UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                  FORM 10-KSB/A
(Mark One)

[ X ]     ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
          EXCHANGE ACT OF 1934

For the fiscal year ended March  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 01-18462

    Boston Financial Qualified Housing Tax Credits L.P.     III
---------------------------------------------------------------------------

            (Exact name of registrant as specified in its charter)

                   Delaware                                    04-3032106
----------------------------------------        ------------------------------
      (State or other jurisdiction of      (I.R.S. Employer Identification No.)
       incorporation or organization)

   101 Arch Street, Boston, Massachusetts                     02110-1106
--------------------------------------------         ------------------------
    (Address of principal executive offices)                 (Zip Code)

Registrant's telephone number, including area code      (617) 439-3911
                                                  ----------------------------

Securities registered pursuant to
Section 12(b) of the Act:
                                           Name of each exchange on

       Title of each class           Name of each exchange on which registered
            None                                         None

Securities registered pursuant to Section 12(g) of the Act:

                    UNITS OF LIMITED PARTNERSHIP INTEREST
                           (Title of Class)


Check whether the issuer is not required to file reports pursuant to Section 13
or 15(d) of the Exchange Act.  ____

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 X No .

<PAGE>



Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K (Subsection 229.405 of this chapter) is not contained herein,
and will not be contained, to the best of registrant's knowledge, in definitive
proxy or information statements incorporated by reference in Part III of this
Form 10-KSB/A or any amendment to this Form 10-KSB/A. X .

Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act).
                            Yes No X .

State issuer's revenues for its most recent fiscal year:  $392,510.

State the aggregate sales price of partnership units held by nonaffiliates of
the registrant: $99,610,000 as of March 31, 2007.



  Documents incorporated by reference     Part of Report on Form 10-KSB into
                                          Which the Document is Incorporated

Post-effective Amendment No. 1 to the Form S-11
  Registration Statement, File # 33-24175                    Part I, Item 1

Supplement No. 4 to the Prospectus dated May 9, 1989         Part I, Item 1

Report on Form 8-K dated November 21, 1989                   Part I, Item 1

Acquisition Reports                                          Part I, Item 1

Prospectus - Sections Entitled:

  "Investment Objectives and Policies -
   Principal Investment Policies"                            Part I, Item 1

  "Estimated Use of Proceeds"                                Part III, Item 12

  "Management Compensation and Fees"                         Part III, Item 12

  "Profits and Losses for Tax Purposes, Tax
   Credits and Cash Distributions"                           Part III, Item 12



<PAGE>



                                EXPLANATORY NOTE

This Amendment No. 1 to Form 10-KSB amends the Partnership's report on Form
10-KSB filed with the U.S. Securities and Exchange Commission for the period
ended March 31, 2007. The purpose of this Amendment No. 1 to Form 10-KSB is only
to amend the disclosure contained in Item 8A. With the exception of this
revision, no other changes have been made to our Form 10-KSB for the period
ended March 31, 2007.



<PAGE>



Item 8A.  Controls and Procedures

We conducted an evaluation of the effectiveness of the design and operation of
our disclosure controls and procedures, as defined in Rules 13a-15(e) and
15d-15(e) under the Securities Exchange Act of 1934, as amended, or the Exchange
Act, as of March 31, 2007, to ensure that information required to be disclosed
by us in the reports filed or submitted by us under the Exchange Act is
recorded, processed, summarized and reported, within the time periods specified
in the Securities Exchange Commission's rules and forms, including to ensure
that information required to be disclosed by us in the reports filed or
submitted by us under the Exchange Act is accumulated and communicated to
management to allow timely decisions regarding required disclosure. Based on
that evaluation, management has concluded that as of March 31, 2007, our
disclosure controls and procedures were not effective at the reasonable
assurance level due to the material weakness described below.


A material weakness is a control deficiency, or a combination of control
deficiencies, that results in more than a remote likelihood that a material
misstatement of annual or interim financial statements will not be prevented or
detected. Management identified the following weaknesses in the Partnership's
disclosure controls that existed as of March 31, 2007:

       o Controls over Monitoring of Contractual Agreements: The Partnership did
         not maintain effective monitoring controls over the contractual
         agreements that were entered into on its behalf by the General Partner.
         Specifically, during the period from December 2006 to early February
         2007, the Partnership's cash was invested in below market interest
         bearing accounts as part of a banking arrangement which resulted in
         financial benefits to affiliates of the General Partners. Management
         determined that this arrangement was inconsistent with the terms of the
         Partnership Agreement of the Partnership.

       o Controls over Recording Equity in Income/Losses: The Partnership did
         not maintain effective controls over the calculation of the
         Partnership's equity in income/losses from investees. Specifically,
         certain non-recurring items were recorded in the wrong period due to an
         ineffective review of the investees' unaudited quarterly financial data
         and audited annual financial statements utilized to calculate equity in
         income/losses from investees. The control deficiency resulted in
         adjustments to the Partnership's interim and annual financial
         statements for the year ended March 31, 2007.

The Partnership considered these matters in connection with the closing and
preparation of the financial statements for the year ended March 31, 2007, and
determined that the financial statements for this period were not materially
affected by these control weaknesses.


During the first and second quarters of fiscal year 2008, the Partnership
completed implementation of the following control improvements to remediate the
material weaknesses existing as of March 31, 2007:


Controls over Monitoring of Contractual Agreements

  As part of the remediation plan, management initiated changes in processes and
  controls including:

           o the refund of lost interest;

           o restricting  authority to the  corporate  treasury  department over
             the  opening,  closing,  investment  and movement of cash accounts;

           o the  engagement  of the corporate  legal  department to perform due
             diligence on new  agreements  to assure  compliance  with existing
             agreements; and

           o the  development  and  implementation  of a fiduciary  and
             conflicts  policy that  provides  guidance to personnel on conflict
             management.







<PAGE>
Controls over Recording Equity in Income/Losses

         Management now performs a more detailed review and analysis of
         quarterly financial data and audited financial statements received from
         its investees to assure proper accounting in the appropriate period.
         Specifically, investee audited financial statements are reviewed for
         unusual events (such as a fire) to assure proper accounting in the
         appropriate period. Quarterly, commencing in the quarter ended
         September 30, 2007, management will expand the scope of line items
         tested for reasonableness in comparison to prior year audited financial
         statements.


There were no other changes in the Partnership's internal control over financial
reporting identified in connection with the evaluation required by paragraph (d)
of the Securities and Exchange Act Rules 13a-15 or 15d-15 that occurred during
the quarter ended March 31, 2007 that affected, or were reasonably likely to
affect, the Partnership's internal control over financial reporting.







<PAGE>



PART III

Item 13.      Exhibits.


           31.1 Certification of Principal Executive Officer and Principal
                Financial Officer pursuant to Section 302 of the Sarbanes-Oxley
                Act of 2002.  *
           31.2 Certification of Principal Executive Officer and Principal
                Financial Officer pursuant to Section 302 of the Sarbanes-Oxley
                Act of 2002.
           32.1 Certification of Principal Executive Officer and Principal
                Financial Officer pursuant to Section 906 of the Sarbanes-Oxley
                Act of 2002.  *
           32.2 Certification of Principal Executive Officer and Principal
                Financial Officer pursuant to Section 906 of the Sarbanes-Oxley
                Act of 2002.


* Previously filed with Form 10-KSB for the period ended March 31, 2007.



<PAGE>


                                   SIGNATURES


Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the registrant has duly caused this Report to be signed on its
behalf by the undersigned, thereunto duly authorized.

      BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. III

     By:   Arch Street III, Inc.
           its Managing General Partner


     By:   /s/Gary Mentesana                        Date:    February 29, 2008
           ------------------------------------              -----------------
           Gary Mentesana
           President
           Arch Street III, Inc.



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

     By:   /s/ Gary Mentesana                        Date:    February 29, 2008
           ------------------------------                     -----------------
           Gary Mentesana
           President
           Arch Street III, Inc.


     By:   /s/Michael H. Gladstone                   Date:   February 29, 2008
           -----------------------------                     -----------------
           Michael H. Gladstone
           Vice President
           Arch Street III, Inc.









<PAGE>


                                  EXHIBIT 31.2

I, Gary Mentesana, certify that:

1.   I have reviewed this annual report on Form 10-KSB of Boston Financial
     Qualified Housing Tax Credits L.P. III;

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

3.   I am responsible for establishing and maintaining disclosure controls and
     procedures (as defined in Exchange Act rules 13a-15(e) and 15d-15(e)) for
     the small business issuer and have:

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

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

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

4.   I have disclosed, based on our most recent evaluation of internal control
     over financial reporting, to the small business issuer's auditors and the
     audit committee of the small business issuer's board of directors (or
     persons performing the equivalents functions):

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

        (b)any fraud, whether or not material, that involves management or other
         employees who have a significant role in the small business issuer's
         internal control over financial reporting.


Date:   February 29, 2008                       /s/Gary Mentesana
                                       -----------------------------------
                                                Gary Mentesana
                                                Principal Executive Officer and
                                                Principal Financial Officer
                                                Arch Street III, Inc., as
                                                Managing General Partner of
                                                Boston Financial Qualified
                                                Housing Tax Credits L.P. III


<PAGE>



                                  EXHIBIT 32.2

                CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,
                    AS ADOPTED PURSUANT TO SECTION 906 OF THE
                           SARBANES-OXLEY ACT OF 2002


In connection with the Annual Report of Boston Financial Qualified Housing Tax
Credits L.P. III (the "Partnership") on Form 10-KSB for the year ended March 31,
2007 as filed with the Securities and Exchange Commission on the date hereof
(the "Report"), the undersigned, the Principal Executive Officer and Principal
Financial Officer, hereby certifies pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1.   the Report fully complies with the requirements of Section 13(a) or 15(d)
     of the Securities Exchange Act of 1934; and

2.   the information contained in the Report fairly presents, in all material
     respects, the financial condition and results of operations of the
     Partnership.



                                             /s/Gary Mentesana
                                     ------------------------------------
                                                Gary Mentesana
                                                Principal Executive Officer and
                                                Principal Financial Officer
                                                Arch Street III, Inc., as
                                                Managing General Partner of
                                                Boston Financial Qualified
                                                Housing Tax Credits L.P. III

                                               Date:  February 29, 2008

A signed original of this written statement required by section 906 has been
provided to the Partnership and will be retained by the Partnership and
furnished to the Securities and Exchange Commission or its staff upon request.