# EXHIBIT        31.1

**CERTIFICATION        Pursuant to 18 U.S.C. Section 1350,        as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002**

I, William B. Dockser, certify        that:

|   | 1. | I have reviewed                this annual report on Form 10-KSB for the year ended December 31, 2007, of                CAPITAL REALTY INVESTORS-III LIMITED PARTNERSHIP; |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | Based on my                knowledge, this report does not contain any untrue statement of a material fact or                omit to state a material fact necessary to make the statements made, in light of                the circumstances under which such statements were made, not misleading with                respect to the period covered by this report; |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | Based on my                knowledge, the financial statements and other financial information included in                this report, fairly present in all material respects the financial condition,                results of operations and cash flows of the small business issuer as of, and for,                the periods presented in this report; |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4. | The small                business issuer’s other certifying officer and I are responsible for                establishing and maintaining disclosure controls and procedures (as defined in                Exchange Act Rules 13a-15(e) and 15d-15(e)) for the small business issuer and                have: |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

 

| a) | Designed such disclosure controls and procedures, or caused such                    disclosure controls and procedures to be designed under our supervision, to                    ensure that material information relating to the small business issuer,                    including its consolidated subsidiaries, is made known to us by others within                    those entities, particularly during the period in which this report is being                    prepared; |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

 

| b) | Designed such internal control over financial reporting, or                    caused such internal control over financial reporting to be designed under our                    supervision, to provide reasonable assurance regarding the reliability of                    financial reporting and the preparation of financial statements for external                    purposes in accordance with generally accepted accounting                    principles; |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

 

| c) | Evaluated the effectiveness of the small business issuer’s                    disclosure controls and procedures and presented in this report our conclusions                    about the effectiveness of the disclosure controls and procedures, as of the                    end of the period covered by this report based on such evaluation; |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

 

| d) | Disclosed in this report any change in the small business                    issuer’s internal control over financial reporting that occurred during                    the small business issuer’s most recent fiscal quarter (the small                    business issuer’s fourth fiscal quarter in the case of an annual report)                    that has materially affected, or is reasonably likely to materially affect, the                    small business issuer’s internal control over financial reporting;                    and |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

 

 

----

|   | 5. | The small                business issuer’s other certifying officer and I have disclosed, based on our                most recent evaluation of internal control over financial reporting, to the small                business issuer’s auditors and the audit committee of small business                issuer’s board of directors (or persons performing the equivalent                functions): |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a) | All significant                deficiencies and material weaknesses in the design or operation of internal control                over financial reporting which are reasonably likely to adversely affect the small                business issuer’s ability to record, process, summarize and report financial                information; and |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | Any fraud,                whether or not material, that involves management or other employees who have a                significant role in the small business issuer’s internal controls over                financial reporting. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|               |   | CAPITAL REALTY                    INVESTORS-III LIMITED                          PARTNERSHIP                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|--------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|               |   | (Small Business                Issuer)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|               |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|               |   | by:  C.R.I.,                    Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|               |   |         Managing                General Partner                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|               |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| April 4, 2008 |   |         by:                      /s/ William B. Dockser                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| DATE               |   |                                William B. Dockser,                                Director,                Chairman of the Board,                                    and                Treasurer                                    (Principal                Executive Officer) |

                *This certification is made solely for purpose of 18 U.S.C. Section 1350, subject to the        knowledge standard contained therein, and not for any other purpose.*

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# EXHIBIT        31.2

**CERTIFICATION        Pursuant to 18 U.S.C. Section 1350,        as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002**

I, H. William Willoughby, certify        that:

|   | 1. | I have reviewed                this annual report on Form 10-KSB for the year ended December 31, 2007, of                CAPITAL REALTY INVESTORS-III LIMITED PARTNERSHIP; |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | Based on my                knowledge, this report does not contain any untrue statement of a material fact or                omit to state a material fact necessary to make the statements made, in light of                the circumstances under which such statements were made, not misleading with                respect to the period covered by this report; |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | Based on my                knowledge, the financial statements and other financial information included in                this report, fairly present in all material respects the financial condition,                results of operations and cash flows of the small business issuer as of, and for,                the periods presented in this report; |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4. | The small                business issuer’s other certifying officer and I are responsible for                establishing and maintaining disclosure controls and procedures (as defined in                Exchange Act Rules 13a-15(e) and 15d-15(e)) for the small business issuer and                have: |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

 

| a) | Designed such disclosure controls and procedures, or caused such                    disclosure controls and procedures to be designed under our supervision, to                    ensure that material information relating to the small business issuer,                    including its consolidated subsidiaries, is made known to us by others within                    those entities, particularly during the period in which this report is being                    prepared; |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

 

| b) | Designed such internal control over financial reporting, or                    caused such internal control over financial reporting to be designed under our                    supervision, to provide reasonable assurance regarding the reliability of                    financial reporting and the preparation of financial statements for external                    purposes in accordance with generally accepted accounting                    principles; |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

 

| c) | Evaluated the effectiveness of the small business issuer’s                    disclosure controls and procedures and presented in this report our conclusions                    about the effectiveness of the disclosure controls and procedures, as of the                    end of the period covered by this report based on such evaluation; |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

 

| d) | Disclosed in this report any change in the small business                    issuer’s internal control over financial reporting that occurred during                    the small business issuer’s most recent fiscal quarter (the small                    business issuer’s fourth fiscal quarter in the case of an annual report)                    that has materially affected, or is reasonably likely to materially affect, the                    small business issuer’s internal control over financial reporting;                    and |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

 

 

----

|   | 5. | The small                business issuer’s other certifying officer and I have disclosed, based on our                most recent evaluation of internal control over financial reporting, to the small                business issuer’s auditors and the audit committee of small business                issuer’s board of directors (or persons performing the equivalent                functions): |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a) | All significant                deficiencies and material weaknesses in the design or operation of internal control                over financial reporting which are reasonably likely to adversely affect the small                business issuer’s ability to record, process, summarize and report financial                information; and |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | Any fraud,                whether or not material, that involves management or other employees who have a                significant role in the small business issuer’s internal controls over                financial reporting. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|          |   | CAPITAL REALTY                    INVESTORS-III LIMITED                          PARTNERSHIP                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|---------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          |   | (Small Business                Issuer)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|          |   | by:  C.R.I.,                    Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|          |   |         Managing                General Partner                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| April 4, 2008 |   |         by:                      /s/ H. William Willoughby                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| DATE          |   |                                H. William Willoughby,                                Director,                President, Secretary,                                    Principal                Financial Officer, and                                    Principal                Accounting Officer |

                *This certification is made solely for purpose of 18 U.S.C. Section 1350, subject to the        knowledge standard contained therein, and not for any other purpose.*