# 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, 2006, 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) | 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; and |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c) | 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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|               |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| September 28, 2007 |   |         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, 2006, 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) | 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; and |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c) | 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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|               |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| September 28, 2007 |   |         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.*