FORM 10-Q

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

(Mark One)

(X)   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the quarterly period ended June 30, 2003

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        0-21718



BOSTON CAPITAL TAX CREDIT FUND III L.P.(Exact name of registrant as specified in its charter)



|Delaware                          | 52-1749505         
|--------------------------------- | -------------------
|(State or other jurisdiction      | (I.R.S. Employer   
|of incorporation or organization) | Identification No.)



One Boston Place, Suite 2100, Boston, Massachusetts  02108(Address of principal executive offices)           (Zip Code)

Registrants telephone number, including area code (617)624-8900

(Former name, former address and former fiscal year, if changed since last report)

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 preceeding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.



|Yes | X |  | No | _
|--- | - |  | -- | -





BOSTON CAPITAL TAX CREDIT FUND III L.P.

QUARTERLY REPORT ON FORM 10-QFOR THE QUARTER ENDED JUNE 30, 2003

TABLE OF CONTENTS

FOR THE QUARTER ENDED June 30,2003















Statements of Operations Series 1510

Statements of Operations Series 1611

Statements of Operations Series 1712

Statements of Operations Series 1813

Statements of Operations Series 1914

statementS OF

Changes in Partners Capital Series 1516

Changes in Partners Capital Series 1616

Changes in Partners Capital Series 1717

Changes in Partners Capital Series 1817

Changes in Partners Capital Series 1918

Statements of Cash Flows19

Statements of Cash Flows Series 1521

Statements of Cash Flows Series 1623

Statements of Cash Flows Series 1725

Statements of Cash Flows Series 1827

Statements of Cash Flows Series 1929

Notes to Financial Statements*











COMBINED STATEMENTS OF OPERATION

Combined Statements Series 1535

Combined Statements Series 1636

Combined Statements Series 1737

Combined Statements Series 1838

Combined Statements Series 1939

Liquidity41

Capital Resources41

Results of Operations42

Critical Accounting Policies53

Quantitative and Qualitative53

Controls and Procedures53

Part II Other Information54

SIGNATURES	55











Boston Capital Tax Credit Fund III L.P.

BALANCE SHEETS



|                                                                                                                                                                                            | June 30,
2003
(Unaudited) | March 31,
2003
(Audited)
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------- | ------------------------
|ASSETS                                                                                                                                                                                      |                           |                         
|INVESTMENTS IN OPERATING
   PARTNERSHIPS(Note D)                                                                                                                                            | $ 62,592,289              | $ 65,225,025            
|                                                                                                                                                                                            |                           |                         
|OTHER ASSETS                                                                                                                                                                                |                           |                         
|                                                                                                                                                                                            |                           |                         
|Cash and cash equivalents                                                                                                                                                                   | 2,952,122                 | 1,077,156               
|Investments                                                                                                                                                                                 | -                         | -                       
|Notes receivable                                                                                                                                                                            | 201,109                   | 201,109                 
|Deferred acquisition costs,
net of accumulated amortization
(Note B)                                                                                                                        | 1,319,476                 | 1,336,664               
|Other assets                                                                                                                                                                                | 1,870,773                 | 2,951,758               
|                                                                                                                                                                                            | $68,935,769               | $70,791,712             
|                                                                                                                                                                                            |                           |                         
|LIABILITIES                                                                                                                                                                                 |                           |                         
|                                                                                                                                                                                            |                           |                         
|Accounts payable & accrued expenses 
  (Note C)                                                                                                                                             | $    392,615              | $      8,645            
|Accounts payable affiliates                                                                                                                                                                 | 18,710,340                | 18,062,304              
|Capital contributions payable                                                                                                                                                               | 202,017                   | 202,017                 
|                                                                                                                                                                                            | 19,304,972                | 18,272,966              
|                                                                                                                                                                                            |                           |                         
|PARTNERS CAPITAL                                                                                                                                                                            |                           |                         
|                                                                                                                                                                                            |                           |                         
|Limited Partners 
  
   Units of limited partnership 
   interest, $10 stated value per BAC; 
   22,000,000 authorized BACs; 
   21,996,102 issued and outstanding, 
   as of June 30, 2003 | 51,024,152                | 53,883,221              
|General Partner                                                                                                                                                                             | (1,393,355)               | (1,364,475)             
|                                                                                                                                                                                            | 49,630,797                | 52,518,746              
|                                                                                                                                                                                            | $68,935,769               | $70,791,712             









The accompanying notes are an integral part of this statement









Boston Capital Tax Credit Fund III L.P.

BALANCE SHEETS

Series 15



|                                                                                                                                                                                        | June 30,
2003
(Unaudited) | March 31,
2003
(Audited)
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------- | ------------------------
|ASSETS                                                                                                                                                                                  |                           |                         
|INVESTMENTS IN OPERATING
   PARTNERSHIPS(Note D)                                                                                                                                        | $ 8,145,237               | $ 8,387,630             
|                                                                                                                                                                                        |                           |                         
|OTHER ASSETS                                                                                                                                                                            |                           |                         
|                                                                                                                                                                                        |                           |                         
|Cash and cash equivalents                                                                                                                                                               | 1,025,434                 | 267,889                 
|Investments                                                                                                                                                                             | -                         | -                       
|Notes receivable                                                                                                                                                                        | -                         | -                       
|Deferred acquisition costs, 
   net of accumulated amortization
  (Note B)                                                                                                              | 202,348                   | 204,976                 
|Other assets                                                                                                                                                                            | 285,647                   | 793,901                 
|                                                                                                                                                                                        | $9,658,666                | $9,654,396              
|                                                                                                                                                                                        |                           |                         
|LIABILITIES                                                                                                                                                                             |                           |                         
|                                                                                                                                                                                        |                           |                         
|Accounts payable & accrued expenses 
  (Note C)                                                                                                                                         | $    97,669               | $     1,145             
|Accounts payable affiliates                                                                                                                                                             | 5,175,934                 | 5,039,571               
|Capital contributions payable                                                                                                                                                           | 16,206                    | 16,206                  
|                                                                                                                                                                                        | 5,289,809                 | 5,056,922               
|                                                                                                                                                                                        |                           |                         
|PARTNERS CAPITAL                                                                                                                                                                        |                           |                         
|                                                                                                                                                                                        |                           |                         
|Limited Partners 
  
   Units of limited partnership 
   interest, $10 stated value per
   BAC; 22,000,000 authorized BACs;
   3,870,500 issued and outstanding,
   as of June 30, 2003 | 4,657,839                 | 4,884,170               
|General Partner                                                                                                                                                                         | (288,982)                 | (286,696)               
|                                                                                                                                                                                        | 4,368,857                 | 4,597,474               
|                                                                                                                                                                                        | $9,658,666                | $9,654,396              

The accompanying notes are an integral part of this statement









Boston Capital Tax Credit Fund III L.P.

BALANCE SHEETS

Series 16



|                                                                                                                                                                                           | June 30,
2003
(Unaudited) | March 31,
2003
(Audited)
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------- | ------------------------
|ASSETS                                                                                                                                                                                     |                           |                         
|INVESTMENTS IN OPERATING
   PARTNERSHIPS (Note D)                                                                                                                                          | $13,306,635               | $14,322,525             
|                                                                                                                                                                                           |                           |                         
|OTHER ASSETS                                                                                                                                                                               |                           |                         
|                                                                                                                                                                                           |                           |                         
|Cash and cash equivalents                                                                                                                                                                  | 427,099                   | 353,482                 
|Investments                                                                                                                                                                                | -                         | -                       
|Notes receivable                                                                                                                                                                           | -                         | -                       
|Deferred acquisition costs, 
   net of accumulated amortization 
  (Note B)                                                                                                                | 324,408                   | 328,621                 
|Other assets                                                                                                                                                                               | 119,178                   | 119,178                 
|                                                                                                                                                                                           | $14,177,320               | $15,123,806             
|                                                                                                                                                                                           |                           |                         
|LIABILITIES                                                                                                                                                                                |                           |                         
|                                                                                                                                                                                           |                           |                         
|Accounts payable & accrued expenses 
  (Note C)                                                                                                                                            | $         -               | $         -             
|Accounts payable affiliates                                                                                                                                                                | 4,567,981                 | 4,394,986               
|Capital contributions payable                                                                                                                                                              | 75,362                    | 75,362                  
|                                                                                                                                                                                           | 4,643,343                 | 4,470,348               
|                                                                                                                                                                                           |                           |                         
|PARTNERS CAPITAL                                                                                                                                                                           |                           |                         
|                                                                                                                                                                                           |                           |                         
|Limited Partners 
  
   Units of limited partnership    
   interest, $10 stated value per
   BAC; 22,000,000 authorized BACs;
   5,429,402 issued and outstanding,
   as of June 30, 2003 | 9,905,247                 | 11,013,533              
|General Partner                                                                                                                                                                            | (371,270)                 | (360,075)               
|                                                                                                                                                                                           |                           |                         
|                                                                                                                                                                                           | 9,533,977                 | 10,653,458              
|                                                                                                                                                                                           | $14,177,320               | $15,123,806             





The accompanying notes are an integral part of this statement









Boston Capital Tax Credit Fund III L.P.

BALANCE SHEETSSeries 17



|                                                                                                                                                                                           | June 30,
2003
(Unaudited) | March 31,
2003
(Audited)
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------- | ------------------------
|ASSETS                                                                                                                                                                                     |                           |                         
|INVESTMENTS IN OPERATING 
   PARTNERSHIPS (Note D)                                                                                                                                         | $14,953,760               | $15,309,351             
|                                                                                                                                                                                           |                           |                         
|OTHER ASSETS                                                                                                                                                                               |                           |                         
|                                                                                                                                                                                           |                           |                         
|Cash and cash equivalents                                                                                                                                                                  | 1,133,488                 | 199,264                 
|Investments                                                                                                                                                                                | -                         | -                       
|Notes receivable                                                                                                                                                                           | 201,109                   | 201,109                 
|Deferred acquisition costs, 
   net of accumulated amortization
  (Note B)                                                                                                                 | 291,561                   | 295,448                 
|Other assets                                                                                                                                                                               | 1,375,610                 | 1,948,341               
|                                                                                                                                                                                           | $17,955,528               | $17,953,513             
|                                                                                                                                                                                           |                           |                         
|LIABILITIES                                                                                                                                                                                |                           |                         
|                                                                                                                                                                                           |                           |                         
|Accounts payable & accrued expenses 
  (Note C)                                                                                                                                            | $  294,946                | $         -             
|Accounts payable affiliates                                                                                                                                                                | 5,603,350                 | 5,462,996               
|Capital contributions payable                                                                                                                                                              | 67,895                    | 67,895                  
|                                                                                                                                                                                           | 5,966,191                 | 5,530,891               
|                                                                                                                                                                                           |                           |                         
|PARTNERS CAPITAL                                                                                                                                                                           |                           |                         
|                                                                                                                                                                                           |                           |                         
|Limited Partners 
  
   Units of limited partnership    
   interest, $10 stated value per
   BAC; 22,000,000 authorized BACs;
   5,000,000 issued and outstanding,
   as of June 30, 2003 | 12,299,124                | 12,728,076              
|General Partner                                                                                                                                                                            | (309,787)                 | (305,454)               
|                                                                                                                                                                                           | 11,989,337                | 12,422,622              
|                                                                                                                                                                                           | $17,955,528               | $17,953,513             



The accompanying notes are an integral part of this statement









Boston Capital Tax Credit Fund III L.P.

BALANCE SHEETSSeries 18



|                                                                                                                                                                                           | June 30,
2003
(Unaudited) | March 31,
2003
(Audited)
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------- | ------------------------
|ASSETS                                                                                                                                                                                     |                           |                         
|INVESTMENTS IN OPERATING
PARTNERSHIPS (NOTE D)                                                                                                                                             | $ 9,578,874               | $10,221,873             
|                                                                                                                                                                                           |                           |                         
|OTHER ASSETS                                                                                                                                                                               |                           |                         
|                                                                                                                                                                                           |                           |                         
|Cash and cash equivalents                                                                                                                                                                  | 143,902                   | 109,633                 
|Investments                                                                                                                                                                                | -                         | -                       
|Notes receivable                                                                                                                                                                           | -                         | -                       
|Deferred acquisition costs,
Net of accumulated amortization
(Note B)                                                                                                                       | 220,651                   | 223,504                 
|Other assets                                                                                                                                                                               | 89,184                    | 89,184                  
|                                                                                                                                                                                           | $10,032,611               | $10,644,194             
|                                                                                                                                                                                           |                           |                         
|LIABILITIES                                                                                                                                                                                |                           |                         
|                                                                                                                                                                                           |                           |                         
|Accounts payable & accrued expenses
(Note C)                                                                                                                                               | $         -               | $         -             
|Accounts payable affiliates                                                                                                                                                                | 2,453,269                 | 2,357,781               
|Capital contributions payable                                                                                                                                                              | 18,554                    | 18,554                  
|                                                                                                                                                                                           | 2,471,823                 | 2,376,335               
|                                                                                                                                                                                           |                           |                         
|PARTNERS CAPITAL                                                                                                                                                                           |                           |                         
|                                                                                                                                                                                           |                           |                         
|Limited Partners 
  
   Units of limited partnership    
   interest, $10 stated value per
   BAC; 22,000,000 authorized BACs;
   3,616,200 issued and outstanding,
   as of June 30, 2003 | 7,795,408                 | 8,495,408               
|General Partner                                                                                                                                                                            | (234,620)                 | (227,549)               
|                                                                                                                                                                                           | 7,560,788                 | 8,267,859               
|                                                                                                                                                                                           | $10,032,611               | $10,644,194             

The accompanying notes are an integral part of this statement









Boston Capital Tax Credit Fund III L.P.

BALANCE SHEETSSeries 19





|                                                                                                                                                                                           | June 30,
2003
(Unaudited) | March 31,
2003
(Audited)
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------- | ------------------------
|ASSETS                                                                                                                                                                                     |                           |                         
|INVESTMENTS IN OPERATING
   PARTNERSHIPS (NOTE D)                                                                                                                                          | $16,607,783               | $16,983,646             
|                                                                                                                                                                                           |                           |                         
|OTHER ASSETS                                                                                                                                                                               |                           |                         
|                                                                                                                                                                                           |                           |                         
|Cash and cash equivalents                                                                                                                                                                  | 222,199                   | 146,888                 
|Investments                                                                                                                                                                                | -                         | -                       
|Notes receivable                                                                                                                                                                           | -                         | -                       
|Deferred acquisition costs, 
   net of accumulated amortization
   (Note B)                                                                                                                | 280,508                   | 284,115                 
|Other assets                                                                                                                                                                               | 1,154                     | 1,154                   
|                                                                                                                                                                                           | $17,111,644               | $17,415,803             
|                                                                                                                                                                                           |                           |                         
|LIABILITIES                                                                                                                                                                                |                           |                         
|                                                                                                                                                                                           |                           |                         
|Accounts payable & accrued expenses
   (Note C)                                                                                                                                            | $         -               | $     7,500             
|Accounts payable affiliates                                                                                                                                                                | 909,806                   | 806,970                 
|Capital contributions payable                                                                                                                                                              | 24,000                    | 24,000                  
|                                                                                                                                                                                           | 933,806                   | 838,470                 
|                                                                                                                                                                                           |                           |                         
|PARTNERS CAPITAL                                                                                                                                                                           |                           |                         
|                                                                                                                                                                                           |                           |                         
|Limited Partners 
  
   Units of limited partnership    
   interest, $10 stated value per
   BAC; 22,000,000 authorized BACs;
   4,080,000 issued and outstanding,
   as of June 30, 2003 | 16,366,534                | 16,762,034              
|General Partner                                                                                                                                                                            | (188,696)                 | (184,701)               
|                                                                                                                                                                                           | 16,177,838                | 16,577,333              
|                                                                                                                                                                                           | $17,111,644               | $17,415,803             





The accompanying notes are an integral part of this statement









Boston Capital Tax Credit Fund III L.P.STATEMENTS OF OPERATIONS

Three Months Ended June 30,
(Unaudited)





|                                                     | 2003         | 2002        
|---------------------------------------------------- | ------------ | ------------
|                                                     |              |             
|Income                                               |              |             
|Interest income                                      | $      3,220 | $      6,817
|Other income                                         | 1,302        | 6,177       
|                                                     | 4,522        | 12,994      
|                                                     |              |             
|Share of loss from Operating 
  Partnerships(Note D) | (2,331,000)  | (2,120,766) 
|                                                     |              |             
|Expenses                                             |              |             
|Professional fees                                    | 52,424       | 43,961      
|Fund management fee (Note C)                         | 480,894      | 487,661     
|Amortization                                         | 17,188       | 17,224      
|General and administrative expenses                  | 10,965       | 23,170      
|                                                     | 561,471      | 572,016     
|                                                     |              |             
|NET LOSS                                             | $(2,887,949) | $(2,679,788)
|                                                     |              |             
|Net loss allocated to limited partners               | $(2,859,069) | $(2,652,990)
|                                                     |              |             
|Net loss allocated to general partner                | $(28,880)    | $(26,798)   
|                                                     |              |             
|Net loss per BAC                                     | $(.13)       | $(.12)      
|                                                     |              |             





The accompanying notes are an integral part of this statement



Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF OPERATIONS
Three Months Ended June 30,
(Unaudited)

Series 15



|                                                     | 2003         | 2002        
|---------------------------------------------------- | ------------ | ------------
|                                                     |              |             
|Income                                               |              |             
|Interest income                                      | $        872 | $      1,386
|Other income                                         | 653          | 1,033       
|                                                     | 1,525        | 2,419       
|                                                     |              |             
|Share of loss from Operating 
  Partnerships(Note D) | (106,671)    | (357,374)   
|                                                     |              |             
|Expenses                                             |              |             
|Professional fees                                    | 10,460       | 11,195      
|Fund management fee                                  | 108,348      | 99,030      
|Amortization                                         | 2,628        | 2,628       
|General and administrative expenses                  | 2,035        | 4,370       
|                                                     | 123,471      | 117,223     
|                                                     |              |             
|NET LOSS                                             | $(228,617)   | $(472,178)  
|                                                     |              |             
|Net loss allocated to limited partners               | $(226,331)   | $(467,456)  
|                                                     |              |             
|Net loss allocated to general partner                | $(2,286)     | $(4,722)    
|                                                     |              |             
|Net loss per BAC                                     | $(.06)       | $(.12)      
|                                                     |              |             





The accompanying notes are an integral part of this statement





Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF OPERATIONS
Three Months Ended June 30,
(Unaudited)

Series 16



|                                                     | 2003         | 2002        
|---------------------------------------------------- | ------------ | ------------
|                                                     |              |             
|Income                                               |              |             
|Interest income                                      | $        896 | $      1,588
|Other income                                         | 39           | 5,052       
|                                                     | 935          | 6,640       
|                                                     |              |             
|Share of loss from Operating 
  Partnerships(Note D) | (973,638)    | (660,885)   
|                                                     |              |             
|Expenses                                             |              |             
|Professional fees                                    | 9,960        | 10,700      
|Fund management fee                                  | 129,766      | 106,590     
|Amortization                                         | 4,213        | 4,213       
|General and administrative expenses                  | 2,839        | 5,747       
|                                                     | 146,778      | 127,250     
|                                                     |              |             
|NET LOSS                                             | $(1,119,481) | $(781,495)  
|                                                     |              |             
|Net loss allocated to limited partners               | $(1,108,286) | $(773,680)  
|                                                     |              |             
|Net loss allocated to general partner                | $(11,195)    | $(7,815)    
|                                                     |              |             
|Net loss per BAC                                     | $(.21)       | $(.14)      
|                                                     |              |             











The accompanying notes are an integral part of this statement



Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF OPERATIONS
Three Months Ended June 30,
(Unaudited)Series 17



|                                                     | 2003         | 2002        
|---------------------------------------------------- | ------------ | ------------
|                                                     |              |             
|Income                                               |              |             
|Interest income                                      | $        810 | $      1,312
|Other income                                         | -            | 92          
|                                                     | 810          | 1,404       
|                                                     |              |             
|Share of loss from Operating 
  Partnerships(Note D) | (325,351)    | (330,807)   
|                                                     |              |             
|Expenses                                             |              |             
|Professional fees                                    | 11,327       | 8,845       
|Fund management fee                                  | 91,115       | 117,876     
|Amortization                                         | 3,887        | 3,887       
|General and administrative expenses                  | 2,415        | 4,991       
|                                                     | 108,744      | 135,599     
|                                                     |              |             
|NET LOSS                                             | $(433,285)   | $(465,002)  
|                                                     |              |             
|Net loss allocated to limited partners               | $(428,952)   | $(460,352)  
|                                                     |              |             
|Net loss allocated to general partner                | $(4,333)     | $(4,650)    
|                                                     |              |             
|Net loss per BAC                                     | $(.09)       | $(.09)      
|                                                     |              |             







The accompanying notes are an integral part of this statement



Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF OPERATIONS
Three Months Ended June 30,
(Unaudited)Series 18





|                                                     | 2003         | 2002        
|---------------------------------------------------- | ------------ | ------------
|                                                     |              |             
|Income                                               |              |             
|Interest Income                                      | $        249 | $      1,021
|Other income                                         | 610          | -           
|                                                     | 859          | 1,021       
|                                                     |              |             
|Share of loss from Operating 
  Partnerships(Note D) | (620,566)    | (488,008)   
|                                                     |              |             
|Expenses                                             |              |             
|Professional fees                                    | 12,590       | 7,216       
|Fund management fee                                  | 70,208       | 79,966      
|Amortization                                         | 2,853        | 2,853       
|General and administrative expenses                  | 1,713        | 3,795       
|                                                     | 87,364       | 93,830      
|                                                     |              |             
|NET LOSS                                             | $(707,071)   | $(580,817)  
|                                                     |              |             
|Net loss allocated to limited partners               | $(700,000)   | $(575,009)  
|                                                     |              |             
|Net loss allocated to general partner                | $(7,071)     | $(5,808)    
|                                                     |              |             
|Net loss per BAC                                     | $(.20)       | $(.16)      
|                                                     |              |             







The accompanying notes are an integral part of this statement



Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF OPERATIONS
Three Months Ended June 30,
(Unaudited)Series 19



|                                                     | 2003         | 2002        
|---------------------------------------------------- | ------------ | ------------
|                                                     |              |             
|Income                                               |              |             
|Interest income                                      | $        393 | $      1,510
|Other income                                         | -            | -           
|                                                     | 393          | 1,510       
|                                                     |              |             
|Share of loss from Operating 
  Partnerships(Note D) | (304,774)    | (283,692)   
|                                                     |              |             
|Expenses                                             |              |             
|Professional fees                                    | 8,087        | 6,005       
|Fund management fee                                  | 81,457       | 84,199      
|Amortization                                         | 3,607        | 3,643       
|General and administrative expenses                  | 1,963        | 4,267       
|                                                     | 95,114       | 98,114      
|                                                     |              |             
|NET LOSS                                             | $(399,495)   | $(380,296)  
|                                                     |              |             
|Net loss allocated to limited partners               | $(395,500)   | $(376,493)  
|                                                     |              |             
|Net loss allocated to general partner                | $(3,995)     | $(3,803)    
|                                                     |              |             
|Net loss per BAC                                     | $(.10)       | $(.09)      
|                                                     |              |             

The accompanying notes are an integral part of this statement



Boston Capital Tax Credit Fund III L.P.STATEMENTS OF CHANGES IN PARTNERS' CAPITALThree Months Ended June 30, 2003

(Unaudited)



|                                               | Assignees    | GeneralPartner | Total       
|---------------------------------------------- | ------------ | -------------- | ------------
|                                               |              |                |             
|Partners' capital 
 (deficit)
  April 1, 2003  | $ 53,883,221 | $(1,364,475)   | $ 52,518,746
|                                               |              |                |             
|                                               |              |                |             
|Net income (loss)                              | (2,859,069)  | (28,880)       | (2,887,949) 
|                                               |              |                |             
|Partners' capital 
 (deficit),
  June 30, 2003 | $51,024,152  | $(1,393,355)   | $49,630,797 
|                                               |              |                |             

The accompanying notes are an integral part of this statement



Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
Three Months Ended June 30, 2003
(Unaudited)



|                                              | Assignees    | GeneralPartner | Total       
|--------------------------------------------- | ------------ | -------------- | ------------
|Series 15                                     |              |                |             
|Partners' capital 
 (deficit)
  April 1, 2003 | $  4,884,170 | $  (286,696)   | $  4,597,474
|                                              |              |                |             
|                                              |              |                |             
|Net income (loss)                             | (226,331)    | (2,286)        | (228,617)   
|                                              |              |                |             
|Partners' capital 
 (deficit)
  June 30, 2003 | $4,657,839   | $(288,982)     | $4,368,857  
|                                              |              |                |             
|                                              |              |                |             
|Series 16                                     |              |                |             
|Partners' capital 
 (deficit)
  April 1, 2003 | $ 11,013,533 | $  (360,075)   | $ 10,653,458
|                                              |              |                |             
|                                              |              |                |             
|Net income (loss)                             | (1,108,286)  | (11,195)       | (1,119,481) 
|                                              |              |                |             
|Partners' capital 
 (deficit)
  June 30, 2003 | $9,905,247   | $(371,270)     | $9,533,977  
|                                              |              |                |             

The accompanying notes are an integral part of these statements.









Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
Three Months Ended June 30, 2003
(Unaudited)



|                                               | Assignees    | GeneralPartner | Total       
|---------------------------------------------- | ------------ | -------------- | ------------
|Series 17                                      |              |                |             
|Partners' capital 
 (deficit)
  April 1, 2003  | $ 12,728,076 | $  (305,454)   | $ 12,422,622
|                                               |              |                |             
|                                               |              |                |             
|Net income (loss)                              | (428,952)    | (4,333)        | (433,285)   
|                                               |              |                |             
|Partners' capital 
 (deficit)
  June 30, 2003  | $12,299,124  | $(309,787)     | $11,989,337 
|                                               |              |                |             
|                                               |              |                |             
|Series 18                                      |              |                |             
|Partners' capital 
 (deficit)
  April 1, 2003  | $  8,495,408 | $  (227,549)   | $  8,267,859
|                                               |              |                |             
|                                               |              |                |             
|Net income (loss)                              | (700,000)    | (7,071)        | (707,071)   
|                                               |              |                |             
|Partners' capital 
 (deficit),
  June 30, 2003 | $7,795,408   | $(234,620)     | $7,560,788  
|                                               |              |                |             

The accompanying notes are an integral part of this statement



Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
Three Months Ended June 30, 2003
(Unaudited)



|                                               | Assignees    | GeneralPartner | Total       
|---------------------------------------------- | ------------ | -------------- | ------------
|Series 19                                      |              |                |             
|Partners' capital 
 (deficit)
  April 1, 2003  | $ 16,762,034 | $  (184,701)   | $ 16,577,333
|                                               |              |                |             
|                                               |              |                |             
|Net income (loss)                              | (395,500)    | (3,995)        | (399,495)   
|                                               |              |                |             
|Partners' capital 
 (deficit),
  June 30, 2003 | $16,366,534  | $(188,696)     | $16,177,838 
|                                               |              |                |             

The accompanying notes are an integral part of this statement





Boston Capital Tax Credit Fund III L.P.STATEMENTS OF CASH FLOWSThree Months Ended June 30,
(Unaudited)



|                                                                     | 2003         | 2002        
|-------------------------------------------------------------------- | ------------ | ------------
|Cash flows from operating activities:                                |              |             
|                                                                     |              |             
|Net Loss                                                             | $(2,887,949) | $(2,679,788)
|Adjustments                                                          |              |             
|Distributions from Operating
        Partnerships                    | 137,332      | 154,016     
|Amortization                                                         | 17,188       | 17,224      
|Share of Loss from Operating
        Partnerships                    | 2,331,000    | 2,120,766   
|Changes in assets and liabilities                                    |              |             
|(Decrease) Increase in accounts
        payable and accrued expenses | 383,970      | -           
|Decrease (Increase) in other assets                                  | 1,080,985    | (79)        
|(Decrease) Increase in accounts
        payable affiliates           | 648,036      | 249,257     
|                                                                     |              |             
|Net cash (used in) provided by 
        operating activities         | 1,710,562    | (138,604)   
|                                                                     |              |             
|                                                                     |              |             
|Cash flows from investing activities:                                |              |             
|                                                                     |              |             
|Capital contributions paid to 
     Operating Partnerships           | -            | (70,144)    
|Advances to Operating Partnerships                                   | -            | -           
|Proceeds from sale of operating
Limited partnerships:                | 164,404      | -           
|Investments                                                          | -            | -           
|                                                                     |              |             
|Net cash (used in) provided by
     investing activities             | 164,404      | (70,144)    

The accompanying notes are an integral part of this statement





Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
 (Unaudited)



|                                                           | 2003       | 2002      
|---------------------------------------------------------- | ---------- | ----------
|                                                           |            |           
|Continued                                                  |            |           
|                                                           |            |           
|Cash flows from financing activity:                        |            |           
|                                                           |            |           
|Credit adjusters received from
     Operating Partnerships | -          | -         
|                                                           |            |           
|Net cash (used in) provided by
        financing activity  | -          | -         
|                                                           |            |           
|                                                           |            |           
|INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS   | 1,874,966  | (208,748) 
|                                                           |            |           
|Cash and cash equivalents, beginning                       | 1,077,156  | 2,273,043 
|                                                           |            |           
|Cash and cash equivalents, ending                          | $2,952,122 | $2,064,295
|                                                           |            |           

The accompanying notes are an integral part of this statement





Boston Capital Tax Credit Fund III L.P.STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
 (Unaudited)Series 15



|                                                                     | 2003         | 2002        
|-------------------------------------------------------------------- | ------------ | ------------
|Cash flows from operating activities:                                |              |             
|                                                                     |              |             
|Net Loss                                                             | $  (228,617) | $  (472,178)
|Adjustments                                                          |              |             
|Distributions from Operating
        Partnerships                    | -            | 3,111       
|Amortization                                                         | 2,628        | 2,628       
|Share of Loss from Operating
        Partnerships                    | 106,671      | 357,374     
|Changes in assets and liabilities                                    |              |             
|(Decrease) Increase in accounts
        payable and accrued expenses | 96,524       | -           
|Decrease (Increase) in other assets                                  | 508,254      | -           
|(Decrease) Increase in accounts
        payable affiliates           | 136,363      | 37,012      
|                                                                     |              |             
|Net cash (used in) provided by 
        operating activities         | 621,823      | (72,053)    
|                                                                     |              |             
|                                                                     |              |             
|Cash flows from investing activities:                                |              |             
|                                                                     |              |             
|Capital contributions paid to 
     Operating Partnerships           | -            | -           
|Advances to Operating Partnerships                                   | -            | -           
|Proceeds from sale of operating
Limited partnerships:                | 135,722      | -           
|Investments                                                          | -            | -           
|                                                                     |              |             
|Net cash (used in) provided by
     investing activities             | 135,722      | -           

The accompanying notes are an integral part of this statement





Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
 (Unaudited)Series 15



|                                                           | 2003       | 2002    
|---------------------------------------------------------- | ---------- | --------
|                                                           |            |         
|Continued                                                  |            |         
|                                                           |            |         
|Cash flows from financing activity:                        |            |         
|                                                           |            |         
|Credit adjusters received from
     Operating Partnerships | -          | -       
|                                                           |            |         
|Net cash (used in) provided by
        financing activity  | -          | -       
|                                                           |            |         
|                                                           |            |         
|INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS   | 757,545    | (72,053)
|                                                           |            |         
|Cash and cash equivalents, beginning                       | 267,889    | 444,415 
|                                                           |            |         
|Cash and cash equivalents, ending                          | $1,025,434 | $372,362
|                                                           |            |         

The accompanying notes are an integral part of this statement





Boston Capital Tax Credit Fund III L.P.STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
 (Unaudited)Series 16



|                                                                     | 2003         | 2002        
|-------------------------------------------------------------------- | ------------ | ------------
|Cash flows from operating activities:                                |              |             
|                                                                     |              |             
|Net Loss                                                             | $(1,119,481) | $  (781,495)
|Adjustments                                                          |              |             
|Distributions from Operating
        Partnerships                    | 42,252       | 2,211       
|Amortization                                                         | 4,213        | 4,213       
|Share of Loss from Operating
        Partnerships                    | 973,638      | 660,885     
|Changes in assets and liabilities                                    |              |             
|(Decrease) Increase in accounts
        payable and accrued expenses | -            | -           
|Decrease (Increase) in accounts
        receivable                   | -            | -           
|(Decrease) Increase in accounts
        payable affiliates           | 172,995      | 72,992      
|                                                                     |              |             
|Net cash (used in) provided by 
        operating activities         | 73,617       | (41,194)    
|                                                                     |              |             
|                                                                     |              |             
|Cash flows from investing activities:                                |              |             
|                                                                     |              |             
|Capital contributions paid to 
     Operating Partnerships           | -            | (60,144)    
|Advances to Operating Partnerships                                   | -            | -           
|Proceeds from sale of operating
Limited partnerships:                | -            | -           
|Investments                                                          | -            | -           
|                                                                     |              |             
|Net cash (used in) provided by
     investing activities             | -            | (60,144)    

The accompanying notes are an integral part of this statement





Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
 (Unaudited)Series 16



|                                                           | 2003     | 2002     
|---------------------------------------------------------- | -------- | ---------
|                                                           |          |          
|Continued                                                  |          |          
|                                                           |          |          
|Cash flows from financing activity:                        |          |          
|                                                           |          |          
|Credit adjusters received from
     Operating Partnerships | -        | -        
|                                                           |          |          
|Net cash (used in) provided by
        financing activity  | -        | -        
|                                                           |          |          
|                                                           |          |          
|INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS   | 73,617   | (101,338)
|                                                           |          |          
|Cash and cash equivalents, beginning                       | 353,482  | 489,893  
|                                                           |          |          
|Cash and cash equivalents, ending                          | $427,099 | $388,555 
|                                                           |          |          

The accompanying notes are an integral part of this statement





Boston Capital Tax Credit Fund III L.P.STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
 (Unaudited)

Series 17



|                                                                     | 2003          | 2002         
|-------------------------------------------------------------------- | ------------- | -------------
|Cash flows from operating activities:                                |               |              
|                                                                     |               |              
|Net Loss                                                             | $   (433,285) | $   (465,002)
|Adjustments                                                          |               |              
|Distributions from Operating
        Partnerships                    | 1,558         | 2,830        
|Amortization                                                         | 3,887         | 3,887        
|Share of Loss from Operating
        Partnerships                    | 325,351       | 330,807      
|Changes in assets and liabilities                                    |               |              
|(Decrease) Increase in accounts
        payable and accrued expenses | 294,946       | -            
|Decrease (Increase) in other assets                                  | 572,731       | 566          
|(Decrease) Increase in accounts
        payable affiliates           | 140,354       | 140,925      
|                                                                     |               |              
|Net cash (used in) provided by 
        operating activities         | 905,542       | 14,013       
|                                                                     |               |              
|                                                                     |               |              
|Cash flows from investing activities:                                |               |              
|                                                                     |               |              
|Capital contributions paid to 
     Operating Partnerships           | -             | (10,000)     
|Advances to Operating Partnerships                                   | -             | -            
|Proceeds from sale of operating
Limited partnerships:                | 28,682        | -            
|Investments                                                          | -             | -            
|                                                                     |               |              
|Net cash (used in) provided by
     investing activities             | 28,682        | (10,000)     

The accompanying notes are an integral part of this statement





Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
 (Unaudited)Series 17



|                                                           | 2003       | 2002    
|---------------------------------------------------------- | ---------- | --------
|                                                           |            |         
|Continued                                                  |            |         
|                                                           |            |         
|Cash flows from financing activity:                        |            |         
|                                                           |            |         
|Credit adjusters received from
     Operating Partnerships | -          | -       
|                                                           |            |         
|Net cash (used in) provided by
        financing activity  | -          | -       
|                                                           |            |         
|                                                           |            |         
|INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS   | 934,224    | (4,013) 
|                                                           |            |         
|Cash and cash equivalents, beginning                       | 199,264    | 491,940 
|                                                           |            |         
|Cash and cash equivalents, ending                          | $1,133,488 | $495,953
|                                                           |            |         

The accompanying notes are an integral part of this statement





Boston Capital Tax Credit Fund III L.P.STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
 (Unaudited)Series 18



|                                                                     | 2003          | 2002         
|-------------------------------------------------------------------- | ------------- | -------------
|Cash flows from operating activities:                                |               |              
|                                                                     |               |              
|Net Loss                                                             | $   (707,071) | $   (580,817)
|Adjustments                                                          |               |              
|Distributions from Operating
        Partnerships                    | 22,433        | 222          
|Amortization                                                         | 2,853         | 2,853        
|Share of Loss from Operating
        Partnerships                    | 620,566       | 488,008      
|Changes in assets and liabilities                                    |               |              
|(Decrease) Increase in accounts
        payable and accrued expenses | -             | -            
|Decrease (Increase) in accounts
        receivable                   | -             | -            
|(Decrease) Increase in accounts
        payable affiliates           | 95,488        | 95,489       
|                                                                     |               |              
|Net cash (used in) provided by 
        operating activities         | 34,269        | 5,755        
|                                                                     |               |              
|                                                                     |               |              
|Cash flows from investing activities:                                |               |              
|                                                                     |               |              
|Capital contributions paid to 
     Operating Partnerships           | -             | -            
|Advances to Operating Partnerships                                   |               |              
|Proceeds from sale of operating
Limited partnerships:                | -             | -            
|Investments                                                          | -             | -            
|                                                                     |               |              
|Net cash (used in) provided by
     investing activities             | -             | -            

The accompanying notes are an integral part of this statement





Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
 (Unaudited)Series 18



|                                                           | 2003     | 2002    
|---------------------------------------------------------- | -------- | --------
|                                                           |          |         
|Continued                                                  |          |         
|                                                           |          |         
|Cash flows from financing activity:                        |          |         
|                                                           |          |         
|Credit adjusters received from
     Operating Partnerships | -        | -       
|                                                           |          |         
|Net cash (used in) provided by
        financing activity  | -        | -       
|                                                           |          |         
|                                                           |          |         
|INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS   | 34,269   | 5,755   
|                                                           |          |         
|Cash and cash equivalents, beginning                       | 109,633  | 365,987 
|                                                           |          |         
|Cash and cash equivalents, ending                          | $143,902 | $371,742
|                                                           |          |         

The accompanying notes are an integral part of this statement





Boston Capital Tax Credit Fund III L.P.STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
 (Unaudited)Series 19



|                                                                     | 2003          | 2002         
|-------------------------------------------------------------------- | ------------- | -------------
|Cash flows from operating activities:                                |               |              
|                                                                     |               |              
|Net Loss                                                             | $   (399,495) | $   (380,296)
|Adjustments                                                          |               |              
|Distributions from Operating
        Partnerships                    | 71,089        | 145,642      
|Amortization                                                         | 3,607         | 3,643        
|Share of Loss from Operating
        Partnerships                    | 304,774       | 283,692      
|Changes in assets and liabilities                                    |               |              
|(Decrease) Increase in accounts
        payable and accrued expenses | (7,500)       | -            
|Decrease (Increase) in accounts
        receivable                   |               | (645)        
|(Decrease) Increase in accounts
        payable affiliates           | 102,836       | (97,161)     
|                                                                     |               |              
|Net cash (used in) provided by 
        operating activities         | 75,311        | (45,125)     
|                                                                     |               |              
|                                                                     |               |              
|Cash flows from investing activities:                                |               |              
|                                                                     |               |              
|Capital contributions paid to 
     Operating Partnerships           | -             | -            
|Advances to Operating Partnerships                                   | -             | -            
|Proceeds from sale of operating
Limited partnerships:                | -             | -            
|Investments                                                          | -             | -            
|                                                                     |               |              
|Net cash (used in) provided by
     investing activities             | -             | -            

The accompanying notes are an integral part of this statement





Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
 (Unaudited)Series 19



|                                                           | 2003     | 2002    
|---------------------------------------------------------- | -------- | --------
|                                                           |          |         
|Continued                                                  |          |         
|                                                           |          |         
|Cash flows from financing activity:                        |          |         
|                                                           |          |         
|Credit adjusters received from
     Operating Partnerships | -        | -       
|                                                           |          |         
|Net cash (used in) provided by
        financing activity  | -        | -       
|                                                           |          |         
|                                                           |          |         
|INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS   | 75,311   | (45,125)
|                                                           |          |         
|Cash and cash equivalents, beginning                       | 146,888  | 480,808 
|                                                           |          |         
|Cash and cash equivalents, ending                          | $222,199 | $435,683
|                                                           |          |         

The accompanying notes are an integral part of this statement







Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTSJune 30, 2003

(Unaudited)



NOTE A - ORGANIZATION

Boston Capital Tax Credit Fund III L.P. (the "Fund") was formed under the laws of the State of Delaware as of September 19, 1991 for the purpose of acquiring, holding, and disposing of limited partnership interests in Operating Partnerships which will acquire, develop, rehabilitate, operate and own newly constructed, existing or rehabilitated low-income apartment complexes ("Operating Partnerships").







Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTS - CONTINUED
June 30, 2003

(Unaudited)

NOTE B - ACCOUNTING AND FINANCIAL REPORTING POLICIES

The condensed financial statements included herein as of June 30, 2003 and for three months then ended have been prepared by the Fund, without audit.  The Fund accounts for its investments in Operating Partnerships using the equity method, whereby the Fund adjusts its investment cost for its share of each Operating Partnership's results of operations and for any distributions received or accrued.  Costs incurred by the Fund in acquiring the investments in the Operating Partnerships are capitalized to the investment account.  The Fund's accounting and financial reporting policies are in conformity with generally accepted accounting principles and include adjustments in  interim periods considered necessary for a fair presentation of the results of operations. Such adjustments are of a normal recurring nature.

Investments

The Fund had included in investments, Certificates of Deposit with original materities of one year or less.  These investments were carried at cost.  All Certificates of Deposit matured prior to June 30, 2003 and the funds are now included in cash and cash equivalents.



Boston Capital Tax Credit Fund III L.P.
NOTES TO FINANCIAL STATEMENTS - CONTINUED
June 30, 2003

(Unaudited)

Amortization

On July 1, 1995, the Fund began amortizing unallocated acquisition costs over 330 months from April 1, 1995. As of June 30, 2003 the Fund has accumulated unallocated acquisition amortization totaling $573,898.  The breakdown of accumulated unallocated acquisition amortization within the fund as of June 30, 2003 and 2002 is as follows:



|          | 2003     | 2002    
|--------- | -------- | --------
|          |          |         
|Series 15 | $ 86,821 | $ 76,309
|Series 16 | 139,021  | 122,171 
|Series 17 | 136,190  | 120,640 
|Series 18 | 94,290   | 82,877  
|Series 19 | 117,576  | 103,006 
|          | $573,898 | $505,003



NOTE C - RELATED PARTY TRANSACTIONS

The Fund has entered into several transactions with various affiliates of the general partner, including Boston Capital Holdings LP, Boston Capital Partners, Inc., and Boston Capital Asset Management Limited Partnership as follows:

An annual fund management fee based on .5 percent of the aggregate cost of all apartment complexes owned by the Operating Partnerships, has been accrued to Boston Capital Asset Management Limited Partnership.



|          | 2003     | 2002    
|--------- | -------- | --------
|          |          |         
|Series 15 | $136,365 | $137,013
|Series 16 | 172,995  | 172,995 
|Series 17 | 140,355  | 140,925 
|Series 18 | 95,487   | 95,487  
|Series 19 | 102,837  | 102,837 
|          | $648,039 | $649,257



















Boston Capital Tax Credit Fund III L.P.
NOTES TO FINANCIAL STATEMENTS - CONTINUED
June 30, 2003

(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS

At June 30, 2003 and 2002, the Fund had limited partnership interests in 239 and 241, respectively.  Operating Partnerships which own or are constructing apartment complexes. The breakdown of Operating Partnerships within the Fund at June 30, 2003 and 2002 is as follows:





|          | 2003 | 2002
|--------- | ---- | ----
|Series 15 | 67   | 68  
|Series 16 | 64   | 64  
|Series 17 | 48   | 49  
|Series 18 | 34   | 34  
|Series 19 | 26   | 26  
|          | 239  | 241 



Under the terms of the Fund's investment in each Operating Partnership, the Fund is required to make capital contributions to the Operating Partnerships.  These contributions are payable in installments over several years upon each Operating Partnership achieving specified levels of construction and/or operations.  The contributions payable at June 30, 2003 and 2002 are as follows:



|          | 2003       | 2002      
|--------- | ---------- | ----------
|          |            |           
|Series 15 | $   16,206 | $   16,206
|Series 16 | 75,362     | 78,362    
|Series 17 | 67,895     | 1,176,768 
|Series 18 | 18,554     | 18,554    
|Series 19 | 24,000     | 24,000    
|          | $202,017   | $1,313,890



The Funds fiscal year ends March 31st of each year, while all the Operating Partnerships' fiscal years are the calendar year.  Pursuant to the provisions of each Operating Partnership Agreement, financial results for each of the Operating Partnerships are provided to the Fund within 45 days after the close of each Operating Partnerships quarterly period.  Accordingly, the current financial results available for the Operating Partnerships are for the Three Months ended March 31, 2003.





Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTS
June 30, 2003
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Three Months Ended March 31, 
(Unaudited)

Series 15



|                                                                        | 2003          | 2002         
|----------------------------------------------------------------------- | ------------- | -------------
|                                                                        |               |              
|Revenues                                                                |               |              
|Rental                                                                  | $   2,711,132 | $   2,586,969
|Interest and other                                                      | 136,537       | 226,983      
|                                                                        |               |              
|                                                                        | 2,847,669     | 2,813,952    
|                                                                        |               |              
|Expenses                                                                |               |              
|Interest                                                                | 702,984       | 775,740      
|Depreciation and amortization                                           | 874,335       | 903,076      
|Operating expenses                                                      | 1,897,657     | 1,747,919    
|                                                                        | 3,474,976     | 3,426,735    
|                                                                        |               |              
|NET LOSS                                                                | $(627,307)    | $(612,783)   
|                                                                        |               |              
|Net loss allocation to Boston  
   Capital Tax Credit Fund 
   III L.P. | $(176,226)    | $(357,374)   
|                                                                        |               |              
|                                                                        |               |              
|Net loss allocated to other 
   Partners                                | $(6,273)      | $(6,128)     
|                                                                        |               |              
|Net loss suspended                                                      | $(444,808)    | $(249,281)   









The Partnership accounts for its investments using the equity method of
accounting.  Under the equity method of accounting, the Partnership adjusts
its investment cost for its share of each Operating Partnerships results of
operations and for any distributions received or accrued.  However, the
Partnership recognizes individual operating losses only to the extent of
capital contributions.  Excess losses are suspended for use in future years to
offset excess income.





Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTS
June 30, 2003
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Three Months Ended March 31,
(Unaudited)

Series 16





|                                                                        | 2003          | 2002         
|----------------------------------------------------------------------- | ------------- | -------------
|                                                                        |               |              
|Revenues                                                                |               |              
|Rental                                                                  | $   3,327,460 | $   3,213,068
|Interest and other                                                      | 193,660       | 281,349      
|                                                                        |               |              
|                                                                        | 3,521,120     | 3,494,417    
|                                                                        |               |              
|Expenses                                                                |               |              
|Interest                                                                | 900,928       | 988,543      
|Depreciation and amortization                                           | 1,123,117     | 1,130,573    
|Operating expenses                                                      | 2,627,949     | 2,197,680    
|                                                                        | 4,651,994     | 4,316,796    
|                                                                        |               |              
|NET LOSS                                                                | $(1,130,874)  | $(822,379)   
|                                                                        |               |              
|Net loss allocation to Boston  
   Capital Tax Credit Fund 
   III L.P. | $(973,638)    | $(660,885)   
|                                                                        |               |              
|                                                                        |               |              
|Net loss allocated to other 
   Partners                                | $(11,309)     | $(8,224)     
|                                                                        |               |              
|Net loss suspended                                                      | $(145,927)    | $(153,270)   









The Partnership accounts for its investments using the equity method of
accounting.  Under the equity method of accounting, the Partnership adjusts
its investment cost for its share of each Operating Partnerships results of
operations and for any distributions received or accrued.  However, the
Partnership recognizes individual operating losses only to the extent of
capital contributions.  Excess losses are suspended for use in future years to
offset excess income.





Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTS
June 30, 2003
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Three Months Ended March 31,
(Unaudited)

Series 17



|                                                                        | 2003          | 2002         
|----------------------------------------------------------------------- | ------------- | -------------
|                                                                        |               |              
|Revenues                                                                |               |              
|Rental                                                                  | $   3,271,059 | $   3,220,034
|Interest and other                                                      | 141,891       | 153,110      
|                                                                        |               |              
|                                                                        | 3,412,950     | 3,373,144    
|                                                                        |               |              
|Expenses                                                                |               |              
|Interest                                                                | 938,750       | 1,034,341    
|Depreciation and amortization                                           | 894,253       | 890,404      
|Operating expenses                                                      | 2,066,652     | 1,949,519    
|                                                                        | 3,899,655     | 3,874,264    
|                                                                        |               |              
|NET LOSS                                                                | $(486,705)    | $(501,120)   
|                                                                        |               |              
|Net loss allocation to Boston  
   Capital Tax Credit Fund 
   III L.P. | $(325,351)    | $(330,807)   
|                                                                        |               |              
|                                                                        |               |              
|Net loss allocated to other 
   Partners                                | $(4,868)      | $(5,012)     
|                                                                        |               |              
|Net loss suspended                                                      | $(156,486)    | $(165,301)   









The Partnership accounts for its investments using the equity method of
accounting.  Under the equity method of accounting, the Partnership adjusts
its investment cost for its share of each Operating Partnerships results of
operations and for any distributions received or accrued.  However, the
Partnership recognizes individual operating losses only to the extent of
capital contributions.  Excess losses are suspended for use in future years to 
offset excess income.





Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTS
June 30, 2003
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Three Months Ended March 31,
(Unaudited)

Series 18



|                                                                        | 2003          | 2002         
|----------------------------------------------------------------------- | ------------- | -------------
|                                                                        |               |              
|Revenues                                                                |               |              
|Rental                                                                  | $   1,737,973 | $   1,732,553
|Interest and other                                                      | 76,974        | 123,044      
|                                                                        |               |              
|                                                                        | 1,814,947     | 1,855,597    
|                                                                        |               |              
|Expenses                                                                |               |              
|Interest                                                                | 465,951       | 497,995      
|Depreciation and amortization                                           | 651,462       | 643,484      
|Operating expenses                                                      | 1,421,990     | 1,286,588    
|                                                                        | 2,539,403     | 2,428,067    
|                                                                        |               |              
|NET LOSS                                                                | $(724,456)    | $(572,470)   
|                                                                        |               |              
|Net loss allocation to Boston  
   Capital Tax Credit Fund 
   III L.P. | $(620,566)    | $(488,008)   
|                                                                        |               |              
|                                                                        |               |              
|Net loss allocated to other 
   Partners                                | $(7,245)      | $(5,725)     
|                                                                        |               |              
|Net loss suspended                                                      | $(96,645)     | $(78,737)    









The Partnership accounts for its investments using the equity method of
accounting.  Under the equity method of accounting, the Partnership adjusts
its investment cost for its share of each Operating Partnerships results of
operations and for any distributions received or accrued.  However, the
Partnership recognizes individual operating losses only to the extent of
capital contributions.  Excess losses are suspended for use in future years to
offset excess income.





Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTS
June 30, 2003
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Three Months Ended March 31,
(Unaudited)

Series 19

|                                                                   | 2003          | 2002         
|------------------------------------------------------------------ | ------------- | -------------
|                                                                   |               |              
|Revenues                                                           |               |              
|Rental                                                             | $   2,500,922 | $   2,521,910
|Interest and other                                                 | 102,886       | 122,021      
|                                                                   |               |              
|                                                                   | 2,603,808     | 2,643,931    
|                                                                   |               |              
|Expenses                                                           |               |              
|Interest                                                           | 822,498       | 839,223      
|Depreciation and amortization                                      | 664,111       | 704,516      
|Operating expenses                                                 | 1,444,527     | 1,399,207    
|                                                                   | 2,931,136     | 2,942,946    
|                                                                   |               |              
|NET LOSS                                                           | $(327,328)    | $(299,015)   
|                                                                   |               |              
|Net loss allocation to Boston
Capital Tax Credit Fund 
   III L.P. | $(304,774)    | $(283,692)   
|                                                                   |               |              
|                                                                   |               |              
|Net loss allocated to other 
   Partners                           | $(3,273)      | $(2,990)     
|                                                                   |               |              
|Net loss suspended                                                 | $(19,281)     | $(12,333)    









The Partnership accounts for its investments using the equity method of
accounting.  Under the equity method of accounting, the Partnership adjusts
its investment cost for its share of each Operating Partnerships results of
operations and for any distributions received or accrued.  However, the
Partnership recognizes individual operating losses only to the extent of
capital contributions.  Excess losses are suspended for use in future years to
offset excess income.







Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTS
June 30, 2003
(Unaudited)

NOTE E - TAXABLE LOSS
   The Fund's taxable loss for the year ended December 31, 2003 is expected to differ from its loss for financial reporting purposes.  This is primarily due to accounting differences in depreciation incurred by the Operating Partnerships and also differences between the equity method of accounting and the IRS accounting methods.  No provision or benefit for income taxes has been included in these financial statements since taxable income or loss passesthrough to, and is reportable by, the partners and assignees individually.

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

Liquidity

The Funds primary source of funds is the proceeds of its Public Offering.  Other sources of liquidity will include (i) interest earned on capital contributions held pending investment and on Working Capital Reserves and (ii) cash distributions from operations of the operating Partnerships in which the Fund has and will invest.  Interest income is expected to decrease over the life of the Fund as capital contributions are paid to the Operating Partnerships and Working Capital Reserves are expended.    The Fund does not anticipate significant cash distributions from operations of the Operating Partnerships.

The Fund is currently accruing the fund management fee.  Fund management fees accrued during the quarter ended June 30, 2003 were $648,039 and total fund management fees accrued as of June 30, 2003 were $17,540,119.  Pursuant to the Partnership Agreement, such liabilities will be deferred until the Fund receives sales of refinancing proceeds from Operating Partnerships which will be used to satisfy such liabilities.  The Funds working capital and sources of liquidity coupled with affiliated party liability accruals allow sufficient levels of liquidity to meet the third party obligations of the Fund.  The Fund is currently unaware of any trends which would create insufficient liquidity to meet future third party obligations of the Fund.

The Fund has recorded an additional $1,170,220 as payable to affiliates.  This represents fundings to make advances and/or loans to certain Operating Partnerships in Series 15 and Series 17 of $213,564, and $956,656, respectively.

Capital Resources

The Fund offered BACs in a Public Offering declared effective by the Securities and Exchange Commission on January 24, 1992.  The Fund received $38,705,000, $54,293,000, $50,000,000, $36,162,000 and $40,800,000 representing 3,870,500, 5,429,402, 5,000,000, 3,616,200 and 4,080,000 BACs from investors admitted as BAC Holders in Series 15, Series 16, Series 17, Series 18, and Series 19, respectively.  The Public Offering was completed on December 17, 1993.

(Series 15)  The Fund commenced offering BACs in Series 15 on January 24, 1992.  Offers and sales of BACs in Series 15 were completed on September 26, 1992.  The Fund has committed proceeds to pay initial and additional installments of capital contributions to 68 Operating Partnerships in the amount of $28,257,701.

During the quarter ended June 30, 2003, none of Series 15 net offering proceeds had been used to pay capital contributions. Series 15 net offering proceeds in the amount of $16,206 remain to be used by the Fund to pay remaining capital contributions to the Operating Partnerships that Series 15 has invested in as of June 30, 2003.

(Series 16)  The Fund commenced offering BACs in Series 16 on July 13, 1992. Offers and sales of BACs in Series 16 were completed on December 28, 1992. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 64 Operating Partnerships in the amount of $39,579,774.

During the quarter ended June 30, 2003, none of Series 16 net offering proceeds had been used to pay capital contributions.  Series 16 net offering proceeds in the amount of $75,362 remain to be used by the Fund to pay remaining capital contributions to the Operating Partnerships that Series 16 has invested in as of June 30, 2003.

(Series 17)  The Fund commenced offering BACs in Series 17 on January 24, 1993.  Offers and sales of BACs in Series 17 were completed on September 17, 1993. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 49 Operating Partnerships in the amount of $36,538,204.

During the quarter ended June 30, 2003, none of Series 17 net offering proceeds had been used to pay capital contributions.  Series 17 has outstanding contributions payable to 5 Operating Partnerships in the amount of $67,895 as of June 30, 2003.  Of the amount outstanding, $15,097 has been funded into an escrow account on behalf of one of the Operating Partnership.  This will be released to the Operating Partnership has achieved the conditions set fourth in their partnership agreements.

(Series 18)  The Fund commenced offering BACs in Series 18 on September 17, 1993. Offers and sales of BACs in Series 18 were completed on September 22, 1993. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 34 operating Partnerships in the amount of $26,442,202.

During the quarter ended June 30, 2003, none of Series 18 net offering proceeds had been used to pay capital contributions.  Series 18 net offering proceeds in the amount of $18,554 remain to be used by the Fund to pay remaining capital contributions to the Operating Partnerships that Series 18 has invested in as of June 30, 2003.

(Series 19)  The Fund commenced offering BACs in Series 19 on October 8, 1993.  Offers and sales of BACs in Series 19 were completed on December 17, 1993.  The Fund has committed proceeds to pay initial and additional installments of capital contributions to 26 Operating Partnerships in the amount of $29,614,506.

During the quarter ended June 30, 2003, none of Series 19 net offering proceeds had been used to pay capital contributions.  Series 19 net offering proceeds in the amount of $24,000 remain to be used by the Fund to pay remaining capital contributions to the Operating Partnerships that Series 19 has invested in as of June 30, 2003.

Results of Operations

As of

The Fund incurred a fund management fee to Boston Capital Asset Management Limited Partnerships (formerly Boston Capital Communications Limited Partnership) in an amount equal to .5 percent of the aggregate cost of the apartment complexes owned by the Operating Partnerships, less the amount of certain asset management and reporting fees paid by the Operating Partnerships.  The fund management fees incurred, net of reporting fees received, for the quarter ended June 30, 2003 for Series 15, Series 16, Series 17, Series 18 and Series 19 were $127,891, $163,716, $131,514, $91,433, and $95,337 respectively.

The Funds investment objectives do not include receipt of significant cash distributions from the Operating Partnerships in which it has invested or intends to invest.  The Funds investments in Operating Partnerships have been made principally with a view towards realization of Federal Housing Tax Credits for allocation to its partners and BAC holders.

Series 15

As of June 30, 2003 and 2002, the average qualified occupancy for the series was 99.9%.  The series had a total of 67 properties June 30, 2003.  Out of the total 66 were at 100% qualified occupancy.

For the three months being reported Series 15 reflects a net loss from Operating Partnerships of $627,307.  When adjusted for depreciation, which is a non-cash item, the Operating Partnerships reflect positive operations of $247,028.  This is an interim period estimate; it is not necessarily indicative of the final year end results.

The reduction in net loss per BAC in the current year is primarily the result of a reduction in the share of loss from Operating Partnerships reported by the series.  The reduction in the Operating Partnership loss is a result of an increase in losses suspended due to limitations of the equity method of accounting.

In an attempt to capitalize on the strong California real estate market the Operating General Partner of Hidden Cove Apartments (Hidden Cove) entered into an agreement to sell the property and the transaction closed in May 2003.  As part of the purchase agreement, the buyer is required to maintain the property as affordable housing through the end of the tax credit compliance period and also to provide a recapture bond to avoid the recapture of the tax credits that have been taken.  Sale proceeds due to Boston Capital Tax Credit Fund I-Series 3 (BCTC I) and Boston Capital Tax Credit Fund III-Series 15 (BCTC III) are $1,710,981 and $148,373, respectively.  The majority of the sale proceeds were received by the Investment Partnerships in May 2003, however the Operating General Partner is currently holding $158,542 of the total sale proceeds until the Operating Partnership entity has been dissolved.  Of the proceeds received and to be received, it is estimated that approximately $1,379,018 and $119,586, provided that these are the actual amounts to be distributed, the per BAC distribution will be .478 and .031 for Series 3 and 15, respectively, will be returned to the investors. The amounts for each series, while different in actual dollars, represent the same percentage of return to each Investment Partnership.  The remaining total of $360,750 is anticipated to be paid to Boston Capital Asset Management Limited Partnership (BCAMLP) for fees and expenses related to the sale and partial reimbursement of amounts payable to affiliates.  The total returned to the investors will be distributed based on the number of BACs held by each investor at the time of the sale. The breakdown of the amount to be paid to BCAMLP is as follows:  $10,000 represents reimbursement of expenses incurred related to sale, which includes but is not limited to due diligence, legal and mailing costs; $50,000 represents a fee for overseeing and managing the disposition of the property; and $300,750 represents a partial payment of outstanding Asset Management Fees due to BCAMLP.  Since the Investment in Operating Partnerships balances of Hidden Cove for Series 3 and Series 15 were not equal to the sale proceeds received by each series, Series 3 and Series 15 recorded gains on the sale of the Operating Partnership of $1,710,981 and $82,207, respectiely.

In April of 2000, Marshall School Street I, LLC became the Operating General Partner and property manager for School Street Limited Partnership I (School Street Apartments - Phase I).  Since taking control, the Management Company completed the capital improvements program and improved the tenant selection criteria.  As a result, physical occupancy at the property has increased and stabilized.  During 2001 and 2002 occupancy averaged 99% and 95%, respectively.  For the first half of 2003 average occupancy has been 100%. The improved occupancy and the improved tenant selection criteria increased cash flow significantly during 2002, but operations still remained below breakeven due to high operating expenses.  During 2002 operating expenses declined by 19% versus 2001.  The Operating General Partner projects the property to cash flow in the second half of 2003 as they further control operating expenses and increase rents.  The Operating General Partner continues to fund any operating cash deficits. The mortgage, property taxes, insurance and payables are current.

Beckwood Manor Eight Limited Partnership (Lakeside Apartments) is a 32-unit, senior property located in Lake Village Arkansas. Average physical occupancy in 2002 was 88%.  As of June of 2003, physical occupancy was 79%. Low occupancy is due to lack of qualified residents in the area. To increase traffic at this property, the management company has been heavily advertising in the newspapers for the surrounding areas. In an effort to enhance revenue, the Regional Manager has requested permission from Rural Development to increase rental rates. The mortgage, taxes, insurance and payables are current.

Livingston Plaza, Limited (Livingston Plaza) suffers from low occupancy related to a poor public image. A new on-site manager was hired and is focused on increasing the safety and public perception of the property. Despite an aggressive clean out plan resulting in evictions of a number of "bad tenants", occupancy remains low.  The Investment General Partner hired an outside consultant to act as a potential resident during the fourth week of July and indicated that the low occupancy may be related to the property manager's poor salesmanship skills. The Investment General Partner is working with the Operating General Partner on an expedient resolution to this problem and continues to closely monitor Livingston Plaza's performance.

Series 16

As of June 30, 2003 and 2002, the average qualified occupancy for the series was 100%.  The series had a total of 64 properties at June 30, 2003, all of which were at 100% qualified occupancy.

For the three months being reported Series 16 reflects a net loss from Operating Partnerships of $1,130,874.  When adjusted for depreciation, which is a non-cash item, the Operating Partnerships reflect negative operations of $7,757.  Operations in the current year were negatively impacted by a one time adjustment made by one of the Operating Partnerships to accrue fees which were due but unpaid for the prior years reported by one of the Operating Partnerships.  This is an interim period estimate; it is not necessarily indicative of the final year end results.

Cass Partners, L.P. (The Fitzgerald Building) is a 20-unit, family property located in Plattsmouth, NE, which continues to operate below breakeven due to low occupancy. Average occupancy increased to 78% through the six-months ended June 30, 2003 from the fourth quarter 2002 average of 70%.   There is an abundance of affordable housing units in the area, which has negatively impacted occupancy at this property. The management company has stepped up advertising, met with the local real estate companies, and has increased site signage. There are currently three vacant units, each will require approximately $1,500 in maintenance expenses to recondition, but there is not adequate cash flow to fund the repair costs. In the past, the Operating General Partner has supported the property financially. At this time, the management company has not received the funds from the Operating General Partner needed to turnover the vacant units. The management agent has qualified applicants waiting to lease the units once they are turned over. There are four commercial spaces at the property, one of which is currently vacant.  The parking is limited so the management company has requested additional parking spaces from the City of Plattsmouth, which was declined. The mortgage and the insurance accounts are current, but the taxes are currently overdue for 2003.

Clymer Park Associates Limited Partnership (Clymer Park Apartments) located in Clymer Pennsylvania is a 32 unit elderly development.  The Partnership operated below break-even in 2002 as a result of excess funding to the reserve account. The occupancy continues to fluctuate. The low occupancy is due to the lack of rental assistance for 7 of the units and a recently imposed restriction on Section 8 mobile vouchers.  Management is certain that it will stabilize due to significant capital improvements made in 2002.  As of October 15, 2002 the Section 8 vouched restrictions were relaxed. Physical occupancy for second quarter 2003, was 84.38%, this is a decline of 3.12% from the prior quarter.

Branson Christian County I and II Limited Partnerships (Abbey Orchards Apartments I and II) located in Nixa, Missouri, operated below breakeven during 2002 and the first quarter of 2003.  The operating deficits result from the high vacancy rate at this property, which averaged 89% for Phase I in 2002 and 81% for Phase II in 2002.  However, the average occupancy for the second quarter of 2003 at Phase I was 96%, and 95% at Phase II.  The occupancy issue stems from increased competition in the community.  Phase I operated above breakeven before reserve transfers.  Phase II is operating below breakeven due to high debt service.  The Operating General Partners is currently working on a plan to refinance the property, which should help the property operate above breakeven.

Greenfield Properties Limited Partnership (Greenfield Properties) located in Greenfield, Missouri, operated below breakeven during 2002 and the first quarter of 2003, but operated above breakeven in the second quarter 2003.  The operating deficits result from the high vacancy rate at this property.  The average occupancy for 2002 and the first quarter of 2003 were 71% and 61%, respectively. The occupancy for the second quarter of 2003 was 70%. The occupancy issue stems from increased competition in the community.  The newer senior housing apartments in the area provide more amenities such as free utilities, and many tenants have moved to the newer properties.  Management has increased advertising in the newspapers around the city.  The property's mortgage, taxes and insurance were all current as of July 31, 2003.

Summersville Estates Limited Partnership (Summersville Estates) located in Summersville, Missouri, operated below breakeven during 2002 and the first and second quarters of 2003.  The operating deficits result from the high vacancy at this property.  The average occupancy for the first and second quarters of 2003 were 85%, up from a 71% average in 2002.  The property has suffered from poor site management and deferred maintenance, both of which have contributed to a lack of interested, potential tenants.  Early in 2003, the site manager was replaced and efforts have been made to improve the appearance of the property and tenant base.  Management expects occupancy to continue to increase throughout the year.

St. Croix Commons Limited Partnership (St. Croix Commons Apartments) is a 40-unit, family property located in Woodville, Wisconsin. The property operated with an average occupancy of 74% for the year 2002. The occupancy has increased slightly to an average of 75% through the second quarter of 2003.  Operating expenses continue to stay below the state average.  As a result of the high vacancy rate and the low rental rates in the area, the property did not achieve breakeven operations through the second quarter of 2003. The management agent continues to market the available units by working closely with the housing authority and continuing various marketing efforts to attract qualified residents. The Operating General Partner continues to financially support the Partnership. The mortgage, taxes, insurance and payables are current.

Series 17

As of June 30, 2003 and 2002, the average qualified occupancy for the series was 99.7%.  The series had a total of 48 properties at June 30, 2003.  Out of the total 47 were at 100% qualified occupancy.

For the three months being reported Series 17 reflects a net loss from Operating Partnerships of $486,705.  When adjusted for depreciation, which, is a non-cash item, the Operating Partnerships reflect positive operations of $407,548.  This is an interim period estimate; it is not necessarily indicative of the final year end results.



Annadale Housing Partners (Annadale Apartments) has historically reported net losses due to operational issues associated with the property.  As a result of efforts by the management company operations have improved significantly.  Rental increases combined with improved collections, increased rental revenues by $96,611 (9.8%) in 2002.  Expenses (specifically maintenance) saw increases in 2002.  This is in part due to required repairs mandated by the Housing Agency as a result of a site inspection done in 2002.  Another factor affecting maintenance costs are the provisions of the loan agreements, which stipulate that the Partnership must spend a minimum of $55,000 per year on capital improvements, which are funded from operations.  As a result of the increased rental revenues, the property operated at breakeven despite the increase in expenses.    A welfare tax exemption was approved in 2001, and the Partnership received a refund of $29,982 in January 2002.  Occupancy averaged 88.29% in 2002; however, occupancy dropped to 86% in December, and has averaged only 82.21% through the second quarter of 2003.  The majority of the vacancies are in the elderly designated units.  Management is trying to broaden the scope of advertising to attract more potential residents to the site.  Although operations have demonstrated significant improvements, the Investment General Partner will continue to monitor this Partnership until occupancy increases and stabilizes.



In an attempt to capitalize on the strong California real estate market the Operating General Partner of California Investors VI (Orchard Park) entered into an agreement to sell the property and the transaction closed in June 2003.  As part of the purchase agreement, the buyer is required to maintain the property as affordable housing through the end of the tax credit compliance period and also to provide a recapture bond to avoid the recapture of the tax credits that have been taken.  Sale proceeds due to Boston Capital Tax Credit Fund I-Series 3 (BCTC I) and Boston Capital Tax Credit Fund III-Series 17 (BCTC III) after repayment of advances made to the Operating Partnership are $408,835 and $28,682, respectively. Of the proceeds received it is estimated that approximately $352,768 and $24,749, provided that these are the actual amounts to be distributed, the per BAC distribution will be .122 and .005 for Series 3 and 17, respectively, will be returned to the investors. The amounts for each series, while different in actual dollars, represent the same percentage of return to each Investment Partnership.  The remaining total of $60,000 is anticipated to be paid to Boston Capital Asset Management Limited Partnership (BCAMLP) for fees and expenses related to the sale.  The total returned to the investors will be distributed based on the number of BACs held by each investor at the time of the sale. The breakdown of the amount to be paid to BCAMLP is as follows:  $10,000 represents reimbursement of expenses incurred related to sale, which includes but is not limited to due diligence, legal and mailing costs; $50,000 represents a fee for overseeing and managing the disposition of the property.  Since the Investment in Operating Partnership balance of California Investors VI for Series 3 was not equal to the sale proceeds received by the series, Series 3 recorded a gain on the sale of the Operating Partnership of $408,835.

Operations at Palmetto Properties Ltd. (Palmetto Villas) suffered from low occupancy in 1999 and the first half of 2000 due to poor on-site management and significant deferred maintenance issues.  As a result, the property Management Company was replaced in January 2001.  Deferred maintenance issued were addressed, and occupancy increased steadily since that time, however occupancy has recently started to slip again, averaging only 87.76% through the second quarter of 2003.    Rental revenues increased slightly in 2002, however operating expenses increased approximately $700 per unit.  The largest increase was in property taxes, which doubled from the prior year. Property taxes remain an issue for this Partnership.  Rural Development paid the 1998 delinquent taxes as an advance against the mortgage.  The 1999 and 2000 taxes were paid in 2001 and 2002 respectively from property operations.  Currently accrued 2001 and 2002 taxes total $62,300.  The Investment General Partner is attempting to work with Rural Development to develop a workout plan to address the tax issue.  Attempts to negotiate a plan have been unsuccessful to date. Although the increased rental revenues have allowed the Partnership to escrow funds for the payment of taxes and insurance, fiscal year 2001 and 2002 taxes remain delinquent.  The Investment General Partner continues to monitor the situation.

Mt. Vernon Associates, L.P. (Green Court Apartments) is a 76-unit building located in Mt. Vernon, NY.  The Partnership suffered from negative cash flow as a result of high operating expenses. The property has been able to meet obligations due to the Operating General Partner funding deficits.  One of the Operating General Partners is withdrawing from the Partnership.  The remaining Operating General Partner is committed to enhancing the performance of the property, and is funding a capital improvement escrow to pay for necessary repair costs.  Such repairs include work to the building façade, skylight and chimney repairs, and a new domestic hot water system.  Proceeds to fund repairs are also anticipated to come as a result of a proposed re-financing.  Operations at the property have improved during 2002, with occupancy averaging 96.93% for the year 2002, and holding steady at 95.18% through the second quarter of 2003.  Expenses decreased primarily as a result of decreased utility expenses.  Taking these factors into account, the Partnership generated cash in 2002 and operated above breakeven.  Operational reports through the second quarter of 2003 show that the property is operating slightly below breakeven.  As a result of an audit performed by the State Agency in 1999, several instances of non-compliance were noted in the files.  The non-compliance was reported to the IRS and subsequently 8823's were issued.  Management has corrected the files to the best of their ability; however the files are not complete.   The Investment General Partner has requested copies of the first year tenant files to make an assessment of the situation.  Based upon a preliminary review, the Investment General Partner has a concern that the Partnership may not meet the minimum set-aside requirements, and may be subject to either partial recapture or disallowance of credits.  To date no recapture of credits have been taken.  An audit was performed at the property on January 9, 2003.  The state agency found one minor file compliance issue, which has since been corrected.  They also noted required deferred maintenance issues to be corrected such as the chimney and façade repairs discussed above. The Investment General Partner continues to monitor this situation closely.

Waynesburg Housing Limited Partnership (Waynesburg House Apartments) is a 34 unit elderly development located in Waynesburg, Pennsylvania.  The Partnership was able to operate above break-even in 2002 as a result of increased rental income. The historically low occupancy is due to the lack of rental assistance for 4 of the units and recently imposed restriction on Section 8 mobile vouchers.  As of October 15, 2002, the Section 8 vouched restrictions were relaxed. As of second quarter 2003, physical occupancy improved 2.94% to 91.18%. The management company recently won a tax appeal. This will reduce the tax burden of the property to close to $18,000 annually and help with the overall financial viability of the Partnership in the future.

Series 18

As of June 30, 2003 and 2002 the average qualified occupancy for the series was 100%.  The series had a total of 34 properties at June 30, 2003, all of which were at 100% qualified occupancy.

For the three months being reported Series 18 reflects a net loss from Operating Partnerships of $724,456.  When adjusted for depreciation, which is a non-cash item, the Operating Partnerships reflect negative operations of $72,994.  This is an interim period estimate; it is not necessarily indicative of the final year end results.

Series 18 has invested in 4 Operating Partnerships (the "Calhoun Partnerships") in which the Operating General Partner is Riemer Calhoun, Jr. or an entity which is affiliated with or controlled by Riemer Calhoun (the "Riemer Calhoun Group").  The Operating Partnerships are: Leesville Elderly Apts., Lockport Elderly Apts., Natchitoches Elderly Apts., and Vivian Elderly Apts.   The affordable housing properties owned by the Calhoun Partnerships are located in Louisiana and consist of approximately 174 apartment units in total.  The low income housing tax credit available annually to Series 18 from the Calhoun Partnerships is approximately $523,397, which is approximately 11% of the total annual tax credit available to investors in Series 18.

In the summer of 2002, the US Attorney for the Western District of Louisiana notified the Investment General Partner that the Riemer Calhoun Group was under investigation by several federal agencies for the alleged manipulation of property cost certifications. In early 2003, the Investment General Partner learned that the US Attorney intended to bring criminal charges against certain members of the Riemer Calhoun Group for falsifying the certified cost basis upon which the Louisiana Housing Finance Agency determined the tax credit calculation with respect to approximately 40 Operating Partnerships in which Series 18 is not an investor.  The Investment Limited Partner used these certifications in determining the tax credits investors would receive through their investment in the Calhoun Partnerships. In effect, it appears that the contractor which built the apartment properties (an affiliate of Mr. Calhoun's) overbilled the respective Operating Partnerships, thereby improperly inflating the cost certification and the amount of tax credit generated.

In late March, 2003, Riemer Calhoun pleaded guilty to charges of wire fraud and conspiracy to commit equity skimming.   Sentencing is scheduled for late September, 2003 and is likely to involve fines and incarceration.  (Certain other business associates of Riemer Calhoun earlier pleaded guilty to various related charges.)

The Investment General Partner has cooperated fully with the US Attorney in the investigation, and there has been no suggestion of any wrongdoing on the part of it or any of it's affiliates.

The Internal Revenue Service has commenced an audit of the Calhoun

Partnerships which will finally determine the amount of overstated tax credits.  At the Investment General Partners and it's affiliates insistence, Riemer Calhoun has personally funded an escrow in the amount of $1,282,202 which will be available to compensate investors for any tax credits which are ultimately disallowed by the IRS.  It is hoped, but not certain, that the escrow fund will be sufficient to fully protect investors. (We are also pursuing a resolution with the IRS whereby escrow funds would be used to make a settlement payment directly to the IRS instead of requiring affected Partnerships and investors to restate tax returns to reflect less credit and then pay additional taxes.)

With respect to each of the Calhoun Partnerships where Riemer Calhoun has been the General Partner or in control of an entity which has been the Operating General Partner, the Investment General Partners and it's affiliates are in the process of replacing them with another entity which is controlled by Murray Calhoun, the son of Riemer Calhoun.  Murray Calhoun is the principal of Calhoun Property Management, L.L.C., which has provided property level management services for the apartment properties owned by the Calhoun Partnerships.  Murray Calhoun also cooperated fully with the criminal investigation of his father, and the Investment General Partners and it's affiliates has confirmed directly with the US Attorney that no evidence was found of any wrongdoing on the part of Murray Calhoun.

The Investment General Partners and it's affiliates have undertaken discussions with the Rural Housing Service of the U.S. Department of Agriculture, in its capacity as first mortgage lender for each of the Calhoun Partnerships, to make sure that all of the mortgage loans are and will continue to be in good standing notwithstanding the overstated credit and the criminal prosecution resulting therefrom.  RHS has also indicated that it will consent to the replacement of general partners noted above.

Finally, the Investment General Partners and it's affiliates are reviewing their business dealings with the Calhoun Partnerships in general to attempt to determine if any other irregularities have occurred.

Harris Housing Limited Partnership (Harris Music Lofts) located in West Palm Beach, Florida, operated slightly below break-even in 2002. This was mainly due to high operating expenses and high debt service payments. The property consists of 38 apartments with commercial space on the ground level. The apartments are predominately occupied by young, single residents. As a result, many of these residents have become first-time buyers, which have led to increased turnover causing higher vacancies and turnover costs. The property continues to perform necessary maintenance including carpet replacement and roof repairs in order to maintain the marketability of the rental units. Maintenance costs have risen over the years due to the aging of the property and the increased turnover. The Operating General Partner continues to share payroll costs including a community director, administrative, and maintenance personal with an affiliated property in the same neighborhood in an attempt to reduce expenses. Average occupancy for 2002 was 93.5%, but occupancy has increased during the first half of 2003 to 97%. The property taxes, insurance and replacement reserve deposits were current as of June 31,2003. The expenses as of second quarter stayed within the budget and property generated cash.

Glen Place Apartments (Glen Place Apartments) received 60-Day letters issued by the IRS stating that the Operating Partnership had not met certain Internal Revenue Code Section 42 requirements for the tax years 1996 and 1997.  The 60-Day letters were the result of an IRS audit of the Operating Partnership's tenant files.  As a result of their audit, the IRS has proposed an adjustment that would disallow 59% of past and future tax credits. The adjustment will also include interest and penalties on the past tax credits being disallowed. The Investment General Partner and its counsel along with the Operating General Partner and its counsel have filed an appeal and continue ongoing discussions with the appellate officer.   The Investment General Partner believes the audit is nearing completion, and while an actual audit settlement has not been reached, it is our belief that there is a likelihood of a favorable settlement. The property operated with an average occupancy of 90% for the year 2002. The first quarter 2003 occupancy increased to an average of 97%.  The operating expenses continue to stay below the state average.  Although the occupancy increased, the low rental rates in the area prevented the property from achieving breakeven operations in the first quarter of 2003. The management agent continues to market the available units by working closely with the housing authority and continuing various marketing efforts to attract qualified residents. The Operating General Partner continues to financially support the partnership. The mortgage, taxes, insurance and payables are current.

Chelsea Square Development Limited Partnership (Chelsea Square Apartments) is a six unit property, which incurred negative cash flow during 2002 as a result of low residential rental rates, payment of back taxes and water/sewer and the non payment of commercial rental revenue to the property.  Rental rates have been increased in 2003 to offset operating expenses.  For the first six months of 2003 the property is operating close to breakeven.  Past due taxes and water & sewer expenses that occurred prior to 2002 were charged to operations for 2002.  The back property taxes and water and sewer are on an approved payment plan with the municipality and will be brought current by the end of 2003.  The property's mortgage and property insurance are current.  The Operating General Partner's operating deficit guarantee is unlimited as to amount and time.

Preston Wood Associates L.P. (Preston Apartments) is a 62 unit property located in Bentonville, Arkansas. During 2002, Preston Wood operated below breakeven as a result of high operating expenses, primarily related to high water, sewer and energy rates, which are prevalent throughout the state.  Additionally, physical occupancy during the year was only 88%, which was related to layoffs at the two major employers in the area.  In response to the drop in occupancy, the Operating General Partner significantly increased their marketing, phased in the placement of washers and dryers in the units, and implemented the Sure Deposit program, which significantly reduced the move-in cost to tenants.  Occupancy as of June 31, 2003 was 88.71%.  The Investment General Partner will continue to work with the Operating General Partner to reduce operating expenses and stabilize occupancy.  The Operating General Partner continues to fund operating deficits.  The mortgage, trade payables, property taxes and insurance are current.

Newton I, L.P. (Newton Plaza Apartments) is a 24 unit property in Newton, Iowa that over the past two years has had difficulty sustaining an average occupancy above 90%. Occupancy has sustained a level of 86.11% over the first six months of 2003. A new site manager was hired in the first quarter of 2003 with the goal of improving relations with the local housing authority and local organizations. Although rental income increased in 2002, revenues are coming in approximately $9,342 below budget. In 2002, despite lower than average operating expenses and an increased rental revenue, the property operated below breakeven. The property was not able to pay property taxes out of operations, which resulted in Rural Development authorizing the Partnership to withdraw funds from the replacement reserves in order to pay the 2002 taxes. At December 31, 2002, the property's tax and insurance deposit was under funded with a balance of only $30. The Investment General Partner is working with the management company to determine a strategy for increasing occupancy and for preventing future delinquent taxes.

Series 19

As of June 30, 2003 and 2002 the average qualified occupancy for the series was 100%.  The series had a total of 26 properties at June 30, 2003, all of which were at 100% qualified occupancy.

For the three months being reported Series 19 reflects a net loss from Operating Partnerships of $327,328.  When adjusted for depreciation, which is a non-cash item, the Operating Partnerships reflect positive operations of $336,783. This is an interim period estimate; it is not necessarily indicativeof the final year end results.

Series 19 has invested in 3 Operating Partnerships (the "Calhoun Partnerships") in which the Operating General Partner is Riemer Calhoun, Jr. or an entity which is affiliated with or controlled by Riemer Calhoun (the "Riemer Calhoun Group").  The Operating Partnerships are: Hebbronville Apts., Lone Star Seniors Apts., and Martindale Apts.  The affordable housing properties owned by the Calhoun Partnerships are located in Texas and consist of approximately 68 apartment units in total.  The low income housing tax credit available annually to Series 19 from the Calhoun Partnerships is approximately $78,750, which is approximately 1% of the total annual tax credit available to investors in Series 19.

In the summer of 2002, the US Attorney for the Western District of Louisiana notified the Investment General Partner that the Riemer Calhoun Group was under investigation by several federal agencies for the alleged manipulation of property cost certifications. In early 2003, the Investment General Partner learned that the US Attorney intended to bring criminal charges against certain members of the Riemer Calhoun Group for falsifying the certified cost basis upon which the Louisiana Housing Finance Agency determined the tax credit calculation with respect to approximately 40 Operating Partnerships in which Series 19 is not an investor.  The Investment Limited Partner used these certifications in determining the tax credits investors would receive through their investment in the Calhoun Partnerships. In effect, it appears that the contractor which built the apartment properties (an affiliate of Mr. Calhoun's) overbilled the respective Operating Partnerships, thereby improperly inflating the cost certification and the amount of tax credit generated.



In late March, 2003, Riemer Calhoun pleaded guilty to charges of wire fraud and conspiracy to commit equity skimming.  Sentencing is scheduled for late September, 2003 and is likely to involve fines and incarceration.  (Certain other business associates of Riemer Calhoun earlier pleaded guilty to various related charges.)

The Investment General Partner has cooperated fully with the US Attorney in the investigation, and there has been no suggestion of any wrongdoing on the part of it or any of it's affiliates.

The Internal Revenue Service has commenced an audit of the Calhoun Partnerships which will finally determine the amount of overstated tax credits.  At the Investment General Partners and it's affiliates insistence, Riemer Calhoun has personally funded an escrow in the amount of $1,282,202 which will be available to compensate investors for any tax credits which are ultimately disallowed by the IRS.  It is hoped, but not certain, that the escrow fund will be sufficient to fully protect investors. (We are also pursuing a resolution with the IRS whereby escrow funds would be used to make a settlement payment directly to the IRS instead of requiring affected Partnerships and investors to restate tax returns to reflect less credit and then pay additional taxes.)

With respect to each of the Calhoun Partnerships where Riemer Calhoun has been the General Partner or in control of an entity which has been the Operating General Partner, the Investment General Partners and it's affiliates are in the process of replacing them with another entity which is controlled by Murray Calhoun, the son of Riemer Calhoun.  Murray Calhoun is the principal of Calhoun Property Management, L.L.C., which has provided property level management services for the apartment properties owned by the Calhoun Partnerships.  Murray Calhoun also cooperated fully with the criminal investigation of his father, and the Investment General Partners and it's affiliates has confirmed directly with the US Attorney that no evidence was found of any wrongdoing on the part of Murray Calhoun.

The Investment General Partners and it's affiliates have undertaken discussions with the Rural Housing Service of the U.S. Department of Agriculture, in its capacity as first mortgage lender for each of the Calhoun Partnerships, to make sure that all of the mortgage loans are and will continue to be in good standing notwithstanding the overstated credit and the criminal prosecution resulting therefrom.  RHS has also indicated that it will consent to the replacement of general partners noted above.

Finally, the Investment General Partners and it's affiliates are reviewing their business dealings with the Calhoun Partnerships in general to attempt to determine if any other irregularities have occurred.

Carrollton Villa, L.P. (Carrollton Villa) located in Carrollton, Missouri, operated below breakeven during 2002 and the first and second quarters of 2003 as a result of low occupancy. Occupancy at the property averaged 70% in 2002 and 64% for the first and second quarters of 2003. In order to address the vacancies and to better conform to a changing housing market, the property was reconfigured in late 2000 to include more 3- and 4-bedroom units.  Though occupancy has seen improvement, it remains an issue.  Management is currently running ads in the local newspaper and has posted flyers throughout the community and in surrounding areas. Due to the fact that most of the tenants have HUD vouchers, the rent was decreased on the 60% units to fit within the HUD maximums, leaving the tenants with little or nothing to pay.  This change has begun to help occupancy. The property's mortgage, taxes and insurance are all current as of July 31, 2003.



Holts Summit Square, Limited Partnership (Callaway Villa Apartments) located in Holts Summit, Missouri, operated below breakeven during 2002 and the first quarter of 2003.  The property has operated above breakeven after reserve transfers for the second quarter of 2003.  Occupancy at the property has increased to 100% for the second quarter 2003. The property had been having difficulties due to a large number of evictions.  According to the property management, the evictions have stopped; therefore expenses like legal costs have decreased. The property's mortgage, taxes and insurance are all current as of July 31, 2003.







The financial statements are prepared in accordance with accounting principles generally accepted in the United States of America, which requires the Partnership to make certain estimates and assumptions.  A summary of significant accounting policies is provided in Note A to the financial statements.  The following section is a summary of certain aspects of those accounting policies that may require subjective or complex judgments and are most important to the portrayal of Partnership's financial condition and results of operations.  The Partnership believes that there is a low probability that the use of different estimates or assumptions in making these judgments would result in materially different amounts being reported in the financial statements.

The Partnership accounts for its investment in local partnerships in accordance with the equity method of accounting since the Partnership does not control the operations of an Operating Partnership.

If the book value of Partnership's investment in an Operating Partnership exceeds the estimated value derived by management, the Partnership reduces its investment in any such Operating Partnership and includes such reduction in equity in loss of investment in operating partnerships.



|Item 3 | Quantitative and Qualitative Disclosure About Market Risk
|------ | ---------------------------------------------------------
|       |                                                          
|       | Not Applicable                                           





|Item 4 | Controls & Procedures
|------ | ---------------------
|       |                      
|       | (a)                  
|       |                      
|       |                      
|       | (b)                  
|       |                      

























PART II - OTHER INFORMATION







|Item 1. | Legal Proceedings                                   
|------- | ----------------------------------------------------
|        |                                                     
|        | None                                                
|        |                                                     
|Item 2. | Changes in Securities                               
|        |                                                     
|        | None                                                
|        |                                                     
|Item 3. | Defaults upon Senior Securities                     
|        |                                                     
|        | None                                                
|        |                                                     
|Item 4. | Submission of Matters to a Vote of Security 
Holders
|        |                                                     
|        | None                                                
|        |                                                     
|Item 5. | Other Information                                   
|        |                                                     
|        | None                                                
|        |                                                     
|Item 6. | Exhibits and Reports on Form 8-K                    
|        |                                                     
|        | (a)Exhibits                                         
|        |                                                     
|        |                                                     
|        |                                                     
|        |                                                     
|        |                                                     
|        | (b)Reports on Form 8-K                              
|        |                                                     
|        |                                                     















SIGNATURES

Pursuant to the requirements of Section 13 of the Securities Exchange
Act of 1934, the Fund has duly caused this Report to be signed on its behalf
by the undersigned, thereunto duly authorized.

|                | Boston Capital Tax Credit Fund III L.P.
|--------------- | ---------------------------------------
|                |                                        
|                | By:                                    
|                |                                        
|                |                                        
|                | By:                                    
|                |                                        
|                |                                        
|                | By:                                    
|                |                                        
|Date:           |                                        
|                |                                        
|August 20, 2003 | By:                                    
|                |                                        
|                |                                        



















































































I, John P. Manning, certify that:

I have reviewed this quarterly report on Form 10-Q of Boston Capital Tax Credit Fund III L.P (the "Fund");

1. Based on my knowledge, this quarterly 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 quarterly report;
2. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this quarterly report;
3. The Fund's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the Company and we have:



1. designed such disclosure controls and procedures to ensure that material information relating to the Fund, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;
2. evaluated the effectiveness of the Fund's disclosure controls and procedures as of a date (the "Evaluation Date") within 45 days prior to the filing date of this quarterly report; and
3. presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date;



1. The Fund's other certifying officer and I have disclosed, based on our most recent evaluation, to the Fund's auditors and the audit committee of the Fund's board of directors (or persons performing the equivalent function):



1. all significant deficiencies in the design or operation of internal controls which could adversely affect the Fund's ability to record, process, summarize and report financial data and have identified for the Fund's auditors any material weaknesses in internal controls; and
2. any fraud, whether or not material, that involves management or other employees who have a significant role in the Fund's internal controls; and



1. The Fund's other certifying officer and I have indicated in this quarterly report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the Evaluation Date, including any corrective actions with regard to significant deficiencies and material weaknesses.



|Date:  August 20, 2003 | /s/ John P. Manning 
|---------------------- | --------------------
|                       | John P. Manning     
|                       | Director, President 
|                       | (Principal Executive
|                       | Officer), C&M       
|                       | Management Inc.;    
|                       |                     











I, Marc Teal, certify that:

1.	I have reviewed this quarterly report on Form 10-K of Boston Capital Tax Credit Fund III L.P (the "Fund");



1. Based on my knowledge, this quarterly 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 quarterly report;
2. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this quarterly report;
3. The Fund's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the Company and we have:



1. designed such disclosure controls and procedures to ensure that material information relating to the Fund, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;
2. evaluated the effectiveness of the Fund's disclosure controls and procedures as of a date (the "Evaluation Date") within 45 days prior to the filing date of this quarterly report; and
3. presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date;



1. The Fund's other certifying officer and I have disclosed, based on our most recent evaluation, to the Fund's auditors and the audit committee of the Fund's board of directors (or persons performing the equivalent function):



1. all significant deficiencies in the design or operation of internal controls which could adversely affect the Fund's ability to record, process, summarize and report financial data and have identified for the Fund's auditors any material weaknesses in internal controls; and
2. any fraud, whether or not material, that involves management or other employees who have a significant role in the Fund's internal controls; and



1. The Fund's other certifying officer and I have indicated in this quarterly report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the Evaluation Date, including any corrective actions with regard to significant deficiencies and material weaknesses.



|Date:  August 20, 2003 | /s/ Marc N. Teal                     
|---------------------- | -------------------------------------
|                       | Marc N. Teal, Chief
Financial Officer