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, 2000

                                       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


                                       2

<PAGE>
<TABLE>
<CAPTION>

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

                                                                            September 29,         March 30,
                                                                    Notes       2000                2000
                                                                    -----       ----                ----
      ASSETS

<S>   <C>                                                           <C>     <C>                 <C>
      Cash and cash equivalents                                            $     249,902       $     873,709
      Investments in bonds                                             2       3,103,428           2,452,950
      Investment in local partnerships                                 3       3,881,374           4,236,668
      Interest receivable                                                         31,217              16,628
                                                                           -------------       -------------
                                                                           $   7,265,921       $   7,579,955
                                                                           =============       =============
      LIABILITIES AND PARTNERS' EQUITY (DEFICIT)

      Liabilities

         Accounts payable and accrued expenses                             $   1,165,224       $   1,181,877
         Payable to general partner                                            1,420,228           1,246,404
         Other                                                                     2,200               6,950
                                                                           -------------       -------------

                                                                               2,587,652           2,435,231
                                                                           -------------       -------------
      Partners' equity (deficit)

         General partner                                                       (267,762)           (262,775)
         Limited partners (35,883 units of limited partnership
           interest outstanding)                                              5,021,165           5,514,902

         Accumulated other comprehensive loss, net                     2        (75,134)           (107,403)
                                                                           -------------       -------------

                                                                              4,678,269           5,144,724
                                                                           -------------       -------------

                                                                          $   7,265,921       $   7,579,955
                                                                          =============       =============
</TABLE>

                       See Notes to Financial Statements.


                                       3

<PAGE>
<TABLE>
<CAPTION>

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

                                                       Three Months     Six Months      Three Months       Six Months
                                                     Ended September  Ended September  Ended September   Ended September
                                              Notes      29, 2000        29, 2000          29, 1999         29, 1999
                                              -----      --------        --------          --------         --------
REVENUE

<S>                                             <C>  <C>             <C>              <C>             <C>
Interest                                             $   58,398      $   115,576       $   55,843       $    112,609
Other income from local partnerships             3        1,580            1,580            2,587              6,759
                                                     ----------      -----------       ----------       ------------
TOTAL REVENUE                                            59,978          117,156           58,430            119,368
                                                     ----------      -----------       ----------       ------------
EXPENSES

Administration fees                                      57,643          115,286           57,642            115,285
Management fees                                          57,643          115,286           57,642            115,285
Professional fees                                        12,818           22,989           14,316             20,671
Printing, postage and other                               5,828           10,284            3,950             9,858
                                                     ----------      -----------       ----------       ------------

TOTAL EXPENSES                                          133,932          263,845          133,550           261,099
                                                     ----------      -----------       ----------       ------------

Loss from operations                                    (73,954)        (146,689)         (75,120)         (141,731)

Equity in loss of investment in local
   partnerships                                  3     (145,784)        (352,035)        (466,503)         (873,797)
                                                     ----------      -----------       ----------       ------------

NET LOSS                                               (219,738)        (498,724)        (541,623)       (1,015,528)

Other comprehensive income (loss)                2       25,253           32,269          (36,062)         (117,359)
                                                     ----------      -----------       ----------       ------------

COMPREHENSIVE LOSS                                    $(194,485)     $  (466,455)      $ (577,685)      $(1,132,887)
                                                      =========      ===========       ==========       ===========
NET LOSS ATTRIBUTABLE TO

   General partner                                    $  (2,198)     $    (4,987)      $   (5,416)      $   (10,155)
   Limited partners                                    (217,540)        (493,737)        (536,207)       (1,005,373)
                                                     ----------      -----------       ----------       ------------

                                                      $(219,738)     $  (498,724)      $ (541,623)      $(1,015,528)
                                                      =========      ===========       ==========       ===========
NET LOSS per unit of limited partnership
   interest (35,883 units of limited
   partnership interest)                              $   (6.06)     $    (13.76)      $   (14.95)      $    (28.02)
                                                      =========      ===========       ==========       ===========
</TABLE>


                       See Notes to Financial Statements.


                                       4

<PAGE>
<TABLE>
<CAPTION>

                     AMERICAN TAX CREDIT PROPERTIES III L.P.
                            STATEMENTS OF CASH FLOWS
                  SIX MONTHS ENDED SEPTEMBER 29, 2000 AND 1999
                                   (UNAUDITED)

                                                                  2000         1999
                                                                  ----         ----
      CASH FLOWS FROM OPERATING ACTIVITIES

<S>                                                            <C>          <C>
Interest received                                              $  76,906    $  80,507
Cash used for local partnerships for deferred expenses            (4,750)
Cash paid for
    administration fees                                           (6,748)     (50,000)
    management fees                                              (50,000)     (50,000)
    professional fees                                            (43,331)     (44,829)
    printing, postage and other expenses                          (6,595)        (556)
                                                              ----------    ---------
Net cash used in operating activities                            (34,518)     (64,878)
                                                              ----------    ---------
CASH FLOWS FROM INVESTING ACTIVITIES

Investments in bonds (including accrued interest of $14,838)    (610,910)
Cash distributions and other income from local partnerships        4,839       20,167
Maturities/redemptions of bonds                                   16,782      248,764
                                                              ----------    ---------

Net cash provided by (used in) investing activities             (589,289)     268,931
                                                              ----------    ---------

Net increase (decrease) in cash and cash equivalents            (623,807)     204,053

Cash and cash equivalents at beginning of period                 873,709      567,613
                                                              ----------    ---------

CASH AND CASH EQUIVALENTS AT END OF PERIOD                     $ 249,902    $ 771,666
                                                               =========    =========
SIGNIFICANT NON-CASH INVESTING ACTIVITIES

Unrealized gain (loss) on investments in bonds, net            $  32,269    $(117,359)
                                                               =========    =========

======================================================================================
See reconciliation of net loss to net cash used in operating  activities on page 6.
</TABLE>

                       See Notes to Financial Statements.


                                       5

<PAGE>
<TABLE>
<CAPTION>

                     AMERICAN TAX CREDIT PROPERTIES III L.P.
                     STATEMENTS OF CASH FLOWS - (Continued)
                  SIX MONTHS ENDED SEPTEMBER 29, 2000 AND 1999
                                   (UNAUDITED)

                                                                                     2000                1999
                                                                                     ----                ----
RECONCILIATION OF NET LOSS TO NET CASH USED IN OPERATING ACTIVITIES

<S>                                                                              <C>                 <C>
Net loss                                                                         $(498,724)          $(1,015,528)

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

   Equity in loss of investment in local partnerships                              352,035               873,797
   Distributions from local partnerships classified as other income                 (1,580)               (6,759)
   Amortization of net premium on investments in bonds                               4,445                 6,577
   Accretion of zero coupon bonds                                                  (43,364)              (43,364)
   Decrease in interest receivable                                                     249                 4,685
   Increase (decrease) in accounts payable and accrued expenses                    (16,653)               50,429
                                                                                    (4,750)
   Decrease in other liabilities
   Increase in payable to general partner                                          173,824                65,285
                                                                                 ---------           -----------
NET CASH USED IN OPERATING ACTIVITIES                                            $ (34,518)          $   (64,878)
                                                                                 =========           ===========
</TABLE>

                       See Notes to Financial Statements.


                                       6

<PAGE>


                     AMERICAN TAX CREDIT PROPERTIES III L.P.
                          NOTES TO FINANCIAL STATEMENTS
                               SEPTEMBER 29, 2000
                                   (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,  2000  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,  2000  are  not
     necessarily  indicative  of the results that may be expected for the entire
     year.


2.   Investments in Bonds

     As of September 29, 2000,  certain  information  concerning  investments in
bonds is as follows:
<TABLE>
<CAPTION>

                                                                       Gross              Gross
                                                   Amortized         unrealized        unrealized         Estimated
     Description and maturity                        cost              gains             losses           fair value
     ------------------------                        ----              -----             ------           ----------

<S>     <C>                                     <C>                <C>                  <C>              <C>
     Corporate debt securities
        Within one year                          $      151,112     $         --       $        (109)    $     151,003
        After one year through five years               898,340               319             (1,592)          897,067
        After five years through ten years              703,982             4,033            (20,738)          687,277
        After ten years                                 203,982               --              (6,000)          197,982
                                                 --------------     -------------      -------------     -------------

                                                      1,957,416             4,352            (28,439)        1,933,329
                                                 --------------     -------------      -------------     -------------
     U.S. Treasury debt securities
        After five years through ten years            1,221,146               --             (51,047)        1,170,099
                                                 --------------     -------------      -------------     -------------

                                                 $    3,178,562     $       4,352      $     (79,486)    $   3,103,428
                                                 ==============     =============      =============     =============
</TABLE>


                                       7

<PAGE>


                     AMERICAN TAX CREDIT PROPERTIES III L.P.
                   NOTES TO FINANCIAL STATEMENTS - (Continued)
                               SEPTEMBER 29, 2000
                                   (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.  As of June 30, 2000, the Local  Partnerships have outstanding
     mortgage  loans  payable  totaling  approximately  $85,487,000  and accrued
     interest payable on such loans totaling approximately $3,022,000, 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,  2000,  the  investment  in local
partnerships activity consists of the following:

        Investment in local partnerships as of March 30, 2000       $4,236,668

        Equity in loss of investment in local partnerships            (352,035)*

        Cash distributions received from Local Partnerships             (4,839)

        Cash distributions from Local Partnerships classified
        as other income                                                  1,580
                                                                    ----------
        Investment in local partnerships as of
        September 29, 2000                                          $3,881,374
                                                                    ==========

     * 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
       $1,271,669  for the six months  ended June 30, 2000 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, 2000 and  December 31, 1999 and the combined  unaudited  statements  of
     operations  of the Local  Partnerships  for the three and six month periods
     ended June 30, 2000 and 1999 are reflected on pages 9 and 10, respectively.


                                       8

<PAGE>
<TABLE>
<CAPTION>

                     AMERICAN TAX CREDIT PROPERTIES III L.P.
                   NOTES TO FINANCIAL STATEMENTS - (Continued)
                               SEPTEMBER 29, 2000
                                   (UNAUDITED)


3.   Investment in Local Partnerships (continued)

     The combined  balance sheets of the Local  Partnerships as of June 30, 2000
and December 31, 1999 are as follows:

                                                                      June 30,      December 31,
                                                                        2000           1999
                                                                        ----           ----
    ASSETS

<S>                                                                <C>             <C>
Cash and cash equivalents                                          $  1,240,829    $  1,515,733
Rents receivable                                                        378,007         415,459
Escrow deposits and reserves                                          4,855,302       4,772,669
Land                                                                  3,910,215       3,910,215
Buildings and improvements (net of accumulated depreciation
  of $37,034,061 and $35,035,895)                                    76,526,084      78,393,812

Intangible assets (net of accumulated amortization of
  $502,070 and $490,393)
                                                                        649,923         670,822
Other                                                                 1,134,492         845,257
                                                                   ------------    ------------
                                                                   $ 88,694,852    $ 90,523,967
                                                                   ============    ============
LIABILITIES AND PARTNERS' EQUITY (DEFICIT)

Liabilities

  Accounts payable and accrued expenses                            $    928,014    $    599,251
  Due to related parties                                              4,913,651       5,028,110
  Mortgage loans                                                     85,486,237      85,793,473
  Notes payable                                                          14,553          16,893
  Accrued interest                                                    3,021,845       2,826,511
  Other                                                                 669,696         866,170
                                                                   ------------    ------------

                                                                     95,033,996      95,130,408
                                                                   ------------    ------------
Partners' equity (deficit)

  American Tax Credit Properties III L.P.
     Capital contributions, net of distributions                     28,940,289      28,965,604
     Cumulative loss                                                (24,867,317)    (24,515,282)
                                                                   ------------    ------------

                                                                      4,072,972       4,450,322
                                                                   ------------    ------------

  General partners and other limited partners, including ATCP II
     Capital contributions, net of distributions                       (236,651)       (199,479)
     Cumulative loss                                                (10,175,465)     (8,857,284)
                                                                   ------------    ------------

                                                                    (10,412,116)     (9,056,763)
                                                                   ------------    ------------

                                                                     (6,339,144)     (4,606,441)
                                                                   ------------    ------------

                                                                   $ 88,694,852    $ 90,523,967
                                                                   ============    ============
</TABLE>


                                       9

<PAGE>
<TABLE>
<CAPTION>

                     AMERICAN TAX CREDIT PROPERTIES III L.P.
                   NOTES TO FINANCIAL STATEMENTS - (Continued)
                               SEPTEMBER 29, 2000
                                   (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, 2000 and 1999 are as follows:

                                               Three Months     Six Months     Three Months    Six Months
                                                   Ended          Ended           Ended          Ended
                                                 June 30,        June 30,        June 30,       June 30,
                                                   2000            2000            1999          1999
                                                   ----            ----            ----          ----
    REVENUE

<S>                                             <C>            <C>            <C>            <C>
    Rental                                      $ 2,748,447    $ 5,409,340    $ 2,647,066    $ 5,341,777
    Interest and other                              176,814        250,899         79,217        156,361
                                                -----------    -----------    -----------    -----------

    Total Revenue                                 2,925,261      5,660,239      2,726,283      5,498,138
                                                -----------    -----------    -----------    -----------
    EXPENSES

    Administrative                                  601,869      1,167,320        538,111      1,035,871
    Utilities                                       272,495        591,411        243,980        549,911
    Operating, maintenance and other                578,871      1,287,258        732,981      1,322,589
    Taxes and insurance                             310,598        628,214        307,508        628,286
    Financial (including amortization of $10,358,
      $20,899, $11,446 and $22,894)                 831,938      1,658,086        839,031      1,678,897

    Depreciation                                    999,351      1,998,166      1,006,085      2,006,509
                                                -----------    -----------    -----------    -----------

    Total Expenses                                3,595,122      7,330,455      3,667,696      7,222,063
                                                -----------    -----------    -----------    -----------

    NET LOSS                                    $  (669,861)   $(1,670,216)   $  (941,413)   $(1,723,925)
                                                ===========    ===========    ===========    ===========
    NET LOSS ATTRIBUTABLE TO

    American Tax Credit Properties III L.P.     $  (145,784)   $  (352,035)   $  (466,503)   $  (873,797)
    General partners and other limited
       partners, including ATCP II, which
       includes $537,995, $1,271,669, $401,694
       and $727,932 of Partnership loss in
       excess of investment                        (524,077)    (1,318,181)      (474,910)      (850,128)
                                                -----------    -----------    -----------    -----------
                                                $  (669,861)   $(1,670,216)   $  (941,413)   $(1,723,925)
                                                ===========    ===========    ===========    ===========
</TABLE>

     The combined results of operations of the Local  Partnerships for the three
     and six month periods ended June 30, 2000 are not necessarily indicative of
     the results that may be expected for an entire operating period.


4.   Additional Information

     Additional  information,  including  the audited  March 30, 2000  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, 2000 on file with the  Securities
     and Exchange Commission.


                                       10

<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,  2000,  American  Tax  Credit  Properties  III  L.P.  (the
"Registrant") has not experienced a significant change in financial condition as
compared  to March 30,  2000.  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,  2000,   Registrant   received   cash  from   interest   revenue,
maturities/redemptions  of bonds and distributions  from local  partnerships and
utilized cash for operating  expenses and  investments  in bonds.  Cash and cash
equivalents  and  investments  in  bonds   increased,   in  the  aggregate,   by
approximately  $27,000  during the six months  ended  September  29, 2000 (which
includes a net unrealized gain on investments in bonds of approximately $32,000,
the amortization of net premium on investments in bonds of approximately  $4,000
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, 2000,
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,
2000 of $352,035 and cash  distributions  received  from Local  Partnerships  of
$4,839 (exclusive of distributions  from Local Partnerships of $1,580 classified
as other income from local partnerships).  Accounts payable and accrued expenses
includes  deferred  administration  fees of  $1,136,673  and  payable to general
partner  represents   deferred   management  and  administration   fees  in  the
accompanying balance sheet as of September 29, 2000.

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, 2000 and 1999
resulted in net losses of $219,738 and $541,623,  respectively.  The decrease in
net loss is primarily attributable to a decrease in equity in loss of investment
in local partnerships, which decrease of approximately $321,000 is primarily the
result  of  (i) a  decrease  in  the  net  operating  losses  of  certain  Local
Partnerships and (ii) an increase in the  nonrecognition  of losses in excess of
Registrant's  investment in local  partnerships  in  accordance  with the equity
method of  accounting.  Other  comprehensive  income (loss) for the three months
ended  September 29, 2000 and 1999 resulted from a net unrealized gain (loss) on
investments in bonds of $25,253 and $(36,062), respectively.

                                       11

<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' net loss of approximately  $670,000 for the three months
ended  June  30,  2000  was   attributable   to  rental  and  other  revenue  of
approximately $2,925,000,  exceeded by operating and interest expense (including
interest on non-mandatory  debt) of approximately  $2,585,000 and  approximately
$1,010,000 of depreciation and amortization expense. 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 results of operations of the Local  Partnerships for
the three  months  ended June 30,  2000 are not  necessarily  indicative  of the
results that may be expected in future periods.

Registrant's  operations  for the six months ended  September  29, 2000 and 1999
resulted in net losses of $498,724 and $1,015,528, respectively. The decrease in
net loss is primarily attributable to a decrease in equity in loss of investment
in local partnerships, which decrease of approximately $522,000 is primarily the
result  of  (i) a  decrease  in  the  net  operating  losses  of  certain  Local
Partnerships and (ii) an increase in the  nonrecognition  of losses in excess of
Registrant's  investment in local  partnerships  in  accordance  with the equity
method of accounting. Other comprehensive income (loss) for the six months ended
September  29,  2000 and 1999  resulted  from a net  unrealized  gain  (loss) on
investments in bonds of $32,269 and $(117,359), respectively.

The Local Partnerships' net loss of approximately  $1,670,000 for the six months
ended  June  30,  2000  was   attributable   to  rental  and  other  revenue  of
approximately $5,660,000,  exceeded by operating and interest expense (including
interest on non-mandatory  debt) of approximately  $5,311,000 and  approximately
$2,019,000 of depreciation and amortization expense. 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 results of operations of the Local  Partnerships for
the six months ended June 30, 2000 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 relevant state tax credit agency
has allocated each of  Registrant's  Local  Partnerships an amount of Low-income
Tax Credits,  which are generally  available for a ten year period from the year
the Property is placed in service (the "Ten Year Credit  Period").  The Ten Year
Credit Period is expected to be fully exhausted by the Local  Partnerships as of
December 31, 2003. 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, 1999, 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.  Since
October  1997,  the United States  Department  of Housing and Urban  Development
("HUD") has issued a series of  directives  related to project  based  Section 8
contracts that define owners'  notification  responsibilities,  advise owners of
project  based  Section 8 properties  of what their  options are  regarding  the
renewal of Section 8  contracts,  provide  guidance  and  procedures  to owners,
management agents,  contract  administrators and HUD staff concerning renewal of
Section 8 contracts,  provide  policies and procedures on setting  renewal rents
and  handling   renewal  rent  adjustments  and  provide  the  requirements  and
procedures  for  opting-out  of a Section 8 project based  contract.  Registrant
cannot reasonably predict legislative initiatives and governmental

                                       12

<PAGE>

                     AMERICAN TAX CREDIT PROPERTIES III L.P.

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

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  contracts  are  currently  subject to renewal  under  applicable  HUD
guidelines.

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").  During the six months ended June 30, 2000,  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 require the Local General
Partner to advance funds to cover  operating  deficits  through 2009. As of June
30, 2000,  Westminster is nineteen  months in arrears on its mortgage and twenty
three to twenty  five  months in arrears on its  replacement  reserve and escrow
requirements. Although the Local General Partner has been conducting discussions
with the  lender,  the  lender  recently  issued a notice  of  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.  Westminster  incurred  an
operating  deficit of  approximately  $31,000 for the six months  ended June 30,
2000,  which  amount  includes  a  provision  for  mandatory  debt  service  and
replacement  reserve  deposits  of $6,245 and  $1,184  per month,  respectively.
Registrant's investment balance in Westminster,  after 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 $299,000 as of June 30, 2000 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
$19,000 for the six months ended June 30,  2000.  Of  Registrant's  total annual
Low-income Tax Credits, approximately 8% is allocated from Fulton Street.

Year 2000 Compliance

Registrant  successfully completed a program to ensure Year 2000 readiness. As a
result, Registrant had no Year 2000 problems that affected its business, results
of operations or financial condition.


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 under performing 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.


                                       13

<PAGE>


                     AMERICAN TAX CREDIT PROPERTIES III L.P.

                           Part II - OTHER INFORMATION

Item 1.   Legal Proceedings

          Registrant was a defendant in a complaint  brought in connection  with
          the alleged wrongful  interference with economic  advantage  resulting
          from the delay of  Registrant  in  providing a list of Unit holders to
          facilitate  a  tender  offer  by  plaintiff.   The  plaintiff   sought
          compensatory   damages  of  approximately   $246,000  and  unspecified
          punitive  damages.  Registrant  filed a motion  to  dismiss  which was
          granted  May 2000.  THE  PLAINTIFF  AND  REGISTRANT  HAVE  AGREED TO A
          SETTLEMENT  WHEREBY REGISTRANT AGREED TO PROVIDE PLAINTIFF WITH A LIST
          OF LIMITED  PARTNERS AND PLAINTIFF AGREED TO WAIVE ITS RIGHT TO APPEAL
          THE  SUMMARY  JUDGMENT.  EACH OF THE  PARTIES  PAID ITS OWN LEGAL FEES
          ARISING OUT OF THE LITIGATION.

          Registrant is not aware of any other material legal proceedings.

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 nineteen  months in arrears on its first
          mortgage  obligation  as of June 30, 2000.  Although the local general
          partner is conducting discussions with the lender, the lender recently
          issued a notice of default.

Item 6.   Exhibits and Reports on Form 8-K

          None


                                       14

<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 13, 2000              /s/ Richard Paul Richman
                                         ------------------------------------
                                      by:  Richard Paul Richman
                                           President, Chief Executive
                                           Officer and Director of the
                                           general partner of the
                                           General Partner


Dated: November 13, 2000              /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)


                                       15