------
SERIES 7 (Unaudited) (Unaudited)
ASSETS
Current Assets:
Cash and Cash Equivalents $ 227,010 $ 267,980
Investments in Securities 46,187 44,933
Receivable from Project Partnerships 0 0
----------- -----------
Total Current Assets 273,197 312,913
Investments in Securities 436,610 421,843
Investments in Project
Partnerships, Net 4,018,428 4,483,546
----------- -----------
Total Assets $4,728,235 $5,218,302
=========== ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners $ 49,675 $ 54,499
Payable to Project Partnerships 0 0
----------- -----------
49,675 54,499
Long-Term Liabilities:
Payable to General Partners 180,102 179,733
Partners' Equity:
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,
1997 and March 31, 1997) 4,544,751 5,025,507
General Partners (46,293) (41,437)
----------- -----------
Total Partners' Equity 4,498,458 4,984,070
----------- -----------
Total Liabilities and
Partners' Equity $4,728,235 $5,218,302
=========== ===========
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
SEPTEMBER 30, MARCH 31,
1997 1997
----------- ----------
SERIES 8 (Unaudited) (Audited)
ASSETS
Current Assets:
Cash and Cash Equivalents $ 355,423 $ 396,038
Investments in Securities 41,279 40,189
Receivable from Project Partnerships 0 453
----------- -----------
Total Current Assets 396,702 436,680
Investments in Securities 414,126 400,823
Investments in Project
Partnerships, Net 4,005,200 4,614,122
----------- -----------
Total Assets $4,816,028 $5,451,625
=========== ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners $ 40,011 $ 42,185
Payable to Project Partnerships 0 0
----------- -----------
40,011 42,185
Long-Term Liabilities:
Payable to General Partners 222,837 217,295
Partners' Equity:
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,
1997 and March 31, 1997) 4,595,274 5,227,849
General Partners (42,094) (35,704)
----------- -----------
Total Partners' Equity 4,553,180 5,192,145
----------- -----------
Total Liabilities and
Partners' Equity $4,816,028 $5,451,625
=========== ===========
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
SEPTEMBER 30, MARCH 31,
1997 1997
----------- ----------
SERIES 9 (Unaudited) (Audited)
ASSETS
Current Assets:
Cash and Cash Equivalents $ 141,782 $ 161,813
Investments in Securities 27,552 26,879
Receivable from Project Partnerships 0 0
----------- -----------
Total Current Assets 169,334 188,692
Investments in Securities 278,631 270,520
Investments in Project
Partnerships, Net 3,623,261 3,848,367
----------- -----------
Total Assets $4,071,226 $4,307,579
=========== ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners $ 22,389 $ 24,250
Payable to Project Partnerships 0 0
----------- -----------
22,389 24,250
Long-Term Liabilities:
Payable to General Partners 126,772 119,002
Partners' Equity:
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,
1997 and March 31, 1997) 3,937,682 4,177,521
General Partners (15,617) (13,194)
----------- -----------
Total Partners' Equity 3,922,065 4,164,327
----------- -----------
Total Liabilities and
Partners' Equity $4,071,226 $4,307,579
=========== ===========
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
SEPTEMBER 30, MARCH 31,
1997 1997
----------- ----------
SERIES 10 (Unaudited) (Audited)
ASSETS
Current Assets:
Cash and Cash Equivalents $ 165,825 $ 199,743
Investments in Securities 21,601 20,995
Receivable from Project Partnerships 0 0
----------- ----------
Total Current Assets 187,426 220,738
Investments in Securities 221,871 214,600
Investments in Project
Partnerships, Net 3,454,347 3,571,518
----------- -----------
Total Assets $3,863,644 $4,006,856
=========== ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners $ 26,607 $ 28,072
Payable to Project Partnerships 0 7,712
----------- -----------
26,607 35,784
Long-Term Liabilities:
Payable to General Partners 27,025 37,184
Partners' Equity:
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,
1997 and March 31, 1997) 3,816,092 3,938,729
General Partners (6,080) (4,841)
----------- -----------
Total Partners' Equity 3,810,012 3,933,888
----------- -----------
Total Liabilities and
Partners' Equity $3,863,644 $4,006,856
=========== ===========
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
SEPTEMBER 30, MARCH 31,
1997 1997
----------- ----------
SERIES 11 (Unaudited) (Audited)
ASSETS
Current Assets:
Cash and Cash Equivalents $ 152,352 $ 169,385
Investments in Securities 20,572 19,915
Receivable from Project Partnerships 0 0
----------- -----------
Total Current Assets 172,924 189,300
Investments in Securities 235,844 227,438
Investments in Project
Partnerships, Net 3,924,355 4,070,301
----------- -----------
Total Assets $4,333,123 $4,487,039
=========== ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners $ 26,397 $ 27,882
Payable to Project Partnerships 0 0
----------- -----------
26,397 27,882
Long-Term Liabilities:
Payable to General Partners 3,034 8,161
Partners' Equity:
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,
1997 and March 31, 1997) 4,306,646 4,452,477
General Partners (2,954) (1,481)
----------- -----------
Total Partners' Equity 4,303,692 4,450,996
----------- -----------
Total Liabilities and
Partners' Equity $4,333,123 $4,487,039
=========== ===========
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
SEPTEMBER 30, MARCH 31,
1997 1997
----------- ----------
TOTAL SERIES 7 - 11 (Unaudited) (Audited)
ASSETS
Current Assets:
Cash and Cash Equivalents $ 1,042,392 $ 1,194,959
Investments in Securities 157,191 152,911
Receivable from Project Partnerships 0 453
------------ ------------
Total Current Assets 1,199,583 1,348,323
Investments in Securities 1,587,082 1,535,224
Investments in Project
Partnerships, Net 19,025,591 20,587,854
------------ ------------
Total Assets $21,812,256 $23,471,401
============ ============
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners $ 165,079 $ 176,888
Payable to Project Partnerships 0 7,712
------------ ------------
165,079 184,600
Long-Term Liabilities:
Payable to General Partners 559,770 561,375
Partners' Equity:
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,
1997 and March 31, 1997) 21,200,445 22,822,083
General Partners (113,038) (96,657)
------------ ------------
Total Partners' Equity 21,087,407 22,725,426
------------ ------------
Total Liabilities and
Partners' Equity $21,812,256 $23,471,401
============ ============
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
FOR THE THREE MONTHS ENDED SEPTEMBER 30,
1997 1996
SERIES 7 --------- -----------
Revenue:
Interest Income $ 11,482 $ 11,059
------------ -----------
Expenses:
Asset Management Fee-
General Partner 20,148 19,500
General and Administrative-
General Partner 4,154 2,970
General and Administrative-
Other 11,926 8,614
Amortization 5,743 5,486
------------ -----------
Total Expenses 41,971 36,570
------------ -----------
Loss Before Equity in Losses of
Project Partnerships (30,489) (25,511)
Equity in Losses of Project
Partnerships (193,446) (197,028)
------------ ------------
Net Loss $ (223,935) $ (222,539)
============ ============
Allocation of Net Loss:
Limited Partners $ (221,696) $ (220,314)
General Partners (2,239) (2,225)
------------ ------------
$ (223,935) $ (222,539)
============ ============
Net Loss Per Number of
Limited Partnership Units $ (21.33) $ (21.19)
============ ============
Number of Limited Partnership
Units Outstanding 10,395 10,395
============ ============
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
FOR THE THREE MONTHS ENDED SEPTEMBER 30,
1997 1996
SERIES 8 ---------- -----------
Revenues:
Interest Income $ 11,697 $ 14,448
------------ -----------
Expenses:
Asset Management Fee-
General Partner 22,214 21,500
General and Administrative-
General Partner 4,581 3,275
General and Administrative-
Other 12,357 9,464
Amortization 3,675 3,745
------------ -----------
Total Expenses 42,827 37,984
------------ ------------
Loss Before Equity in Losses of
Project Partnerships (31,130) (23,536)
Equity in Losses of Project
Partnerships (324,149) (213,171)
------------ ------------
Net Loss $ (355,279) $ (236,707)
============ ============
Allocation of Net Loss:
Limited Partners $ (351,726) $ (234,340)
General Partners (3,553) (2,367)
------------ ------------
$ (355,279) $ (236,707)
============ ============
Net Loss Per Number of
Limited Partnership Units $ (35.24) $ (23.48)
============ ============
Number of Limited Partnership
Units Outstanding 9,980 9,980
============ ============
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
FOR THE THREE MONTHS ENDED SEPTEMBER 30,
1997 1996
SERIES 9 -------- -----------
Revenues:
Interest Income $ 6,419 $ 5,780
------------ -----------
Expenses:
Asset Management Fee-
General Partner 12,399 12,000
General and Administrative-
General Partner 2,557 1,828
General and Administrative-
Other 6,669 5,391
Amortization 1,779 1,779
------------ -----------
Total Expenses 23,404 20,998
------------ ------------
Loss Before Equity in Losses of
Project Partnerships (16,985) (15,218)
Equity in Losses of Project
Partnerships (118,377) (110,687)
------------ ------------
Net Loss $ (135,362) $ (125,905)
============ ============
Allocation of Net Loss:
Limited Partners $ (134,008) $ (124,646)
General Partners (1,354) (1,259)
------------ ------------
$ (135,362) $ (125,905)
============ ============
Net Loss Per Number of
Limited Partnership Units $ (21.43) $ (19.93)
============ ============
Number of Limited Partnership
Units Outstanding 6,254 6,254
============ ============
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
FOR THE THREE MONTHS ENDED SEPTEMBER 30,
1997 1996
SERIES 10 ---------- ----------
Revenues:
Interest Income $ 6,449 $ 6,025
------------ -----------
Expenses:
Asset Management Fee-
General Partner 7,750 7,500
General and Administrative-
General Partner 1,599 1,142
General and Administrative-
Other 4,198 3,602
Amortization 1,460 1,476
------------ -----------
Total Expenses 15,007 13,720
------------ ------------
Loss Before Equity in Losses of
Project Partnerships (8,558) (7,695)
Equity in Losses of Project
Partnerships (72,667) (55,725)
------------ ------------
Net Loss $ (81,225) $ (63,420)
============ ============
Allocation of Net Loss:
Limited Partners $ (80,413) $ (62,786)
General Partners (812) (634)
------------ ------------
$ (81,225) $ (63,420)
============ ============
Net Loss Per Number of
Limited Partnership Units $ (15.95) $ (12.45)
============ ============
Number of Limited Partnership
Units Outstanding 5,043 5,043
============ ============
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
FOR THE THREE MONTHS ENDED SEPTEMBER 30,
1997 1996
SERIES 11 ---------- -----------
Revenues:
Interest Income $ 6,689 $ 7,392
------------ -----------
Expenses:
Asset Management Fee-
General Partner 6,200 6,000
General and Administrative-
General Partner 1,279 915
General and Administrative-
Other 3,875 3,008
Amortization 1,797 1,663
------------ -----------
Total Expenses 13,151 11,586
------------ ------------
Income (Loss) Before Equity in Losses of
Project Partnerships (6,462) (4,194)
Equity in Losses of Project
Partnerships (91,316) 23,411
------------ ------------
Net Income (Loss) $ (97,778) $ 19,217
============ ============
Allocation of Net Income (Loss):
Limited Partners $ (96,800) $ 19,025
General Partners (978) 192
------------ ------------
$ (97,778) $ 19,217
============ ============
Net Income (Loss) Per Number of
Limited Partnership Units $ (18.88) $ 3.71
============ ============
Number of Limited Partnership
Units Outstanding 5,127 5,127
============ ============
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
FOR THE THREE MONTHS ENDED SEPTEMBER 30,
1997 1996
TOTAL SERIES 7-11 ---------- -----------
Revenues:
Interest Income $ 42,736 $ 44,704
------------ -----------
Expenses:
Asset Management Fee-
General Partner 68,711 66,500
General and Administrative-
General Partner 14,170 10,130
General and Administrative-
Other 39,025 30,079
Amortization 14,454 14,149
------------ -----------
Total Expenses 136,360 120,858
------------ ------------
Loss Before Equity in Losses of
Project Partnerships (93,624) (76,154)
Equity in Losses of Project
Partnerships (799,955) (553,200)
------------ ------------
Net Loss $ (893,579) $ (629,354)
============ ============
Allocation of Net Loss:
Limited Partners $ (884,643) $ (623,059)
General Partners (8,936) (6,295)
------------ ------------
$ (893,579) $ (629,354)
============ ============
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
FOR THE SIX MONTHS ENDED SEPTEMBER 30,
1997 1996
SERIES 7 --------- -----------
Revenue:
Interest Income $ 22,645 $ 21,940
------------ -----------
Expenses:
Asset Management Fee-
General Partner 39,648 39,000
General and Administrative-
General Partner 7,472 5,920
General and Administrative-
Other 14,299 12,316
Amortization 10,879 10,946
------------ -----------
Total Expenses 72,298 68,182
------------ -----------
Loss Before Equity in Losses of
Project Partnerships (49,653) (46,242)
Equity in Losses of Project
Partnerships (435,959) (427,938)
------------ ------------
Net Loss $ (485,612) $ (474,180)
============ ============
Allocation of Net Loss:
Limited Partners $ (480,756) $ (469,438)
General Partners (4,856) (4,742)
------------ ------------
$ (485,612) $ (474,180)
============ ============
Net Loss Per Number of
Limited Partnership Units $ (46.25) $ (45.16)
============ ============
Number of Limited Partnership
Units Outstanding 10,395 10,395
============ ============
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
FOR THE SIX MONTHS ENDED SEPTEMBER 30,
1997 1996
SERIES 8 ---------- -----------
Revenues:
Interest Income $ 23,621 $ 25,776
------------ -----------
Expenses:
Asset Management Fee-
General Partner 43,714 43,000
General and Administrative-
General Partner 8,240 6,528
General and Administrative-
Other 14,951 13,391
Amortization 5,989 6,060
------------ -----------
Total Expenses 72,894 68,979
------------ ------------
Loss Before Equity in Losses of
Project Partnerships (49,273) (43,203)
Equity in Losses of Project
Partnerships (589,692) (419,946)
------------ ------------
Net Loss $ (638,965) $ (463,149)
============ ============
Allocation of Net Loss:
Limited Partners $ (632,575) $ (458,518)
General Partners (6,390) (4,631)
------------ ------------
$ (638,965) $ (463,149)
============ ============
Net Loss Per Number of
Limited Partnership Units $ (63.38) $ (45.94)
============ ============
Number of Limited Partnership
Units Outstanding 9,980 9,980
============ ============
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
FOR THE SIX MONTHS ENDED SEPTEMBER 30,
1997 1996
SERIES 9 -------- -----------
Revenues:
Interest Income $ 12,725 $ 11,449
------------ -----------
Expenses:
Asset Management Fee-
General Partner 24,399 24,000
General and Administrative-
General Partner 4,599 3,644
General and Administrative-
Other 8,056 7,519
Amortization 3,558 3,558
------------ -----------
Total Expenses 40,612 38,721
------------ ------------
Loss Before Equity in Losses of
Project Partnerships (27,887) (27,272)
Equity in Losses of Project
Partnerships (214,375) (225,344)
------------ ------------
Net Loss $ (242,262) $ (252,616)
============ ============
Allocation of Net Loss:
Limited Partners $ (239,839) $ (250,090)
General Partners (2,423) (2,526)
------------ ------------
$ (242,262) $ (252,616)
============ ============
Net Loss Per Number of
Limited Partnership Units $ (38.35) $ (39.99)
============ ============
Number of Limited Partnership
Units Outstanding 6,254 6,254
============ ============
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
FOR THE SIX MONTHS ENDED SEPTEMBER 30,
1997 1996
SERIES 10 ---------- ----------
Revenues:
Interest Income $ 12,776 $ 13,033
------------ -----------
Expenses:
Asset Management Fee-
General Partner 15,250 15,000
General and Administrative-
General Partner 2,875 2,276
General and Administrative-
Other 5,161 5,057
Amortization 2,920 2,936
------------ -----------
Total Expenses 26,206 25,269
------------ ------------
Loss Before Equity in Losses of
Project Partnerships (13,430) (12,236)
Equity in Losses of Project
Partnerships (110,446) (104,567)
------------ ------------
Net Loss $ (123,876) $ (116,803)
============ ============
Allocation of Net Loss:
Limited Partners $ (122,637) $ (115,635)
General Partners (1,239) (1,168)
------------ ------------
$ (123,876) $ (116,803)
============ ============
Net Loss Per Number of
Limited Partnership Units $ (24.32) $ (22.93)
============ ============
Number of Limited Partnership
Units Outstanding 5,043 5,043
============ ============
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
FOR THE SIX MONTHS ENDED SEPTEMBER 30,
1997 1996
SERIES 11 ---------- -----------
Revenues:
Interest Income $ 13,219 $ 15,996
------------ -----------
Expenses:
Asset Management Fee-
General Partner 12,200 12,000
General and Administrative-
General Partner 2,300 1,820
General and Administrative-
Other 4,746 4,276
Amortization 3,594 3,525
------------ -----------
Total Expenses 22,840 21,621
------------ ------------
Income (Loss) Before Equity in Losses of
Project Partnerships (9,621) (5,625)
Equity in Losses of Project
Partnerships (137,683) 43,571
------------ ------------
Net Income (Loss) $ (147,304) $ 37,946
============ ============
Allocation of Net Income (Loss):
Limited Partners $ (145,831) $ 37,567
General Partners (1,473) 379
------------ ------------
$ (147,304) $ 37,946
============ ============
Net Income (Loss) Per Number of
Limited Partnership Units $ (28.44) $ 7.33
============ ============
Number of Limited Partnership
Units Outstanding 5,127 5,127
============ ============
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
FOR THE SIX MONTHS ENDED SEPTEMBER 30,
1997 1996
TOTAL SERIES 7-11 ---------- -----------
Revenues:
Interest Income $ 84,986 $ 88,194
------------ -----------
Expenses:
Asset Management Fee-
General Partner 135,211 133,000
General and Administrative-
General Partner 25,486 20,188
General and Administrative-
Other 47,213 42,559
Amortization 26,940 27,025
------------ -----------
Total Expenses 234,850 222,772
------------ ------------
Loss Before Equity in Losses of
Project Partnerships (149,864) (134,578)
Equity in Losses of Project
Partnerships (1,488,155) (1,134,224)
------------ ------------
Net Loss $(1,638,019) $(1,268,802)
============ ============
Allocation of Net Loss:
Limited Partners $(1,621,638) $(1,256,115)
General Partners (16,381) (12,687)
------------ ------------
$(1,638,019) $(1,268,802)
============ ============
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY
(Unaudited)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1997 AND 1996:
Limited General
Partners Partners Total
SERIES 7 ----------- ----------- -----------
(Inception July 16, 1992)
Balance at
March 31, 1996 6,042,156 (31,168) 6,010,988
Net Loss (469,438) (4,742) (474,180)
------------ ---------- ------------
Balance at
September 30, 1996 $ 5,572,7118 $ (35,910) $ 5,536,808
============ ========== ============
Balance at
March 31, 1997 5,025,507 (41,437) 4,984,070
Net Loss (480,756) (4,856) (485,612)
------------ ---------- ------------
Balance at
September 30, 1997 $ 4,544,751 $ (46,293) $ 4,498,458
============ ========== ============
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY
(Unaudited)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1997 AND 1996:
Limited General
Partners Partners Total
SERIES 8 ----------- ----------- -----------
(Inception January 4, 1993)
Balance at
March 31, 1996 6,306,146 (24,812) 6,281,334
Net Loss (458,518) (4,631) (463,149)
------------ ---------- ------------
Balance at
September 30, 1996 $ 5,847,628 $ (29,443) $ 5,818,185
============ ========== ============
Balance at
March 31, 1997 5,227,849 (35,704) 5,192,145
Net Loss (632,575) (6,390) (638,965)
------------ ---------- ------------
Balance at
September 30, 1997 $ 4,595,274 $ (42,094) $ 4,553,180
============ ========== ============
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY
(Unaudited)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1997 AND 1996:
Limited General
Partners Partners Total
SERIES 9 ----------- ----------- -----------
(Inception September 30, 1993)
Balance at
March 31, 1996 4,729,151 (7,622) 4,721,529
Net Loss (250,090) (2,526) (252,616)
------------ ---------- ------------
Balance at
September 30, 1996 $ 4,479,061 $ (10,148) $ 4,468,913
============ ========== ============
Balance at
March 31, 1997 4,177,521 (13,194) 4,164,327
Net Loss (239,839) (2,423) (242,262)
------------ ---------- ------------
Balance at
September 30, 1997 $ 3,937,682 $ (15,617) $ 3,922,065
============ ========== ============
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY
(Unaudited)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1997 AND 1996:
Limited General
Partners Partners Total
SERIES 10 ----------- ----------- -----------
(Inception January 21, 1994)
Balance at
March 31, 1996 4,151,503 (2,692) 4,148,811
Net Loss (115,635) (1,168) (116,803)
------------ ---------- ------------
Balance at
September 30, 1996 $ 4,035,868 $ (3,860) $ 4,032,008
============ ========== ============
Balance at
March 31, 1997 3,938,729 (4,841) 3,933,888
Net Loss (122,637) (1,239) (123,876)
------------ ---------- ------------
Balance at
September 30, 1997 $ 3,816,092 $ (6,080) $ 3,810,012
============ ========== ============
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY
(Unaudited)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1997 AND 1996:
Limited General
Partners Partners Total
SERIES 11 ----------- ----------- -----------
(Inception April 29, 1994)
Balance at
March 31, 1996 4,646,546 479 4,647,025
Net Loss 37,567 379 37,946
------------ ---------- ------------
Balance at
September 30, 1996 $ 4,684,113 $ 858 $ 4,684,971
============ ========== ============
Balance at
March 31, 1997 4,452,477 (1,481) 4,450,996
Net Loss (145,831) (1,473) (147,304)
------------ ---------- ------------
Balance at
September 30, 1997 $ 4,306,646 $ (2,954) $ 4,303,692
============ ========== ============
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY
(Unaudited)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1997 AND 1996:
Limited General
Partners Partners Total
TOTAL SERIES 7-11 ----------- ----------- -----------
Balance at
March 31, 1996 25,875,502 (65,815) 25,809,687
Net Loss (1,256,114) (12,688) (1,268,802)
------------ ---------- ------------
Balance at
September 30, 1996 $24,619,388 $ (78,503) $24,540,885
============ ========== ============
Balance at
March 31, 1997 22,822,083 (96,657) 22,725,426
Net Loss (1,621,638) (16,381) (1,638,019)
------------ ---------- ------------
Balance at
September 30, 1997 $21,200,445 $(113,038) $21,087,407
============ ========== ============
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1997 AND 1996:
1997 1996
SERIES 7 --------- ---------
Cash Flows from Operating Activities:
Net Loss $ (485,612) $ (474,180)
Adjustments to Reconcile
Net Loss to Net Cash
Provided by (Used in)
Operating Activities:
Amortization 10,879 10,946
Accreted Interest Income
on Investments in
Securities (16,020) (16,048)
Equity in Losses of
Project Partnerships 435,959 427,938
Payment of Asset Management Fee (41,000) (33,000)
Changes in Operating Assets
and Liabilities:
Increase in Payable to
General Partners 36,544 34,556
------------ ---------
Net Cash Provided by
(Used in) Operating
Activities (59,250) (49,788)
------------ ---------
Cash Flows from Investing Activities:
Investments in Project
Partnerships 0 (3,333)
(Increase) Decrease in
Receivable from
Project Partnerships 0 0
Acquisition Fees and
Expenses 0 (272)
Distributions Received from
Project Partnerships 18,280 17,881
(Increase) Decrease in Payable to:
Project Partnerships - 0 0
------------ ---------
Net Cash Provided by
(Used in) Investing
Activities 18,280 14,276
------------ ---------
Increase (Decrease) in Cash and
Cash Equivalents (40,970) (35,512)
Cash and Cash Equivalents at
Beginning of Year 267,980 259,782
------------ ---------
Cash and Cash Equivalents at
End of Year $ 227,010 $ 224,270
============ =========
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1997 AND 1996:
1997 1996
SERIES 8 --------- ---------
Cash Flows from Operating Activities:
Net Loss $ (638,965) $ (463,149)
Adjustments to Reconcile
Net Loss to Net Cash
Provided by (Used in)
Operating Activities:
Amortization 5,989 6,060
Accreted Interest Income
on Investments in
Securities (14,394) (14,436)
Equity in Losses of
Project Partnerships 589,692 419,946
Payment of Asset Management Fee (37,000) (22,000)
Changes in Operating Assets
and Liabilities:
Increase in Payable to
General Partners 40,369 38,215
------------ ------------
Net Cash Provided by
(Used in) Operating
Activities (54,309) (35,364)
------------ ------------
Cash Flows from Investing Activities:
Investments in Project
Partnerships 0 453
(Increase) Decrease in
Receivable from
Project Partnerships 453 75,574
Acquisition Fees and
Expenses 0 0
Distributions Received from
Project Partnerships 13,241 15,689
(Increase) Decrease in Payable to:
Project Partnerships 0 0
------------ ------------
Net Cash Provided by
(Used in) Investing
Activities 13,694 91,716
------------ ------------
Increase (Decrease) in Cash and
Cash Equivalents (40,615) 56,352
Cash and Cash Equivalents at
Beginning of Year 396,038 295,021
------------ ------------
Cash and Cash Equivalents at
End of Year $ 355,423 $ 351,373
============ ============
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1997 AND 1996:
1997 1996
SERIES 9 --------- ---------
Cash Flows from Operating Activities:
Net Loss $ (242,262) $ (252,616)
Adjustments to Reconcile
Net Loss to Net Cash
Provided by (Used in)
Operating Activities:
Amortization 3,558 3,558
Accreted Interest Income
on Investments in
Securities (8,783) (8,891)
Equity in Losses of
Project Partnerships 214,375 225,344
Payment of Asset Management Fee (16,000) (6,000)
Changes in Operating Assets
and Liabilities:
Increase in Payable to
General Partners 21,908 21,213
------------ ------------
Net Cash Provided by
(Used in) Operating
Activities (27,204) (17,392)
------------ ------------
Cash Flows from Investing Activities:
Investments in Project
Partnerships 0 0
(Increase) Decrease in
Receivable from
Project Partnerships 0 0
Acquisition Fees and
Expense 0 0
Distributions Received from
Project Partnerships 7,173 6,161
(Increase) Decrease in Payable to:
Project Partnerships 0 0
------------ ------------
Net Cash Provided by
(Used in) Investing
Activities 7,173 6,161
------------ ------------
Increase (Decrease) in Cash and
Cash Equivalents (20,031) (11,231)
Cash and Cash Equivalents at
Beginning of Year 161,813 112,252
------------ ------------
Cash and Cash Equivalents at
End of Year $ 141,782 $ 101,021
============ ============
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1997 AND 1996:
1997 1996
SERIES 10 --------- ---------
Cash Flows from Operating Activities:
Net Loss $ (123,876) $ (116,803)
Adjustments to Reconcile
Net Loss to Net Cash
Provided by (Used in)
Operating Activities:
Amortization 2,920 2,936
Accreted Interest Income
on Investments in
Securities (7,878) (7,896)
Equity in Losses of
Project Partnerships 110,446 104,567
Payment of Asset Management Fee (25,000) (10,000)
Changes in Operating Assets
and Liabilities:
Increase in Payable to
General Partners 13,377 13,026
------------ ------------
Net Cash Provided by
(Used in) Operating
Activities (30,011) (14,170)
------------ ------------
Cash Flows from Investing Activities:
Investments in Project
Partnerships 0 0
(Increase) Decrease in
Receivable from
Project Partnerships 0 13,059
Acquisition Fees and
Expenses 0 0
Distributions Received from
Project Partnerships 3,805 3,070
(Increase) Decrease in Payable to:
Project Partnerships (7,712) 0
------------ ------------
Net Cash Provided by
(Used in) Investing
Activities (3,907) 16,129
------------ ------------
Increase (Decrease) in Cash and
Cash Equivalents (33,918) 1,959
Cash and Cash Equivalents at
Beginning of Year 199,743 162,576
------------ ------------
Cash and Cash Equivalents at
End of Year $ 165,825 $ 164,535
============ ============
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1997 AND 1996:
1997 1996
SERIES 11 --------- ---------
Cash Flows from Operating Activities:
Net Loss $ (147,304) $ 37,946
Adjustments to Reconcile
Net Loss to Net Cash
Provided by (Used in)
Operating Activities:
Amortization 3,594 3,525
Accreted Interest Income
on Investments in
Securities (9,063) (9,033)
Equity in Losses of
Project Partnerships 137,683 (43,571)
Payment of Asset Management Fee (17,000) (19,000)
Changes in Operating Assets
and Liabilities:
Increase in Payable to
General Partners 10,388 6,289
------------ ------------
Net Cash Provided by
(Used in) Operating
Activities (21,702) (23,844)
------------ ------------
Cash Flows from Investing Activities:
Investments in Project
Partnerships 0 33,464
(Increase) Decrease in
Receivable from
Project Partnerships 0 8,250
Acquisition Fees and
Expenses 0 (178)
Distributions Received from
Project Partnerships 4,669 1,500
(Increase) Decrease in Payable to:
Project Partnerships 0 (279,887)
------------ ------------
Net Cash Provided by
(Used in) Investing
Activities 4,669 (236,851)
------------ ------------
Increase (Decrease) in Cash and
Cash Equivalents (17,033) (260,695)
Cash and Cash Equivalents at
Beginning of Year 169,385 365,027
------------ ------------
Cash and Cash Equivalents at
End of Year $ 152,352 $ 104,332
============ ============
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1997 AND 1996:
1997 1996
TOTAL SERIES 7-11 --------- ---------
Cash Flows from Operating Activities:
Net Loss $(1,638,019) $(1,268,802)
Adjustments to Reconcile
Net Loss to Net Cash
Provided by (Used in)
Operating Activities:
Amortization 26,940 27,025
Accreted Interest Income
on Investments in
Securities (56,138) (56,304)
Equity in Losses of
Project Partnerships 1,488,155 1,134,224
Payment of Asset Management Fee (136,000) (90,000)
Changes in Operating Assets
and Liabilities:
Increase in Payable to
General Partners 122,586 113,299
------------ ------------
Net Cash Provided by
(Used in) Operating
Activities (192,476) (140,558)
------------ ------------
Cash Flows from Investing Activities:
Investments in Project
Partnerships 0 30,584
(Increase) Decrease in
Receivable from
Project Partnerships 453 96,883
Acquisition Fees and
Expenses 0 (450)
Distributions Received from
Project Partnerships 47,168 44,301
(Increase) Decrease in Payable to:
Project Partnerships (7,712) (279,887)
------------ ------------
Net Cash Provided by
(Used in) Investing
Activities 39,909 (108,569)
------------ ------------
Increase (Decrease) in Cash and
Cash Equivalents (152,567) (249,127)
Cash and Cash Equivalents at
Beginning of Year 1,194,959 1,194,658
------------ ------------
Cash and Cash Equivalents at
End of Year $ 1,042,392 $ 945,531
============ ============
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1997
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, 1997, 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 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,
3) Decreased for the amortization of the acquisition fees
and expenses,
4) In certain Project Partnerships, where Gateway's
investment was greater than Gateway's pro-rata share of the
book value of the underlying assets, decreased for the
amortization of the difference; and
5) In certain Project Partnerships, where Gateway's
investment was less than Gateway's pro-rata share of the
book value of the underlying assets, increased for the
accretion of the difference.
Amortization and accretion is calculated on a straight line
basis over 35 years, as this is the average estimated useful
life of the underlying assets. The net amortization and
accretion 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.
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.
Receivable from Project Partnerships
Receivable from Project Partnerships represents amounts
due from the Project Partnerships due to a change in the
amount Gateway agreed to pay the Project Partnerships and is
secured with cash in restricted escrow accounts.
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, 1997. 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, 1997 Balance Sheet includes Investment in
Securities consisting of U.S. Treasury Security Strips which
represents their cost, plus accreted interest income of
$137,921 for Series 7, $114,516 for Series 8, $61,090 for
Series 9, $50,714 for Series 10 and $54,646 for Series 11.
Gross
Cost Plus Unrealized
Estimated Accreted Gains and
Market Value Interest (Losses)
Series 7 $ 506,470 $ 482,796 $ 23,674
Series 8 468,731 455,404 13,327
Series 9 304,279 306,183 (1,904)
Series 10 252,452 243,473 8,979
Series 11 275,237 256,416 18,821
As of September 30, 1997, the cost and accreted interest of
debt securities by contractual maturities is as follows:
Series 7 Series 8
Due within 1 year $ 46,187 $ 41,279
After 1 year through 5 years 183,354 169,597
After 5 years through 10 years 213,451 204,963
After 10 years 39,804 39,565
--------- ---------
Total Amount Carried on
Balance Sheet $ 482,796 $ 455,404
========= =========
Series 9 Series 10
Due within 1 year $ 27,552 $ 21,601
After 1 year through 5 years 107,711 83,071
After 5 years through 10 years 124,721 89,402
After 10 years 46,199 49,399
--------- ---------
Total Amount Carried on
Balance Sheet $ 306,183 $ 243,473
========= =========
Series 11 Total
Due within 1 year $ 20,572 $ 157,191
After 1 year through 5 years 82,997 626,730
After 5 years through 10 years 99,299 731,836
After 10 years 53,548 228,515
--------- ---------
Total Amount Carried on
Balance Sheet $ 256,416 $1,744,272
========= =========
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, 1997 and 1996 the
General Partners and affiliates are entitled to compensation
and reimbursement for costs and expenses incurred by Gateway
as follows:
Acquisition Expenses - Affiliates of the General Partners
are reimbursed for acquisition expenses incurred on behalf of
Gateway. These expenses are included in Investments in
Project Partnerships on the Balance Sheet.
Series 7 $ 0 $ 272
Series 8 0 0
Series 9 0 0
Series 10 0 0
Series 11 0 178
-------- --------
Total $ 0 $ 450
======== ========
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.
Series 7 $ 39,648 $ 39,000
Series 8 43,714 43,000
Series 9 24,399 24,000
Series 10 15,250 15,000
Series 11 12,200 12,000
-------- --------
Total $135,211 $133,000
======== ========
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 $ 7,472 $ 5,920
Series 8 8,240 6,528
Series 9 4,599 3,644
Series 10 2,875 2,276
Series 11 2,300 1,820
-------- --------
Total $ 25,486 $ 20,188
======== ========
<PAGE>
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS:
As of September 30, 1997, the Partnership had acquired an
interest in 39 Project Partnerships for the Series which own and
operate government assisted multi-family housing complexes. The
Partnership, as the Investor Limited Partner pursuant to the
Project Partnership Agreements has generally acquired an ownership
interest of 99% in these Project Partnerships.
The following is a summary of Investments in Project Partnerships
as of:
SEPTEMBER 30, MARCH 31,
1997 1997
SERIES 7 ---------- ----------
Capital Contributions to Project
Partnerships (purchase price paid
for limited partner interests in
Project Partnerships) $ 7,732,089 $ 7,732,089
Accumulated amortization of excess
of purchase price of Project
Partnerships over book value
of underlying assets (1) 1,508 1,172
Cumulative equity in losses of
Project Partnerships (2) (4,308,894) (3,872,935)
Cumulative distributions received
from Project Partnerships (85,487) (67,207)
Acquisition fees and expenses 793,335 793,335
Accumulated amortization of
acquisition fees and expenses (114,123) (102,908)
------------ ------------
Investments in
Project Partnerships $ 4,018,428 $ 4,483,546
============ ============
(1) Includes amounts representing accumulated accretion or
(amortization) of the difference between the book value of the
underlying assets of the Project Partnerships over or under
the purchase price. At September 30, 1997 and March 31, 1997
these excess costs were $18,470.
(2) In accordance with the Partnership's accounting policy to
not carry Investments in Project Partnerships below zero,
cumulative suspended losses of $62,355 for the period ended
September 30, 1997 and cumulative suspended losses of $40,687
for the year ended March 31, 1997 are not included.
<PAGE>
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):
As of September 30, 1997, the Partnership had acquired an
interest in 43 Project Partnerships for the Series which own and
operate government assisted multi-family housing complexes. The
Partnership, as the Investor Limited Partner pursuant to the
Project Partnership Agreements has generally acquired an ownership
interest of 99% in these Project Partnerships.
The following is a summary of Investments in Project Partnerships
as of:
SEPTEMBER 30, MARCH 31,
1997 1997
SERIES 8 ---------- ----------
Capital Contributions to Project
Partnerships (purchase price paid
for limited partner interests in
Project Partnerships) $ 7,586,105 $ 7,586,105
Accumulated amortization of excess
of purchase price of Project
Partnerships over book value
of underlying assets (1) 2,673 2,317
Cumulative equity in losses of
Project Partnerships (2) (3,998,326) (3,408,634)
Cumulative distributions received
from Project Partnerships (70,227) (56,986)
Acquisition fees and expenses 549,773 549,773
Accumulated amortization of
acquisition fees and expenses (64,798) (58,453)
------------ ------------
Investments in
Project Partnerships $ 4,005,200 $ 4,614,122
============ ============
(1) Includes amounts representing accumulated accretion or
(amortization) of the difference between the book value of the
underlying assets of the Project Partnerships over or under
the purchase price. At September 30, 1997 and March 31, 1997
these excess costs were $24,830.
(2) In accordance with the Partnership's accounting policy to
not carry Investments in Project Partnerships below zero,
cumulative suspended losses of $29,358 for the period ended
September 30, 1997 and cumulative suspended losses of $24,072
for the year ended March 31, 1997 are not included.
<PAGE>
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):
As of September 30, 1997, the Partnership had acquired an
interest in 24 Project Partnerships for the Series which own and
operate government assisted multi-family housing complexes. The
Partnership, as the Investor Limited Partner pursuant to the
Project Partnership Agreements has generally acquired an ownership
interest of 99% in these Project Partnerships.
The following is a summary of Investments in Project Partnerships
as of:
SEPTEMBER 30, MARCH 31,
1997 1997
SERIES 9 ---------- ----------
Capital Contributions to Project
Partnerships (purchase price paid
for limited partner interests in
Project Partnerships) $ 4,914,116 $ 4,914,116
Accumulated amortization of excess
of purchase price of Project
Partnerships over book value
of underlying assets (1) 655 727
Cumulative equity in losses of
Project Partnerships (1,466,605) (1,252,230)
Cumulative distributions received
from Project Partnerships (42,516) (35,343)
Acquisition fees and expenses 244,087 244,087
Accumulated amortization of
acquisition fees and expenses (26,476) (22,990)
------------ ------------
Investments in
Project Partnerships $ 3,623,261 $ 3,848,367
============ ============
(1) Includes amounts representing accumulated accretion or
(amortization) of the difference between the book value of the
underlying assets of the Project Partnerships over or under
the purchase price. At September 30, 1997 and March 31, 1997
these excess costs were ($5,076).
<PAGE>
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):
As of September 30, 1997, the Partnership had acquired an
interest in 15 Project Partnerships for the Series which own and
operate government assisted multi-family housing complexes. The
Partnership, as the Investor Limited Partner pursuant to the
Project Partnership Agreements has generally acquired an ownership
interest of 99% in these Project Partnerships.
The following is a summary of Investments in Project Partnerships
as of:
SEPTEMBER 30, MARCH 31,
1997 1997
SERIES 10 ---------- ----------
Capital Contributions to Project
Partnerships (purchase price paid
for limited partner interests in
Project Partnerships) $ 3,914,672 $ 3,914,672
Accumulated amortization of excess
of purchase price of Project
Partnerships over book value
of underlying assets (1) (605) (497)
Cumulative equity in losses of
Project Partnerships (590,898) (480,119)
565
Cumulative distributions received
from Project Partnerships (45,311) (41,506)
Acquisition fees and expenses 196,738 196,738
Accumulated amortization of
acquisition fees and expenses (20,582) (17,770)
------------ ------------
Investments in
Project Partnerships $ 3,454,347 $ 3,571,518
============ ============
(1) Includes amounts representing accumulated accretion or
(amortization) of the difference between the book value of the
underlying assets of the Project Partnerships over or under
the purchase price. At September 30, 1997 and March 31, 1997
these excess costs were ($7,486).
<PAGE>
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):
As of September 30, 1997, the Partnership had acquired an
interest in 12 Project Partnerships for the Series which own and
operate government assisted multi-family housing complexes. The
Partnership, as the Investor Limited Partner pursuant to the
Project Partnership Agreements has generally acquired an ownership
interest of 99% in these Project Partnerships.
The following is a summary of Investments in Project Partnerships
as of:
SEPTEMBER 30, MARCH 31,
1997 1997
SERIES 11 ---------- ----------
Capital Contributions to Project
Partnerships (purchase price paid
for limited partner interests in
Project Partnerships) $ 4,128,042 $ 4,128,042
Accumulated amortization of excess
of purchase price of Project
Partnerships over book value
of underlying assets (1) 2,418 1,864
Cumulative equity in losses of
Project Partnerships (464,362) (326,679)
Cumulative distributions received
from Project Partnerships (9,764) (5,095)
Acquisition fees and expenses 290,335 290,335
Accumulated amortization of
acquisition fees and expenses (22,314) (18,166)
------------ ------------
Investments in
Project Partnerships $ 3,924,355 $ 4,070,301
============ ============
(1) Includes amounts representing accumulated accretion or
(amortization) of the difference between the book value of the
underlying assets of the Project Partnerships over or under
the purchase price. At September 30, 1997 and March 31, 1997
these excess costs were $38,728.
<PAGE>
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):
The following is a summary of Investments in Project
Partnerships:
SEPTEMBER 30, MARCH 31,
1997 1997
TOTAL SERIES 7 - 11 ---------- ----------
Capital Contributions to Project
Partnerships (purchase price paid
for limited partner interests in
Project Partnerships) $ 28,275,024 $ 28,275,024
Accumulated amortization of excess
of purchase price of Project
Partnerships over book value
of underlying assets 6,649 5,583
Cumulative equity in losses of
Project Partnerships (10,828,752) (9,340,597)
Cumulative distributions received
from Project Partnerships (253,305) (206,137)
Acquisition fees and expenses 2,074,268 2,074,268
Accumulated amortization of
acquisition fees and expenses (248,293) (220,287)
------------- -------------
Investments in
Project Partnerships $ 19,025,591 $ 20,587,854
============= =============
<PAGE>
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:
1997 1996
SERIES 7 ---------- --------------
SUMMARIZED BALANCE SHEETS
Assets:
Current assets $ 2,553,915 $ 2,339,353
Investment properties, net 38,684,533 40,149,882
Other assets 90,231 113,530
------------- -------------
Total assets $ 41,328,679 $ 42,602,765
============= =============
Liabilities and Partners' Equity
Current liabilities $ 1,134,296 $ 1,076,455
Long-term debt 36,935,137 37,183,790
------------- -------------
Total liabilities 38,069,433 38,260,245
Partners' Equity
Limited Partner 3,254,344 4,288,875
General Partners 4,902 53,645
------------- ------------
3,259,246 4,342,520
Total liabilities and
partners' equity $ 41,328,679 $ 42,620,765
============= =============
SUMMARIZED STATEMENTS OF OPERATIONS:
Rental and other income $ 2,158,653 $ 2,097,627
Expenses:
Operating expenses 1,197,337 1,130,538
Interest expense 630,765 601,339
Depreciation and amortization 792,801 798,011
------------- -------------
Total expenses 2,620,903 2,529,888
Net loss $ (462,250) $ (432,261)
============= =============
Other partners' share
of net loss $ (4,623) $ (4,323)
Partnership's share
of net loss $ (457,627) $ (427,938)
Suspended loss 21,668 0
------------- -------------
Equity in Loss of
Project Partnerships $ (435,959) $ (427,938)
============= =============
<PAGE>
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:
1997 1996
SERIES 8 ---------- --------------
SUMMARIZED BALANCE SHEETS
Assets:
Current assets $ 2,152,244 $ 1,940,636
Investment properties,
net 41,562,416 43,223,971
Other assets 58,329 100,037
------------- -------------
Total assets $ 43,772,989 $ 45,264,644
============= =============
Liabilities and Partners' Equity
Current liabilities $ 1,280,837 $ 1,503,086
Long-term debt 39,029,977 39,051,248
------------- -------------
Total liabilities 40,310,814 40,554,334
Partners' Equity
Limited Partner 3,517,799 4,746,609
General Partners (55,624) (36,299)
------------- ------------
3,462,175 4,710,310
Total liabilities and
partners' equity $ 43,772,989 $ 45,264,644
============= =============
SUMMARIZED STATEMENTS OF OPERATIONS:
Rental and other income $ 2,021,757 $ 1,928,743
Expenses:
Operating expenses 1,255,152 1,167,315
Interest expense 551,530 419,065
Depreciation and
amortization 816,063 766,551
------------- -------------
Total expenses 2,622,745 2,352,931
Net loss $ (600,988) $ (424,188)
============= =============
Other partners' share
of net loss $ (6,010) $ (4,242)
Partnership's share
of net loss $ (594,978) $ (419,946)
Suspended loss 5,286 0
------------- -------------
Equity in Loss of
Project Partnerships $ (589,692) $ (419,946)
============= =============
<PAGE>
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:
1997 1996
SERIES 9 ---------- --------------
SUMMARIZED BALANCE SHEETS
Assets:
Current assets $ 1,426,611 $ 1,327,812
Investment properties,
net 23,091,859 23,963,097
Other assets 8,778 11,666
------------- -------------
Total assets $ 24,527,248 $ 25,302,575
============= =============
Liabilities and Partners' Equity
Current liabilities $ 508,592 $ 661,878
Long-term debt 20,645,826 20,698,907
------------- -------------
Total liabilities 21,154,418 21,360,785
Partners' Equity
Limited Partner 3,401,970 3,931,890
General Partners (29,140) 9,900
------------- ------------
3,372,830 3,941,790
Total liabilities and
partners' equity $ 24,527,248 $ 25,302,575
============= =============
SUMMARIZED STATEMENTS OF OPERATIONS:
Rental and other income $ 1,114,021 $ 1,072,472
Expenses:
Operating expenses 577,980 560,402
Interest expense 318,207 299,612
Depreciation and
amortization 434,374 440,078
------------- -------------
Total expenses 1,330,561 1,300,092
Net loss $ (216,540) $ (227,620)
============= =============
Other partners' share
of net loss $ (2,165) $ (2,276)
Partnership's share
of net loss $ (214,375) $ (225,344)
Suspended loss 0 0
------------- -------------
Equity in Loss of
Project Partnerships $ (214,375) $ (225,344)
============= =============
<PAGE>
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:
1997 1996
SERIES 10 ---------- --------------
SUMMARIZED BALANCE SHEETS
Assets:
Current assets $ 1,097,193 $ 1,083,948
Investment properties,
net 15,949,744 16,438,731
Other assets 18,305 25,714
------------- -------------
Total assets $ 17,065,242 $ 17,548,393
============= =============
Liabilities and Partners' Equity
Current liabilities $ 263,890 $ 409,405
Long-term debt 13,538,658 13,595,950
------------- -------------
Total liabilities 13,802,131 14,005,355
548
Partners' Equity
Limited Partner 3,286,943 3,503,506
General Partners (24,249) 39,532
------------- ------------
3,262,694 3,543,038
Total liabilities and
partners' equity $ 17,065,242 $ 17,548,393
============= =============
SUMMARIZED STATEMENTS OF OPERATIONS:
Rental and other income $ 688,913 $ 686,541
Expenses:
Operating expenses 398,430 404,364
Interest expense 145,835 135,606
Depreciation and
amortization 256,210 252,194
------------- -------------
Total expenses 800,475 792,164
Net loss $ (111,562) $ (105,623)
============= =============
Other partners' share
of net loss $ (1,116) $ (1,056)
Partnership's share
of net loss $ (110,446) $ (104,567)
Suspended loss 0 0
------------- -------------
Equity in Loss of
Project Partnerships $ (110,446) $ (104,567)
============= =============
<PAGE>
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:
1997 1996
SERIES 11 ---------- --------------
SUMMARIZED BALANCE SHEETS
Assets:
Current assets $ 672,719 $ 1,737,682
Investment properties,
net 14,234,970 14,619,930
Other assets 28,811 132,098
------------- -------------
Total assets $ 14,936,500 $ 16,489,710
============= =============
Liabilities and Partners' Equity
Current liabilities $ 231,985 $ 1,179,857
Long-term debt 10,919,656 11,050,478
------------- -------------
Total liabilities 11,151,641 12,230,335
Partners' Equity
Limited Partner 3,666,203 4,062,358
General Partners 118,656 197,017
------------- ------------
3,784,859 4,259,375
Total liabilities and
partners' equity $ 14,936,500 $ 16,489,710
============= =============
SUMMARIZED STATEMENTS OF OPERATIONS:
Rental and other income $ 722,192 $ 698,965
Expenses:
Operating expenses 350,042 334,443
Interest expense 248,214 202,677
Depreciation and
amortization 263,010 117,834
------------- -------------
Total expenses 861,266 654,954
Net loss $ (139,074) $ 44,011
============= =============
Other partners' share
of net loss $ (1,391) $ 440
Partnership's share
of net loss $ (137,683) $ 43,571
Suspended loss 0 0
------------- -------------
Equity in Loss of
Project Partnerships $ (137,683) $ 43,571
============= =============
<PAGE>
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:
1997 1996
TOTAL SERIES 7-11 ---------- --------------
SUMMARIZED BALANCE SHEETS
Assets:
Current assets $ 7,902,682 $ 8,429,431
Investment properties,
net 133,523,522 138,395,611
Other assets 204,454 383,045
------------- -------------
Total assets $141,630,658 $147,208,087
============= =============
Liabilities and Partners' Equity
Current liabilities $ 3,419,600 $ 4,830,681
Long-term debt 121,069,254 121,580,373
------------- -------------
Total liabilities 124,488,854 126,411,054
Partners' Equity
Limited Partner 17,127,259 20,533,238
General Partners 14,545 263,795
------------- ------------
17,141,804 20,797,033
Total liabilities and
partners' equity $141,630,658 $147,208,087
============= =============
SUMMARIZED STATEMENTS OF OPERATIONS:
Rental and other income $ 6,705,536 $ 6,484,348
Expenses:
Operating expenses 3,778,941 3,597,062
Interest expense 1,894,551 1,658,299
Depreciation and
amortization 2,562,458 2,374,668
------------- -------------
Total expenses 8,235,950 7,630,029
Net loss $ (1,530,414) $ (1,145,681)
============= =============
Other partners' share
of net loss $ (15,305) $ (11,457)
Partnership's share
of net loss $ (1,515,109) $ (1,134,224)
Suspended loss 26,954 0
------------- -------------
Equity in Loss of
Project Partnerships $ (1,488,155) $ (1,134,224)
============= =============
<PAGE>
Item 7. Management's Discussion and Analysis of Financial
Condition and Results of Operations
Results of Operations, Liquidity and Capital Resources
The proceeds from Limited Partner investors' capital
contributions available for investment are used to acquire
interests in Project Partnerships.
As disclosed on the statement of operations for each Series,
except as described below, interest income is comparable for the
six and three months ended September 30, 1997 and September 30,
1996. The General and Administrative expenses - General Partner
and General and Administrative expenses - Other for the three and
six months ended September 30, 1997 are comparable to September 30,
1996. There were no unusual variations in the operating results
between these two periods.
The capital resources of each Series are used to pay General and
Administrative operating costs including personnel, supplies, data
processing, travel and legal and accounting associated with the
administration and monitoring of Gateway and the Project
Partnerships. The capital resources are also used to pay the Asset
Management Fee due the Managing General Partner, but only to the
extent that Gateway's remaining resources are sufficient to fund
Gateway's ongoing needs. (Payment of any Asset Management Fee
unpaid at the time Gateway sells its interests in the Project
Partnerships is subordinated to the investors' return of their
original capital contribution.)
The sources of funds to pay the operating costs of each Series
are short-term investments and interest earned thereon, the
maturity of U.S. Treasury Security Strips ("Zero Coupon
Treasuries") which were purchased with funds set aside for this
purpose, and cash distributed to the Series from the operations of
the Project Partnerships.
Series 7 - Gateway closed this series on October 16, 1992 after
receiving $10,395,000 from 635 Limited Partner investors. Equity
in Losses of Project Partnerships were comparable for the six
months ended September 30, 1997 and September 30, 1996. In
general, it is common in the real estate industry to experience
losses for financial and tax reporting purposes because of the non-
cash expenses of depreciation and amortization. As a result,
management expects that this Series, as well as those described
below, will report its equity in Project Partnerships as a loss for
tax and financial reporting purposes. Overall, management believes
the Project Partnerships are operating as expected and are
generating tax credits which meet projections.
At September 30, 1997, the Series had $227,010 of short-term
investments (Cash and Cash Equivalents). It also had $482,797 in
Zero Coupon Treasuries with annual maturities providing $50,000 in
fiscal year 1999 increasing to $80,000 in fiscal year 2008.
Management believes the sources of funds are sufficient to meet
current and ongoing operating costs for the foreseeable future, and
to pay part of the Asset Management Fee.
As disclosed on the statement of cash flows, the Series had a
net loss of $485,612 for the six months ended September 30, 1997.
However, after adjusting for Equity in Losses of Project
Partnerships of $435,959 and the changes in operating assets and
liabilities, net cash used in operating activities was $59,250,
primarily due to the payment of the Asset Management Fee of
$41,000. Cash provided by investing activities totaled $18,280,
consisting of cash distributions from the Project Partnerships.
Series 8 - Gateway closed this Series on September 28, 1993 after
receiving $9,980,000 from 664 Limited Partner investors. Equity
in Losses of Project Partnerships were comparable for the six
months ended September 30, 1997 and September 30, 1996. At
September 30, 1997, the Series had $355,423 of short-term
investments (Cash and Cash Equivalents). It also had $455,405 in
Zero Coupon Treasuries with annual maturities providing $45,000 in
fiscal year 1999 increasing to $82,000 in fiscal year 2008.
Management believes the sources of funds are sufficient to meet
current and ongoing operating costs for the foreseeable future, and
to pay part of the Asset Management Fee.
As disclosed on the statement of cash flows, the Series had a net
loss of $638,965 for the six months ended September 30, 1997.
However, after adjusting for Equity in Losses of Project
Partnerships of $589,692 and the changes in operating assets and
liabilities, net cash used in operating activities was $54,309,
primarily due to the payment of the Asset Management Fee of
$37,000. Cash provided by investing activities totaled $13,694,
consisting primarily of cash distributions of $13,241 from the
Project Partnerships. There were no unusual events or trends to
describe.
Series 9 - Gateway closed this Series on September 30, 1993 after
receiving $6,254,000 from 406 Limited Partner investors. Equity in
Losses of Project Partnerships were comparable for the six months
ended September 30, 1997 and September 30, 1996. At September 30,
1997, the Series had $141,782 of short-term investments (Cash and
Cash Equivalents). It also had $306,183 in Zero Coupon Treasuries
with annual maturities providing $29,000 in fiscal year 1999
increasing to $47,000 in fiscal year 2009. Management believes the
sources of funds are sufficient to meet current and ongoing
operating costs for the foreseeable future, and to pay part of the
Asset Management Fee.
As disclosed on the statement of cash flows, the Series had a net
loss of $242,262 for the six months ended September 30, 1997.
However, after adjusting for Equity in Losses of Project
Partnerships of $214,375 and the changes in operating assets and
liabilities, net cash used in operating activities was $27,204,
primarily due to the payment of the Asset Management Fee of
$16,000. Cash provided by investing activities totaled $7,173,
consisting of cash distributions from the Project Partnerships.
There were no unusual events or trends to describe.
Series 10 - Gateway closed this Series on January 21, 1994 after
receiving $5,043,000 from 325 Limited Partner investors. Equity
in Losses of Project Partnerships were comparable for the six
months ended September 30, 1997 and September 30, 1996. At
September 30, 1997, the Series had $165,825 of short-term
investments (Cash and Cash Equivalents). It also had $243,472 in
Zero Coupon Treasuries with annual maturities providing $24,000 in
fiscal year 1999 increasing to $40,000 in fiscal year 2010.
Management believes the sources of funds are sufficient to meet
current and ongoing operating costs for the foreseeable future, and
to pay part of the Asset Management Fee.
As disclosed on the statement of cash flows, the Series had a net
loss of $123,876 for the six months ended September 30, 1997.
However, after adjusting for Equity in Losses of Project
Partnerships of $110,446 and the changes in operating assets and
liabilities, net cash used in operating activities was $30,011,
primarily due to the payment of the Asset Management Fee of
$25,000. Cash used in investing activities totaled $3,907,
consisting of $3,805 of cash distributions from the Project
Partnerships and a decrease in Payable to the Project Partnerships
of $7,712. There were no unusual events or trends to describe.
Series 11 - Gateway closed this Series on April 29, 1994 after
receiving $5,127,000 from 330 Limited investors. Equity in losses
of Project Partnerships increased from income of $43,571 for the
six months ended September 30, 1996 to losses of $137,683 for the
six months ended September 30, 1997 due to the number of properties
moving from the construction and rent-up phases to fully
operational. At September 30, 1997, the Series had $152,352 of
short-term investments (Cash and Cash Equivalents). It also had
$256,416 in Zero Coupon Treasuries with annual maturities providing
$23,000 in fiscal year 1999 increasing to $44,000 in fiscal year
2010. Management believes the sources of funds are sufficient to
meet current and ongoing operating costs for the foreseeable
future, and to pay part of the Asset Management Fee.
As disclosed on the statement of cash flows, the Series had a
net loss of $147,304 for the six months ended September 30, 1997.
However, after adjusting for Equity in Losses of Project
Partnerships of $137,683 and the changes in operating assets and
liabilities, net cash used in operating activities was $21,702,
primarily due to the payment of the Asset Management Fee of
$17,000. Cash provided by investing activities totaled $4,669,
consisting of cash distributions from the Project Partnerships.
There were no unusual events or trends to describe.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, this report has been signed by the following persons on
behalf of the Registrant and in the capacities and on the dates
indicated.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
By: Raymond James Tax Credit Funds,Inc.
Date: November 3, 1997 By:/s/ Ronald M. Diner
Ronald M. Diner
President
Date: November 3, 1997 By:/s/ Sandra L. Furey
Sandra L. Furey
Secretary and Treasurer<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT
OF 1934 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1997.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-END> SEP-30-1997
<CASH> 1,042,392
<SECURITIES> 1,744,273
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,199,583
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 21,812,256
<CURRENT-LIABILITIES> 165,079
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 21,087,407
<TOTAL-LIABILITY-AND-EQUITY> 21,812,256
<SALES> 0
<TOTAL-REVENUES> 84,986
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 234,850
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (1,638,019)
<INCOME-TAX> 0
<INCOME-CONTINUING> (1,638,019)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,638,019)
<EPS-PRIMARY> (44.07)<F1>
<EPS-DILUTED> (44.07)<F1>
<FN>
<F1>EPS IS NET LOSS PER $1,000 LIMITED PARTNERSHIP UNIT.
</FN>
</TABLE>
