UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

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

For the quarterly period ended December 31, 2007

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)

(617) 624-8900

(Registrant's telephone number, including area code)

(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 preceding 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 ý | Noo
|----- | ---

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See definition of "large accelerated filer," "accelerated filer," and "smaller reporting company" in Rule 12b-2 of the Exchange Act  (check one):

|Large accelerated filero | Accelerated filero         
|------------------------ | ---------------------------
|Non-accelerated filero   | Smaller reporting company ý

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

|Yeso | No ý
|---- | ----

BOSTON CAPITAL TAX CREDIT FUND III L.P.

QUARTERLY REPORT ON FORM 10-QFOR THE QUARTER ENDED DECEMBER 31, 2007

TABLE OF CONTENTS

FOR THE QUARTER ENDED DECEMBER 31,2007

Balance Sheets

Balance Sheets Series 15

Balance Sheets Series 16

Balance Sheets Series 17

Balance Sheets Series 18

Balance Sheets Series 19

Three MONTHS ENDED DECEMBER 31	10

Statements of Operations Series 15	11

Statements of Operations Series 16	12

Statements of Operations Series 17	13

Statements of Operations Series 18	14

Statements of Operations Series 19	15

NINE months ENDED DECEMBER 31	16

Statements of Operations Series 15	17

Statements of Operations Series 16	18

Statements of Operations Series 17	19

Statements of Operations Series 18	20

Statements of Operations Series 19	21

statementS OF Changes in Partners' Capital (Deficit)	22

Changes in Partners' Capital (Deficit) Series 15	23

Changes in Partners' Capital (Deficit) Series 16	23

Changes in Partners' Capital (Deficit) Series 17	24

Changes in Partners' Capital (Deficit) Series 18	24

Changes in Partners' Capital (Deficit) Series 19	25

Statements of Cash Flows	26

Statements of Cash Flows Series 15	27

Statements of Cash Flows Series 16	28

Statements of Cash Flows Series 17	29

Statements of Cash Flows Series 18	30

Statements of Cash Flows Series 19	31









































BOSTON CAPITAL TAX CREDIT FUND III L.P.

QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTER ENDED DECEMBER 31, 2007

TABLE OF CONTENTS (CONTINUED)

Notes to Financial Statements*

Note A Organization

Note B Accounting and financial reporting policies

Note C Related Party Transactions	34

Note D Investments in operating partnerships	35

COMBINED STATEMENTS OF OPERATIONS	37

Combined Statement of Operations Series 15	38

Combined Statement of Operations Series 16	39

Combined Statement of Operations Series 17	40

Combined Statement of Operations Series 18	41

Combined Statement of Operations Series 19	42

Note E Taxable Loss	43

Note F Subsequent Event	43

Liquidity	44

Capital Resources	45

Results of Operations	46

principal accounting policies and estimates	68

Quantitative and Qualitative	69

Controls and Procedures	69

Part II Other Information	70

Item 1. Legal Proceedings	70

Item 1A. Risk Factors	70

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.	70

Item 3. Defaults Upon Senior Securities	70

Item 4. Submission of Matters to a Vote of Security Holders	70

Item 5. Other Information70

Item 6. Exhibits	70



SIGNATURES	71



Boston Capital Tax Credit Fund III L.P.

BALANCE SHEETS



|                                                                                                                                                                   | December 31,
2007
(Unaudited) | March 31,
2007
(Audited)
|------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ----------------------------- | ------------------------
|ASSETS                                                                                                                                                             |                               |                         
|INVESTMENTS IN OPERATING
   PARTNERSHIPS(Note D)                                                                                                                   | $   2,090,517                 | $   3,419,039           
|                                                                                                                                                                   |                               |                         
|OTHER ASSETS                                                                                                                                                       |                               |                         
|                                                                                                                                                                   |                               |                         
|Cash and cash equivalents                                                                                                                                          | 665,390                       | 1,947,702               
|Deferred acquisition costs,
net of accumulated amortization
(Note B)                                                                                               | 769,772                       | 809,059                 
|Other assets                                                                                                                                                       | 56,367                        | 56,367                  
|                                                                                                                                                                   | $3,582,046                    | $6,232,167              
|                                                                                                                                                                   |                               |                         
|LIABILITIES                                                                                                                                                        |                               |                         
|                                                                                                                                                                   |                               |                         
|Accounts payable & accrued expenses 
  (Note C)                                                                                                                    | $       8,645                 | $       1,145           
|Accounts payable affiliates                                                                                                                                        | 25,758,550                    | 25,148,800              
|Capital contributions payable                                                                                                                                      | 158,311                       | 162,519                 
|                                                                                                                                                                   | 25,925,506                    | 25,312,464              
|                                                                                                                                                                   |                               |                         
|PARTNERS' CAPITAL (DEFICIT)                                                                                                                                        |                               |                         
|                                                                                                                                                                   |                               |                         
|Limited Partners 
  
   Units of limited partnership 
   interest, $10 stated value per BAC; 
   22,000,000 authorized BACs; 
   21,996,102 issued and outstanding | (20,249,747)                  | (17,019,215)            
|General Partner                                                                                                                                                    | (2,093,713)                   | (2,061,082)             
|                                                                                                                                                                   | (22,343,460)                  | (19,080,297)            
|                                                                                                                                                                   | $3,582,046                    | $6,232,167              



The accompanying notes are an integral part of this statement



Boston Capital Tax Credit Fund III L.P.

BALANCE SHEETS

Series 15



|                                                                                                                                                         | December 31,
2007
(Unaudited) | March 31,
2007
(Audited)
|-------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------- | ------------------------
|ASSETS                                                                                                                                                   |                               |                         
|INVESTMENTS IN OPERATING
   PARTNERSHIPS(Note D)                                                                                                         | $    249,725                  | $    361,924            
|                                                                                                                                                         |                               |                         
|OTHER ASSETS                                                                                                                                             |                               |                         
|                                                                                                                                                         |                               |                         
|Cash and cash equivalents                                                                                                                                | 179,775                       | 1,345,224               
|Deferred acquisition costs, 
   net of accumulated amortization
  (Note B)                                                                               | 112,872                       | 118,611                 
|Other assets                                                                                                                                             | 21,367                        | 21,367                  
|                                                                                                                                                         | $563,739                      | $1,847,126              
|                                                                                                                                                         |                               |                         
|LIABILITIES                                                                                                                                              |                               |                         
|                                                                                                                                                         |                               |                         
|Accounts payable & accrued expenses 
  (Note C)                                                                                                          | $      8,645                  | $      1,145            
|Accounts payable affiliates                                                                                                                              | 4,996,226                     | 5,863,264               
|Capital contributions payable                                                                                                                            | -                             | 4,208                   
|                                                                                                                                                         | 5,004,871                     | 5,868,617               
|                                                                                                                                                         |                               |                         
|PARTNERS' CAPITAL (DEFICIT)                                                                                                                              |                               |                         
|                                                                                                                                                         |                               |                         
|Limited Partners
Units of limited partnership 
   interest, $10 stated value per
   BAC; 22,000,000 authorized BACs;
   3,870,500 issued and outstanding | (4,074,531)                   | (3,659,086)             
|General Partner                                                                                                                                          | (366,601)                     | (362,405)               
|                                                                                                                                                         | (4,441,132)                   | (4,021,491)             
|                                                                                                                                                         | $563,739                      | $1,847,126              

The accompanying notes are an integral part of this statement



Boston Capital Tax Credit Fund III L.P.

BALANCE SHEETS

Series 16



|                                                                                                                                                                   | December 31,
2007
(Unaudited) | March 31,
2007
(Audited)
|------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ----------------------------- | ------------------------
|ASSETS                                                                                                                                                             |                               |                         
|INVESTMENTS IN OPERATING
   PARTNERSHIPS(Note D)                                                                                                                   | $    503,531                  | $  1,126,865            
|                                                                                                                                                                   |                               |                         
|OTHER ASSETS                                                                                                                                                       |                               |                         
|                                                                                                                                                                   |                               |                         
|Cash and cash equivalents                                                                                                                                          | 159,584                       | 190,149                 
|Deferred acquisition costs, 
   net of accumulated amortization 
  (Note B)                                                                                        | 156,352                       | 164,302                 
|Other assets                                                                                                                                                       | -                             | -                       
|                                                                                                                                                                   | $819,467                      | $1,481,316              
|                                                                                                                                                                   |                               |                         
|LIABILITIES                                                                                                                                                        |                               |                         
|                                                                                                                                                                   |                               |                         
|Accounts payable & accrued expenses 
  (Note C)                                                                                                                    | $          -                  | $          -            
|Accounts payable affiliates                                                                                                                                        | 7,049,276                     | 6,572,789               
|Capital contributions payable                                                                                                                                      | 71,862                        | 71,862                  
|                                                                                                                                                                   | 7,121,138                     | 6,644,651               
|                                                                                                                                                                   |                               |                         
|PARTNERS' CAPITAL (DEFICIT)                                                                                                                                        |                               |                         
|                                                                                                                                                                   |                               |                         
|Limited Partners 
  
   Units of limited partnership    
   interest, $10 stated value per
   BAC; 22,000,000 authorized BACs;
   5,429,402 issued and outstanding | (5,772,046)                   | (4,645,093)             
|General Partner                                                                                                                                                    | (529,625)                     | (518,242)               
|                                                                                                                                                                   |                               |                         
|                                                                                                                                                                   | (6,301,671)                   | (5,163,335)             
|                                                                                                                                                                   | $819,467                      | $1,481,316              





The accompanying notes are an integral part of this statement



Boston Capital Tax Credit Fund III L.P.

BALANCE SHEETSSeries 17



|                                                                                                                                                            | December 31,
2007
(Unaudited) | March 31,
2007
(Audited)
|----------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------- | ------------------------
|ASSETS                                                                                                                                                      |                               |                         
|INVESTMENTS IN OPERATING 
   PARTNERSHIPS(Note D)                                                                                                           | $  1,063,426                  | $  1,286,994            
|                                                                                                                                                            |                               |                         
|OTHER ASSETS                                                                                                                                                |                               |                         
|                                                                                                                                                            |                               |                         
|Cash and cash equivalents                                                                                                                                   | 169,505                       | 165,814                 
|Deferred acquisition costs, 
   net of accumulated amortization
  (Note B)                                                                                  | 161,200                       | 169,684                 
|Other assets                                                                                                                                                | 30,000                        | 30,000                  
|                                                                                                                                                            | $1,424,131                    | $1,652,492              
|                                                                                                                                                            |                               |                         
|LIABILITIES                                                                                                                                                 |                               |                         
|                                                                                                                                                            |                               |                         
|Accounts payable & accrued expenses 
  (Note C)                                                                                                             | $          -                  | $          -            
|Accounts payable affiliates                                                                                                                                 | 6,828,581                     | 6,440,636               
|Capital contributions payable                                                                                                                               | 67,895                        | 67,895                  
|                                                                                                                                                            | 6,896,476                     | 6,508,531               
|                                                                                                                                                            |                               |                         
|PARTNERS' CAPITAL (DEFICIT)                                                                                                                                 |                               |                         
|                                                                                                                                                            |                               |                         
|Limited Partners
Units of limited partnership    
   interest, $10 stated value per
   BAC; 22,000,000 authorized BACs;
   5,000,000 issued and outstanding | (4,996,844)                   | (4,386,701)             
|General Partner                                                                                                                                             | (475,501)                     | (469,338)               
|                                                                                                                                                            | (5,472,345)                   | (4,856,039)             
|                                                                                                                                                            | $1,424,131                    | $1,652,492              



The accompanying notes are an integral part of this statement



Boston Capital Tax Credit Fund III L.P.

BALANCE SHEETSSeries 18



|                                                                                                                                                            | December 31,
2007
(Unaudited) | March 31,
2007
(Audited)
|----------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------- | ------------------------
|ASSETS                                                                                                                                                      |                               |                         
|INVESTMENTS IN OPERATING
PARTNERSHIPS(Note D)                                                                                                               | $          -                  | $     92,946            
|                                                                                                                                                            |                               |                         
|OTHER ASSETS                                                                                                                                                |                               |                         
|                                                                                                                                                            |                               |                         
|Cash and cash equivalents                                                                                                                                   | 73,822                        | 107,343                 
|Deferred acquisition costs,
net of accumulated amortization
(Note B)                                                                                        | 123,765                       | 130,058                 
|Other assets                                                                                                                                                | 5,000                         | 5,000                   
|                                                                                                                                                            | $202,587                      | $335,347                
|                                                                                                                                                            |                               |                         
|LIABILITIES                                                                                                                                                 |                               |                         
|                                                                                                                                                            |                               |                         
|Accounts payable & accrued expenses
(Note C)                                                                                                                | $          -                  | $          -            
|Accounts payable affiliates                                                                                                                                 | 4,298,595                     | 3,994,750               
|Capital contributions payable                                                                                                                               | 18,554                        | 18,554                  
|                                                                                                                                                            | 4,317,149                     | 4,013,304               
|                                                                                                                                                            |                               |                         
|PARTNERS' CAPITAL (DEFICIT)                                                                                                                                 |                               |                         
|                                                                                                                                                            |                               |                         
|Limited Partners
Units of limited partnership    
   interest, $10 stated value per
   BAC; 22,000,000 authorized BACs;
   3,616,200 issued and outstanding | (3,763,189)                   | (3,330,950)             
|General Partner                                                                                                                                             | (351,373)                     | (347,007)               
|                                                                                                                                                            | (4,114,562)                   | (3,677,957)             
|                                                                                                                                                            | $202,587                      | $335,347                

The accompanying notes are an integral part of this statement



Boston Capital Tax Credit Fund III L.P.

BALANCE SHEETSSeries 19





|                                                                                                                                                            | December 31,
2007
(Unaudited) | March 31,
2007
(Audited)
|----------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------- | ------------------------
|ASSETS                                                                                                                                                      |                               |                         
|INVESTMENTS IN OPERATING
   PARTNERSHIPS(Note D)                                                                                                            | $    273,835                  | $    550,310            
|                                                                                                                                                            |                               |                         
|OTHER ASSETS                                                                                                                                                |                               |                         
|                                                                                                                                                            |                               |                         
|Cash and cash equivalents                                                                                                                                   | 82,704                        | 139,172                 
|Deferred acquisition costs, 
   net of accumulated amortization
  (Note B)                                                                                  | 215,583                       | 226,404                 
|Other assets                                                                                                                                                | -                             | -                       
|                                                                                                                                                            | $572,122                      | $915,886                
|                                                                                                                                                            |                               |                         
|LIABILITIES                                                                                                                                                 |                               |                         
|                                                                                                                                                            |                               |                         
|Accounts payable & accrued expenses
  (Note C)                                                                                                              | $         -                   | $          -            
|Accounts payable affiliates                                                                                                                                 | 2,585,872                     | 2,277,361               
|Capital contributions payable                                                                                                                               | -                             | -                       
|                                                                                                                                                            | 2,585,872                     | 2,277,361               
|                                                                                                                                                            |                               |                         
|PARTNERS' CAPITAL (DEFICIT)                                                                                                                                 |                               |                         
|                                                                                                                                                            |                               |                         
|Limited Partners
Units of limited partnership    
   interest, $10 stated value per
   BAC; 22,000,000 authorized BACs;
   4,080,000 issued and outstanding | (1,643,137)                   | (997,385)               
|General Partner                                                                                                                                             | (370,613)                     | (364,090)               
|                                                                                                                                                            | (2,013,750)                   | (1,361,475)             
|                                                                                                                                                            | $572,122                      | $915,886                





The accompanying notes are an integral part of this statement





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

Three Months Ended December 31,
(Unaudited)





|                                                     | 2007          |  | 2006          | 
|---------------------------------------------------- | ------------- |  | ------------- | 
|                                                     |               |  |               | 
|Income                                               |               |  |               | 
|Interest income                                      | $       8,266 |  | $      12,847 | 
|Other income                                         | 8,012         |  | 16,541        | 
|                                                     | 16,278        |  | 29,388        | 
|                                                     |               |  |               | 
|Share of loss from Operating 
  Partnerships(Note D) | (448,257)     |  | (474,736)     | 
|                                                     |               |  |               | 
|Expenses                                             |               |  |               | 
|Professional fees                                    | 23,998        |  | 39,574        | 
|Fund management fee (Note C)                         | 555,706       |  | 588,630       | 
|Amortization                                         | 13,096        |  | 13,096        | 
|General and administrative expenses                  | 95,645        |  | 64,273        | 
|                                                     | 688,445       |  | 705,573       | 
|                                                     |               |  |               | 
|NET LOSS                                             | $(1,120,424)  |  | $(1,150,921)  | 
|                                                     |               |  |               | 
|Net loss allocated to limited partners               | $(1,109,220)  |  | $(1,139,412)  | 
|                                                     |               |  |               | 
|Net loss allocated to general partner                | $(11,204)     |  | $(11,509)     | 
|                                                     |               |  |               | 
|Net loss per BAC                                     | $(.05)        |  | $(.05)        | 
|                                                     |               |  |               | 







































The accompanying notes are an integral part of this statement



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

Three Months Ended December 31,
 (Unaudited)



Series 15



|                                                     | 2007         |  | 2006         | 
|---------------------------------------------------- | ------------ |  | ------------ | 
|                                                     |              |  |              | 
|Income                                               |              |  |              | 
|Interest income                                      | $      3,111 |  | $      4,078 | 
|Other income                                         | 5            |  | 3,791        | 
|                                                     | 3,116        |  | 7,869        | 
|                                                     |              |  |              | 
|Share of loss from Operating 
  Partnerships(Note D) | (51,591)     |  | (58,673)     | 
|                                                     |              |  |              | 
|Expenses                                             |              |  |              | 
|Professional fees                                    | 3,474        |  | 9,950        | 
|Fund management fee                                  | 101,255      |  | 113,153      | 
|Amortization                                         | 1,913        |  | 1,913        | 
|General and administrative expenses                  | 19,819       |  | 14,080       | 
|                                                     | 126,461      |  | 139,096      | 
|                                                     |              |  |              | 
|NET LOSS                                             | $(174,936)   |  | $(189,900)   | 
|                                                     |              |  |              | 
|Net loss allocated to limited partners               | $(173,187)   |  | $(188,001)   | 
|                                                     |              |  |              | 
|Net loss allocated to general partner                | $(1,749)     |  | $(1,899)     | 
|                                                     |              |  |              | 
|Net loss per BAC                                     | $(.04)       |  | $(.05)       | 
|                                                     |              |  |              | 

The accompanying notes are an integral part of this statement





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

Three Months Ended December 31,

(Unaudited)



Series 16



|                                                     | 2007         |  | 2006        
|---------------------------------------------------- | ------------ |  | ------------
|                                                     |              |  |             
|Income                                               |              |  |             
|Interest income                                      | $      1,641 |  | $      2,023
|Other income                                         | 6,782        |  | 3,600       
|                                                     | 8,423        |  | 5,623       
|                                                     |              |  |             
|Share of loss from Operating 
  Partnerships(Note D) | (222,318)    |  | (80,273)    
|                                                     |              |  |             
|Expenses                                             |              |  |             
|Professional fees                                    | 3,739        |  | 9,815       
|Fund management fee                                  | 144,596      |  | 149,226     
|Amortization                                         | 2,650        |  | 2,650       
|General and administrative expenses                  | 22,937       |  | 14,708      
|                                                     | 173,922      |  | 176,399     
|                                                     |              |  |             
|NET LOSS                                             | $(387,817)   |  | $(251,049)  
|                                                     |              |  |             
|Net loss allocated to limited partners               | $(383,939)   |  | $(248,539)  
|                                                     |              |  |             
|Net loss allocated to general partner                | $(3,878)     |  | $(2,510)    
|                                                     |              |  |             
|Net loss per BAC                                     | $(.07)       |  | $(.05)      
|                                                     |              |  |             

The accompanying notes are an integral part of this statement

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

Three Months Ended December 31,
 (Unaudited)

Series 17



|                                                     | 2007         |  | 2006         | 
|---------------------------------------------------- | ------------ |  | ------------ | 
|                                                     |              |  |              | 
|Income                                               |              |  |              | 
|Interest income                                      | $      1,780 |  | $      4,281 | 
|Other income                                         | 521          |  | 3,450        | 
|                                                     | 2,301        |  | 7,731        | 
|                                                     |              |  |              | 
|Share of loss from Operating 
  Partnerships(Note D) | (66,977)     |  | (104,639)    | 
|                                                     |              |  |              | 
|Expenses                                             |              |  |              | 
|Professional fees                                    | 3,468        |  | 7,809        | 
|Fund management fee                                  | 116,325      |  | 128,488      | 
|Amortization                                         | 2,828        |  | 2,828        | 
|General and administrative expenses                  | 19,906       |  | 14,341       | 
|                                                     | 142,527      |  | 153,466      | 
|                                                     |              |  |              | 
|NET LOSS                                             | $(207,203)   |  | $(250,374)   | 
|                                                     |              |  |              | 
|Net loss allocated to limited partners               | $(205,131)   |  | $(247,870)   | 
|                                                     |              |  |              | 
|Net loss allocated to general partner                | $(2,072)     |  | $(2,504)     | 
|                                                     |              |  |              | 
|Net loss per BAC                                     | $(.04)       |  | $(.05)       | 
|                                                     |              |  |              | 

The accompanying notes are an integral part of this statement

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

Three Months Ended December 31,
 (Unaudited)

Series 18





|                                                     | 2007         | 2006        
|---------------------------------------------------- | ------------ | ------------
|                                                     |              |             
|Income                                               |              |             
|Interest Income                                      | $        748 | $      1,026
|Other income                                         | 588          | 2,250       
|                                                     | 1,336        | 3,276       
|                                                     |              |             
|Share of loss from Operating 
  Partnerships(Note D) | (13,193)     | (38,165)    
|                                                     |              |             
|Expenses                                             |              |             
|Professional fees                                    | 3,795        | 6,847       
|Fund management fee                                  | 90,709       | 94,926      
|Amortization                                         | 2,098        | 2,098       
|General and administrative expenses                  | 16,415       | 10,287      
|                                                     | 113,017      | 114,158     
|                                                     |              |             
|NET LOSS                                             | $(124,874)   | $(149,047)  
|                                                     |              |             
|Net loss allocated to limited partners               | $(123,625)   | $(147,557)  
|                                                     |              |             
|Net loss allocated to general partner                | $(1,249)     | $(1,490)    
|                                                     |              |             
|Net loss per BAC                                     | $(.03)       | $(.04)      
|                                                     |              |             

The accompanying notes are an integral part of this statement



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

Three Months Ended December 31,
 (Unaudited)

Series 19



|                                                     | 2007         | 2006        
|---------------------------------------------------- | ------------ | ------------
|                                                     |              |             
|Income                                               |              |             
|Interest income                                      | $        986 | $      1,439
|Other income                                         | 116          | 3,450       
|                                                     | 1,102        | 4,889       
|                                                     |              |             
|Share of loss from Operating 
  Partnerships(Note D) | (94,178)     | (192,986)   
|                                                     |              |             
|Expenses                                             |              |             
|Professional fees                                    | 9,522        | 5,153       
|Fund management fee                                  | 102,821      | 102,837     
|Amortization                                         | 3,607        | 3,607       
|General and administrative expenses                  | 16,568       | 10,857      
|                                                     | 132,518      | 122,454     
|                                                     |              |             
|NET LOSS                                             | $(225,594)   | $(310,551)  
|                                                     |              |             
|Net loss allocated to limited partners               | $(223,338)   | $(307,445)  
|                                                     |              |             
|Net loss allocated to general partner                | $(2,256)     | $(3,106)    
|                                                     |              |             
|Net loss per BAC                                     | $(.05)       | $(.08)      
|                                                     |              |             

The accompanying notes are an integral part of this statement

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

Nine Months Ended December 31,
(Unaudited)





|                                                     | 2007          |  | 2006          | 
|---------------------------------------------------- | ------------- |  | ------------- | 
|                                                     |               |  |               | 
|Income                                               |               |  |               | 
|Interest income                                      | $      25,864 |  | $      31,729 | 
|Other income                                         | 20,512        |  | 87,996        | 
|                                                     | 46,376        |  | 119,725       | 
|                                                     |               |  |               | 
|Share of loss from Operating 
  Partnerships(Note D) | (1,265,702)   |  | (1,496,073)   | 
|                                                     |               |  |               | 
|Expenses                                             |               |  |               | 
|Professional fees                                    | 220,652       |  | 192,034       | 
|Fund management fee (Note C)                         | 1,608,948     |  | 1,666,035     | 
|Amortization                                         | 39,287        |  | 39,287        | 
|General and administrative expenses                  | 174,950       |  | 96,227        | 
|                                                     | 2,043,837     |  | 1,993,583     | 
|                                                     |               |  |               | 
|NET LOSS                                             | $(3,263,163)  |  | $(3,369,931)  | 
|                                                     |               |  |               | 
|Net loss allocated to limited partners               | $(3,230,532)  |  | $(3,336,232)  | 
|                                                     |               |  |               | 
|Net loss allocated to general partner                | $(32,631)     |  | $(33,699)     | 
|                                                     |               |  |               | 
|Net loss per BAC                                     | $(.15)        |  | $(.15)        | 
|                                                     |               |  |               | 





The accompanying notes are an integral part of this statement



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

Nine Months Ended December 31,

(Unaudited)



Series 15



|                                                     | 2007         |  | 2006         | 
|---------------------------------------------------- | ------------ |  | ------------ | 
|                                                     |              |  |              | 
|Income                                               |              |  |              | 
|Interest income                                      | $     10,208 |  | $     11,037 | 
|Other income                                         | 419          |  | 4,837        | 
|                                                     | 10,627       |  | 15,874       | 
|                                                     |              |  |              | 
|Share of loss from Operating 
  Partnerships(Note D) | (51,839)     |  | (210,520)    | 
|                                                     |              |  |              | 
|Expenses                                             |              |  |              | 
|Professional fees                                    | 51,944       |  | 44,310       | 
|Fund management fee                                  | 286,021      |  | 333,109      | 
|Amortization                                         | 5,739        |  | 5,739        | 
|General and administrative expenses                  | 34,725       |  | 20,230       | 
|                                                     | 378,429      |  | 403,388      | 
|                                                     |              |  |              | 
|NET LOSS                                             | $(419,641)   |  | $(598,034)   | 
|                                                     |              |  |              | 
|Net loss allocated to limited partners               | $(415,445)   |  | $(592,054)   | 
|                                                     |              |  |              | 
|Net loss allocated to general partner                | $(4,196)     |  | $(5,980)     | 
|                                                     |              |  |              | 
|Net loss per BAC                                     | $(.11)       |  | $(.15)       | 
|                                                     |              |  |              | 

The accompanying notes are an integral part of this statement





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

Nine Months Ended December 31,

(Unaudited)



Series 16



|                                                     | 2007         |  | 2006        
|---------------------------------------------------- | ------------ |  | ------------
|                                                     |              |  |             
|Income                                               |              |  |             
|Interest income                                      | $      4,911 |  | $      5,005
|Other income                                         | 9,167        |  | 4,041       
|                                                     | 14,078       |  | 9,046       
|                                                     |              |  |             
|Share of loss from Operating 
  Partnerships(Note D) | (622,681)    |  | (279,572)   
|                                                     |              |  |             
|Expenses                                             |              |  |             
|Professional fees                                    | 51,871       |  | 46,173      
|Fund management fee                                  | 427,448      |  | 421,909     
|Amortization                                         | 7,950        |  | 7,950       
|General and administrative expenses                  | 42,464       |  | 21,934      
|                                                     | 529,733      |  | 497,966     
|                                                     |              |  |             
|NET LOSS                                             | $(1,138,336) |  | $(768,492)  
|                                                     |              |  |             
|Net loss allocated to limited partners               | $(1,126,953) |  | $(760,807)  
|                                                     |              |  |             
|Net loss allocated to general partner                | $(11,383)    |  | $(7,685)    
|                                                     |              |  |             
|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

Nine Months Ended December 31,

(Unaudited)

Series 17



|                                                     | 2007         |  | 2006          | 
|---------------------------------------------------- | ------------ |  | ------------- | 
|                                                     |              |  |               | 
|Income                                               |              |  |               | 
|Interest income                                      | $      5,095 |  | $      11,103 | 
|Other income                                         | 8,224        |  | 5,935         | 
|                                                     | 13,319       |  | 17,038        | 
|                                                     |              |  |               | 
|Share of loss from Operating 
  Partnerships(Note D) | (221,762)    |  | (324,650)     | 
|                                                     |              |  |               | 
|Expenses                                             |              |  |               | 
|Professional fees                                    | 43,439       |  | 41,069        | 
|Fund management fee                                  | 318,179      |  | 358,359       | 
|Amortization                                         | 8,484        |  | 8,484         | 
|General and administrative expenses                  | 37,761       |  | 21,371        | 
|                                                     | 407,863      |  | 429,283       | 
|                                                     |              |  |               | 
|NET LOSS                                             | $(616,306)   |  | $(736,895)    | 
|                                                     |              |  |               | 
|Net loss allocated to limited partners               | $(610,143)   |  | $(729,526)    | 
|                                                     |              |  |               | 
|Net loss allocated to general partner                | $(6,163)     |  | $(7,369)      | 
|                                                     |              |  |               | 
|Net loss per BAC                                     | $(.12)       |  | $(.15)        | 
|                                                     |              |  |               | 

The accompanying notes are an integral part of this statement

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

Nine Months Ended December 31,

(Unaudited)

Series 18





|                                                     | 2007         | 2006        
|---------------------------------------------------- | ------------ | ------------
|                                                     |              |             
|Income                                               |              |             
|Interest Income                                      | $      2,396 | $      1,851
|Other income                                         | 2,521        | 69,668      
|                                                     | 4,917        | 71,519      
|                                                     |              |             
|Share of loss from Operating 
  Partnerships(Note D) | (92,945)     | (147,345)   
|                                                     |              |             
|Expenses                                             |              |             
|Professional fees                                    | 36,087       | 35,385      
|Fund management fee                                  | 277,016      | 275,145     
|Amortization                                         | 6,293        | 6,293       
|General and administrative expenses                  | 29,181       | 15,773      
|                                                     | 348,577      | 332,596     
|                                                     |              |             
|NET LOSS                                             | $(436,605)   | $(408,422)  
|                                                     |              |             
|Net loss allocated to limited partners               | $(432,239)   | $(404,338)  
|                                                     |              |             
|Net loss allocated to general partner                | $(4,366)     | $(4,084)    
|                                                     |              |             
|Net loss per BAC                                     | $(.12)       | $(.11)      
|                                                     |              |             

The accompanying notes are an integral part of this statement



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

Nine Months Ended December 31,

(Unaudited)

Series 19



|                                                     | 2007         | 2006        
|---------------------------------------------------- | ------------ | ------------
|                                                     |              |             
|Income                                               |              |             
|Interest income                                      | $      3,254 | $      2,733
|Other income                                         | 181          | 3,515       
|                                                     | 3,435        | 6,248       
|                                                     |              |             
|Share of loss from Operating 
  Partnerships(Note D) | (276,475)    | (533,986)   
|                                                     |              |             
|Expenses                                             |              |             
|Professional fees                                    | 37,311       | 25,097      
|Fund management fee                                  | 300,284      | 277,513     
|Amortization                                         | 10,821       | 10,821      
|General and administrative expenses                  | 30,819       | 16,919      
|                                                     | 379,235      | 330,350     
|                                                     |              |             
|NET LOSS                                             | $(652,275)   | $(858,088)  
|                                                     |              |             
|Net loss allocated to limited partners               | $(645,752)   | $(849,507)  
|                                                     |              |             
|Net loss allocated to general partner                | $(6,523)     | $(8,581)    
|                                                     |              |             
|Net loss per BAC                                     | $(.16)       | $(.21)      
|                                                     |              |             

The accompanying notes are an integral part of this statement



Boston Capital Tax Credit Fund III L.P.STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)Nine Months Ended December 31, 2007

(Unaudited)



|                                                   | LimitedPartners | GeneralPartner | Total        
|-------------------------------------------------- | --------------- | -------------- | -------------
|                                                   |                 |                |              
|Partners' capital 
 (deficit)
  April 1, 2007      | $(17,019,215)   | $ (2,061,082)  | $(19,080,297)
|                                                   |                 |                |              
|Net loss                                           | (3,230,532)     | (32,631)       | (3,263,163)  
|                                                   |                 |                |              
|Partners' capital 
 (deficit),
  December 31, 2007 | $(20,249,747)   | $(2,093,713)   | $(22,343,460)
|                                                   |                 |                |              

The accompanying notes are an integral part of this statement



Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)
Nine Months Ended December 31, 2007

(Unaudited)





|                                                   | LimitedPartners | GeneralPartner | Total        
|-------------------------------------------------- | --------------- | -------------- | -------------
|Series 15                                          |                 |                |              
|Partners' capital 
 (deficit)
  April 1, 2007      | $ (3,659,086)   | $  (362,405)   | $ (4,021,491)
|                                                   |                 |                |              
|Net loss                                           | (415,445)       | (4,196)        | (419,641)    
|                                                   |                 |                |              
|Partners' capital 
 (deficit),
  December 31, 2007 | $(4,074,531)    | $(366,601)     | $(4,441,132) 
|                                                   |                 |                |              
|                                                   |                 |                |              
|Series 16                                          |                 |                |              
|Partners' capital 
 (deficit)
  April 1, 2007      | $ (4,645,093)   | $  (518,242)   | $ (5,163,335)
|                                                   |                 |                |              
|Net loss                                           | (1,126,953)     | (11,383)       | (1,138,336)  
|                                                   |                 |                |              
|Partners' capital 
 (deficit),
  December 31, 2007 | $(5,772,046)    | $(529,625)     | $(6,301,671) 
|                                                   |                 |                |              

The accompanying notes are an integral part of these statements.



Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)
Nine Months Ended December 31, 2007

(Unaudited)



|                                                   | LimitedPartners | GeneralPartner | Total        
|-------------------------------------------------- | --------------- | -------------- | -------------
|Series 17                                          |                 |                |              
|Partners' capital 
 (deficit)
  April 1, 2007      | $ (4,386,701)   | $  (469,338)   | $ (4,856,039)
|                                                   |                 |                |              
|Net loss                                           | (610,143)       | (6,163)        | (616,306)    
|                                                   |                 |                |              
|Partners' capital 
 (deficit),
  December 31, 2007 | $(4,996,844)    | $(475,501)     | $(5,472,345) 
|                                                   |                 |                |              
|                                                   |                 |                |              
|Series 18                                          |                 |                |              
|Partners' capital 
 (deficit)
  April 1, 2007      | $ (3,330,950)   | $  (347,007)   | $ (3,677,957)
|                                                   |                 |                |              
|Net loss                                           | (432,239)       | (4,366)        | (436,605)    
|                                                   |                 |                |              
|Partners' capital 
 (deficit),
  December 31, 2007 | $(3,763,189)    | $(351,373)     | $(4,114,562) 
|                                                   |                 |                |              

The accompanying notes are an integral part of this statement



Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)
 Nine Months Ended December 31, 2007

(Unaudited)



|                                                   | LimitedPartners | GeneralPartner | Total       
|-------------------------------------------------- | --------------- | -------------- | ------------
|Series 19                                          |                 |                |             
|Partners' capital 
 (deficit)
  April 1, 2007      | $  (997,385)    | $ (364,090)    | $(1,361,475)
|                                                   |                 |                |             
|Net loss                                           | (645,752)       | (6,523)        | (652,275)   
|                                                   |                 |                |             
|Partners' capital 
 (deficit),
  December 31, 2007 | $(1,643,137)    | $(370,613)     | $(2,013,750)
|                                                   |                 |                |             

The accompanying notes are an integral part of this statement





Boston Capital Tax Credit Fund III L.P.STATEMENTS OF CASH FLOWSNine Months Ended December 31,

(Unaudited)



|                                                                                                  | 2007         | 2006        
|------------------------------------------------------------------------------------------------- | ------------ | ------------
|Cash flows from operating activities:                                                             |              |             
|                                                                                                  |              |             
|Net Income (Loss)                                                                                 | $(3,263,163) | $(3,369,931)
|Adjustments to reconcile net income
(loss) to net cash (used in)
provided by operating activities |              |             
|Distributions from Operating
        Partnerships                                                 | 2,460        | 35,090      
|Amortization                                                                                      | 39,287       | 39,287      
|Share of Loss from Operating
        Partnerships                                                 | 1,265,702    | 1,496,073   
|Changes in assets and liabilities                                                                 |              |             
|(Decrease) Increase in accounts
        payable and accrued expenses                              | 7,500        | (40,266)    
|Decrease (Increase) in other assets                                                               | -            | (22,352)    
|(Decrease) Increase in accounts
        payable affiliates                                        | 609,750      | 1,280,919   
|                                                                                                  |              |             
|Net cash (used in) provided by 
        operating activities                                      | (1,338,464)  | (581,180)   
|                                                                                                  |              |             
|Cash flows from investing activities:                                                             |              |             
|                                                                                                  |              |             
|Capital contributions paid to 
     Operating Partnerships                                        | (4,208)      | -           
|Proceeds from sale of operating
Limited Partnerships:                                             | 60,360       | 2,521       
|                                                                                                  |              |             
|Net cash (used in) provided by
     investing activities                                          | 56,152       | 2,521       
|                                                                                                  |              |             
|Cash flows from financing activity:                                                               |              |             
|                                                                                                  |              |             
|Distributions:                                                                                    | -            | (1,805,924) 
|Net cash (used in) provided by
        financing activity                                         | -            | (1,805,924) 
|                                                                                                  |              |             
|                                                                                                  |              |             
|                                                                                                  |              |             
|INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS                                          | (1,282,312)  | (2,384,583) 
|                                                                                                  |              |             
|Cash and cash equivalents, beginning                                                              | 1,947,702    | 3,292,462   
|                                                                                                  |              |             
|Cash and cash equivalents, ending                                                                 | $665,390     | $907,879    
|                                                                                                  |              |             

The accompanying notes are an integral part of this statement







Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Nine Months Ended December 31,

(Unaudited)Series 15





|                                                                                                  | 2007         | 2006        
|------------------------------------------------------------------------------------------------- | ------------ | ------------
|Cash flows from operating activities:                                                             |              |             
|                                                                                                  |              |             
|Net Income (Loss)                                                                                 | $  (419,641) | $  (598,034)
|Adjustments to reconcile net income
(loss) to net cash (used in)
provided by operating activities |              |             
|Distributions from Operating
        Partnerships                                                 | -            | -           
|Amortization                                                                                      | 5,739        | 5,739       
|Share of Loss from Operating
        Partnerships                                                 | 51,839       | 210,520     
|Changes in assets and liabilities                                                                 |              |             
|(Decrease) Increase in accounts
        payable and accrued expenses                              | 7,500        | -           
|Decrease (Increase) in other assets                                                               | -            | (14,590)    
|(Decrease) Increase in accounts
        payable affiliates                                        | (867,038)    | 240,338     
|                                                                                                  |              |             
|Net cash (used in) provided by 
        operating activities                                      | (1,221,601)  | (156,027)   
|                                                                                                  |              |             
|Cash flows from investing activities:                                                             |              |             
|                                                                                                  |              |             
|Capital contributions paid to 
     Operating Partnerships                                        | (4,208)      | -           
|Proceeds from sale of operating
Limited Partnerships:                                             | 60,360       | -           
|                                                                                                  |              |             
|Net cash (used in) provided by
     investing activities                                          | 56,152       | -           
|                                                                                                  |              |             
|Cash flows from financing activity:                                                               |              |             
|                                                                                                  |              |             
|Distributions:                                                                                    | -            | (940,481)   
|Net cash (used in) provided by
        financing activity                                         | -            | (940,481)   
|                                                                                                  |              |             
|INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS                                          | (1,165,449)  | (1,096,508) 
|                                                                                                  |              |             
|Cash and cash equivalents, beginning                                                              | 1,345,224    | 1,262,471   
|                                                                                                  |              |             
|Cash and cash equivalents, ending                                                                 | $179,775     | $165,963    
|                                                                                                  |              |             



The accompanying notes are an integral part of this statement







Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Nine Months Ended December 31,

(Unaudited)

Series 16



|                                                                                                  | 2007          | 2006       
|------------------------------------------------------------------------------------------------- | ------------- | -----------
|Cash flows from operating activities:                                                             |               |            
|                                                                                                  |               |            
|Net Income (Loss)                                                                                 | $ (1,138,336) | $ (768,492)
|Adjustments to reconcile net income
(loss) to net cash (used in)
provided by operating activities |               |            
|Distributions from Operating
        Partnerships                                                 | 653           | 8,386      
|Amortization                                                                                      | 7,950         | 7,950      
|Share of Loss from Operating
        Partnerships                                                 | 622,681       | 279,572    
|Changes in assets and liabilities                                                                 |               |            
|(Decrease) Increase in accounts
        payable and accrued expenses                              | -             | (40,266)   
|Decrease (Increase) in other assets                                                               | -             | (11,175)   
|(Decrease) Increase in accounts
        payable affiliates                                        | 476,487       | 193,036    
|                                                                                                  |               |            
|Net cash (used in) provided by 
        operating activities                                      | (30,565)      | (330,989)  
|                                                                                                  |               |            
|                                                                                                  |               |            
|Cash flows from investing activities:                                                             |               |            
|                                                                                                  |               |            
|Capital contributions paid to 
     Operating Partnerships                                        | -             | -          
|Proceeds from sale of operating
Limited Partnerships:                                             | -             | 2,521      
|                                                                                                  |               |            
|Net cash (used in) provided by
     investing activities                                          | -             | 2,521      
|                                                                                                  |               |            
|Cash flows from financing activity:                                                               |               |            
|                                                                                                  |               |            
|Distributions:                                                                                    | -             | -          
|Net cash (used in) provided by
        financing activity                                         | -             | -          
|                                                                                                  |               |            
|INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS                                          | (30,565)      | (328,468)  
|                                                                                                  |               |            
|Cash and cash equivalents, beginning                                                              | 190,149       | 572,534    
|                                                                                                  |               |            
|Cash and cash equivalents, ending                                                                 | $159,584      | $244,066   
|                                                                                                  |               |            

The accompanying notes are an integral part of this statement





Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Nine Months Ended December 31,

(Unaudited)

Series 17



|                                                                                                  | 2007        | 2006       
|------------------------------------------------------------------------------------------------- | ----------- | -----------
|Cash flows from operating activities:                                                             |             |            
|                                                                                                  |             |            
|Net Income (Loss)                                                                                 | $ (616,306) | $ (736,895)
|Adjustments to reconcile net income
(loss) to net cash (used in)
provided by operating activities |             |            
|Distributions from Operating
        Partnerships                                                 | 1,806       | 8,493      
|Amortization                                                                                      | 8,484       | 8,484      
|Share of Loss from Operating
        Partnerships                                                 | 221,762     | 324,650    
|Changes in assets and liabilities                                                                 |             |            
|(Decrease) Increase in accounts
        payable and accrued expenses                              | -           | -          
|Decrease (Increase) in other assets                                                               | -           | 5,181      
|(Decrease) Increase in accounts
        payable affiliates                                        | 387,945     | 240,528    
|                                                                                                  |             |            
|Net cash (used in) provided by 
        operating activities                                      | 3,691       | (149,559)  
|                                                                                                  |             |            
|                                                                                                  |             |            
|Cash flows from investing activities:                                                             |             |            
|                                                                                                  |             |            
|Capital contributions paid to 
     Operating Partnerships                                        | -           | -          
|Proceeds from sale of operating
Limited Partnerships:                                             | -           | -          
|                                                                                                  |             |            
|Net cash (used in) provided by
     investing activities                                          | -           | -          
|                                                                                                  |             |            
|Cash flows from financing activity:                                                               |             |            
|                                                                                                  |             |            
|Distributions:                                                                                    | -           | (865,443)  
|Net cash (used in) provided by
        financing activity                                         | -           | (865,443)  
|                                                                                                  |             |            
|INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS                                          | 3,691       | (1,015,002)
|                                                                                                  |             |            
|Cash and cash equivalents, beginning                                                              | 165,814     | 1,238,050  
|                                                                                                  |             |            
|Cash and cash equivalents, ending                                                                 | $169,505    | $223,048   
|                                                                                                  |             |            

The accompanying notes are an integral part of this statement





Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Nine Months Ended December 31,

(Unaudited)Series 18



|                                                                                                  | 2007        | 2006       
|------------------------------------------------------------------------------------------------- | ----------- | -----------
|Cash flows from operating activities:                                                             |             |            
|                                                                                                  |             |            
|Net Income (Loss)                                                                                 | $ (436,605) | $ (408,422)
|Adjustments to reconcile net income
(loss) to net cash (used in)
provided by operating activities |             |            
|Distributions from Operating
        Partnerships                                                 | 1           | 933        
|Amortization                                                                                      | 6,293       | 6,293      
|Share of Loss from Operating
        Partnerships                                                 | 92,945      | 147,345    
|Changes in assets and liabilities                                                                 |             |            
|(Decrease) Increase in accounts
        payable and accrued expenses                              | -           | -          
|Decrease (Increase) in other assets                                                               | -           | -          
|(Decrease) Increase in accounts
        payable affiliates                                        | 303,845     | 298,506    
|                                                                                                  |             |            
|Net cash (used in) provided by 
        operating activities                                      | (33,521)    | 44,655     
|                                                                                                  |             |            
|                                                                                                  |             |            
|Cash flows from investing activities:                                                             |             |            
|                                                                                                  |             |            
|Capital contributions paid to 
     Operating Partnerships                                        | -           | -          
|Proceeds from sale of operating
Limited Partnerships:                                             | -           | -          
|                                                                                                  |             |            
|Net cash (used in) provided by
     investing activities                                          | -           | -          
|                                                                                                  |             |            
|Cash flows from financing activity:                                                               |             |            
|                                                                                                  |             |            
|Distributions:                                                                                    | -           | -          
|Net cash (used in) provided by
        financing activity                                         | -           | -          
|                                                                                                  |             |            
|INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS                                          | (33,521)    | 44,655     
|                                                                                                  |             |            
|Cash and cash equivalents, beginning                                                              | 107,343     | 72,064     
|                                                                                                  |             |            
|Cash and cash equivalents, ending                                                                 | $73,822     | $116,719   
|                                                                                                  |             |            

The accompanying notes are an integral part of this statement





Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Nine Months Ended December 31,

(Unaudited)

Series 19



|                                                                                                  | 2007        | 2006       
|------------------------------------------------------------------------------------------------- | ----------- | -----------
|Cash flows from operating activities:                                                             |             |            
|                                                                                                  |             |            
|Net Income (Loss)                                                                                 | $ (652,275) | $ (858,088)
|Adjustments to reconcile net income
(loss) to net cash (used in)
provided by operating activities |             |            
|Distributions from Operating
        Partnerships                                                 | -           | 17,278     
|Amortization                                                                                      | 10,821      | 10,821     
|Share of Loss from Operating
        Partnerships                                                 | 276,475     | 533,986    
|Changes in assets and liabilities                                                                 |             |            
|(Decrease) Increase in accounts
        payable and accrued expenses                              | -           | -          
|Decrease (Increase) in other assets                                                               | -           | (1,768)    
|(Decrease) Increase in accounts
        payable affiliates                                        | 308,511     | 308,511    
|                                                                                                  |             |            
|Net cash (used in) provided by 
        operating activities                                      | (56,468)    | 10,740     
|                                                                                                  |             |            
|                                                                                                  |             |            
|Cash flows from investing activities:                                                             |             |            
|                                                                                                  |             |            
|Capital contributions paid to 
     Operating Partnerships                                        | -           | -          
|Proceeds from sale of operating
Limited Partnerships:                                             | -           | -          
|                                                                                                  |             |            
|Net cash (used in) provided by
     investing activities                                          | -           | -          
|                                                                                                  |             |            
|Cash flows from financing activity:                                                               |             |            
|                                                                                                  |             |            
|Distributions:                                                                                    | -           | -          
|Net cash (used in) provided by
        financing activity                                         | -           | -          
|                                                                                                  |             |            
|INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS                                          | (56,468)    | 10,740     
|                                                                                                  |             |            
|Cash and cash equivalents, beginning                                                              | 139,172     | 147,343    
|                                                                                                  |             |            
|Cash and cash equivalents, ending                                                                 | $82,704     | $158,083   
|                                                                                                  |             |            

The accompanying notes are an integral part of this statement









Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTSDecember 31, 2007

(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").  Effective as of June 1, 2001 there was a restructuring, and as a result, the Fund's general partner was reorganized as follows.  The general partner of the Fund continues to be Boston Capital Associates III L.P., a Delaware limited partnership.  The general partner of the general partner of the Fund is now BCA Associates Limited Partnership, a Massachusetts limited partnership, whose sole general partner is C&M Management, Inc., a Massachusetts corporation and whose limited partners are Herbert F. Collins and John P. Manning.  Mr. Manning is the principal of Boston Capital Partners, Inc.  The limited partner of the general partner is Capital Investment Holdings, a general partnership whose partners are various officers and employees of Boston Capital Partners, Inc., and its affiliates.  The assignor limited partner is BCTC III Assignor Corp., a Delaware corporation which is wholly-owned by Herbert F. Collins and John P. Manning.

Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 2007

(Unaudited)

NOTE B - ACCOUNTING AND FINANCIAL REPORTING POLICIES

The condensed financial statements included herein as of December 31, 2007 and for the nine months 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.  Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations.  It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Fund's Annual Report on Form 10-K.



Boston Capital Tax Credit Fund III L.P.
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 2007

(Unaudited)

Amortization

On July 1, 1995, the Fund began amortizing unallocated acquisition costs over 330 months from April 1, 1995. As of December 31, 2007 the Fund has accumulated unallocated acquisition amortization totaling $1,123,569.  The breakdown of accumulated unallocated acquisition amortization within the fund as of December 31, 2007 and 2006 is as follows:



|          | 2007       | 2006      
|--------- | ---------- | ----------
|          |            |           
|Series 15 | $  176,299 | $  168,646
|Series 16 | 307,079    | 296,479   
|Series 17 | 266,549    | 255,237   
|Series 18 | 191,173    | 182,781   
|Series 19 | 182,469    | 168,041   
|          | $1,123,569 | $1,071,184



NOTE C - RELATED PARTY TRANSACTIONS

The Fund has entered into several transactions with various affiliates of its 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.  Since reporting fees collected by the series were added to reserves and not paid to Boston Capital Asset Management Limited Partnership, the amounts accrued are not net of reporting fees received.  The fund management fees accrued for the quarters ended December 31, 2007 and 2006 are as follows:



|          | 2007     | 2006    
|--------- | -------- | --------
|Series 15 | $108,166 | $124,878
|Series 16 | 158,829  | 163,653 
|Series 17 | 129,315  | 129,548 
|Series 18 | 95,487   | 95,487  
|Series 19 | 102,837  | 102,837 
|          | $594,634 | $616,403

The fund management fees paid for the quarters ended December 31, 2007 and 2006 are as follows:



|          | 2007     | 2006
|--------- | -------- | ----
|Series 15 | $200,000 | $-  
|          | $200,000 | $-  

The fund management fees paid for the nine months ended December 31, 2007 and 2006 are as follows:



|          | 2007       | 2006     
|--------- | ---------- | ---------
|Series 15 | $1,200,000 | $ 134,296
|Series 16 | -          | 297,923  
|Series 17 | -          | 148,581  
|          | $1,200,000 | $580,800 









Boston Capital Tax Credit Fund III L.P.
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 2007

(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS

At December 31, 2007 and 2006, the Fund had limited partnership interests in 228 and 234 Operating Partnerships, respectively, which own or are constructing apartment complexes. The breakdown of Operating Partnerships within the Fund at December 31, 2007 and 2006 is as follows:



|          | 2007 | 2006
|--------- | ---- | ----
|Series 15 | 60   | 66  
|Series 16 | 61   | 61  
|Series 17 | 47   | 47  
|Series 18 | 34   | 34  
|Series 19 | 26   | 26  
|          | 228  | 234 



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 December 31, 2007 and 2006 are as follows:



|          | 2007     | 2006    
|--------- | -------- | --------
|          |          |         
|Series 15 | $      - | $  4,208
|Series 16 | 71,862   | 71,862  
|Series 17 | 67,895   | 67,895  
|Series 18 | 18,554   | 18,554  
|Series 19 | -        | -       
|          | $158,311 | $162,519

During the nine months ended December 31, 2007 the Fund disposed of three Operating Partnerships, and received additional proceeds from an Operating Partnership, which was disposed of in the prior year.  A summary of the dispositions by Series for December 31, 2007 is as follows:



|          | Operating Partnership Interest Transferred |  | Sale of Underlying Operating Partnership |  | Partnership Proceeds from Disposition * |        | Gain/(Loss) on Disposition
|--------- | ------------------------------------------ |  | ---------------------------------------- |  | --------------------------------------- | ------ | --------------------------
|          |                                            |  |                                          |  |                                         |        |                           
|Series 15 | 3                                          |  | -                                        |  | $                                       | 60,360 |                           
|Series 16 | -                                          |  | -                                        |  |                                         | -      |                           
|Series 17 | -                                          |  | -                                        |  |                                         | -      |                           
|Series 18 | -                                          |  | -                                        |  |                                         | -      |                           
|Series 19 | -                                          |  | -                                        |  |                                         | -      |                           
|          |                                            |  |                                          |  |                                         |        |                           
|Total     | 3                                          |  | -                                        |  | $                                       | 60,360 |                           

* Fund proceeds from disposition includes additional proceeds received for a sale of an Operating Partnership recorded as of March 31, 2007, of $7,188 for Series 15.





Boston Capital Tax Credit Fund III L.P.
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 2007

(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

During the nine months ended December 31, 2006 the Fund disposed of one Operating Partnership, and received additional proceeds from an Operating Partnership which was disposed of in the prior year.  A summary of the dispositions by Series for December 31, 2006 is as follows:



|          | Operating Partnership Interest Transferred |  | Sale of Underlying Operating Partnership |  | Partnership Proceeds from Disposition * |       | Gain/(Loss) on Disposition
|--------- | ------------------------------------------ |  | ---------------------------------------- |  | --------------------------------------- | ----- | --------------------------
|          |                                            |  |                                          |  |                                         |       |                           
|Series 15 | -                                          |  | -                                        |  | $                                       | -     |                           
|Series 16 | -                                          |  | -                                        |  |                                         | 2,521 |                           
|Series 17 | -                                          |  | -                                        |  |                                         | 7,320 |                           
|Series 18 | -                                          |  | -                                        |  |                                         | -     |                           
|Series 19 | -                                          |  | -                                        |  |                                         | -     |                           
|          |                                            |  |                                          |  |                                         |       |                           
|Total     | -                                          |  | -                                        |  | $                                       | 9,841 |                           

* Fund proceeds from disposition includes additional proceeds received for a sale of an Operating Partnership recorded as of March 31, 2006, of $2,521 for Series 16. Partnership proceeds from disposition does not include the following amounts recorded as receivable at December 31, 2006, $12,500 for Series 16.

The gain (loss) described above is for financial statement purposes only.  There are significant differences between the equity method of accounting and the tax reporting of income and losses from Operating Partnership investments. The largest difference is the ability, for tax purposes, to deduct losses in excess of the Fund's investment in the Operating Partnership.  As a result, the amount of gain recognized for tax purposes may be significantly higher than the gain recorded in the financial statements.

The Fund's 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 nine months ended September 30, 2007.



Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTS
December 31, 2007
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine Months Ended September 30,
(Unaudited)



|                                                                         | 2007         | 2006        
|------------------------------------------------------------------------ | ------------ | ------------
|                                                                         |              |             
|Revenues                                                                 |              |             
|Rental                                                                   | $ 42,057,685 | $ 42,406,527
|Interest and other                                                       | 2,437,549    | 3,123,726   
|                                                                         |              |             
|                                                                         | 44,495,234   | 45,530,253  
|                                                                         |              |             
|Expenses                                                                 |              |             
|Interest                                                                 | 9,570,692    | 10,679,828  
|Depreciation and amortization                                            | 12,668,051   | 12,123,289  
|Operating expenses                                                       | 28,793,304   | 29,218,291  
|                                                                         | 51,032,047   | 52,021,408  
|                                                                         |              |             
|NET LOSS                                                                 | $(6,536,813) | $(6,491,155)
|                                                                         |              |             
|Net loss allocation to Boston  
   Capital Tax Credit Fund 
   III L.P.* | $(6,471,445) | $(6,426,244)
|                                                                         |              |             
|                                                                         |              |             
|Net loss allocated to other 
   Partners                                 | $(65,368)    | $(64,911)   
|                                                                         |              |             
|                                                                         |              |             



* Amounts include $5,145,383 and $4,915,150 for 2007 and 2006, respectively, of loss not recognized under the equity method of accounting.

The Fund accounts for its investments using the equity method of
accounting.  Under the equity method of accounting, the Fund adjusts
its investment cost for its share of each Operating Partnership's results of
operations and for any distributions received or accrued.  However, the
Fund 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
December 31, 2007
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine Months Ended September 30,
(Unaudited)

Series 15



|                                                                         | 2007         | 2006        
|------------------------------------------------------------------------ | ------------ | ------------
|                                                                         |              |             
|Revenues                                                                 |              |             
|Rental                                                                   | $  7,340,534 | $  8,298,302
|Interest and other                                                       | 367,652      | 1,133,601   
|                                                                         |              |             
|                                                                         | 7,708,186    | 9,431,903   
|                                                                         |              |             
|Expenses                                                                 |              |             
|Interest                                                                 | 1,598,137    | 1,930,243   
|Depreciation and amortization                                            | 2,157,865    | 2,401,290   
|Operating expenses                                                       | 5,172,595    | 5,787,963   
|                                                                         | 8,928,597    | 10,119,496  
|                                                                         |              |             
|NET LOSS                                                                 | $(1,220,411) | $(687,593)  
|                                                                         |              |             
|Net loss allocation to Boston  
   Capital Tax Credit Fund 
   III L.P.* | $(1,208,207) | $(680,717)  
|                                                                         |              |             
|                                                                         |              |             
|Net loss allocated to other 
   Partners                                 | $(12,204)    | $(6,876)    
|                                                                         |              |             
|                                                                         |              |             



* Amounts include $1,096,008 and $470,197 for 2007 and 2006, respectively, of loss not recognized under the equity method of accounting.

The Fund accounts for its investments using the equity method of
accounting.  Under the equity method of accounting, the Fund adjusts
its investment cost for its share of each Operating Partnership's results of
operations and for any distributions received or accrued.  However, the
Fund 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
December 31, 2007
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine Months Ended September 30,
(Unaudited)

Series 16





|                                                                         | 2007         | 2006        
|------------------------------------------------------------------------ | ------------ | ------------
|                                                                         |              |             
|Revenues                                                                 |              |             
|Rental                                                                   | $ 10,124,217 | $ 10,187,713
|Interest and other                                                       | 888,016      | 756,616     
|                                                                         |              |             
|                                                                         | 11,012,233   | 10,944,329  
|                                                                         |              |             
|Expenses                                                                 |              |             
|Interest                                                                 | 2,093,764    | 2,236,535   
|Depreciation and amortization                                            | 3,084,992    | 2,994,123   
|Operating expenses                                                       | 7,214,609    | 7,194,710   
|                                                                         | 12,393,365   | 12,425,368  
|                                                                         |              |             
|NET LOSS                                                                 | $(1,381,132) | $(1,481,039)
|                                                                         |              |             
|Net loss allocation to Boston  
   Capital Tax Credit Fund 
   III L.P.* | $(1,367,321) | $(1,466,229)
|                                                                         |              |             
|                                                                         |              |             
|Net loss allocated to other 
   Partners                                 | $(13,811)    | $(14,810)   
|                                                                         |              |             
|                                                                         |              |             

* Amounts include $744,640 and $1,171,636 for 2007 and 2006, respectively, of loss not recognized under the equity method of accounting.



The Fund accounts for its investments using the equity method of
accounting.  Under the equity method of accounting, the Fund adjusts
its investment cost for its share of each Operating Partnership's results of
operations and for any distributions received or accrued.  However, the
Fund 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
December 31, 2007
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine Months Ended September 30,
(Unaudited)

Series 17



|                                                                         | 2007         | 2006         
|------------------------------------------------------------------------ | ------------ | -------------
|                                                                         |              |              
|Revenues                                                                 |              |              
|Rental                                                                   | $ 11,113,186 | $  10,427,604
|Interest and other                                                       | 398,703      | 520,721      
|                                                                         |              |              
|                                                                         | 11,511,889   | 10,948,325   
|                                                                         |              |              
|Expenses                                                                 |              |              
|Interest                                                                 | 2,397,414    | 2,440,818    
|Depreciation and amortization                                            | 3,032,882    | 2,617,356    
|Operating expenses                                                       | 7,458,904    | 6,914,500    
|                                                                         | 12,889,200   | 11,972,674   
|                                                                         |              |              
|NET LOSS                                                                 | $(1,377,311) | $(1,024,349) 
|                                                                         |              |              
|Net loss allocation to Boston  
   Capital Tax Credit Fund 
   III L.P.* | $(1,363,537) | $(1,014,105) 
|                                                                         |              |              
|                                                                         |              |              
|Net loss allocated to other 
   Partners                                 | $(13,774)    | $(10,244)    
|                                                                         |              |              
|                                                                         |              |              

* Amounts include $1,141,775 and $689,455 for 2007 and 2006, respectively, of loss not recognized under the equity method of accounting.



The Fund accounts for its investments using the equity method of
accounting.  Under the equity method of accounting, the Fund adjusts
its investment cost for its share of each Operating Partnership's results of
operations and for any distributions received or accrued.  However, the
Fund 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
December 31, 2007
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine Months Ended September 30,
(Unaudited)

Series 18



|                                                                         | 2007          | 2006         
|------------------------------------------------------------------------ | ------------- | -------------
|                                                                         |               |              
|Revenues                                                                 |               |              
|Rental                                                                   | $   5,770,265 | $   5,788,337
|Interest and other                                                       | 288,117       | 340,736      
|                                                                         |               |              
|                                                                         | 6,058,382     | 6,129,073    
|                                                                         |               |              
|Expenses                                                                 |               |              
|Interest                                                                 | 1,169,954     | 1,714,319    
|Depreciation and amortization                                            | 2,120,371     | 1,971,381    
|Operating expenses                                                       | 4,177,871     | 4,631,505    
|                                                                         | 7,468,196     | 8,317,205    
|                                                                         |               |              
|NET LOSS                                                                 | $(1,409,814)  | $(2,188,132) 
|                                                                         |               |              
|Net loss allocation to Boston  
   Capital Tax Credit Fund 
   III L.P.* | $(1,395,716)  | $(2,166,251) 
|                                                                         |               |              
|                                                                         |               |              
|Net loss allocated to other 
   Partners                                 | $(14,098)     | $(21,881)    
|                                                                         |               |              
|                                                                         |               |              



* Amounts include $1,302,771 and $2,018,906 for 2007 and 2006, respectively, of loss not recognized under the equity method of accounting.

The Fund accounts for its investments using the equity method of
accounting.  Under the equity method of accounting, the Fund adjusts
its investment cost for its share of each Operating Partnership's results of
operations and for any distributions received or accrued.  However, the
Fund 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
December 31, 2007
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine Months Ended September 30,
(Unaudited)

Series 19

|                                                                    | 2007          | 2006         
|------------------------------------------------------------------- | ------------- | -------------
|                                                                    |               |              
|Revenues                                                            |               |              
|Rental                                                              | $   7,709,483 | $   7,704,571
|Interest and other                                                  | 495,061       | 372,052      
|                                                                    |               |              
|                                                                    | 8,204,544     | 8,076,623    
|                                                                    |               |              
|Expenses                                                            |               |              
|Interest                                                            | 2,311,423     | 2,357,913    
|Depreciation and amortization                                       | 2,271,941     | 2,139,139    
|Operating expenses                                                  | 4,769,325     | 4,689,613    
|                                                                    | 9,352,689     | 9,186,665    
|                                                                    |               |              
|NET LOSS                                                            | $(1,148,145)  | $(1,110,042) 
|                                                                    |               |              
|Net loss allocation to Boston
Capital Tax Credit Fund 
   III L.P.* | $(1,136,664)  | $(1,098,942) 
|                                                                    |               |              
|                                                                    |               |              
|Net loss allocated to other 
   Partners                            | $(11,481)     | $(11,100)    
|                                                                    |               |              
|                                                                    |               |              



* Amounts include $860,189 and $564,956 for 2007 and 2006, respectively, of loss not recognized under the equity method of accounting.

The Fund accounts for its investments using the equity method of
accounting.  Under the equity method of accounting, the Fund adjusts
its investment cost for its share of each Operating Partnership's results of
operations and for any distributions received or accrued.  However, the
Fund 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
December 31, 2007
(Unaudited)

NOTE E - TAXABLE LOSS

The Fund's taxable loss for the calendar year ended December 31, 2007 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 passes through to, and is reportable by, the partners and assignees individually.

NOTE F - SUBSEQUENT EVENT

Subsequent to December 31, 2007, the Partnership has entered an agreement to sell two Operating Partnerships.  The estimated sales price and other terms for the disposition of the Operating Partnership have not been determined.  Gain (Loss) on sale of the Operating Partnerships is expected to be recognized in the first quarter of 2008.





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

This Management's Discussion and Analysis of Financial Condition and Results of Operations contains forward-looking statements including our intentions, hopes, beliefs, expectations, strategies and predictions of our future activities, or other future events or conditions. These statements are "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbors created by these acts. Investors are cautioned that all forward-looking statements involve risks and uncertainty, including, for example, the factors identified in Part I, Item 1A. "Risk Factors" of our Annual Report on Form 10-K for the fiscal year ended March 31, 2007. Although we believe that the assumptions underlying these forward-looking statements are reasonable, any of the assumptions could be inaccurate, and there can be no assurance that the forward-looking statements included in this Report will prove to be accurate. In light of the significant uncertainties inherent in these forward-looking statements, the inclusion of this information should not be regarded as a representation by us or any other person that our objectives and plans will be achieved.

Liquidity

The Fund's 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 invested 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 December 31, 2007 were $594,634 and total fund management fees accrued as of December 31, 2007 were $24,996,627. During the three and nine months ended December 31, 2007, $200,000 and $1,200,000, respectively, were paid in accrued fund management fees. Pursuant to the Partnership Agreement, these liabilities will be deferred until the Fund receives proceeds from sales of the Operating Partnerships, which will be used to satisfy these liabilities.  The Fund's 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.

As of December 31, 2007, an affiliate of the general partner of the Fund advanced a total of $761,923 to the Fund to pay some operating expenses of the Fund, and to make advances and/or loans to Operating Partnerships. These advances are included in Accounts payable-affiliates.  During the quarter and nine months ended December 31, 2007 Series 18 was advanced $14,518 and $17,384, respectively. Below is a summary, by series, of the total advances made to date.



|          | Current Quarter | Total   
|--------- | --------------- | --------
|Series 17 | $      -        | $635,362
|Series 18 | 14,518          | 126,561 
|          | $14,518         | $761,923

All payables to affiliates will be paid, without interest, from available cash flow or the proceeds of sales or refinancing of the Fund's interests in Operating Partnerships.



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. Series 15 has since sold its interest in eight of the Operating Partnerships.

During the quarter ended December 31, 2007, $4,208 of Series 15 net offering proceeds was used to pay capital contributions. No additional net offering proceeds remain to be used by the Fund to pay capital contributions to the Operating Partnerships that Series 18 has invested in as of September 30, 2007.

(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. Series 16 has since sold its interest in three of the Operating Partnerships.

During the quarter ended December 31, 2007, none of Series 16 net offering proceeds were used to pay capital contributions.  Series 16 has contributions payable to 3 Operating Partnerships in the amount of $71,862 as of December 31, 2007. The remaining contributions will be released to the Operating Partnerships when they have achieved the conditions set forth in their partnership agreements.

(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. Series 17 has since sold its interest in two of the Operating Partnerships.

During the quarter ended December 31, 2007, none of Series 17 net offering proceeds were used to pay capital contributions.  Series 17 has contributions payable to 5 Operating Partnerships in the amount of $67,895 as of December 31, 2007.  Of the amount outstanding, $15,097 has been funded into an escrow account on behalf of one of the Operating Partnerships.  The remaining contributions as well as the escrowed funds will be released to the Operating Partnerships when they have achieved the conditions set forth 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 December 31, 2007, none of Series 18 net offering proceeds were used to pay capital contributions.  Series 18 has contributions payable to 2 Operating Partnerships in the amount of $18,554 as of December 31, 2007. The remaining contributions will be released to the Operating Partnerships when they have achieved the conditions set forth in their partnership agreements.

(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 December 31, 2007, none of Series 19 net offering proceeds were used to pay capital contributions. No additional net offering proceeds remain to be used by the Fund to pay capital contributions to the Operating Partnerships that Series 19 has invested in as of December 31, 2007.



Results of Operations

As of December 31, 2007 and 2006, the Fund held limited partnership interests in 228 and 234 Operating Partnerships, respectively.  In each instance the apartment complex owned by the applicable Operating Partnership is eligible for the federal housing tax credit.  Initial occupancy of a unit in each apartment complex which complied with the minimum set-aside test (i.e., initial occupancy by tenants with incomes equal to no more than a certain percentage of area median income) and the rent restriction test (i.e., gross rent charged tenants does not exceed 30% of the applicable income standards) is referred to as "Qualified Occupancy."  Each of the Operating Partnerships and each of the respective apartment complexes are described more fully in the Prospectus or applicable report on Form 8-K.  The general partner of the Fund believes that there is adequate casualty insurance on the properties.

The Fund incurs a fund management fee to Boston Capital Asset Management Limited Partnership (formerly Boston Capital Communications Limited Partnership), or BCAMLP, in an amount equal to .5 percent of the aggregate cost of the apartment complexes owned by the Operating Partnerships, less the amount of various asset management and reporting fees paid by the Operating Partnerships. The fund management fees incurred and the reporting fees paid by the Operating Partnerships for the three and nine months ended December 31, 2007 are as follows:

|          | 3 Months
Management Fee Net of Reporting Fee | 3 MonthsReporting Fee | 9 Months
Management Fee Net of Reporting Fee | 9 MonthsReporting Fee
|--------- | -------------------------------------------- | --------------------- | -------------------------------------------- | ---------------------
|Series 15 | $ 101,255                                    | $  6,911              | $  286,021                                   | $ 46,941             
|Series 16 | 144,596                                      | 14,233                | 427,448                                      | 49,039               
|Series 17 | 116,325                                      | 12,990                | 318,179                                      | 69,766               
|Series 18 | 90,709                                       | 4,778                 | 277,016                                      | 9,445                
|Series 19 | 102,821                                      | 16                    | 300,284                                      | 8,227                
|          | $ 555,706                                    | $ 38,928              | $1,608,948                                   | $183,418             

The Fund's investment objectives do not include receipt of significant cash distributions from the Operating Partnerships in which it has invested or intends to invest.  The Fund's 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 December 31, 2007 and 2006, the average Qualified Occupancy for the series was 99.94%.  The series had a total of 60 properties December 31, 2007.  Out of the total, 59 were at 100% Qualified Occupancy.

For the nine month period ended December 31, 2007 and 2006, Series 15 reflects net loss from Operating Partnerships of $(1,220,411) and $(687,593), respectively, which includes depreciation and amortization of $2,157,865 and $2,401,290, respectively. This is an interim period estimate; it is not indicative of the final year end results.

In May 2007, the investment general partner of Heron's Landing RRH Limited entered into an agreement to transfer the property to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,168,521 and cash proceeds to the investment limited partnership of $42,775.  Of the total proceeds received, $7,500 will be paid to BCAMLP for expenses related to the transfer, which includes third party legal costs.  The remaining proceeds of $35,275 will be returned to cash reserves held by Series 15.  The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid fund management fees, and accrued but unpaid expenses of the investment limited partnership.  After all outstanding obligations of the investment limited partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $35,275 as of June 30, 2007.



In June 2007, the investment general partner of Lake View Associates entered into an agreement to transfer the property to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $863,544 and cash proceeds to the investment limited partnership of $35,192.  Of the total proceeds received, $14,003 represents reporting fees due to an affiliate of the investment limited partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $7,500 was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs.  The remaining proceeds of $13,689 was returned to cash reserves held by Series 15.  The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid fund management fees, and accrued but unpaid expenses of the investment limited partnership.  After all outstanding obligations of the investment limited partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $13,689 as of June 30, 2007. In addition, equity outstanding for the Operating Partnership in the amount of $4,208 was recorded as gain on the sale of the Operating Partnership as of July 31, 2007.

In May 2007, the investment general partner of School Street I Limited Partnership approved an agreement to sell the property and the transaction closed on July 10, 2007. The sales price of the property was $875,000, which includes the outstanding mortgage balance of approximately $639,249. After the payment of all costs related to the sale of the property, including the brokerage commission, legal fees, satisfaction of the outstanding mortgage balance, and repayment of previous advances to the operating general partner in accordance with the operating partnership agreement, cash proceeds to the investment limited partner were $0. Annual losses generated by the Operating Partnership, which were applied against the investment limited partner's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership's investment in the Operating Partnership to zero.

Beckwood Manor Eight Limited Partnership (Lakeside Apartments) is a 32-unit, senior property, located in Lake Village, Arkansas.  Occupancy averaged 69% in 2007, which was a slight decrease from the 2006 average occupancy of 73%.  The local economy remains challenging in nature due to an abundance of low income tax credit units available for rent in the area.  According to the operating general partner, the supply in the marketplace continues to exceed the demand. The new leasing incentive is three months of free electricity.  In an effort to increase rental traffic to the property, the management company continues to advertise heavily in surrounding area newspapers. The operating general partner has taken a proactive initiative in reducing operating expenses in 2007.  The property operated slightly below breakeven in 2006, but is projected to breakeven in 2007.  The mortgage payments, taxes, insurance, and accounts payables are all current.

Livingston Plaza, Limited (Livingston Plaza) is a 24-unit, family property located in Livingston, Texas. In 2006, despite an average occupancy of 75%, the property operated above breakeven. However, in 2007 physical occupancy has dropped significantly. In early January the property started experiencing security issues, such as violent behavior and vandalism, which stem from some of the newer residents. To address these issues, the management hired a full time security person and evicted the problem residents. In the second quarter 2007 management made a decision to reduce the hours of the security officer due to limited funds. As a result, in the third and fourth quarters, the property started experiencing increases in vandalism and drug activity causing the average physical occupancy to drop further. In the fourth quarter average physical occupancy was 55%. Instead of increasing hours of the security officer, management decided to work with the local police department to establish regular evening police patrols of the property. As of the fourth quarter 2007, the property is unable to breakeven due to low occupancy. To increase the occupancy, the management is continuously working with local Section 8 representatives and developing relationships with local churches and community centers. The mortgage payments, taxes, insurance, and accounts payables are current. The operating general partner guarantee is unlimited in time and amount.

Osage Housing Associates Limited Partnership (Spring Creek Apartments II) is a 50-unit family property located in Derby, Kansas, a suburb of Wichita.  During 2006 the property continued to operate below breakeven due to high operating expenses.  The operating general partner appealed the real estate taxes in 2006 and was able to secure a 50% real estate tax reduction.  The reduction in real estate taxes helped improve operations, as did the increase in occupancy to an average of 95% for 2006. In 2007 the property continues to operate below breakeven because of high operating costs and a drop in occupancy.  In the first quarter of 2007 the occupancy dropped to 85%, but has improved to a 92% average occupancy for the year. The high operating costs are caused by the high turnover at the property and the associated costs of turnovers.  Management has recently expanded marketing efforts in order to increase occupancy and is diligently working to control turnover and operating expenses in an effort to reach breakeven status.  At the end of 2007, the cash flow has improved but the property is still below breakeven.  Despite an expired guarantee, the operating general partner has stated that they will continue to fund deficits. The mortgage payments, taxes, and insurance are current.  On December 31, 2006, the 15-year low income housing tax credit compliance period expired with respect to Osage Housing Associates Limited Partnership.  The investment general partner is in the process of exploring various disposition opportunities consistent with the investment objectives of the investment partnership.

Greentree Apartments Limited, (Sue-Ellen Apartments) is a 24-unit, family property located in Utica, OH. The 2006 average occupancy was 75% as a result of poor management.  The operating general partner changed management companies in late 2006.  The new company is now focused on marketing and leasing activities.  Outreach and networking with local businesses resulted in a 2007 average occupancy of 89%, increasing to 92% in the fourth quarter.  The operating general partner passed away in the second quarter of 2007.  His widow is now the operating general partner.  Their grandson has assumed the day-to-day operations of the partnership but communication has been intermittent and calls have gone unanswered.  The investment general partner will continue to follow up with the operating general partner until all communication issues have been resolved.  The low income housing tax credit compliance period for this property expires in 2009.

In October 2004, while attempting to capitalize on the strong California real estate market, the operating general partner of California Investors VII (Summit Ridge Apartments/Longhorn Pavilion) entered into an agreement to sell the property and the transaction closed in the first quarter of 2005.  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 to provide a recapture bond to avoid the recapture of the tax credits that have been taken.  The proceeds to the investment limited partner received in the first quarter 2005 are $919,920, $312,959, $1,459,511, and $1,346,025, for Boston Capital Tax Credit Fund II-Series 12 and Boston Capital Tax Credit Fund II - Series 14 and Series 15 and Series 17 of the Fund, respectively. Of the total received, $211,638 is for payment of outstanding reporting fees due to an affiliate of the investment partnership, $183,283 is a reimbursement of funds previously advanced to the Operating Partnership by affiliates of the investment partnership and $3,643,494 is the estimated proceeds from the sale of the investment limited partners' interests.  Of the proceeds, $612,758, $206,285, $940,482, and $865,445, for Series 12, Series 14, Series 15, and Series 17, respectively, are estimated to be distributed to the investors, or used to pay non-resident tax withholdings requirements of the State of California.  This represents a per BAC distribution of $.206, $.037, $.243, and $.173, for Series 12, Series 14, Series 15, and Series 17, respectively.  Of the remaining proceeds, $643,691 were paid to BCAMLP for fees and expenses related to the sale and partial reimbursement for amounts owed to affiliates.  The breakdown of amounts paid to BCAMLP is as follows: $51,250 represents the reimbursement of overhead and expenses incurred for overseeing and managing the disposition of the property; $88,274 represents a reimbursement of estimated expenses incurred in connection with the disposition; and $504,167 represents a partial payment of outstanding fund management fees due to BCAMLP.  The remaining proceeds of $374,833 will be returned to cash reserves. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid fund management fees, and accrued but unpaid expenses of the investment partnerships. Losses on the sale of the property were recorded by Series 12, Series 14, Series 15 and Series 17 of $(2,113,352), $(690,791), $(3,046,179) and $(2,791,520), respectively, in the quarter ended March 31, 2005.  As of December 2005 additional sales proceeds of $99,080 were received and allocated to Series 12, Series 14, Series 15 and Series 17 as follows: $23,128 to Series 12, $7,786 to Series 14, $35,500 to Series 15 and $32,666 to Series 17.  These proceeds will be retained by the investment limited partners to improve their reserve balances as well.  The gain/(loss) recorded represented the proceeds received by the investment limited partners, net of their remaining investment balance, unreimbursed advances to the Operating Partnership and their share of the overhead and expense reimbursement. In the prior year, March 31, 2006, $11,964, $4,028, $18,362 and $16,897 for Series 12, Series 14, Series 15 and Series 17, respectively, of the sales proceeds were refunded to BCAMLP to pay accrued fund management fees.

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 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 and Series 15 were $1,572,368 and $136,352, respectively.  The majority of the sale proceeds were received by the investment limited partnerships in May 2003, and the balance was received in September 2003.  Of the proceeds received, $1,240,404 and $107,565, for Series 3 and Series 15, respectively, was distributed to the investors in July 2004.  This represented a per BAC distribution of $.430 and $.028 for Series 3 and 15, respectively. The total returned to the investors was distributed based on the number of BACs held by each investor.  The amounts for each series, while different in actual dollars, represent the same percentage of return to each investment limited partnership.  The remaining proceeds total of $360,750 was paid to BCAMLP for fees and expenses related to the sale and partial reimbursement of amounts payable to affiliates. The breakdown of the amount paid to BCAMLP is as follows: $10,000 represents reimbursement of expenses incurred related to sale, which includes due diligence, legal and mailing costs; $50,000 represents the reimbursement of overhead and expenses incurred for overseeing and managing the disposition of the property; and $300,750 represents a partial payment of outstanding fund management fees due to BCAMLP.  At the time of the sale, the operating general partners retained some funds in an account in the name of the Operating Partnership to cover costs that would be incurred in the process of dissolving the Operating Partnership entity.  These funds were not fully utilized and the investment limited partnership share of the remaining funds was paid in April 2005.  The totals received were $9,163 for Series 3 and $795 for Series 15.   The amounts have been added to each Series' available reserves and were recognized in the gain on the sale of the property as of March 31, 2005.  Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero for Series 3 and $66,166 for Series 15.  Accordingly, the gain on the sale of the property was recorded by Series 3 and Series 15 of $1,535,521 and $28,992, respectively.  The gains recorded represented the proceeds received by the investment limited partnerships, net of their remaining investment balance, unreimbursed advances to the Operating Partnership and their share of the overhead and expense reimbursement. In the prior year, March 31, 2006, $3,990 and $46,010 for Series 15 and Series 3, respectively, of the sales proceeds were refunded to BCAMLP to pay accrued fund management fees.



Wood Park Pointe, RRH, Limited (Wood Park Pointe) is located in Arcadia, Florida.  The property was hit by multiple hurricanes in the fall of 2004 resulting in the total loss of habitability to all 37 residential units. Rural Development is requiring that the project be rebuilt.  The operating general partner received insurance proceeds for reconstruction in January 2005. The proceeds were less than the anticipated rebuilding costs; however, the operating general partner has secured increased rents from Rural Development so that the property can sustain additional debt.  The additional debt is funded from a subsequent loan from Rural Development.  The anticipated construction start date was slated for October 2006, but was delayed since negotiations with Rural Development regarding costs had not yet been finalized. The operating general partner received approval for the construction budget in the first quarter of 2007 and construction commenced immediately following approval.   On December 3, 2007 the architect's field report stated the property was 99% completed.  The investment general partner is currently waiting for the final report to show 100% completion.  On December 31, 2007, the 15-year low income housing tax credit compliance period expired with respect to Wood Park Pointe, RRH.  The investment general partner is in the process of exploring various disposition opportunities consistent with the investment objectives of the investment partnership.

Buena Vista Apartments, Phase II (Buena Vista Apartments) is a 44-unit property located in Union, SC.  Industrial decline in the area has led to a dwindling population base from which to draw qualified residents.  The property continues to have trouble competing with properties that offer project-based rental assistance, but was still able to maintain an average occupancy of 91% through the third quarter of 2007.  Fourth quarter financial statements and occupancy information has been requested from the operating general partner.  The mortgage, real estate taxes, insurance and accounts payables to non-related entities are current.  The operating general partner's guarantee is unlimited in time and amount.

In December 2006, the investment general partner exercised an option to transfer its interest in Oakwood Village, Limited to a non-affiliated entity for its assumption of the outstanding mortgage balance of approximately $1,078,022 and cash proceeds to the investment limited partner of $43,121. The transaction closed in January 2007.  Of the proceeds received, $7,000 was paid to BCAMLP for expenses related to the sale, which includes third party legal costs.  The remaining proceeds of $36,121 were returned to cash reserves held by Series 15.  The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid fund management fees, and accrued but unpaid expenses of the investment limited partnership.  After all outstanding obligations of the investment limited partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $36,121 as of March 31, 2007.

In December 2006, the investment general partner exercised an option to transfer its interest in Wauchula Limited to a non-affiliated entity for its assumption of the outstanding mortgage balance of approximately $1,437,943 and cash proceeds to the investment limited partner of $57,518. The transaction closed in January 2007. Of the proceeds received, $7,000 was paid to BCAMLP for expenses related to the sale, which includes third party legal costs.  The remaining proceeds of $50,518 were returned to cash reserves held by Series 15.  The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid fund management fees, and accrued but unpaid expenses of the investment limited partnership.  After all outstanding obligations of the investment limited partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $50,518 as of March 31, 2007.

In January 2007, the operating general partner of Coralville Housing Associates entered into an agreement to sell the property and the transaction closed on March 1, 2007.  Cash proceeds to the investment limited partner were $1,189,874. Of the proceeds received, $7,500 was paid to BCAMLP for expenses related to the sale, which includes third party legal costs and $20,000 was used for payment of outstanding fund management fees due to an affiliate of the investment limited partnership. The remaining proceeds from the sale of $1,162,374 were returned to cash reserves held by Series 15. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid fund management fees, and accrued but unpaid expenses of the investment limited partnership.  After all outstanding obligations of the investment limited partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $1,162,374 as of March 31, 2007. As of June 2007 additional sales proceeds of $7,188 were received.  These proceeds were returned to cash reserves held by Series 15.

Showboat Manor LDHA LP (Showboat Manor Apartments) is a 26-unit senior property located in Chesaning, MI. The property operated below breakeven in 2006 and continues to operate below breakeven through the fourth quarter of 2007 due to declining occupancy and poor on-site management. The property has experienced high on-site management turnover since December 2006. The new site manager was hired in August 2007. She is very enthusiastic and has high expectations for the property, which has already positively impacted the residents. She has worked to increase property awareness, by inviting community members to resident events and posting flyers and advertising in the city library and in pharmacies. As a result, in the fourth quarter 2007, the property's physical occupancy increased to 84%. Through the fourth quarter of 2007 physical occupancy averaged 77%. Physical occupancy is expected to improve in the first quarter of 2008 to 95%. The tax and insurance escrow was not adequately funded in 2007, and 2007 real estate taxes were delinquent, prompting management to create a workout plan. A new two-year workout plan was created in November 2007 and is currently in review by Rural Development. Rural Development is expected to approve the plan by January 31, 2008. The primary goal of the workout plan is to pay down delinquent real estate taxes. The secondary goal is to fund the tax and insurance escrow account, which is under-funded by $21,224 as of December 31, 2007, according to management. As a result, the management company is proposing that the replacement reserve funding requirement be waived in 2008, and allow those scheduled deposits to be allocated to the funding of the tax and insurance escrow. The tax and insurance escrow account is expected to be adequately funded over a period of 18 months, at which time the focus will convert to the funding of the replacement reserves. The workout plan also contains a request for rent increases, which will directly go, towards the funding of the escrow accounts. The operating general partnerships operating deficit guarantee was unlimited in amount until the five-year anniversary of final closing which has expired. The partnership's mortgage payments are current to date. On December 31, 2007, the 15-year low income housing tax credit compliance period expired with respect to Showboat Manor LDHA LP.  The investment general partner is in the process of exploring various disposition opportunities consistent with the investment objectives of the investment partnership.

Series 16

As of December 31, 2007 and 2006, the average Qualified Occupancy for the series was 100%. The series had a total of 61 properties at December 31, 2007, all of which were at 100% Qualified Occupancy.

For the nine month period ended December 31, 2007 and 2006, Series 16 reflects net loss from Operating Partnerships of $(1,381,132) and $(1,481,039), respectively, which includes depreciation and amortization of $3,084,992 and $2,994,123, respectively. This is an interim period estimate; it is not indicative of the final year end results.

The Fitzgerald Building (Cass Partners, LP) is a 20-unit apartment building located in Plattsmouth, NE.  This property continues to operate below breakeven due to low occupancy. The fourth quarter 2007 physical occupancy averaged 15% and 2007 year to date occupancy averaged 39%.  Due to the lack of cash flow, management has not been able to make ready the vacant apartments, which are in need of general maintenance and repairs, as well as update the kitchen appliances.  Also affecting the marketing of the property is its downtown location, lack of parking, and lack of amenities such as washer/dryer hook-ups.  The operating general partner has been able to reduce operating expenses over the last two years by self-managing the property.  The property insurance is current through December 2007; however, the 2006 taxes, which were due in 2007, have not yet been paid.  The operating partnership missed the August 2007 mortgage payment, but has paid all other mortgage payments for 2007. Despite an expired operating deficit guaranty, the operating general partner has continued to fund operating deficits. However, the operating general partner has indicated that it will not be able to continue funding deficits.  In addition, the mortgage matured in June 2007 and, at that time, the lender stated that it would not extend the term of the loan or refinance the debt. Despite not agreeing to extend the term, the lender continues to accept monthly debt payments on the loan and has not commenced foreclosure proceedings. The investment general partner has analyzed the potential costs and benefits of maintaining the property through the 2008 compliance period and concluded that the cost of supporting the property's operations through the end of the compliance period is likely to be extremely high. Avoiding tax credit recapture does not appear to justify the amount of the required investment.  As a result, the investment general partner believes a consensual transfer of the property to the lender prior to the end of the compliance period is likely.

Clymer Park Associates Limited Partnership (Clymer Park Apartments) located in Clymer, Pennsylvania is a 32-unit elderly development. In 2006 the property operated above breakeven due to improvements in occupancy. As of December 31, 2007 average occupancy at the property was 98%. The management company currently maintains a significant waiting list of pre-qualified tenants waiting for rental assistance. The operating general partner continues to monitor the Operating Partnership.

The operating general partner of Mariner's Pointe Limited Partnership I and Mariner's Pointe Limited Partnership II entered into an agreement to sell Mariner's Pointe I & II. The transaction closed in March 2006. 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 to provide a recapture bond to avoid the recapture of the tax credits that have been taken. The sales price for Mariner's Pointe I & II was $4,587,705, which includes outstanding mortgage balances of approximately $3,998,707 and proceeds to the investment limited partnership of $264,924. Of the total investment limited partnership proceeds received, $110,860 represents a reimbursement of funds previously advanced to the Operating Partnership by the

investment limited partnership, $52,500 represents payment of outstanding reporting fees due to an affiliate of the investment limited partnership and approximately $14,501 is for third party legal costs. Proceeds from the sale of $87,063 will be returned to cash reserves held by Series 16.  The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid fund management fees, and accrued but unpaid expenses of the investment limited partnership. After all outstanding obligations of the investment limited partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Losses on the sale of the property were recorded by Series 16 of $(108,072), in the quarter ended March 31, 2006. The loss recorded represents the proceeds received by the investment limited partner, net of their remaining investment balance. Accordingly, a loss on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expense reimbursement, has been recorded in the amount of ($23,530) as of March 31, 2006. At the time of the sale, the operating general partner retained some funds in an account in the name of the Operating Partnership to cover costs that would be incurred in the process of dissolving the Operating Partnership entity.  These funds were not fully utilized and the investment limited partnership share of the remaining funds was paid in June 2006.  Accordingly, a gain was recorded for the total additional proceeds received in the amount of $2,521 as of June 30, 2006.

Summersville Estates (Summersville Estates Limited Partnership) is a 24-unit property located in Summersville, Missouri.  The property ended the fourth quarter of 2007 with 83% occupancy, and a 2007 average of 83%. This was the third consecutive year of increasing occupancy.  The low occupancy is largely due to a lack of rental assistance on four units.  Although past attempts found that no additional rental assistance was available, management is continuing to look for ways to obtain it from Rural Development.  Without assistance unit rents tend to exceed rental costs of many single family homes in the area.  Management continues to be in regular contact with the local housing authority to bring applicants with Section 8 vouchers to the property and is also trying to get rental incentives approved; however, there has been no recent success.  The property manager, who also performs maintenance, has concentrated on getting vacant units rent-ready in a timely manner and improving the curb appeal of the property.  The investment general partner will continue to work with management on getting the vacant units leased and monitor operations closely until they have stabilized.  The mortgage, taxes and insurance are all current.

Croix Commons Limited Partnership (St. Croix Commons Apartments) is a 40-unit, family property located in Woodville, Wisconsin.  The property operated at a deficit in 2006 due to an average occupancy of 80% for 2006. The average physical occupancy through the fourth quarter 2007 was 83%. Operating expenses continue to stay below the state average. However, due to an inability to raise rental rates and the high vacancy rate, the property continued to operate below breakeven in 2007. The management agent continues to market the available units by working closely with the local housing authority and continues various marketing efforts to attract qualified residents.  The operating general partner continues to financially support the Operating Partnership. The operating general partner operating deficit guarantee is unlimited in time and amount.  The mortgage, taxes, insurance and payables are current.

Lofts By The Market Apartments (1413 Leavenworth Historic, L.P.) is a 60-unit historic development located on the fringe of the historic warehouse district in downtown Omaha, Nebraska.  The property operated with positive cash flow through 1999. In 2000, the property began operating below breakeven as the result of ineffective management. Operations were further negatively impacted when deferred maintenance items, which were corrected in 2002, resulted in the property operating with a substantial negative cash flow. The original developer/general partner is still in place and continues to fund the operating deficits.  Over the past seven years, there have been four different management companies retained to manage the property.  This inconsistency contributed to the cash flow and compliance problems at the property.  In 2003, management of the property was transferred to Fieldcrest Management, which is an entity related to the operating general partner. The management company has implemented expense controls and has worked to decrease payables. In addition, the property refinanced the debt at the beginning of September 2005 and paid down some payables from the proceeds of the refinance. Occupancy declined slightly in July 2007 to 90% and stabilized there into the first part of the fourth quarter. Management was having trouble bringing occupancy back up, due to an oversupply of apartments and condos in downtown Omaha, which are newer and offer more amenities; however, occupancy was back up to 95% by the end of the fourth quarter, resulting in an average occupancy of 94% for the year.  Despite the temporary decrease in occupancy during the year, the property generated cash through the fourth quarter of 2007. The investment general partner will continue to monitor occupancy and cash flow.

Sable Chase of McDonough L.P (Sable Chase) is a 225-unit property located in McDonough, GA. After extensive storm damage in 2005-2006, the investment general partner approved substantial roof repairs funded from replacement reserves and insurance proceeds.  In August 2006, a new site manager raised rents during renovations. The rent increase and disruption from construction work, coupled with increased drug activity, caused residents to move out. After a drug enforcement sweep and subsequent evictions, the original rents were reinstated and a new leasing staff was hired. In a site visit to the property in April 2007 the investment general partner noted that curb appeal has improved and applicant traffic has increased. Although occupancy increased to 74% in August 2007, it fell back to 70% at the end of the third quarter due to evictions for non-payment. Although the average annual occupancy for 2007 is only 65%, it has steadily increased from 55% in the first quarter of 2007 to 72% in the fourth quarter.  According to management, newly developed affordable rental housing and single family homes have created increased supply without a corresponding increased need.  However, several businesses are rumored to be moving from Atlanta to McDonough which should increase the need for housing in the area.  Management forecasts a continued slow but steady increase in occupancy throughout 2008. The operating reserve fund is completely drawn down, and the operating general partner has begun funding deficits under the terms of the operating deficit guarantee which is unlimited.  The tax low income housing tax credit compliance period expires in 2008. All insurance, real estate taxes and mortgage payments are current.

Meadows of Southgate LDHA (Meadows of Southgate), is an 83 unit property located in Southgate, MI.  In 2005, the property suffered the effect of several new communities opening in the area, all offering lower rents with heavy concessions. Average occupancy for 2006 was only 83%. During 2007 occupancy improved to average 94% for the year and finished the year with 96% occupancy in December. The newly hired site manager is actively marketing the community in the surrounding areas and more prospective residents are visiting the property. As a result of increased occupancy, the property is now operating above breakeven. The property is positioned in a convenient location and the management anticipates that the physical occupancy will stabilize at 95%.  The operating general partner continues to fund any operating deficits. The mortgage, taxes, and insurance are current.

In December 2006, the investment general partner transferred its investment limited partner interest and its general partner interest in Riviera Apartments, Limited to an entity related to the remaining operating general partner for its assumption of the outstanding mortgage balance and cash proceeds of $25,000 to the general partner and $25,000 to the investment limited partner. As part of the purchase agreement, the remaining operating general partner is required to maintain the property as affordable housing through the end of the tax credit compliance period, and to provide a recapture bond to avoid the recapture of the tax credits that have been taken.  Of the proceeds received, $5,000 represented reporting fees due to an affiliate of the investment limited partnership and the balance represented proceeds from the sale. Of the proceeds received, $7,500 was paid to BCAMLP for expenses related to the sale, which includes third party legal costs.  The remaining proceeds of $12,500 were returned to cash reserves held by Series 16.  The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid fund management fees, and accrued but unpaid expenses of the investment limited partnership.  After all outstanding obligations of the investment limited partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $12,500 as of December 31, 2006. The sale of the Operating Partnership has been recognized as of December 31, 2006, but the sale proceeds were received in the first quarter of 2007.

In January 2008, the investment general partner entered into an agreement to transfer 50% of its interest in Concord Associates, A Limited Partnership to an entity affiliated with the operating general partner for its assumption of half the outstanding mortgage balance of approximately $533,356 and anticipated cash proceeds to the investment partnership of $0.50.  The transaction is anticipated to close in January 2008.  Of the total proceeds anticipated to be received, $0.50 is anticipated to be returned to cash reserves held by Series 16.  The remaining 50% investment limited partner interest in the Operating Partnership is anticipated to be transferred in January 2009 for the assumption of half the remaining outstanding mortgage balance of approximately $533,356 and cash proceeds to the investment limited partner of $0.50. Of the total proceeds anticipated to be received, $0.50 is anticipated to be returned to cash reserves held by Series 16.  The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership.  After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution.

In January 2008, the investment general partner of Series 16 entered into an agreement to transfer 50% of its interest in Greenwood Apartments, L.P. to an entity affiliated with the operating general partner for its assumption of half the outstanding mortgage balance of approximately $703,718 and anticipated cash proceeds to the investment partnership of $0.50.  The transaction is anticipated to close in January 2008.  Of the total proceeds anticipated to be received, $0.50 is anticipated to be returned to cash reserves held by Series 16. The remaining 50% investment limited partner interest in the Operating Partnership is anticipated to be transferred in January 2009 for the assumption of half the remaining outstanding mortgage balance of approximately $703,718 and cash proceeds to the investment limited partner of $0.50. Of the total proceeds anticipated to be received, $0.50 is anticipated to be returned to cash reserves held by Series 16.  The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership.  After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution.

Series 17

As of December 31, 2007 and 2006, the average Qualified Occupancy for the series was 100%.  The series had a total of 47 properties at December 31, 2007, all of which were at 100% Qualified Occupancy.

For the nine month period ended December 31, 2007 and 2006, Series 17 reflects net loss from Operating Partnerships of $(1,377,311) and $(1,024,349), respectively, which includes depreciation and amortization of $3,032,882 and $2,617,356, respectively. This is an interim period estimate; it is not indicative of the final year end results.

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 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 and the Fund's Series 17, after repayment of advances made to the Operating Partnership, were $453,144 and $31,790, respectively.  Of the proceeds received, $352,768 and $24,748, for Series 3 and Series 17, respectively, was distributed to the investors in July 2004. This represented a per BAC distribution of $.122 and $.005 for Series 3 and 17, respectively. The total returned to the investors was distributed based on the number of BACs held by each investor at the time of the sale. The amounts for each series, while different in actual dollars, represent the same percentage of return to each investment limited partnership.  The remaining proceeds total of $107,418 was paid to BCAMLP for fees and expenses related to the sale, and partial reimbursement of amounts payable to affiliates. The breakdown of the amount paid to BCAMLP is as follows:  $10,000 represents reimbursement of expenses incurred related to sale, which includes due diligence, legal and mailing costs; $50,000 represents the reimbursement of overhead and expenses incurred for overseeing and managing the disposition of the property; and $47,418 represents a partial payment of accrued fund management fees.  Annual losses generated by the Operating Partnership, which were applied against the investment limited partnerships' investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero for Series 3 and $28,682 for Series 17.  Accordingly, gains on the sale of the property were recorded as of March 31, 2004 by Series 3 and Series 17 of $406,422 and $3,108, respectively. The gains recorded represented the proceeds received by the investment limited partnership, net of their remaining investment balance and their share of the overhead and expense reimbursement. In the prior year ended, March 31, 2006, $46,722 and $3,278 for Series 3 and Series 17, respectively, of the sales proceeds were refunded to BCAMLP to pay accrued fund management fees.



Midland Housing LP (Stratford Place Apartments) is a 53-unit, family/elderly property, located in Midland, MI.  In 2005 occupancy averaged 84% and increased to an average of 90% in 2006. Although significant occupancy increases occurred during the second half of 2007, the final average occupancy for the year decreased to 82%. The operating general partner expects operations to stabilize and improve back above breakeven in 2008.  The new site manager is aggressively addressing the high accounts receivable and accounts payable balances. The mortgage, real estate taxes and insurance payments are current.

Green Acres Limited Partnership (Green Acres Estates) is a 48 unit (20 Low-Income Housing Tax Credit units) located in West Bath, Maine. The property operated with a small deficit in 2006.  Bad debt expense decreased significantly in 2006 due to management's efforts to more thoroughly screen qualified applicants.  Occupancy levels have been diminishing for the past couple of years, resulting in decreased rental income and increased accounts payable. Average occupancy in 2007 was 86%. The closing of the Brunswick Naval Airbase and lack of funds to make vacant units rent ready has contributed greatly to the decrease in occupancy.  The investment general partner is currently working with the operating general partner to pay down the accounts payable and have the vacant units updated and ready to rent in the first quarter of 2008.  Once the vacant units become rent ready, management feels they will then be able to stabilize occupancy above 90%.  All taxes, insurance, and mortgage payments are current. The operating general partner's obligation to fund operating deficits is unlimited in time and amount.



Park Place II, Ltd (Park Place Apartments) is a 34-unit property located in Leigh Acres, FL.  The occupancy at Park Place has historically averaged in the high 90%.  Park Place II had an average occupancy of 73% in 2007.  The property suffered severe damage due to Hurricane Wilma in October of 2005.  Some of the units had water intrusion and were uninhabitable.  While waiting for the insurance company to settle, the damages were getting progressively worse so the operating general partner took immediate action and applied for and was granted a protective advance loan through Rural Development to help pay for the hurricane related repairs.  Unfortunately, to be approved for the loan, the operating general partner had to increase the rental rates to support the additional debt.  The Operating Partnership also incurred an emergency rental increase earlier this year to support the insurance premium increase due to the vast number of hurricanes that impacted Florida in 2004-2005.  The property lost a number of long time tenants due to the rental rate increases.  Currently, all repairs have been completed and no rental increase is planned for 2008.  Also, the protective advance loan was re-amortized with the original loan through Rural Development, which decreased the debt expense of the property.  Management also stated another cause of the low occupancy is that local single family homes in the area are being rented for similar prices.  Management does feel that with increased marketing and by offering incentives the property will reach occupancy levels of the past.  All taxes, insurance and mortgage payments are current and the final year of compliance is 2008.

Palmetto Properties Ltd. (Palmetto Villas) is a 49-unit property located in Palmetto, Florida. The property has historically suffered from low occupancy, high operating expenses and deferred maintenance issues. As a result of poor operations, the replacement reserve account was under-funded. Re-amortization of the debt and successive rent increases in 2006 and 2007 have helped the property operate back above breakeven in 2006 and 2007.  The operating general partner has executed documents to withdraw from the Operating Partnership and admit an affiliate of the management company as the new operating general partner.  Rural Development approved the operating general partner transfer in October 2006. In conjunction with the re-amortization of the debt, Rural Development restated that the operating general partner must bring the replacement reserve account current.  This occurred during the first quarter of 2007.  Operations have improved significantly, and the operating general partner transfer has been approved.  The low income housing tax credit compliance period expires in 2008.  The investment general partner is in the process of exploring various disposition opportunities consistent with the investment objectives of the investment partnership.

Aspen Ridge Apartments (Aspen Ridge Apartments, L.P.) is a 42-unit development located in Omaha, Nebraska.  The property operated with positive cash flow through 1999.  In 2000 the property began operating below breakeven as the result of ineffective management. Operations were further negatively impacted when deferred maintenance was addressed in 2002. The original general partner is still in place and continues to fund the operating deficits.  Over the past seven years, there have been four different management companies retained to manage the property.  This inconsistency contributed to the cash flow and compliance problems at the property.  On June 1, 2003, management of the property was transferred to Fieldcrest Management, which is an entity related to the operating general partner. The management company has implemented expense controls and has worked to decrease payables. The property also refinanced the debt at the beginning of September 2005 and was able to pay some expenses from the proceeds of the refinance. Occupancy has remained above 90% since 2005 and averaged 97% in the fourth quarter 2007. While the property operated just below breakeven in the third quarter 2007, the fourth quarter 2007 unaudited financials show that the property operated above breakeven for the year.  The third quarter deficit was due to unanticipated expenses, such as $10,000 for a new boiler, which the partnership should be able to capitalize, and legal fees associated with a resident lawsuit. The resident is trying to sue the Operating Partnership for discrimination; however, management states she was one of several residents who had subsidized rent from the Omaha Housing Authority, referred to as OHA, and when management terminated the OHA subsidy contract, she, along with the other residents with OHA subsidy, was offered the opportunity to remain as a resident at the non-subsidized rental rate or vacate at the end of her lease. The Nebraska Equal Opportunity Commission has reviewed the case and has found no merit in her claim. The Operating Partnership is currently in discussions with the resident's attorney regarding settling for a minimal amount (less than $2,500 to cover the resident's moving expenses and legal fees) in an effort to finalize the case and limit the legal fees incurred as a result of the case. The investment general partner will continue to monitor occupancy and cash flow closely through monthly reports as well as monitor the resident lawsuit.

In October 2004, while attempting to capitalize on the strong California real estate market, the operating general partner of California Investors VII (Summit Ridge Apartments/Longhorn Pavilion) entered into an agreement to sell the property and the transaction closed in the first quarter of 2005.  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 to provide a recapture bond to avoid the recapture of the tax credits that have been taken.  The proceeds to the investment limited partner received in the first quarter 2005 are $919,920, $312,959, $1,459,511, and $1,346,025, for Boston Capital Tax Credit II-Series 12 and Series 14 and the Fund's Series 15 and Series 17, respectively. Of the total received, $211,638 is for payment of outstanding reporting fees due to an affiliate of the investment partnership, $183,283 is a reimbursement of funds previously advanced to the Operating Partnership by affiliates of the investment partnership and $3,643,494 is the estimated proceeds from the sale of the investment limited partners' interests.  Of the proceeds, $612,758, $206,285, $940,482, and $865,445, for Series 12, Series 14, Series 15, and Series 17, respectively, are estimated to be distributed to the investors, or used to pay non-resident tax withholdings requirements of the State of California.  This represents a per BAC distribution of $.206, $.037, $.243, and $.173, for Series 12, Series 14, Series 15, and Series 17, respectively.  Of the remaining proceeds, $643,691 were paid to BCAMLP for fees and expenses related to the sale and partial reimbursement for amounts owed to affiliates.  The breakdown of amounts paid to BCAMLP is as follows: $51,250 represents the reimbursement of overhead and expenses incurred for overseeing and managing the disposition of the property; $88,274 represents a reimbursement of estimated expenses incurred in connection with the disposition; and $504,167 represents a partial payment of outstanding fund management fees due to BCAMLP.  The remaining proceeds of $374,833 will be returned to cash reserves. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid fund management fees, and accrued but unpaid expenses of the investment partnerships. Losses on the sale of the property were recorded by Series 12, Series 14, Series 15 and Series 17 of $(2,113,352), $(690,791), $(3,046,179) and $(2,791,520), respectively, in the quarter ended March 31, 2005.  As of December 2005 additional sales proceeds of $99,080 were received and allocated to Series 12, Series 14, Series 15 and Series 17 as follows: $23,128 to Series 12, $7,786 to Series 14, $35,500 to Series 15 and $32,666 to Series 17.  These proceeds will be retained by the investment limited partner to improve their reserve balances as well.  The gain/(loss) recorded represented the proceeds received by the investment limited partner, net of their remaining investment balance, unreimbursed advances to the Operating Partnership and their share of the overhead and expense reimbursement. In the prior year ended March 31, 2006, $11,964, $4,028, $18,362 and $16,897 for Series 12, Series 14, Series 15 and Series 17, respectively, of the sales proceeds were refunded to BCAMLP to pay accrued fund management fees.

Shawnee Housing Associates Limited Partnership (Villa West South V) is a 52-unit development located in Topeka, KS. Despite improving occupancy in 2006 to 93%, the property operated below breakeven because of increased administrative and maintenance expenses.  Management evicted non-paying residents and incurred higher than normal maintenance costs due to turnover work. Occupancy has improved greatly in 2007 and has averaged 97% for the year. The property has also improved financially in 2007, mainly by decreasing the maintenance expense. The on-site manager reports occupancy levels have stabilized and with lower turnover the property should be able to operate within the projected budget.  Management has also revised their screening requirements in order to reduce the number of evictions.  The operating general partner continues to fund deficits despite an expired guarantee. The mortgage, taxes and insurance payments are all current. On December 31, 2007, the 15-year low income housing tax credit compliance period expired with respect to Shawnee Housing Associates, L.P.  The investment general partner is in the process of exploring various disposition opportunities consistent with the investment objectives of the investment partnership.

In December 2006, the investment general partner of Boston Capital Tax Credit Fund II - Series 14, the Fund's Series 17 and Boston Capital Tax Credit Fund IV - Series 20 transferred 33% of their interest in College Greene Rental Associates Limited Partnership to entities affiliated with the operating general partners for their assumption of one third of the outstanding mortgage balance.  The cash proceeds received by Series 14, Series 17, and Series 20 were $25,740, $7,920, and $65,340, respectively. Of the proceeds received, $1,950, $799, and $4,951 for Series 14, Series 17, and Series 20, respectively, was paid to BCAMLP for expenses related to the sale, which includes third party legal costs.  The remaining proceeds received by Series 14, Series 17, and Series 20 of $23,790, $7,320 and $60,390, respectively, were applied against the investment general partner's investment in the operating partnership in accordance with the equity method of accounting.  The remaining 67% investment limited partner interest is anticipated to be transferred as follows: 50% in January 2010 for $150,000 and 17% in February 2011 for $51,000.  The future proceeds will be allocated to the investment limited partnerships based on their original equity investments in the Operating Partnership.

Annadale Housing Partners (King's View Apartments) is a 222-apartment property in Fresno, CA.  The property operated above breakeven in 2006 as a result of being funded primarily with soft debt.  Operating expenses were slightly higher than state averages but not of serious concern.  The main issue at Annadale is low occupancy.  Occupancy has been an issue at Annadale for several years but saw a steady decline in 2006 to a low of 81% in December 2006.  Occupancy continued to suffer in 2007, averaging 82% in the fourth quarter. King's View Apartments is located in one of the most violent gang and high crime areas in the city of Fresno, and crime has increased substantially in the past two years.  Management spends $11,500 per month on average for private security.  The operating general partner estimates that in reality the site requires $30,000-$60,000 per month in private security to effectively secure the property.  Management has been working closely with the police department, which has diverted resources from other areas of the city to the King's View neighborhood in the past few months.  This has made a positive impact on the area but the operating general parter is doubtful that the impact will be long lasting.  As a result of the substantial, visible crime in the area, management has had extreme difficulty in finding and maintaining quality tenants and numerous tenants have moved out of the area.  Management continues to work with police, the City of Fresno, and the Housing Development Departments for additional support. The investment limited partner will continue to monitor occupancy and management efforts.

Cypress Point LP (Luarel Ridge Apartments) is a 78-unit property, located in Naples, FL. Due to local economic conditions, occupancy has steadily decreased from its average of near 100% to 78% as of December 2007.  As new construction has halted in the Naples area, many construction employees and laborers have left the area for construction jobs in other areas of the country.  As construction employees made up a significant and regular portion of its tenant base, the property has been negatively affected and has had difficulty offsetting this loss with another target market.  In addition, at the most recent site inspection, it was noted that two of the units were down as they were being cannibalized to control turnover costs.  The site manager and regional manager are aggressively marketing the site and have reduced rents in order to increase traffic.  The investment general partner will work with management in creating effective leasing strategies and will ensure that all units are brought back on-line in a timely manner.  The mortgage, real estate taxes and insurance payments are current.

Series 18

As of December 31, 2007 and 2006 the average Qualified Occupancy for the series was 100%.  The series had a total of 34 properties at December 31, 2007, all of which were at 100% Qualified Occupancy.

For the nine month period ended December 31, 2007 and 2006, Series 18 reflects net loss from Operating Partnerships of $(1,409,814) and $(2,188,132), respectively, which includes depreciation and amortization of $2,120,371 and $1,971,381, respectively. This is an interim period estimate; it is not indicative of the final year end results.

Leesville Elderly Apartments LP (Leesville Elderly Apartments) is a 54-unit property located in Leesville, Louisiana. Despite occupancy averaging 96% in 2006, the property operated below breakeven due to high administrative and maintenance expenses.  In 2007 the operating general partner received approval from Rural Development to implement a rent increase.  Through August 2007 average occupancy is down slightly to 93%; however, even with the slight decline in occupancy, the property is operating above breakeven.  All real estate tax, mortgage, and insurance payments are current.

Natchitoches Elderly Apartments LP (Natchitoches Seniors Apartments) is a 32-unit property located in Natchitoches, Louisiana.  The property operated below breakeven in 2006 due to the costs associated with hurricane damage from 2005.  The property was insured but damages were not great enough to cover the deductible expense.  Occupancy reached 100% in February; however, it fell to 63% in December, the lowest since construction completion in December 1994.  The decline in occupancy is directly attributed to the rental rate increases, which were effective as leases expired after July 2007.  The rate increases resulted in move-outs and evictions during the third and fourth quarters of 2007.  The resident base is comprised of elderly residents that cannot afford even the slightest increase.  Occupancy averaged 84% in 2007, a 12% decline from 2006; however, the operating general partner is adamant that the old rents are insufficient to cover normal operating expenses. Management continues to work to fill vacancies with three prospects in the qualifying process for January 2008 move-in. The operating general partner is funding all deficits as needed.  All real estate tax, mortgage, and insurance payments are current.

Westminster Meadow L.D.H.A. LP (Westminster Meadow Apartments) is a 64-unit (63 LIHTC, 1 Market) property located in Grand Rapids, MI. In 2006, average physical occupancy was 75%. The operating general partner's management company, First Centrum Management, took over the property management in February of 2006. Throughout 2006, the property has experienced high on-site management turnover. However, in the first quarter 2007 a new site manager was hired. Her primary focus was networking with local and civic community groups and consistently working to promote the increased residential referral fees. As a result through 2007 occupancy began to increase. Through the fourth quarter 2007, average occupancy increased to 95% and as of December physical occupancy was stable at 95%.  However, the property is still not able to breakeven. Maintenance expense continues to be high through the fourth quarter due to various unit preparation expenses. Maintenance expenses are expected to stabilize in the first quarter 2008, and the management is optimistic that the property will be able to breakeven in the first quarter 2008. The mortgage, taxes, insurance and payables are current. The operating general partner continues to fund all operating deficits.

Glen Place Apartments (Glen Place Apartments)is a 35-unit family development located in Duluth, MN. The property operated with an average occupancy of 94% through 2006. Average occupancy through December 2007 has been consistent with the prior year average at 94%. The operating expenses continue to stay below the state average.  Despite the strong occupancy level, the low rental rates in the area prevented the property from achieving breakeven operations through the fourth quarter of 2007. 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 operating general partner's operating deficit guarantee is unlimited in time and amount. The mortgage, taxes, insurance and payables are current.

Arch Development, LP, (Arch Apartments) is a 75-unit property located in Boston, Massachusetts, providing low-income housing to homeless, HIV positive and very low income tenants.  Average occupancy through the fourth quarter 2007 was 79%; however the property continues to operate above breakeven. Although payables and accrued expenses are lower than in previous years, the balances are still high, as are tenant and subsidy receivables.  The first quarter 2008 tax payment was due on August 1, 2007 and second quarter 2008 tax payment was due on November 11, 2007.  According to the City of Boston real estate tax payments have been made on all of the six parcels; however, only one parcel is current and has made first and second quarter payments. Third quarter tax payments are due on February 1, 2008.  According to the water and sewer department, water and sewer payments are current on four of the five accounts. Management continues to work with the Boston Housing Authority to improve applicant processing and move-in timeframes; however, the process is still averaging more than 60 days.  Additionally, the Boston Housing Authority's certification and recertification process is very slow and results in large tenant and subsidy receivables from retroactive rent changes.  Currently, the two vacant commercial spaces have not been leased.  The investment general partner is closely monitoring the overall performance of this partnership and will continue to do so until operations have improved and stabilized. The operating general partner has an unlimited guarantee in time and amount.

Bear Creek of Naples (Bear Creek Apartments) is a 120-unit family development located in Naples, Florida.  The management company is a related entity to the operating general partner.  On September 12, 2005, Florida Housing's monitoring agency completed an annual management review that noted the full compliance of the resident files.  However, they also noted minor physical violations, which had been ongoing and resulted in the issuance of ten 8823s rendering the entire development out of compliance.  Additionally, 24 days following the annual review and prior to the completion of the repair of the minor violations, Hurricane Wilma hit the development and resulted in extensive damage. A letter dated February 28, 2006 from Florida Housing Finance Corporation stated that the property had been "granted relief" until January 17, 2007. As long as the related work was completed and inspected by that date, the 8823s would be rescinded. Hurricane-related repairs commenced in the summer of 2006 and were completed at year-end 2006, before the date required by Florida Housing, effectively rescinding the previously issued 8823s. Despite the major renovations to all ten buildings, occupancy averaged 93% throughout 2006 and the property operated above breakeven.  Occupancy averaged 92% for the first two quarters of 2007, but has dropped significantly in the third and fourth quarters 2007.  The drop in occupancy is due to new, local competition.  The operating general partner has hired a professional leasing agent to help increase occupancy.

Chelsea Square Development Limited Partnership (Chelsea Square Apartments) is a 6-unit property located in Chelsea, Massachusetts.  The property struggled with occupancy for the first half of 2006, averaging only 83%.  Occupancy improved in the last quarter of 2006 to 100% and has maintained 100% occupancy through fourth quarter 2007.  Average occupancy for 2007 was 100%. The commercial spaces are also fully occupied and the property operated above breakeven in 2007. The City of Chelsea has confirmed that all payments are current for real estate taxes, water, and sewer.  The next real estate tax payment is due on February 1, 2008 and the next water and sewer payment is due on January 18, 2008. The operating general partner's operating deficit guarantee is unlimited as to time and amount.  The mortgage and insurance payments are current.

Parvin's L.P. (Parvin's Branch Townhouses) is a 24-unit family property located in Vineland, New Jersey. Tax credit delivery began in 1993 and continued through 2003. This property experienced a significant drop in occupancy in 2006, averaging 89% compared to 98% in 2005. This occupancy decline was due to management's difficulty in finding qualified residents.  In 2007, the operating general partner received preliminary approval to convert three units set aside for the homeless into Section 8 housing.  This has helped to improve occupancy levels, which averaged 96% during the third and fourth quarter of 2007.  Occupancy averaged 90% in 2007, which was consistent with 2006 results. The operating general partner continues to fund operating deficits as needed.  The real estate taxes, mortgage, and insurance payments are all current.



Preston Wood Associates, LP is a 62-unit property located in Bentonville, Arkansas. Average occupancy was 71% for 2006 and as a result the property operated below breakeven. Throughout 2006 problem residents were evicted and a $270,000 rehab was completed.  The improvements were funded entirely by the operating general partner.  The operating general partner believes that Bentonville is a growing community and making the improvements to the property will increase occupancy and improve operations; however, occupancy continues to drop.  Despite the renovations, occupancy has been slow to recover through 2007 as evidenced by the ongoing declining occupancy.  As of November 2007, the average occupancy for the year was just below 80%.  A new management group assumed duties in March 2007.  Prior to assumption, occupancy had dropped to 80%.  In addition, management received notification from the bank that they were over the bank's 50% income requirement, which was not strictly enforced by the prior management.  Maintaining this requirement, while attempting to negotiate a modification to the 50% income limit, severely hampered leasing efforts, as occupancy dropped to 69% as of August 2007.  At the end of September 2007, management received approval from the bank to increase the income limit to 60%.  As the market is extremely competitive, management is having difficulty recovering from the initial rental loss; however, it appears the decline in occupancy has stabilized.  Overall, occupancy will likely not improve until March of 2008, once the leasing season picks up.  The investment general partner will continue to monitor occupancy and operations to ensure that performance picks up with the less strict income requirements. In addition, a site visit is scheduled for early 2008 to ensure units are being turned correctly and the tenant files are in compliance.  The operating general partner continues to fund all operating deficits. The mortgage, accounts payable, property taxes, and insurance are all current.

Humboldt I, LP (Briarwood Apartments) is a 20-unit property located in Humboldt, IA.  The property operated below breakeven in 2005 due to low occupancy and high maintenance expenses related to resident turnover.  Although occupancy improved from 82% in 2005 to average 89% for 2006, the property operated below breakeven in 2006 as well.  Higher than budgeted operating expenses resulting from high turnover expenses hurt operations as rental income was insufficient to cover increased costs.  In order to fund the operating deficits, reserves were not funded to the required levels.  Historical and ongoing challenges cited by management include competition for one-bedroom units from a neighboring senior development, past problem tenants that required eviction, difficulty attracting quality tenants, and the poor state of the local economy.  Forty percent of the apartments at the property are one bedroom units and, historically, these have been the most difficult to fill.  Management targets seniors for one-bedroom units through outreach with various housing programs.  Management relies heavily on word of mouth and the local housing authority for rental traffic but also runs an advertisement for the property in a free weekly advertiser that is distributed throughout town.  In addition, management obtained approval to offer a rental incentive of a gas card or grocery card for new tenants in the first quarter.  These efforts, as well as an increased focus on quick application turnaround, have greatly increased traffic and occupancy at the property in 2007.  At the end of 2007, occupancy averaged 88% for the year, and 85% for the fourth quarter, with three move-ins scheduled for January 2008.  In addition, the property operated above breakeven for the year.  With occupancy stabilizing and the property generating cash flow, the operating general partner was able to make the September tax payment from operations and has been able to partially fund reserves and escrows.  The operating general partner plans to fund reserves to their required levels in the near future.  The investment limited partner negotiated the transfer of the operating general partner interest to National Affordable Housing Foundation, a local presence with a good working relationship with Rural Development, on March 30, 2007.  As a condition of the transfer, the Foundation will obtain a conventional loan to fund replacement of two roofs at the property that have had problems with loose shingles.  As of the end of the fourth quarter of 2007, a capital needs assessment had been completed and the operating general partner was finalizing terms for the conventional financing which is anticipated to close by early February 2008.  A rental increase to support the additional debt has also been approved and should be finalized by the end of January 2008.  The investment general partner will work closely with the new operating general partner to monitor the replacement of the roofs, ensure operational improvement, and stabilization.

Marengo Park Apartments LP (Marengo Park Apartments) is a 24-unit property located in Marengo Park, IA.  The property operated above breakeven in 2005. A decline in occupancy that began in the fourth quarter of 2005 and continued into 2006 to a low of 58% resulted in an operating deficit at year end 2006.  As a result of low occupancy, the property was unable to make the September 2006 tax payment.  The large decrease in occupancy was the result of a lack of oversight by management.  Management had been very slow to evict problem tenants at the property.  As a result, the police were called to the site frequently and over time Marengo Park developed a poor reputation in the community.  In addition, an August 2006 inspection by Rural Development showed numerous deficiencies in the nine units that were vacant at the time.  Several of these units were not rent-ready.  Eight of these units had been vacant for at least four months with one sitting vacant for over a year.  One of the biggest contributing factors to the lack of management oversight was an inconsistent on-site management presence.  A new site manager and a maintenance technician were hired in mid-September 2006.  The new site manager prioritized making all units rent-ready.  As of the end of the fourth quarter 2006, all vacant units were ready for move-in.  Occupancy for the quarter increased to 79%, a high for 2006.  In the first quarter of 2007, the investment limited partner negotiated the transfer of the operating general partner interest to National Affordable Housing Foundation, a local presence with a good working relationship with Rural Development.  The transfer occurred on March 30, 2007.  Upon transfer, the Foundation paid the outstanding September 2006 tax bill as well as the March 2007 tax bill.  Occupancy through the first quarter of 2007 averaged 79%, ending March at 83%. Despite progress by the site manager, she was fired in April for her negligence at her other rental properties.  The property suffered a number of move-outs in April and May that could not be filled by the regional manager and occupancy dropped to 71% as of June 2007.  A new site manager was hired in the second week of June and she has had an immediate impact on the property.  The site manager is splitting her time between Marengo Park and the 84-unit senior property across the street.  The site manager frequently walks the site and is always available to meet with prospective residents.  National Management negotiated an agreement with the owners of the senior property, Marengo Housing, transforming a portion of common space at that property into an office to be used for both properties.  This was completed in October 2007.  With the help of an on-site location and normal office hours, management has been able to offer assistance on applications, provide quick application turnaround, offer property tours, and also track undesirable tenants and make prompt evictions when necessary. Management's focus on quick application turnaround and follow-up has resulted in an increase in occupancy to 88% as of the end of the fourth quarter 2007.  All vacant apartments are rent ready.  With increased occupancy, the property was able to fund the September tax payment through operations.  Management has now put in place a stricter tenant screening process.  They also plan to broaden their advertising to generate more traffic going forward.  Current efforts include advertising in a local newspaper, distributing flyers, contacting local employers, and offering a gas card or grocery card to new tenants.  The investment general partner will work closely with the new operating general partner to monitor the property until occupancy improves and operations stabilize back above breakeven.

Rio Grande Apartments, LTD (Rio Grande Apartments) is a 100-unit property located in Eagle Pass, TX.  The property has experienced a drop in occupancy since September 2006.  A hailstorm hit the property causing significant roof damage, resulting in leaks in approximately twenty of the units, making them uninhabitable.  The repair work progressed much slower than was originally anticipated and was completed in early May 2007.  Since units were offline during repairs, occupancy averaged 80% during the first quarter of 2007 and the property operated below breakeven.  Occupancy increased to 95% in the third quarter and 100% in the fourth quarter 2007. The investment general partner will continue to monitor operations to ensure stabilization.  All taxes, insurance and mortgage payments are current.

Series 19

As of December 31, 2007 and 2006 the average Qualified Occupancy for the series was 100%.  The series had a total of 26 properties at December 31, 2007, all of which were at 100% Qualified Occupancy.

For the nine month period ended December 31, 2007 and 2006, Series 19 reflects net loss from Operating Partnerships of $(1,148,145) and $(1,110,042), respectively, which includes depreciation and amortization of $2,271,941 and $2,139,139, respectively.This is an interim period estimate; it is not indicative of the final year end results.

Ankeny Housing Associates Two L.P, (Delaware Crossing Apartments) is a 152-unit property located in Ankeny, Iowa.  This property performed poorly in 2006 and operated below breakeven in 2006 and continues to operate below breakeven in 2007.  The property is underperforming due to high operating expenses including real estates taxes and a drop in income due to lower occupancy.  The administrative and travel costs increased over the past year due to high employee turnover.  Additional staff from other properties was needed to assist with office operations and training.  Now that a new staff is in place these expenses should begin to decrease.  Occupancy improved in each quarter of 2007 and finished the year with an average occupancy of 93%.  Management has implemented several programs in 2007 to help maintain and increase occupancy. The programs include a resident referral program and increased marketing to the employees and businesses in the area.  The investment general partner will continue to work with the operating general partner to monitor the occupancy and expense levels.  The operating general partner is funding all deficits.  All tax, mortgage, and insurance payments are current.

Hebbronville Apartments, Ltd. (Hebbronville Senior) is a 20-unit property located in Hebbronville, Texas.  In 2006, the property operated with a cash flow deficit due to insufficient rental rates, which could not support normal operating expenses.  The 2006 deficit occurred even though the complex was granted a rental rate increase in the first quarter and succeeded in keeping the overall operating expenses in line with state averages.  In 2007, the operating general partner continued to work with Rural Development in an effort to gain another rent increase to bring operations back to breakeven, but no increase was granted.  During 2007, occupancy remained strong averaging 97%.  Despite the strong occupancy, the rental rates were insufficient to generate enough revenue to support normal operating expenses, which again led to an operating deficit.  Rural Development approved a rent increase of approximately $30 per unit effective January 1, 2008.  This increase is expected to significantly improve operations to back above breakeven status in 2008.  The operating general partner continues to fund all deficits as needed.  The investment general partner will continue to monitor the partnerships operations.  All real estate tax, mortgage, and insurance payments are current.

Martindale Apartments, Ltd. (Martindale Apartments) is a 24-unit property located in Martindale, Texas.  Rental rate increases were implemented in 2006 and 2007, yet the operating general partner feels that the rates are still inadequate to cover the deferred maintenance necessary at the site.  The operating general partner requested another increase for 2008.  Rural Development has approved a rate increase of approximately $15 per unit which will be effective January 1, 2008.  Although the increased rents will generate more revenue, it is less than the requested increase of $60 per unit.  Occupancy ranged from 83% to 96% throughout 2007.  The fluctuating occupancy was a result of evictions, as well as tenants moving out because they would not pay the increased rents without improvements made to the site and individual units.  Unit and curb appeal improvements were ongoing throughout 2007.  Each vacant unit was evaluated and updated as necessary. The upgrades increased occupancy to 96% in December and averaged 91% for the year.  The manager is adamant that the improvements are necessary to obtain and maintain a better resident base.  However, the project operated below breakeven in 2007.   The operating general partner is hopeful that the approved rent increase will improve operations back above breakeven in 2008.  The operating general partner is funding all deficits as needed.  The investment general partner will continue to monitor the property's improvements, occupancy and operations.  All tax, mortgage, and insurance payments are current.

Carrollton Villa, L.P.  (Meadow Ridge Apartments) located in Carrollton, Missouri, has historically operated below breakeven as a result of low occupancy and very low rent levels.  Occupancy at the property averaged 70% in 2005, 88% in 2006, and 97% in 2007.  The primary problem is that Carrolton, Missouri, has experienced significant economic decline over the past several years.  All of the major employers have relocated and rent decreases were required to attract potential residents.  In an effort to improve occupancy, the property offered one-month free rent for new residents as well as one-month free rent for resident referrals.  Management expanded their outreach and advertising to attract potential residents from bordering communities.  As a result, occupancy improved significantly.  Despite strong occupancy, the property continues to operate below breakeven through the fourth quarter due to the low rent levels.  The property received a grant of $40,000 from the state to enable the property to reduce the rents for the residents but not lose any income.  Upon transfer of the operating general partner interests in 2004, the mortgage became a cash flow only mortgage, which has helped to significantly reduce its operating deficits.  The taxes, mortgage and insurance are all current.

Forest Associates Limited (Sharon Apartments) is a 24-unit apartment complex for families located in Forest, OH. The operating general partner changed managing agents effective January 1, 2006, without the approval of the investment general partner.  The new managing agent struggled at first, and the property averaged 83% occupancy in 2006.  The property improved in 2007 with an average occupancy of 89%.  The management company is working to make all vacant units market ready and is networking with local businesses to attract income qualified applicants.  Further improvements are still needed as the property is operating at a deficit. The operating general partner passed away in the second quarter of 2007 and his widow is now the operating general partner.  Their grandson is assuming the day-to-day operations of the partnership but communication has been intermittent and calls have gone unanswered.  The investment general partner will continue to follow up with the operating general partner until all communication issues are resolved.  The low income housing tax credit compliance period expires in 2009.

Jeremy Associates, LP (Coopers Crossing Apartments) is a 93-unit family development located in Las Colinas, Texas.  Average occupancy through the first three-quarters of 2007 is 92%, down slightly from the 2006 average occupancy of 96%.  However, as of December 2007, occupancy was at 95%.  The reason for the decline in performance is due to having to relocate tenants out of an entire building for structural repairs.  In 2003 an engineer's report identified foundation and stress cracks in a number of buildings on site.  The total cost of the project was estimated at $320,000, however; there were additional repairs required due to plumbing breaks as the foundations were being repaired, resulting in a total project cost of $360,000. The construction repairs were funded by a capital contribution from the operating general partner, and the project was completed in November of 2007 and all units have been brought back on line.  In efforts to market the units, management reduced the move-in deposit and has been networking with local employers in the area.  The investment general partner inspected the project after completion of the repairs and found that all foundation repairs have been addressed and the overall property is in very good physical condition.  Now that the physical concerns have been addressed, and occupancy has begun to return to prior levels, the Operating Partnership should improve significantly in 2008.  The investment general partner will continue to monitor the property's performance to ensure ongoing improvement. The mortgage, trade payables, property taxes and insurance are current.

Munford Village, Ltd. (Munford Village) is a 24-unit family project in Munford, AL.  Despite a weak economy, physical occupancy rebounded to 100% through the fourth quarter of 2007; however, the property continued to operate below breakeven.  Leasing concessions have been eliminated completely at the moment.  Management has implemented more stringent credit and criminal background checks on prospective tenants in an effort to minimize delinquency.  Low rent levels and turnover costs are the primary reasons for the 2007 cash deficit. The property's mortgage is current and the replacement reserve is adequately funded.  The tax and insurance escrow accounts remain under-funded and will consequently rely on reserves, which are ample.  The operating deficit is being funded with a cash overdraft, which is currently $34,000.  The bank allows an overdraft in an unlimited amount and for an unlimited period without interest charges.  The operating deficit guarantee is unlimited in time and amount. The property's low income housing tax credit compliance period expires in 2009.

Sherwood Knoll L.P. (Sherwood Knoll Apartments) is a 24-unit project located in Rainsville, Alabama.  The 2006 occupancy average was 97% and the property operated with a cash deficit.  Occupancy averaged 99% through the fourth quarter of 2007, but even with the high occupancy the property operated below breakeven.  The current rent levels do not allow enough revenue to cover operating expenses.  The operating deficit is being funded with a cash overdraft that is currently $7,894.  The replacement reserve is adequately funded.  The investment general partner will continue to work with the operating general partner to find ways to improve operations and position the property to operate back above breakeven status.  The operating deficit guarantee is unlimited in time and amount. The low income housing tax credit compliance period for the property ends in 2009.

Tanglewood Park (Willowood Park, LP) is a 130-unit family development located in Lawrenceville, Georgia, approximately twenty-six miles from downtown Atlanta.  Occupancy suffered from over-development of the Georgia market, hitting a low of 78% in July 2005. Marketing efforts included outreach at job fairs and to local employers, as well as focusing on low-risk evacuees from Hurricane Katrina.  As a result, 2006 occupancy rose to an average of 90%, but the property was still operating below breakeven. The average occupancy in the first quarter of 2007 was 87%, but fell to 85% in March due to two shooting incidents that occurred in January 2007. The first incident involved guests of residents while the second involved residents of the property.  The three households involved were evicted and the property now has an active security officer. A site visit conducted in April 2007 gave high ratings to management and site control. Occupancy rose in the second and third quarters of 2007 to averages of 89% and 95%, respectively.  Improvement continued through the fourth quarter with an average occupancy of 97%; however, high rent levels and the addition of the security officer caused the property to operate below breakeven.  The operating general partner advanced $52,500 to the property during the fourth quarter, making the total deficit funding to date $238,600.  The mortgage, taxes and insurance payments are current.  The low income housing tax credit compliance period expires in 2008.



The financial statements are prepared in accordance with accounting principles generally accepted in the United States of America, which requires the Fund to make certain estimates and assumptions.  A summary of significant accounting policies is provided in Note 1 to the financial statements.  The following section is a summary of various aspects of those accounting policies that may require subjective or complex judgments and are most important to the portrayal of the Fund's financial condition and results of operations.  The Fund 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 Fund is required to assess potential impairments to its long-lived assets, which is primarily investments in limited partnerships.  The Fund accounts for its investment in limited partnerships in accordance with the equity method of accounting since the Fund does not control the operations of the Operating Partnerships.

If the book value of the Fund's investment in an Operating Partnership exceeds the estimated value derived by management, which generally consists of the remaining future low-income housing credits allocable to the Fund and the estimated residual value to the Fund, the Fund reduces its investment in the Operating Partnership and includes the reduction in equity in loss of investment of limited partnerships.

As of March 31, 2004, the Fund adopted FASB Interpretation No. 46 - Revised ("FIN46R"), "Consolidation of Variable Interest Entities." FIN 46R provides guidance on when a company should include the assets, liabilities, and activities of a variable interest entity ("VIE") in its financial statements and when it should disclose information about its relationship with a VIE. A VIE is a legal structure used to conduct activities or hold assets, which must be consolidated by a company if it is the primary beneficiary because it absorbs the majority of the entity's expected losses, the majority of the expected returns, or both.



Based on the guidance of FIN 46R, the Operating Partnerships in which the Fund invests meet the definition of a VIE.  However, management does not consolidate the Fund's interests in these VIEs under FIN 46R, as it is not considered to be the primary beneficiary.  The Fund currently records the amount of its investment in these partnerships as an asset on its balance sheet, recognizes its share of partnership income or losses in the statement of operations, and discloses how it accounts for material types of these investments in its financial statements.



The Fund's balance in investment in Operating Partnerships, plus the risk of recapture of tax credits previously recognized on these investments, represents its maximum exposure to loss.  The Fund's exposure to loss on these partnerships is mitigated by the condition and financial performance of the underlying properties as well as the strength of the local general partners and their guarantee against credit recapture.



In September 2006, the Financial Accounting Standards Board ("FASB") issued Statement of Financial Accounting Standards (SFAS) No. 157, "Fair Value Measurements," (SFAS 157), which defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles and expands disclosure about fair value measurements. SFAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007 and shall be applied prospectively except for very limited transactions, which for the Fund is April 1, 2008.  In December 2007, the FASB delayed the implementation of SFAS 157 as it pertains to non-financial assets and liabilities until November 15, 2008, which for the Fund is April 1, 2009. The Fund is currently evaluating the potential impact of the adoption of SFAS 157 on its financial statements.







|Item 3 | Quantitative and Qualitative Disclosures About Market Risk
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|       | Not Applicable                                            

|Item 4 | Controls & Procedures
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|       | (b)                  
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PART II - OTHER INFORMATION



|Item 1.  | Legal Proceedings                                                                                                                                                   
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|         | None                                                                                                                                                                
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|Item 1A. | Risk Factors                                                                                                                                                        
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|         | There have been no material changes from the risk factors set forth under Part I, Item 1A. "Risk Factors" in our Form 10-K for the fiscal year ended March 31, 2007.
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|Item 2.  | Unregistered Sales of Equity Securities and Use of Proceeds                                                                                                         
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|Item 3.  | Defaults upon Senior Securities                                                                                                                                     
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|         | None                                                                                                                                                                
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|Item 4.  | Submission of Matters to a Vote of Security 
Holders                                                                                                                
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|Item 5.  | Other Information                                                                                                                                                   
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|Item 6.  | Exhibits                                                                                                                                                            
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|         | (a)Exhibits                                                                                                                                                         
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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: February 14, 2008 | By:                                    
|                        |                                        
|                        |                                        

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Fund and in the capacities and on the dates indicated:

|DATE:             | SIGNATURE:          | TITLE:                                                                                                                                          
|----------------- | ------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------
|                  |                     |                                                                                                                                                 
|February 14, 2008 | /s/ John P. Manning | Director, President
(Principal Executive
Officer) C&M Management
Inc.; Director,
President (Principal
Executive Officer)
BCTC III Assignor Corp.
|                  |                    
|                  | John P. Manning    
|                  |                    
|                  |                    
|                  |                    
|                  |                    



|DATE:             | SIGNATURE:       | TITLE:                                                                                                                                                                                
|----------------- | ---------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                  |                  |                                                                                                                                                                                       
|February 14, 2008 | /s/ Marc N. Teal | Chief Financial Officer
(Principal Financial
and Accounting Officer) C&M Management Inc.; Chief Financial Officer
(Principal Financial and Accounting Officer)
BCTC III Assignor Corp.
|Marc N. Teal