UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                    FORM 10-Q

(Mark  One) [ X ]  QUARTERLY  REPORT  PURSUANT  TO  SECTION  13 OR  15(d) OF THE
             ---   SECURITIES EXCHANGE ACT OF 1934

               For the quarterly period ended September 29, 1999

                                       OR

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

For the transition period from ____________ to ____________

                         Commission file number: 0-19217


                     American Tax Credit Properties III L.P.
             (Exact name of Registrant as specified in its charter)

         Delaware                                                13-3545006
-------------------------------                              ------------------
(State or other jurisdiction of                              (I.R.S. Employer
incorporation or organization)                               Identification No.)

Richman Tax Credit Properties III L.P.
599 West Putnam Avenue, 3rd Floor
Greenwich, Connecticut                                             06830
----------------------------------------                        ----------
(Address of principal executive offices)                        (Zip Code)


Registrant's telephone number, including area code:  (203) 869-0900

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 filing requirements
for the past 90 days.

Yes X  No   .
   ---   ---

<PAGE>





                     AMERICAN TAX CREDIT PROPERTIES III L.P.

                         PART I - FINANCIAL INFORMATION



Item 1. Financial Statements


Table of Contents                                                           Page


Balance Sheets.................................................................3

Statements of Operations.......................................................4

Statements of Cash Flows.......................................................5

Notes to Financial Statements..................................................7


<PAGE>
<TABLE>
<CAPTION>

                                       AMERICAN TAX CREDIT PROPERTIES III L.P.
                                                   BALANCE SHEETS
                                                     (UNAUDITED)

                                                                                     September 29,          March 30,
                                                               Notes                     1999                 1999
                                                               -----                 -------------         -----------
<S>                                                            <C>                   <C>                   <C>
ASSETS

Cash and cash equivalents                                                            $     771,666         $   567,613
Investments in bonds available-for-sale                         2                        2,560,674           2,890,010
Investment in local partnerships                                3                        5,145,187           6,032,392
Interest receivable                                                                         16,846              21,531
                                                                                     -------------         -----------
                                                                                     $   8,494,373         $ 9,511,546
                                                                                     =============         ===========
LIABILITIES AND PARTNERS' EQUITY (DEFICIT)

Liabilities

  Accounts payable and accrued expenses                         4                    $   1,156,132         $ 1,105,703
  Payable to general partner                                                             1,126,470           1,061,185
  Other                                                                                     11,700              11,700
                                                                                     -------------         -----------
                                                                                         2,294,302           2,178,588
                                                                                     -------------         -----------
Commitment and contingencies                                   3,4

Partners' equity (deficit)

  General partner                                                                         (252,574)           (242,419)
  Limited partners (35,883 units of limited partnership
    interest outstanding)                                                                6,524,820           7,530,193

  Accumulated other comprehensive income (loss), net            2                          (72,175)             45,184
                                                                                     -------------         -----------
                                                                                         6,200,071           7,332,958
                                                                                     -------------         -----------
                                                                                     $   8,494,373         $ 9,511,546
                                                                                     =============         ===========

</TABLE>

                       See Notes to Financial Statements.


<PAGE>
<TABLE>
<CAPTION>

                                                 AMERICAN TAX CREDIT PROPERTIES III L.P.
                                                        STATEMENTS OF OPERATIONS
                                                               (UNAUDITED)



                                                    Three Months        Six Months Ended         Three Months       Six Months Ended
                                                 Ended September 29,      September 29,       Ended September 29,     September 29,
                                       Notes           1999                   1999                  1998                  1998
                                       -----     ------------------     ----------------      ------------------    ----------------
<S>                                    <C>       <C>                    <C>                   <C>                   <C>

REVENUE

Interest                                             $      55,843        $     112,609           $      61,673       $     123,532
Other income from local
  partnerships                           3                   2,587                6,759                   1,580               5,752
                                                     -------------        -------------           -------------       -------------
TOTAL REVENUE                                               58,430              119,368                  63,253             129,284
                                                     -------------        -------------           -------------       -------------
EXPENSES

Administration fees                      4                  57,642              115,285                  57,642             115,285
Management fees                                             57,642              115,285                  57,642             115,285
Professional fees                                           14,316               20,671                   8,937              21,349
Printing, postage and other                                  3,950                9,858                   4,042              13,897
                                                     -------------        -------------           -------------       -------------
TOTAL EXPENSES                                             133,550              261,099                 128,263             265,816
                                                     -------------        -------------           -------------       -------------
Loss from operations                                       (75,120)            (141,731)                (65,010)           (136,532)

Equity in loss of investment
   in local partnerships                 3                (466,503)            (873,797)               (434,420)           (890,071)
                                                     -------------        -------------           -------------       -------------
NET LOSS                                                  (541,623)          (1,015,528)               (499,430)         (1,026,603)

Other comprehensive income (loss)        2                 (36,062)            (117,359)                125,219             152,093
                                                     -------------        -------------           -------------       -------------
COMPREHENSIVE LOSS                                   $    (577,685)       $  (1,132,887)          $    (374,211)      $    (874,510)
                                                     =============        =============           =============       =============
NET LOSS ATTRIBUTABLE TO

   General partner                                   $      (5,416)       $     (10,155)          $     (4,994)       $     (10,266)
   Limited partners                                       (536,207)          (1,005,373)              (494,436)          (1,016,337)
                                                     -------------        -------------           -------------       -------------
                                                     $    (541,623)       $  (1,015,528)          $   (499,430)       $  (1,026,603)
                                                     =============        =============           =============       =============
NET LOSS per unit of limited
   partnershipinterest (35,883
   units of limited partnership
   interest)                                         $      (14.95)       $      (28.02)          $     (13.78)       $      (28.32)
                                                     =============        =============           =============       =============

</TABLE>

                                            See Notes to Financial Statements.


<PAGE>
<TABLE>
<CAPTION>

                                      AMERICAN TAX CREDIT PROPERTIES III L.P.
                                             STATEMENTS OF CASH FLOWS
                                   SIX MONTHS ENDED SEPTEMBER 29, 1999 AND 1998
                                                   (UNAUDITED)


                                                                                    1999                 1998
                                                                                -----------           ----------
<S>                                                                             <C>                   <C>

CASH FLOWS FROM OPERATING ACTIVITIES

Interest received                                                               $    80,507           $   88,247
Cash used for local partnerships for deferred expenses                                                    (4,750)
Cash paid for
  administration fees                                                               (50,000)             (50,000)
  management fees                                                                   (50,000)             (50,000)
  professional fees                                                                 (44,829)             (42,099)
  printing, postage and other expenses                                                 (556)             (13,087)
                                                                                -----------           ----------
Net cash used in operating activities                                               (64,878)             (71,689)
                                                                                -----------           ----------
CASH FLOWS FROM INVESTING ACTIVITIES

Cash distributions and other income from local partnerships                          20,167               22,293
Maturity/redemption of bonds                                                        248,764              125,000
                                                                                -----------           ----------
Net cash provided by investing activities                                           268,931              147,293
                                                                                -----------           ----------

Net increase in cash and cash equivalents                                           204,053               75,604

Cash and cash equivalents at beginning of period                                    567,613              419,372
                                                                                -----------           ----------
CASH AND CASH EQUIVALENTS AT END OF PERIOD                                      $   771,666           $  494,976
                                                                                ===========           ==========


SIGNIFICANT NON-CASH INVESTING ACTIVITIES

Unrealized gain (loss) on investments in bonds available-for-sale, net          $  (117,359)          $  152,093
                                                                                ===========           ==========



See reconciliation of net loss to net cash used in operating activities on page 6.

</TABLE>
                                          See Notes to Financial Statements.


<PAGE>
<TABLE>
<CAPTION>

                                          AMERICAN TAX CREDIT PROPERTIES III L.P.
                                          STATEMENTS OF CASH FLOWS - (Continued)
                                        SIX MONTHS ENDED SEPTEMBER 29, 1999 AND 1998
                                                       (UNAUDITED)




                                                                                   1999               1998
                                                                                ------------      ------------
<S>                                                                             <C>               <C>

RECONCILIATION OF NET LOSS TO NET CASH USED IN OPERATING ACTIVITIES


Net loss                                                                        $ (1,015,528)     $ (1,026,603)


Adjustments to reconcile net loss to net cash used in operating activities


   Equity in loss of investment in local partnerships                                873,797           890,071
   Distributions from local partnerships classified as other income                   (6,759)           (5,752)
   Loss on maturity/redemption of investments in bonds                                                     677
   Amortization of net premium on investments in bonds                                 6,577             6,629
   Accretion of zero coupon bonds                                                    (43,364)          (43,364)
   Decrease in interest receivable                                                     4,685               773
   Increase in accounts payable and accrued expenses                                  50,429            45,345
   Increase in payable to general partner                                             65,285            65,285
   Decrease in other liabilities                                                                        (4,750)
                                                                                ------------      ------------

NET CASH USED IN OPERATING ACTIVITIES                                           $    (64,878)     $    (71,689)
                                                                                ============      ============

</TABLE>

                       See Notes to Financial Statements.


<PAGE>

                    AMERICAN TAX CREDIT PROPERTIES III, L.P.
                          NOTES TO FINANCIAL STATEMENTS
                               SEPTEMBER 29, 1999
                                   (UNAUDITED)



1.   Basis of Presentation

The accompanying unaudited financial statements have been prepared in accordance
with generally accepted accounting principles for interim financial information.
They do not include all information and footnotes required by generally accepted
accounting  principles  for  complete  financial  statements.   The  results  of
operations are impacted  significantly  by the combined results of operations of
the Local  Partnerships,  which are  provided  by the Local  Partnerships  on an
unaudited basis during interim periods.  Accordingly, the accompanying financial
statements  are dependent on such unaudited  information.  In the opinion of the
General Partner, the financial  statements include all adjustments  necessary to
present  fairly the financial  position as of September 29, 1999 and the results
of operations and cash flows for the interim periods presented.  All adjustments
are of a normal  recurring  nature.  The results of operations for the three and
six month periods ended September 29, 1999 are not necessarily indicative of the
results that may be expected for the entire year.


2.   Investments in Bonds Available-For-Sale

As of September 29, 1999, certain  information  concerning  investments in bonds
available-for-sale is as follows:
<TABLE>
<CAPTION>

                                                                       Gross              Gross
                                                   Amortized         unrealized        unrealized         Estimated
 Description and maturity                            cost              gains             losses           fair value
 ------------------------                        -----------         ----------        ----------        -----------
 <S>                                             <C>                 <C>               <C>                <C>

 Corporate debt securities

   Within one year                               $    75,183         $      861        $       --        $    76,044
   After one year through five years                 458,767              2,441            (1,394)           459,814
   After five years through ten years                703,755              8,436           (17,841)           694,350
   After ten years                                   255,933                 --            (5,213)           250,720
                                                 -----------         ----------        ----------        -----------
                                                   1,493,638             11,738           (24,448)         1,480,928
                                                 -----------         ----------        ----------        -----------
 U.S. Treasury debt securities
   After five years through ten years              1,139,211                 --           (59,465)         1,079,746
                                                 -----------         ----------        ----------        -----------
                                                 $ 2,632,849         $   11,738        $  (83,913)       $ 2,560,674
                                                 ===========         ==========        ==========        ===========
</TABLE>

<PAGE>

                     AMERICAN TAX CREDIT PROPERTIES III L.P.
                   NOTES TO FINANCIAL STATEMENTS - (Continued)
                               SEPTEMBER 29, 1999
                                   (UNAUDITED)


3.   Investment in Local Partnerships

The  Partnership  owns  limited  partnership   interests  in  forty-three  Local
Partnerships  representing  capital  contributions  in the  aggregate  amount of
$29,264,476,  all of which  have  been  paid.  As of June 30,  1999,  the  Local
Partnerships  have  outstanding  mortgage loans payable  totaling  approximately
$86,078,000 and accrued  interest  payable on such loans totaling  approximately
$2,627,000, which are secured by security interests and liens common to mortgage
loans on the Local Partnerships' real property and other assets.

For  the  six  months  ended   September  29,  1999,  the  investment  in  local
partnerships activity consists of the following:
<TABLE>
<CAPTION>
    <S>                                                                                <C>
    Investment in local partnerships as of March 30, 1999                              $   6,032,392

    Equity in loss of investment in local partnerships                                      (873,797)*

    Cash distributions received from Local Partnerships                                      (20,167)

    Cash distributions from Local Partnerships classified as other income                      6,759
                                                                                       -------------
    Investment in local partnerships as of September 29, 1999                          $   5,145,187
                                                                                       =============
</TABLE>


*    Equity  in loss of  investment  in local  partnerships  is  limited  to the
     Partnership's  investment balance in each Local Partnership;  any excess is
     applied  to other  partners'  capital in any such  Local  Partnership.  The
     amount  of such  excess  losses  applied  to other  partners'  capital  was
     $727,932  for the six  months  ended  June  30,  1999 as  reflected  in the
     combined statement of operations of the Local Partnerships reflected herein
     Note 3.

The combined  unaudited balance sheets of the Local  Partnerships as of June 30,
1999 and December 31, 1998 and the combined  unaudited  statements of operations
of the Local  Partnerships  for the three and six month  periods  ended June 30,
1999 and 1998 are reflected on pages 9 and 10, respectively.


<PAGE>
<TABLE>
<CAPTION>



                                     AMERICAN TAX CREDIT PROPERTIES III L.P.
                                  NOTES TO FINANCIAL STATEMENTS - (Continued)
                                                SEPTEMBER 29, 1999
                                                   (UNAUDITED)


3.   Investment in Local Partnerships (continued)

The combined  balance sheets of the Local  Partnerships  as of June 30, 1999 and
December 31, 1998 are as follows:

                                                                                   June 30,           December 31,
                                                                                     1999                 1998
                                                                                --------------        ------------
<S>                                                                             <C>                   <C>

ASSETS

Cash and cash equivalents                                                       $    1,330,020        $  1,396,493
Rents receivable                                                                       335,423             429,688
Capital contributions receivable                                                                            84,433
Escrow deposits and reserves                                                         4,871,336           4,657,419
Land                                                                                 3,910,215           3,910,215
Buildings and improvements (net of accumulated
  depreciation of $33,064,084 and $31,057,575)                                      80,059,080          82,003,262
Intangible assets (net of accumulated amortization
  of $641,784 and $618,890)                                                            693,830             716,724
Other                                                                                  923,877             804,785
                                                                                --------------        ------------
                                                                                $   92,123,781        $ 94,003,019
                                                                                ==============        ============
LIABILITIES AND PARTNERS' EQUITY (DEFICIT)

Liabilities

  Accounts payable and accrued expenses                                         $      763,315        $    619,342
  Due to related parties                                                             4,974,955           5,154,179
  Mortgage loans                                                                    86,077,898          86,358,980
  Notes payable                                                                         22,738              26,990
  Accrued interest                                                                   2,626,930           2,420,323
  Other                                                                                616,390             613,520
                                                                                --------------        ------------
                                                                                    95,082,226          95,193,334
                                                                                --------------        ------------
Partners' equity (deficit)

   American Tax Credit Properties III L.P.
     Capital contributions, net of distributions (includes
       receivable of $84,433 as of December 31, 1998)                               28,979,022          29,004,177
     Cumulative loss                                                               (23,850,263)        (22,976,466)
                                                                                --------------        ------------
                                                                                     5,128,759           6,027,711
                                                                                --------------        ------------

   General partners and other limited partners, including ATCP II
     Capital contributions, net of distributions                                      (196,921)           (177,871)
     Cumulative loss                                                                (7,890,283)         (7,040,155)
                                                                                --------------        ------------

                                                                                    (8,087,204)         (7,218,026)
                                                                                --------------        ------------

                                                                                    (2,958,445)         (1,190,315)
                                                                                --------------        ------------

                                                                                $   92,123,781        $ 94,003,019
                                                                                ==============        ============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>

                                      AMERICAN TAX CREDIT PROPERTIES III L.P.
                                    NOTES TO FINANCIAL STATEMENTS - (Continued)
                                                SEPTEMBER 29, 1999
                                                    (UNAUDITED)


3.   Investment in Local Partnerships (continued)

The combined  statements of operations of the Local  Partnerships  for the three
and six month periods ended June 30, 1999 and 1998 are as follows:

                                                          Three Months         Six Months        Three Months         Six Months
                                                             Ended               Ended              Ended               Ended
                                                           June 30,             June 30,           June 30,            June 30,
                                                             1999                1999               1998                1998
                                                         -------------        ------------       ------------        ------------

<S>                                                      <C>                  <C>                <C>                 <C>

REVENUE

Rental                                                   $   2,647,066         $ 5,341,777       $  2,650,051        $  5,265,766
Interest and other                                              79,217             156,361             84,687             163,966
                                                         -------------        ------------       ------------        ------------
TOTAL REVENUE                                                2,726,283           5,498,138          2,734,738           5,429,732
                                                         -------------        ------------       ------------        ------------
EXPENSES

Administrative                                                 538,111           1,035,871            498,220             993,705
Utilities                                                      243,980             549,911            233,713             513,644
Operating, maintenance and other                               732,981           1,322,589            556,042           1,143,828
Taxes and insurance                                            307,508             628,286            318,121             647,946
Financial (including amortization of
  $11,446, $22,894, $12,285 and $24,577)                       839,031           1,678,897            855,385           1,713,980
Depreciation                                                 1,006,085           2,006,509          1,003,726           2,007,309
                                                         -------------        ------------       ------------        ------------
TOTAL EXPENSES                                               3,667,696           7,222,063          3,465,207           7,020,412
                                                         -------------        ------------       ------------        ------------
NET LOSS                                                 $    (941,413)       $ (1,723,925)      $   (730,469)       $ (1,590,680)
                                                         =============        ============       ============        ============
NET LOSS ATTRIBUTABLE TO

American Tax Credit Properties III L.P.                  $    (466,503)       $   (873,797)      $   (434,420)       $   (890,071)
General  partners and other  limited  partners,
  including  ATCP II, which includes $401,694,
  $727,932, $236,063 and $592,085 of Partnership
  loss in excess of investment                                (474,910)           (850,128)          (296,049)           (700,609)
                                                         -------------        ------------       ------------        ------------
                                                         $    (941,413)       $ (1,723,925)      $   (730,469)       $ (1,590,680)
                                                         =============        ============       ============        ============


</TABLE>

The combined  results of operations of the Local  Partnerships for the three and
six month  periods  ended June 30, 1999 are not  necessarily  indicative  of the
results that may be expected for an entire operating period.

<PAGE>

                     AMERICAN TAX CREDIT PROPERTIES III L.P.
                   NOTES TO FINANCIAL STATEMENTS - (Continued)
                               SEPTEMBER 29, 1999
                                   (UNAUDITED)


4.   Administration Fees

     Pursuant to the Partnership Agreement, the Partnership is authorized to pay
     ML Fund  Administrators  Inc.  ("MLFA"),  an  affiliate  of Merrill  Lynch,
     Pierce,  Fenner & Smith  Incorporated,  an annual  administration  fee (the
     "Administration  Fee") and an  annual  additional  administration  fee (the
     "Additional  Administration Fee") for its administrative  services provided
     to the Partnership  pursuant to an Administrative  Services Agreement.  The
     annual  Administration  Fee is equal to .14% of all proceeds as of December
     31 of any year,  invested or committed for investment in Local Partnerships
     plus  all  debts  of the  Local  Partnerships  related  to  the  Properties
     ("Invested Assets"), and the annual Additional Administration Fee, which is
     subject to certain  provisions of the  Partnership  Agreement,  is equal to
     .06% of Invested  Assets.  MLFA has notified the Partnership that effective
     November 23, 1999,  it will  discontinue  the  performance  of its services
     under  the  Adminstrative  Services  Agreement.   The  General  Partner  is
     considering  transition  of such  services to an  affiliate  of the General
     Partner  without  any changes to the terms of the  Administrative  Services
     Agreement.  Under the terms of the Partnership  Agreement,  the Partnership
     currently  incurs an  annual  Administration  Fee and an annual  Additional
     Administration Fee of $161,400 and $69,171, respectively. Unpaid cumulative
     Administration  Fees and  additional  Administration  Fees in the amount of
     $1,126,470  and  $1,061,185  are  included in accounts  payable and accrued
     expenses in the  accompanying  balance  sheets as of September 29, 1999 and
     March 30, 1999, respectively.

5.   Additional Information

     Additional  information,  including  the audited  March 30, 1999  Financial
     Statements  and  the  Organization,  Purpose  and  Summary  of  Significant
     Accounting Policies, is included in the Partnership's Annual Report on Form
     10-K for the fiscal year ended  March 30, 1999 on file with the  Securities
     and Exchange Commission.


<PAGE>



                     AMERICAN TAX CREDIT PROPERTIES III L.P.

Item 2. Management's  Discussion and Analysis of Financial Condition and Results
        of Operations

Material Changes in Financial Condition

As of  September  29,  1999,  American  Tax  Credit  Properties  III  L.P.  (the
"Registrant") has not experienced a significant change in financial condition as
compared  to March 30,  1999.  Principal  changes  in assets  are  comprised  of
periodic  transactions  and  adjustments  and  anticipated  equity  in loss from
operations  of the  local  partnerships  (the  "Local  Partnerships")  which own
low-income  multifamily  residential  complexes (the "Properties") which qualify
for the  low-income  tax credit in  accordance  with  Section 42 of the Internal
Revenue  Code  (the  "Low-income  Tax  Credit").  During  the six  months  ended
September  29,  1999,   Registrant   received   cash  from   interest   revenue,
maturity/redemption  of bonds and  distributions  from  Local  Partnerships  and
utilized cash for operating expenses.  Cash and cash equivalents and investments
in  bonds  available-for-sale  decreased,  in the  aggregate,  by  approximately
$125,000  during the six months ended  September 29, 1999 (which  includes a net
unrealized  loss  on  investments  in  bonds  of  approximately   $117,000,  the
amortization of net premium on investments in bonds of approximately  $7,000 and
the accretion of zero coupon bonds of  approximately  $43,000).  Notwithstanding
circumstances that may arise in connection with the Properties,  Registrant does
not expect to realize  significant  gains or losses on its investments in bonds,
if any.  During the six months ended September 29, 1999, the investment in Local
Partnerships  decreased  as  a  result  of  Registrant's  equity  in  the  Local
Partnerships'  net loss for the six months  ended June 30, 1999 of $873,797  and
cash  distributions  received from Local  Partnerships of $13,408  (exclusive of
distributions  from Local Partnerships of $6,759 classified as other income from
local  partnerships).  Accounts payable and accrued expenses  includes  deferred
administration  fees of  $1,126,470  and payable to general  partner  represents
deferred  management fees in the accompanying  balance sheet as of September 29,
1999.

Results of Operations

Registrant's  operating  results are dependent upon the operating results of the
Local  Partnerships and are  significantly  impacted by the Local  Partnerships'
policies. In addition, the operating results herein are not necessarily the same
for tax reporting.  Registrant accounts for its investment in Local Partnerships
in accordance with the equity method of accounting.  Accordingly, the investment
is  carried  at cost,  which  includes  capital  contributions  payable,  and is
adjusted  for  Registrant's  share  of  each  Local  Partnership's   results  of
operations and by cash distributions received. Equity in loss of each investment
in Local  Partnership  allocated to  Registrant  is  recognized to the extent of
Registrant's  investment  balance in each Local  Partnership.  Equity in loss in
excess of Registrant's investment balance in a Local Partnership is allocated to
other partners' capital in any such Local Partnership. As a result, the reported
equity in loss of  investment in local  partnerships  is expected to decrease as
Registrant's  investment  balances in the respective Local  Partnerships  become
zero. The combined statements of operations of the Local Partnerships  reflected
in Note 3 to Registrant's  financial statements include the operating results of
all Local Partnerships, irrespective of Registrant's investment balances.

Cumulative  losses  and cash  distributions  in  excess of  investment  in local
partnerships  may result  from a variety  of  circumstances,  including  a Local
Partnership's  accounting  policies,   subsidy  structure,  debt  structure  and
operating deficits, among other things. Accordingly,  cumulative losses and cash
distributions  in excess of the  investment  are not  necessarily  indicative of
adverse  operating  results of a Local  Partnership.  See discussion below under
Local  Partnership  Matters  regarding  certain  Local  Partnerships   currently
operating below economic break even levels.

Registrant's  operations for the three months ended  September 29, 1999 and 1998
resulted in net losses of $541,623 and $499,430,  respectively.  The increase in
net  loss  is  primarily  attributable  to an  increase  in  equity  in  loss of
investment in local partnerships of approximately  $32,000.  Other comprehensive
income  (loss) for the three months ended  September  29, 1999 and 1998 resulted
from a net unrealized gain (loss) on investments in bonds  available-for-sale of
($36,062) and $125,219, respectively.

The Local Partnerships' net loss of approximately  $941,000 for the three months
ended  June  30,  1999  was   attributable   to  rental  and  other  revenue  of
approximately $2,726,000,  exceeded by operating and interest expense (including
interest on non-mandatory  debt) of approximately  $2,650,000 and  approximately
$1,017,000 of depreciation and amortization expense. The Local Partnerships' net
loss of  approximately  $730,000  for the three  months  ended June 30, 1998 was
attributable to rental and other revenue of approximately  $2,735,000,  exceeded
by operating and interest expense (including  interest on non-mandatory debt) of
approximately  $2,449,000  and  approximately  $1,016,000  of  depreciation  and
amortization  expense.  The results of operations of the Local  Partnerships for
the three  months  ended June 30,  1999 are not  necessarily  indicative  of the
results that may be expected in future periods.


<PAGE>

                     AMERICAN TAX CREDIT PROPERTIES III L.P.

Item 2. Management's  Discussion and Analysis of Financial Condition and Results
        of Operations (continued)

Registrant's  operations  for the six months ended  September  29, 1999 and 1998
resulted in net losses of $1,015,528 and $1,026,603,  respectively. The decrease
in net  loss is  primarily  attributable  to a  decrease  in  equity  in loss of
investment in local partnerships of approximately  $16,000.  Other comprehensive
income (loss) for the six months ended September 29, 1999 and 1998 resulted from
a net  unrealized  gain (loss) on  investments  in bonds  available-for-sale  of
($117,359) and $152,093, respectively.

The Local Partnerships' net loss of approximately  $1,724,000 for the six months
ended  June  30,  1999  was   attributable   to  rental  and  other  revenue  of
approximately $5,498,000,  exceeded by operating and interest expense (including
interest on non-mandatory  debt) of approximately  $5,193,000 and  approximately
$2,029,000 of depreciation and amortization expense. The Local Partnerships' net
loss of  approximately  $1,591,000  for the six months  ended June 30,  1998 was
attributable to rental and other revenue of approximately  $5,430,000,  exceeded
by operating and interest expense (including  interest on non-mandatory debt) of
approximately  $4,989,000  and  approximately  $2,032,000  of  depreciation  and
amortization  expense.  The results of operations of the Local  Partnerships for
the six months ended June 30, 1999 are not necessarily indicative of the results
that may be expected in future periods.

Local Partnership Matters

Registrant's  primary objective is to provide  Low-income Tax Credits to limited
partners  generally over a ten year period.  The required holding period of each
Property,  in order to avoid Low-income Tax Credit  recapture,  is fifteen years
from the year in which the Low-income Tax Credits  commence on the last building
of the Property (the  "Compliance  Period").  In addition,  certain of the Local
Partnerships  have entered into  agreements  with the relevant  state tax credit
agencies whereby the Local  Partnerships  must maintain the low-income nature of
the Properties for a period which exceeds the Compliance  Period,  regardless of
any sale of the  Properties  by the  Local  Partnerships  after  the  Compliance
Period.  The  Properties  must  satisfy  various  requirements   including  rent
restrictions   and  tenant  income   limitations  (the  "Low-income  Tax  Credit
Requirements")  in order to  maintain  eligibility  for the  recognition  of the
Low-income  Tax Credit at all times during the Compliance  Period.  Once a Local
Partnership has become eligible for the Low-income Tax Credit,  it may lose such
eligibility  and suffer an event of recapture if its Property fails to remain in
compliance  with the Low-income Tax Credit  Requirements.  Through  December 31,
1998,  none of the Local  Partnerships  have  suffered an event of  recapture of
Low-income Tax Credits.

The Properties are principally  comprised of subsidized and leveraged low-income
multifamily  residential  complexes  located  throughout  the United  States and
Puerto Rico.  Many of the Local  Partnerships  receive rental subsidy  payments,
including  payments  under  Section 8 of Title II of the Housing  and  Community
Development Act of 1974 ("Section 8"). The subsidy  agreements expire at various
times  during and after the  Compliance  Periods of the Local  Partnerships.  In
October 1997,  Congress passed the Multifamily  Assisted  Housing and Reform and
Affordability  Act,  whereby the United  States  Department of Housing and Urban
Development  ("HUD") was given the  authority  to renew  certain  project  based
Section 8 contracts  expiring during HUD's fiscal year 1998,  where requested by
an owner,  for an  additional  one year term  generally at or below current rent
levels,  subject to certain guidelines.  In October 1998, HUD issued a directive
related to project based Section 8 contracts  expiring  during HUD's fiscal year
1999 which defines  owners'  notification  responsibilities,  advises  owners of
project  based  Section 8 properties  of what their  options are  regarding  the
renewal of Section 8  contracts,  provides  guidance and  procedures  to owners,
management agents,  contract  administrators and HUD staff on renewing Section 8
contracts,  provides guidance on setting renewal rents and handling renewal rent
increases  and provides the  requirements  and  procedures  for  opting-out of a
Section  8  project  based  contract.   Registrant  cannot  reasonably   predict
legislative  initiatives and governmental  budget  negotiations,  the outcome of
which could result in a reduction in funds available for the various federal and
state  administered  housing  programs  including  the  Section 8 program.  Such
changes  could  adversely  affect  the  future  net  operating  income  and debt
structure of any or all Local Partnerships  currently  receiving such subsidy or
similar  subsidies.  One Local  Partnership's  Section 8 contract  is  currently
subject to annual year-to-year renewals.


<PAGE>

                     AMERICAN TAX CREDIT PROPERTIES III L.P.

Item 2. Management's  Discussion and Analysis of Financial Condition and Results
        of Operations (continued)

The Local  Partnerships  have various  financing  structures  which  include (i)
required debt service payments  ("Mandatory Debt Service") and (ii) debt service
payments  which are payable only from  available  cash flow subject to the terms
and conditions of the notes, which may be subject to specific laws,  regulations
and agreements with appropriate federal and state agencies  ("Non-Mandatory Debt
Service or Interest").  In the event rents are not sufficient to cover operating
expenses, Mandatory Debt Service requirements and other charges, certain general
partners of the Local  Partnerships (the "Local General Partners") are obligated
to provide advances to cover deficits for a certain period of time up to certain
amounts (the "Deficit  Guarantee").  A Local General  Partner's  funding of such
Deficit  Guarantee  is  dependent  on its  liquidity  or  ability  to borrow the
required  funds.  During  the six  months  ended  June 30,  1999,  revenue  from
operations of the Local  Partnerships  have generally  been  sufficient to cover
operating  expenses and Mandatory Debt Service.  Substantially  all of the Local
Partnerships  are effectively  operating at or near break even levels,  although
certain Local Partnerships'  operating  information  reflects operating deficits
that  do not  represent  cash  deficits  due to  their  mortgage  and  financing
structure and the required  deferral of property  management fees.  However,  as
discussed below,  certain Local Partnerships'  operating  information  indicates
below  break even  operations  after  taking into  account  their  mortgage  and
financing structure and any required deferral of property management fees.

The  terms  of the  partnership  agreement  of  Westminster  Apartments  Limited
Partnership  ("Westminster")  require the Local General Partner to advance funds
to cover  operating  deficits  through 2009.  Westminster  reported an operating
deficit of  approximately  $20,000 for the six months  ended June 30,  1999.  In
addition,  as of June 30,  1999,  Westminster  is seven months in arrears on its
mortgage,  and eleven to thirteen months in arrears on its  replacement  reserve
and escrow  requirements.  The Local General  Partner is conducting  discussions
with the lender,  which has  acknowledged  the arrearages but has not declared a
default.  Current  proposals  include the potential  utilization  of replacement
reserves  to reduce the  arrearages.  There can be no  assurance  that the Local
General  Partner  will  be  successful  in its  negotiations  with  the  lender.
Registrant's  investment  balance in  Westminster,  after the cumulative  equity
losses,  became zero during the year ended March 30, 1999. Of Registrant's total
annual Low-income Tax Credits, approximately 4% is allocated from Westminster.

Fulton  Street Houses  Limited  Partnership  ("Fulton  Street") has an escrow of
approximately  $293,000 as of June 30,  1999 to cover  operating  deficits,  and
there are no  Mandatory  Debt  Service  payments or real estate  taxes  required
during the Compliance  Period.  Fulton Street  reported an operating  deficit of
approximately  $20,000 for the six months ended June 30, 1999.  Of  Registrant's
total annual  Low-income Tax Credits,  approximately 8% is allocated from Fulton
Street.

The terms of the partnership agreement of Batesville Family, L.P. ("Batesville")
require the management agent to defer property management fees in order to avoid
a default  under the  mortgage.  Batesville  reported  an  operating  deficit of
approximately  $6,000 for the six months  ended June 30,  1999,  which  includes
property management fees of approximately  $1,000.  Payments on the mortgage and
real estate taxes are current.  Registrant's  investment  balance in Batesville,
after  cumulative  equity  losses,  became  zero during the year ended March 30,
1997. Of Registrant's  total annual Low-income Tax Credits,  approximately 1% is
allocated from Batesville.

Year 2000 Compliance

The   inability   of   computers,   software  and  other   equipment   utilizing
microprocessors  to recognize and properly process data fields  containing a two
digit year is commonly referred to as the year 2000 compliance ("Y2K") issue. As
the year 2000  approaches,  such  systems  may be unable to  accurately  process
certain  data-based  information.  Many businesses may need to upgrade  existing
systems or purchase new ones to correct the Y2K issue.  Registrant has performed
an assessment of its computer software and hardware and believes it has made the
necessary upgrades in an effort to ensure compliance.  However,  there can be no
assurance  that the  systems  of other  entities  on  which  Registrant  relies,
including the Local  Partnerships which report to Registrant on a periodic basis
for the  purpose of  Registrant's  reporting  to its  investors,  will be timely
converted.  Registrant has  corresponded  with the Local  Partnerships to ensure
their  awareness  of the Y2K issue and has  requested  details  regarding  their
efforts to ensure compliance.  The total cost associated with Y2K implementation
is not expected to materially impact Registrant's  financial position or results
of  operations  in any given year.  However,  there can be no  assurance  that a
failure to convert by  Registrant  or another  entity  would not have a material
adverse impact on Registrant.


<PAGE>

                     AMERICAN TAX CREDIT PROPERTIES III L.P.

Item 3.  Quantitative and Qualitative Disclosure About Market Risk

Registrant has invested a significant portion of its working capital reserves in
corporate  bonds  and  U.S.  Treasury  instruments.  The  market  value  of such
investments  is subject to  fluctuation  based upon  changes in  interest  rates
relative to each investment's  maturity date. Since Registrant's  investments in
bonds have various  maturity dates through 2023,  the value of such  investments
may be adversely  impacted in an  environment  of rising  interest  rates in the
event Registrant decides to liquidate any such investment prior to its maturity.
Although Registrant may utilize reserves to assist an underperforming  Property,
it otherwise  intends to hold such investments to their  respective  maturities.
Therefore,  Registrant  does not  anticipate  any  material  adverse  impact  in
connection with such investments.

The  Properties  are generally  located  where there is a demand for  low-income
housing.  Accordingly,  there is a significant  likelihood  that new  low-income
properties could be built in the general vicinity of the respective  Properties.
As a result,  the  respective  Properties'  ability to operate at high occupancy
levels is subject to competition from newly built low-income housing.

<PAGE>

                     AMERICAN TAX CREDIT PROPERTIES III L.P.

                           Part II - OTHER INFORMATION


Item 1.   Legal Proceedings

          None

Item 2.   Changes in Securities

          None

Item 3.   Defaults Upon Senior Securities

          None

Item 4.   Submission of Matters to a Vote of Security Holders

          None

Item 5.   Other Information

          As discussed in Part I, Item 2 - Management's  Discussion and Analysis
          of Financial  Condition and Results of  Operations,  the local general
          partner of Westminster Apartments Limited Partnership  ("Westminster")
          reports  that  Westminster  is seven  months in  arrears  on its first
          mortgage  obligation as of June 30, 1999. The local general partner is
          conducting  discussions  with the  lender,  which has not  declared  a
          default.

Item 6.   Exhibits and Reports on Form 8-K

          None


<PAGE>



                                   SIGNATURES



Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
Registrant duly caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.


                                    AMERICAN TAX CREDIT PROPERTIES III L.P.
                                   (a Delaware limited partnership)

                                    By:  Richman Tax Credit Properties III L.P.,
                                         General Partner

                                    by:  Richman Housing Credits Inc.,
                                         general partner


Dated: November 15, 1999            /s/ Richard Paul Richman
                                    ------------------------------------
                                    by: Richard Paul Richman
                                        President, Chief Executive
                                        Officer and Director of the
                                        general partner of the
                                        General Partner


Dated: November 15, 1999            /s/ Neal Ludeke
                                    ------------------------------------
                                    by: Neal Ludeke
                                        Vice President and
                                        Treasurer of the general partner
                                        of the General Partner
                                       (Principal Financial and Accounting
                                        Officer of Registrant)