| Maryland                                 | 52-1311532                           |
|------------------------------------------|--------------------------------------|
| (State of Incorporation)                 | (I.R.S. Employer Identification No.) |
|                                     |                                 |
| 11200 Rockville Pike                     |                                 |
| Rockville, MD                            | 20852                                |
| (Address of Principal Executive Offices) | (ZIP Code)                           |

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| •   | Amendment and addition  to Part II, Item 9A Controls and Procedures |
|---------------------|-------------------------------------------------------------------------------|

| •   | Corrected Exhibits 31.1, 31.2 and 32. |
|---------------------|---------------------------------------|

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|       |                              | Page   |
|------------|-----------------------------------|--------|
|       |                              |   |
|       | PART II                           |   |
|       |                              |   |
| Item 9.    | Controls and Procedures           | 4      |
|       |                              |   |
|       | PART IV                           |   |
|       |                              |   |
| Item 15.   | Exhibits and Financial Statements | 5      |
|       |                              |   |
| SIGNATURES |                              | 5      |
|       |                              |   |

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| Exhibit No. |   | Description                                                                                                                  |
|-------------|--------|------------------------------------------------------------------------------------------------------------------------------|
|        |   |                                                                                                                         |
| 31.1        |   | Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                       |
|        |   |                                                                                                                         |
| 31.2        |   | Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                       |
|        |   |                                                                                                                         |
| 32          |   | Certification of Principal Officer and Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |

|               | CAPITAL REALTY INVESTORS-III.                                                                                                                                                                                                                |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|               |     LIMITED PARTNERSHIPS                                 |
|               | (Registrant)                                                                                                                                                                                                                                 |
|               |                                                                                                                                                                                                                                         |
|               |                                                                                                                                                                                                                                         |
| September 1 , 2010 | By:        /s/ William B. Dockser                                                                                                   |
| DATE               | William B. Dockser                                                                                                                                                                                                                           |
|               | Director, Chairman of the Board,                                                                                                                                                                                                             |
|               | and Treasurer                                                                                                                                                                                                                                |
|               | Principal Executive Officer                                                                                                                                                                                                                  |
|               |                                                                                                                                                                                                                                         |

| September 1 , 2010 | By:        /s/ H. William Willoughby                               |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| DATE               | H. William Willoughby                                                                                                                                                                                                                                            |
|               | Director, President, Secretary,                                                                                                                                                                                                                                  |
|               | Principal Financial Officer and                                                                                                                                                                                                                                  |
|               | Principal Account Officer                                                                                                                                                                                                                                        |
|               |                                                                                                                                                                                                                                                             |

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