United States
                       Securities and Exchange Commission
                             Washington, D.C. 20549

                                   Form 10-QSB

(Mark One)
[X]   QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
      ACT OF 1934

                For the quarterly period ended March 31, 2005


[ ]   TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT


             For the transition period from _________to _________

                         Commission file number 0-14187


                 CONSOLIDATED CAPITAL INSTITUTIONAL PROPERTIES/3
        (Exact name of small business issuer as specified in its charter)



              California                                      94-2940208
    (State or other jurisdiction of                        (I.R.S. Employer
     incorporation or organization)                       Identification No.)

                          55 Beattie Place, PO Box 1089
                        Greenville, South Carolina 29602
                    (Address of principal executive offices)

                                 (864) 239-1000
                         (Registrant's telephone number)


Check  whether the issuer (i) filed all reports  required to be filed by Section
13 or 15(d) of the  Exchange  Act during the past 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 ___

                         PART I - FINANCIAL INFORMATION


Item 1.     Financial Statements



               CONSOLIDATED CAPITAL INSTITUTIONAL PROPERTIES/3

                                  BALANCE SHEET
                                   (Unaudited)
                        (in thousands, except unit data)

                                 March 31, 2005
<TABLE>
<CAPTION>


Assets
<S>                                                                        <C>
   Cash and cash equivalents                                               $ 317
   Receivables and deposits                                                   454
   Restricted escrows                                                         172
   Other assets                                                             1,316
   Investment properties:
      Land                                               $ 8,641
      Buildings and related personal property              53,767
                                                           62,408
      Less accumulated depreciation                       (32,432)         29,976
                                                                         $ 32,235
Liabilities and Partners' Deficit
Liabilities
   Accounts payable                                                        $ 337
   Tenant security deposit liabilities                                        258
   Due to affiliates (Note B)                                               2,593
   Accrued property taxes                                                     316
   Other liabilities                                                          584
   Mortgage notes payable                                                  44,328

Partners' Deficit
   General partner                                       $ (1,003)
   Limited partners (383,033 units outstanding)           (15,178)        (16,181)
                                                                         $ 32,235


                See Accompanying Notes to Financial Statements
</TABLE>



<PAGE>






               CONSOLIDATED CAPITAL INSTITUTIONAL PROPERTIES/3

                            STATEMENTS OF OPERATIONS
                                   (Unaudited)
                      (in thousands, except per unit data)

<TABLE>
<CAPTION>

                                                               Three Months Ended
                                                                    March 31,
                                                              2005            2004
Revenues:
<S>                                                          <C>             <C>
  Rental income                                              $ 2,652         $ 2,553
  Other income                                                   337             340
      Total revenues                                           2,989           2,893

Expenses:
  Operating                                                    1,472           1,307
  General and administrative                                     145             166
  Depreciation                                                   783             764
  Interest                                                       888             870
  Property taxes                                                 217             209
      Total expenses                                           3,505           3,316

Net loss                                                     $ (516)         $ (423)

Net loss allocated to general partner (1%)                        (5)             (4)
Net loss allocated to limited partners (99%)                    (511)           (419)
                                                             $ (516)         $ (423)

Net loss per limited partnership unit                        $ (1.33)        $ (1.09)

                See Accompanying Notes to Financial Statements
</TABLE>



<PAGE>



               CONSOLIDATED CAPITAL INSTITUTIONAL PROPERTIES/3

                  STATEMENTS OF CHANGES IN PARTNERS' DEFICIT
                                   (Unaudited)
                        (in thousands, except unit data)

<TABLE>
<CAPTION>


                                     Limited
                                    Partnership     General     Limited
                                       Units        Partner     Partners      Total

<S>                                   <C>             <C>       <C>         <C>
Original capital contributions        383,033         $ 1       $ 95,758    $ 95,759

Partners' deficit at
   December 31, 2004                  383,033       $ (998)     $(14,667)   $(15,665)

Net loss for the three months
   ended March 31, 2005                    --            (5)        (511)       (516)

Partners' deficit at
   March 31, 2005                     383,033       $(1,003)    $(15,178)   $(16,181)

                See Accompanying Notes to Financial Statements
</TABLE>



<PAGE>



               CONSOLIDATED CAPITAL INSTITUTIONAL PROPERTIES/3

                            STATEMENTS OF CASH FLOWS
                                   (Unaudited)
                                 (in thousands)
<TABLE>
<CAPTION>

                                                                  Three Months Ended
                                                                       March 31,
                                                                      2005     2004
Cash flows from operating activities:
<S>                                                               <C>         <C>
  Net loss                                                        $ (516)     $ (423)
  Adjustments to reconcile net loss to net cash provided by
   operating activities:
      Depreciation                                                    783         764
      Amortization of loan costs                                       28          29
      Change in accounts:
        Receivables and deposits                                      (31)         --
        Other assets                                                 (100)       (226)
        Accounts payable                                               42         100
        Tenant security deposit liabilities                            (4)        (12)
        Accrued property taxes                                        104          93
        Due to affiliates                                              97         135
        Other liabilities                                            (136)        (73)
         Net cash provided by operating activities                    267         387

Cash flows from investing activities:
  Property improvements and replacements                             (343)       (239)
  Net receipt from (deposit to) restricted escrows                     49         (89)
         Net cash used in investing activities                       (294)       (328)

Cash flows from financing activities:
  Payments on mortgage notes payable                                 (261)       (242)
  Advances from affiliates                                            196          --
  Payment on advances from affiliates                                 (81)         --
         Net cash used in financing activities                       (146)       (242)

Net decrease in cash and cash equivalents                            (173)       (183)
Cash and cash equivalents at beginning of period                      490         599

Cash and cash equivalents at end of period                         $ 317       $ 416

Supplemental disclosure of cash flow information:
  Cash paid for interest                                           $ 904       $ 836
Supplemental disclosure of non-cash activity:
  Property improvements and replacements in accounts payable       $ 155       $ 26

Included in property  improvements  and  replacements for the three months ended
March 31, 2005 are approximately  $54,000 of improvements which were included in
accounts payable at December 31, 2004.

                See Accompanying Notes to Financial Statements
</TABLE>



<PAGE>




               CONSOLIDATED CAPITAL INSTITUTIONAL PROPERTIES/3

                          NOTES TO FINANCIAL STATEMENTS
                                   (Unaudited)

Note A - Basis of Presentation

The  accompanying   unaudited  financial   statements  of  Consolidated  Capital
Institutional   Properties/3  (the  "Partnership"  or  "Registrant")  have  been
prepared in accordance with generally accepted accounting principles for interim
financial  information and with the  instructions to Form 10-QSB and Item 310(b)
of Regulation S-B.  Accordingly,  they do not include all of the information and
footnotes  required by generally  accepted  accounting  principles  for complete
financial  statements.  In the opinion of ConCap  Equities,  Inc.  (the "General
Partner"),  which is wholly owned by Apartment Investment and Management Company
("AIMCO"),  a publicly  traded real estate  investment  trust,  all  adjustments
(consisting  of  normal  recurring  accruals)  considered  necessary  for a fair
presentation  have been included.  Operating  results for the three month period
ended March 31, 2005, are not necessarily  indicative of the results that may be
expected for the fiscal year ending December 31, 2005. For further  information,
refer  to  the  financial  statements  and  footnotes  thereto  included  in the
Partnership's  Annual  Report on Form 10-KSB for the fiscal year ended  December
31, 2004.

Note B - Transactions with Affiliated Parties

The  Partnership  has no  employees  and depends on the General  Partner and its
affiliates for the management and administration of all Partnership  activities.
The Partnership  Agreement  provides for (i) certain  payments to affiliates for
services and (ii)  reimbursement of certain  expenses  incurred by affiliates on
behalf of the Partnership.

Affiliates of the General  Partner  receive 5% of gross receipts from all of the
Partnership's  properties  as  compensation  for providing  property  management
services.  The Partnership  paid to such affiliates  approximately  $149,000 and
$144,000 for the three months ended March 31, 2005 and 2004, respectively, which
is included in operating expense.

Affiliates of the General Partner charged the Partnership for  reimbursement  of
accountable  administrative  expenses  amounting to  approximately  $164,000 and
$141,000 for the three months ended March 31, 2005 and 2004, respectively, which
is included in general and  administrative  expenses and investment  properties.
The portion of these  reimbursements  included in investment  properties for the
three  months  ended  March 31, 2005 and 2004 are fees  related to  construction
management  services  provided  by  an  affiliate  of  the  General  Partner  of
approximately  $30,000 and $7,000,  respectively.  The  construction  management
service  fees are  calculated  based on a  percentage  of current  additions  to
investment  properties.  At March  31,  2005,  approximately  $843,000  of these
reimbursement  expenses  are payable to the General  Partner and are included in
due to affiliates.

During the three months ended March 31, 2005, the General  Partner  advanced the
Partnership  approximately  $196,000 to cover expenses related to operations and
capital  improvements at Tamarac Village Apartments.  No such advances were made
during the three months ended March 31, 2004.  Interest is charged at prime plus
2%  (approximately  7.75% at March 31, 2005).  Interest  expense on  outstanding
advance balances was approximately $32,000 and $4,000 for the three months ended
March 31, 2005 and 2004,  respectively.  The  Partnership  repaid  approximately
$81,000  of  the  outstanding   advance   balances  plus  accrued   interest  of
approximately  $69,000  during the three months  ended March 31,  2005.  No such
repayments  were made  during  the three  months  ended  March 31,  2004.  Total
advances and accrued interest of approximately $1,750,000 remain unpaid at March
31, 2005 and are included in due to affiliates.

The  Partnership  insures its properties up to certain  limits through  coverage
provided by AIMCO which is  generally  self-insured  for a portion of losses and
liabilities  related to workers  compensation,  property  casualty  and  vehicle
liability. The Partnership insures its properties above the AIMCO limits through
insurance policies obtained by AIMCO from insurers unaffiliated with the General
Partner.  During the three  months  ended March 31, 2005,  the  Partnership  was
charged by AIMCO and its affiliates  approximately $102,000 for hazard insurance
coverage  and fees  associated  with policy  claims  administration.  Additional
charges  will be incurred  by the  Partnership  during  2005 as other  insurance
policies renew later in the year. The  Partnership  was charged by AIMCO and its
affiliates  approximately  $154,000 for insurance  coverage and fees  associated
with policy claims administration during the year ended December 31, 2004.

Note C - Subsequent Event

Subsequent to March 31, 2005, the General  Partner  advanced to the  Partnership
approximately   $328,000  to  cover  operating   expenses  at  Tamarac  Village,
Lamplighter  Park and Cedar Rim  Apartments.  Interest  will be charged at prime
plus 2% (approximately 7.75% at March 31, 2005).

Note D - Contingencies

In March 1998, several putative unit holders of limited partnership units of the
Partnership  commenced an action  entitled  Rosalie  Nuanes,  et al. v. Insignia
Financial Group, Inc., et al. (the "Nuanes action") in the Superior Court of the
State of  California  for the  County  of San  Mateo.  The  plaintiffs  named as
defendants,  among others,  the Partnership,  its General Partner and several of
their affiliated  partnerships and corporate  entities.  The action purported to
assert  claims on behalf of a class of  limited  partners  and  derivatively  on
behalf of a number of limited partnerships  (including the Partnership) that are
named as nominal defendants, challenging, among other things, the acquisition of
interests in certain General Partner entities by Insignia  Financial Group, Inc.
("Insignia") and entities that were, at one time,  affiliates of Insignia;  past
tender offers by the Insignia  affiliates to acquire limited  partnership units;
management of the  partnerships  by the Insignia  affiliates;  and the series of
transactions  which  closed on October 1, 1998 and  February  26,  1999  whereby
Insignia and Insignia  Properties Trust,  respectively,  were merged into AIMCO.
The plaintiffs sought monetary damages and equitable relief,  including judicial
dissolution of the Partnership. In addition, during the third quarter of 2001, a
complaint captioned Heller v. Insignia Financial Group (the "Heller action") was
filed against the same  defendants  that are named in the Nuanes  action.  On or
about August 6, 2001,  plaintiffs  filed a first amended  complaint.  The Heller
action was brought as a purported  derivative  action,  and asserted claims for,
among other things,  breach of fiduciary duty, unfair  competition,  conversion,
unjust  enrichment,  and judicial  dissolution.  On January 28, 2002,  the trial
court granted defendants motion to strike the complaint.

On January 8, 2003,  the parties filed a  Stipulation  of Settlement in proposed
settlement of the Nuanes action and the Heller action.

On June 13, 2003, the court granted final approval of the settlement and entered
judgment in both the Nuanes and Heller actions.  On August 12, 2003, an objector
("Objector") filed an appeal (the "Appeal") seeking to vacate and/or reverse the
order approving the settlement and entering  judgment  thereto.  On May 4, 2004,
the Objector filed a second appeal  challenging the court's use of a referee and
its order requiring Objector to pay those fees.

On March 21, 2005, the Court of Appeals issued opinions in both pending appeals.
With regard to the settlement and judgment entered thereto, the Court of Appeals
vacated  the trial  court's  order and  remanded  to the trial court for further
findings  on the basis that the "state of the record is  insufficient  to permit
meaningful  appellate  review".  With regard to the second appeal,  the Court of
Appeals  reversed the order requiring the Objector to pay referee fees. On April
26, 2005, the Court of Appeals  lifted the stay of a pending appeal  relating to
the Heller action and the trial court's order striking the  complaint.  On April
28, 2005, the Objector  filed a Petition for Review with the California  Supreme
Court in connection with the opinion vacating the order approving settlement and
remanding  for further  findings.  The General  Partner and its  affiliates  are
currently scheduled to file an answer to Objector's petition on May 18, 2005.

The  General  Partner  does not  anticipate  that any costs to the  Partnership,
whether legal or settlement costs,  associated with these cases will be material
to the Partnership's overall operations.

AIMCO Properties L.P. and NHP Management Company, both affiliates of the General
Partner,  are defendants in a lawsuit alleging that they willfully  violated the
Fair Labor Standards Act ("FLSA") by failing to pay maintenance workers overtime
for all hours  worked in excess of forty per week.  The  complaint  attempts  to
bring a collective  action under the FLSA and seeks to certify state  subclasses
in  California,  Maryland,  and the  District  of  Columbia.  Specifically,  the
plaintiffs  contend that AIMCO Properties L.P. and NHP Management Company failed
to  compensate  maintenance  workers  for time  that they  were  required  to be
"on-call."  Additionally,  the complaint  alleges AIMCO  Properties L.P. and NHP
Management  Company failed to comply with the FLSA in  compensating  maintenance
workers for time that they worked in responding to a call while  "on-call."  The
defendants have filed an answer to the amended complaint denying the substantive
allegations.  Oral  argument  relating to the  certification  of the  collective
action took place on May 12, 2005 and the parties await a ruling from the Court.
Although the outcome of any litigation is uncertain, AIMCO Properties, L.P. does
not believe that the ultimate outcome will have a material adverse effect on its
financial  condition or results of operations.  Similarly,  the General  Partner
does not believe that the ultimate  outcome will have a material  adverse effect
on the Partnership's financial condition or results of operations.

The  Partnership  is unaware  of any other  pending  or  outstanding  litigation
matters  involving  it or its  investment  properties  that are not of a routine
nature arising in the ordinary course of business.

Environmental

Various  Federal,  state and local laws subject  property owners or operators to
liability for management,  and the costs of removal or  remediation,  of certain
hazardous  substances  present on a property.  Such laws often impose  liability
without regard to whether the owner or operator knew of, or was responsible for,
the release or presence of the  hazardous  substances.  The  presence of, or the
failure to manage or remedy properly,  hazardous substances may adversely affect
occupancy at affected  apartment  communities and the ability to sell or finance
affected properties.  In addition to the costs associated with investigation and
remediation  actions brought by government  agencies,  the presence of hazardous
substances  on a  property  could  result in claims by  private  plaintiffs  for
personal injury,  disease,  disability or other  infirmities.  Various laws also
impose  liability for the cost of removal,  remediation or disposal of hazardous
substances  through a  licensed  disposal  or  treatment  facility.  Anyone  who
arranges for the disposal or treatment of hazardous  substances  is  potentially
liable  under such laws.  These laws often impose  liability  whether or not the
person arranging for the disposal ever owned or operated the disposal  facility.
In  connection  with  the  ownership  and  operation  of  its  properties,   the
Partnership could  potentially be liable for environmental  liabilities or costs
associated with its properties.

Mold

The Partnership is aware of lawsuits  against owners and managers of multifamily
properties asserting claims of personal injury and property damage caused by the
presence of mold, some of which have resulted in substantial  monetary judgments
or settlements. The Partnership has only limited insurance coverage for property
damage loss claims  arising from the  presence of mold and for  personal  injury
claims  related  to  mold  exposure.  Affiliates  of the  General  Partner  have
implemented a national  policy and  procedures to prevent or eliminate mold from
its  properties  and the  General  Partner  believes  that these  measures  will
eliminate,  or at least minimize, the effects that mold could have on residents.
To date,  the  Partnership  has not incurred any material  costs or  liabilities
relating to claims of mold exposure or to abate mold conditions. Because the law
regarding  mold is unsettled and subject to change the General  Partner can make
no assurance that liabilities resulting from the presence of or exposure to mold
will not have a material adverse effect on the Partnership's financial condition
or results of operations.

SEC Investigation

The  Central  Regional  Office of the  United  States  Securities  and  Exchange
Commission (the "SEC") is conducting a formal investigation  relating to certain
matters.  Although  the staff of the SEC is not limited in the areas that it may
investigate,   AIMCO  believes  the  areas  of  investigation   include  AIMCO's
miscalculated   monthly  net  rental  income  figures  in  third  quarter  2003,
forecasted  guidance,  accounts  payable,  rent  concessions,   vendor  rebates,
capitalization  of payroll and certain other costs and tax credit  transactions.
At the end of the first quarter of 2005, the SEC added certain tender offers for
limited partnership interests as an area of investigation.  AIMCO is cooperating
fully.  AIMCO is not able to predict  when the  investigation  will be resolved.
AIMCO does not believe  that the ultimate  outcome will have a material  adverse
effect  on its  consolidated  financial  condition  or  results  of  operations.
Similarly,  the General Partner does not believe that the ultimate  outcome will
have a material  adverse  effect on the  Partnership's  financial  condition  or
results of operations.

<PAGE>

Item 2.     Management's Discussion and Analysis or Plan of Operation

The matters discussed in this report contain certain forward-looking statements,
including, without limitation, statements regarding future financial performance
and the effect of government  regulations.  Actual results may differ materially
from those described in the forward-looking statements and will be affected by a
variety of risks and factors including,  without limitation:  national and local
economic  conditions;  the terms of  governmental  regulations  that  affect the
Registrant and interpretations of those regulations; the competitive environment
in which the Registrant operates;  financing risks, including the risk that cash
flows from operations may be insufficient to meet required payments of principal
and interest;  real estate risks, including variations of real estate values and
the general  economic  climate in local markets and  competition  for tenants in
such markets;  litigation,  including  costs  associated  with  prosecuting  and
defending  claims  and  any  adverse   outcomes,   and  possible   environmental
liabilities.   Readers  should  carefully  review  the  Registrant's   financial
statements and the notes thereto,  as well as the risk factors  described in the
documents  the  Registrant  files  from  time to time  with the  Securities  and
Exchange Commission.

The Partnership's  investment  properties consist of seven apartment  complexes.
The following table sets forth the average  occupancy of the properties for each
of the three month periods ended March 31, 2005 and 2004:

                                                   Average Occupancy
      Property                                      2005       2004

      Cedar Rim Apartments (1)                      98%        85%
        New Castle, Washington
      Hidden Cove by the Lake Apartments (2)        79%        91%
        Belleville, Michigan
      Lamplighter Park Apartments                   91%        92%
        Bellevue, Washington
      Park Capital Apartments                       97%        96%
        Salt Lake City, Utah
      Sandpiper I and II Apartments                 93%        95%
        St. Petersburg, Florida
      Tamarac Village Apartments (1)                81%        76%
        Denver, Colorado
      Williamsburg Manor Apartments (3)             90%        97%
        Cary, North Carolina

(1)   The General Partner  attributes the increase in occupancy at Cedar Rim and
      Tamarac  Village  Apartments  to increased  marketing  efforts and reduced
      rental rates.

(2)   The General Partner attributes the decrease in occupancy at Hidden Cove by
      the Lake  Apartments  to more  stringent  guidelines  in accepting  tenant
      applications.

(3)   The General  Partner  attributes the decrease in occupancy at Williamsburg
      Manor Apartments to slow market conditions in the local area.

The  Partnership's  financial  results depend upon a number of factors including
the  ability to attract  and  maintain  tenants  at the  investment  properties,
interest  rates on mortgage  loans,  costs  incurred  to operate the  investment
properties,  general  economic  conditions  and weather.  As part of the ongoing
business plan of the Partnership, the General Partner monitors the rental market
environment  of each of its investment  properties to assess the  feasibility of
increasing rents,  maintaining or increasing occupancy levels and protecting the
Partnership  from  increases  in  expenses.  As part of this plan,  the  General
Partner attempts to protect the Partnership from the burden of inflation-related
increases  in  expenses  by  increasing  rents and  maintaining  a high  overall
occupancy  level.  However,  the General Partner may use rental  concessions and
rental rate reductions to offset softening market conditions, accordingly, there
is no  guarantee  that the General  Partner will be able to sustain such a plan.
Further,  a number of factors  that are outside  the control of the  Partnership
such as the local  economic  climate  and weather can  adversely  or  positively
affect the Partnership's financial results.

Results of Operations

The  Partnership  realized a net loss of  approximately  $516,000  for the three
months ended March 31, 2005 compared to a net loss of approximately $423,000 for
the three  months  ended March 31,  2004.  The increase in net loss is due to an
increase in total expenses partially offset by an increase in total revenues.

Total  expenses  increased  for the three  months  ended  March 31,  2005 due to
increases  in  operating,  depreciation,  interest  and  property  tax  expenses
partially offset by a decrease in general and administrative expenses. Operating
expenses  increased  due to increases in property and  administrative  expenses.
Property expense increased  primarily due to an increase in salaries and related
benefits at all of the  Partnership's  properties,  partially  offset by reduced
utility expenses at Tamarac Village Apartments. Administrative expense increased
primarily  due  to  an  increase  in  temporary   services  at  Tamarac  Village
Apartments.   Depreciation   expense   increased   primarily   due  to  property
improvements and  replacements  put into service at Tamarac Village  Apartments.
Interest expense increased  primarily due to increased interest expense incurred
on amounts due to affiliates. Property tax expense increased primarily due to an
increase in the assessed value of Tamarac Village and Cedar Rim Apartments.

General and administrative  expenses decreased primarily due to decreases in the
costs of services included in the management  reimbursements paid to the General
Partner as allowed  under the  Partnership  Agreement  and  printing and mailing
costs.  Also included in general and  administrative  expenses at both March 31,
2005 and 2004 are costs associated with the quarterly and annual  communications
with  investors  and  regulatory  agencies and the annual audit  required by the
Partnership Agreement.

Total  revenues  increased  for the three  months ended March 31, 2005 due to an
increase in rental income. Rental income increased due to increases in occupancy
at Tamarac  Village,  Cedar Rim and Park  Capital  Apartments,  increases in the
average  rental  rates at  Sandpiper I and II, Park  Capital,  Lamplighter,  and
Williamsburg Manor Apartments,  and decreases in bad debt at Sandpiper I and II,
Tamarac  Village and Cedar Rim  Apartments,  partially  offset by  decreases  in
occupancy  at  Williamsburg  Manor,  Lamplighter  Park,  Sandpiper I and II, and
Hidden Cove by the Lake  Apartments,  and  decreases in average  rental rates at
Tamarac Village and Cedar Rim Apartments.

Liquidity and Capital Resources

At March 31, 2005 the Partnership had cash and cash equivalents of approximately
$317,000  compared to  approximately  $416,000 at March 31, 2004.  Cash and cash
equivalents  decreased  approximately  $173,000  since  December 31, 2004 due to
approximately  $294,000  and $146,000 of cash used in  investing  and  financing
activities,  respectively,  partially offset by  approximately  $267,000 of cash
provided by operating activities. Cash used in investing activities consisted of
property  improvements  and  replacements  partially  offset  by  receipts  from
restricted  escrows  maintained by the mortgage lenders.  Cash used in financing
activities  consisted of principal  payments on the  mortgages  encumbering  the
Partnership's  properties  and payments on advances from  affiliates,  partially
offset by advances received from affiliates. The Partnership invests its working
capital reserves in interest bearing accounts.

The sufficiency of existing  liquid assets to meet future  liquidity and capital
expenditure   requirements   is  directly   related  to  the  level  of  capital
expenditures  required at the  properties  to  adequately  maintain the physical
assets and other  operating needs of the Partnership and to comply with Federal,
state, and local legal and regulatory requirements. The General Partner monitors
developments in the area of legal and regulatory  compliance.  For example,  the
Sarbanes-Oxley Act of 2002 mandates or suggests  additional  compliance measures
with regard to governance,  disclosure, audit and other areas. In light of these
changes,  the Partnership  expects that it will incur higher expenses related to
compliance.   Capital   improvements  planned  for  each  of  the  Partnership's
properties are detailed below.

Cedar Rim Apartments

During  the  three  months  ended  March 31,  2005,  the  Partnership  completed
approximately   $36,000  of  capital   improvements  at  Cedar  Rim  Apartments,
consisting  primarily of floor covering  replacements.  These  improvements were
funded  from the  property's  operating  cash flow.  The  Partnership  regularly
evaluates the capital  improvement needs of the property.  While the Partnership
has no material commitments for property improvements and replacements,  certain
routine  capital   expenditures  are  anticipated   during  2005.  Such  capital
expenditures  will depend on the  physical  condition of the property as well as
anticipated cash flow generated by the property.

Hidden Cove by the Lake Apartments

During  the  three  months  ended  March 31,  2005,  the  Partnership  completed
approximately  $8,000  of  capital  improvements  at  Hidden  Cove  by the  Lake
Apartments,   consisting  primarily  of  floor  covering   replacements.   These
improvements   were  funded  from  the  property's   operating  cash  flow.  The
Partnership  regularly  evaluates the capital improvement needs of the property.
While the Partnership has no material commitments for property  improvements and
replacements,  certain routine capital expenditures are anticipated during 2005.
Such capital  expenditures will depend on the physical condition of the property
as well as anticipated cash flow generated by the property.

Lamplighter Park Apartments

During  the  three  months  ended  March 31,  2005,  the  Partnership  completed
approximately  $41,000 of capital  improvements at Lamplighter  Park Apartments,
consisting  primarily of floor  covering  replacements,  heating  upgrades,  and
fitness equipment  upgrades.  These improvements were funded from the property's
operating cash flow. The Partnership regularly evaluates the capital improvement
needs of the property.  While the  Partnership  has no material  commitments for
property improvements and replacements, certain routine capital expenditures are
anticipated  during 2005. Such capital  expenditures will depend on the physical
condition  of the  property as well as  anticipated  cash flow  generated by the
property.

Park Capital Apartments

During  the  three  months  ended  March 31,  2005,  the  Partnership  completed
approximately  $20,000  of  capital  improvements  at Park  Capital  Apartments,
consisting  primarily of floor  covering and door  replacements  and  structural
improvements.  These improvements were funded from the property's operating cash
flow. The Partnership  regularly  evaluates the capital improvement needs of the
property.  While  the  Partnership  has no  material  commitments  for  property
improvements  and  replacements,   certain  routine  capital   expenditures  are
anticipated  during 2005. Such capital  expenditures will depend on the physical
condition  of the  property as well as  anticipated  cash flow  generated by the
property.

Tamarac Village Apartments

During  the  three  months  ended  March 31,  2005,  the  Partnership  completed
approximately  $223,000 of capital  improvements at Tamarac Village  Apartments,
consisting primarily of floor covering, door and appliance  replacements,  water
heater upgrades and fire safety upgrades.  These  improvements  were funded from
the property's  operating cash flow and advances from the General  Partner.  The
Partnership  regularly  evaluates the capital improvement needs of the property.
While the Partnership has no material commitments for property  improvements and
replacements,  certain routine capital expenditures are anticipated during 2005.
Such capital  expenditures will depend on the physical condition of the property
as well as anticipated cash flow generated by the property.

Williamsburg Manor Apartments

During  the  three  months  ended  March 31,  2005,  the  Partnership  completed
approximately  $62,000 of capital improvements at Williamsburg Manor Apartments,
consisting  primarily of floor covering and golf cart  replacements,  structural
improvements,  and furniture and fixtures.  These  improvements were funded from
the property's  replacement  reserves.  The Partnership  regularly evaluates the
capital improvement needs of the property. While the Partnership has no material
commitments for property improvements and replacements,  certain routine capital
expenditures are anticipated during 2005. Such capital  expenditures will depend
on the physical  condition of the property as well as  replacement  reserves and
anticipated cash flow generated by the property.

Sandpiper I and II Apartments

During  the  three  months  ended  March 31,  2005,  the  Partnership  completed
approximately  $54,000 of capital improvements at Sandpiper I and II Apartments,
consisting primarily of floor covering replacements and structural improvements.
These  improvements  were funded from the  property's  operating  cash flow. The
Partnership  regularly  evaluates the capital improvement needs of the property.
While the Partnership has no material commitments for property  improvements and
replacements,  certain routine capital expenditures are anticipated during 2005.
In addition the Partnership has committed to a substantial redevelopment project
at Sandpiper I and II Apartments which includes site  improvements,  signage and
interior and exterior  upgrades.  It is estimated that the costs associated with
this renovation will be approximately $5.2 million. The redevelopment project is
scheduled  to be  completed  during the fourth  quarter  of 2005.  Such  capital
expenditures  will depend on the  physical  condition of the property as well as
replacement reserves and anticipated cash flow generated by the property.

Capital  expenditures will be incurred only if cash is available from operations
or from  Partnership  reserves.  To the extent  that  capital  improvements  are
required,  the Partnership's  distributable  cash flow, if any, may be adversely
affected at least in the short term.

Due to short-term operating cash shortfalls at Tamarac Village, Lamplighter Park
and Cedar Rim Apartments,  the Partnership  obtained  advances of  approximately
$328,000  subsequent  to March 31,  2005,  as  discussed  in "Item 1.  Financial
Statements - Note C".

Except as discussed above, the Partnership's  assets are thought to be generally
sufficient  for  near-term  needs  (exclusive  of capital  improvements)  of the
Partnership.  The mortgage indebtedness encumbering the Partnership's properties
of  approximately  $44,328,000  has maturity dates ranging from December 2005 to
October 2021. The mortgage indebtedness encumbering Tamarac Village, Hidden Cove
by the  Lake,  Lamplighter  Park  and  Cedar  Rim  Apartments  of  approximately
$33,503,000  requires  monthly payments until the loans mature between July 2021
and October 2021 at which time the loans are  scheduled  to be fully  amortized.
The mortgage indebtedness encumbering Williamsburg Manor, Sandpiper I and II and
Park Capital  Apartments of  approximately  $10,825,000  requires  interest only
payments,   matures  in  December  2005  and  has  balloon   payments   totaling
approximately  $10,825,000  due at  maturity.  The  General  Partner  intends to
refinance such  indebtedness  and/or sell the properties  prior to such maturity
dates.  If  the  investment  properties  cannot  be  refinanced  or  sold  for a
sufficient  amount,  the  Partnership  may risk losing such  properties  through
foreclosure.

The Partnership  made no  distributions  during the three months ended March 31,
2005 and 2004.  Future  cash  distributions  will  depend on the  levels of cash
generated from  operations,  and the timing of debt  maturities,  property sales
and/or  refinancings.  The  Partnership's  cash  available for  distribution  is
reviewed  on a monthly  basis.  Given the  balance of  outstanding  loans to the
General  Partner,  it  is  not  expected  that  the  Partnership  will  generate
sufficient funds from operations, after required capital expenditures, to permit
any distributions to its partners in 2005 or subsequent periods.

Other

In addition to its  indirect  ownership of the general  partner  interest in the
Partnership,  AIMCO and its affiliates owned 235,151.5 limited partnership units
(the "Units") in the Partnership representing 61.39% of the outstanding Units at
March 31, 2005. A number of these Units were acquired  pursuant to tender offers
made by AIMCO or its  affiliates.  It is possible  that AIMCO or its  affiliates
will acquire  additional Units in exchange for cash or a combination of cash and
units in AIMCO  Properties,  L.P., the operating  partnership  of AIMCO,  either
through  private  purchases  or  tender  offers.  Pursuant  to  the  Partnership
Agreement,  unitholders  holding a majority  of the Units are  entitled  to take
action with  respect to a variety of matters that  include,  but are not limited
to,  voting on certain  amendments  to the  Partnership  Agreement and voting to
remove  the  General  Partner.  As a result  of its  ownership  of 61.39% of the
outstanding  Units,  AIMCO and its  affiliates  are in a position to control all
such voting  decisions  with  respect to the  Partnership.  Although the General
Partner owes fiduciary duties to the limited  partners of the  Partnership,  the
General Partner also owes fiduciary duties to AIMCO as its sole stockholder.  As
a  result,  the  duties of the  General  Partner,  as  general  partner,  to the
Partnership  and its limited  partners may come into conflict with the duties of
the General Partner to AIMCO as its sole stockholder.

Critical Accounting Policies and Estimates

The financial  statements are prepared in accordance with accounting  principles
generally  accepted in the United States,  which require the Partnership to make
estimates and  assumptions.  The  Partnership  believes that of its  significant
accounting  policies,  the following may involve a higher degree of judgment and
complexity.

Impairment of Long-Lived Assets

Investment  properties  are  recorded at cost,  less  accumulated  depreciation,
unless  considered  impaired.  If  events  or  circumstances  indicate  that the
carrying  amount of a property may be  impaired,  the  Partnership  will make an
assessment of its  recoverability  by estimating  the  undiscounted  future cash
flows,  excluding  interest  charges,  of the property.  If the carrying  amount
exceeds the aggregate  future cash flows,  the  Partnership  would  recognize an
impairment  loss to the extent the carrying amount exceeds the fair value of the
property.

Real  property  investments  are  subject  to varying  degrees of risk.  Several
factors  may  adversely  affect  the  economic  performance  and  value  of  the
Partnership's investment properties.  These factors include, but are not limited
to, changes in national,  regional and local economic climate; local conditions,
such  as  an  oversupply  of  multifamily  properties;  competition  from  other
available  multifamily  property owners and changes in market rental rates.  Any
adverse  changes in these  factors could cause  impairment of the  Partnership's
assets.

Revenue Recognition

The Partnership generally leases apartment units for twelve-month terms or less.
The Partnership will offer rental concessions during particularly slow months or
in response  to heavy  competition  from other  similar  complexes  in the area.
Rental income attributable to leases, net of any concessions, is recognized on a
straight-line  basis over the term of the lease.  The Partnership  evaluates all
accounts  receivable  from  residents and  establishes  an allowance,  after the
application of security deposits,  for accounts greater than 30 days past due on
current tenants and all receivables due from former tenants.

Item 3.     Controls and Procedures

(a) Disclosure Controls and Procedures.  The Partnership's management,  with the
participation of the principal executive officer and principal financial officer
of the General Partner,  who are the equivalent of the  Partnership's  principal
executive officer and principal financial officer,  respectively,  has evaluated
the  effectiveness of the Partnership's  disclosure  controls and procedures (as
such term is defined  in Rules  13a-15(e)  and  15d-15(e)  under the  Securities
Exchange  Act of 1934,  as amended  (the  "Exchange  Act")) as of the end of the
period covered by this report. Based on such evaluation, the principal executive
officer and  principal  financial  officer of the General  Partner,  who are the
equivalent  of the  Partnership's  principal  executive  officer  and  principal
financial  officer,  respectively,  have  concluded  that, as of the end of such
period, the Partnership's disclosure controls and procedures are effective.

(b) Internal Control Over Financial  Reporting.  There have not been any changes
in the Partnership's  internal control over financial reporting (as such term is
defined in Rules  13a-15(f)  and  15d-15(f)  under the Exchange  Act) during the
fiscal quarter to which this report relates that have  materially  affected,  or
are reasonably likely to materially affect,  the Partnership's  internal control
over financial reporting.


<PAGE>


                           PART II - OTHER INFORMATION

Item 1.     Legal Proceedings

In March 1998, several putative unit holders of limited partnership units of the
Partnership  commenced an action  entitled  Rosalie  Nuanes,  et al. v. Insignia
Financial Group, Inc., et al. (the "Nuanes action") in the Superior Court of the
State of  California  for the  County  of San  Mateo.  The  plaintiffs  named as
defendants,  among others,  the Partnership,  its General Partner and several of
their affiliated  partnerships and corporate  entities.  The action purported to
assert  claims on behalf of a class of  limited  partners  and  derivatively  on
behalf of a number of limited partnerships  (including the Partnership) that are
named as nominal defendants, challenging, among other things, the acquisition of
interests in certain General Partner entities by Insignia  Financial Group, Inc.
("Insignia") and entities that were, at one time,  affiliates of Insignia;  past
tender offers by the Insignia  affiliates to acquire limited  partnership units;
management of the  partnerships  by the Insignia  affiliates;  and the series of
transactions  which  closed on October 1, 1998 and  February  26,  1999  whereby
Insignia and Insignia  Properties Trust,  respectively,  were merged into AIMCO.
The plaintiffs sought monetary damages and equitable relief,  including judicial
dissolution of the Partnership. In addition, during the third quarter of 2001, a
complaint captioned Heller v. Insignia Financial Group (the "Heller action") was
filed against the same  defendants  that are named in the Nuanes  action.  On or
about August 6, 2001,  plaintiffs  filed a first amended  complaint.  The Heller
action was brought as a purported  derivative  action,  and asserted claims for,
among other things,  breach of fiduciary duty, unfair  competition,  conversion,
unjust  enrichment,  and judicial  dissolution.  On January 28, 2002,  the trial
court granted defendants motion to strike the complaint.

On January 8, 2003,  the parties filed a  Stipulation  of Settlement in proposed
settlement of the Nuanes action and the Heller action.

On June 13, 2003, the court granted final approval of the settlement and entered
judgment in both the Nuanes and Heller actions.  On August 12, 2003, an objector
("Objector") filed an appeal (the "Appeal") seeking to vacate and/or reverse the
order approving the settlement and entering  judgment  thereto.  On May 4, 2004,
the Objector filed a second appeal  challenging the court's use of a referee and
its order requiring Objector to pay those fees.

On March 21, 2005, the Court of Appeals issued opinions in both pending appeals.
With regard to the settlement and judgment entered thereto, the Court of Appeals
vacated  the trial  court's  order and  remanded  to the trial court for further
findings  on the basis that the "state of the record is  insufficient  to permit
meaningful  appellate  review".  With regard to the second appeal,  the Court of
Appeals  reversed the order requiring the Objector to pay referee fees. On April
26, 2005, the Court of Appeals  lifted the stay of a pending appeal  relating to
the Heller action and the trial court's order striking the  complaint.  On April
28, 2005, the Objector  filed a Petition for Review with the California  Supreme
Court in connection with the opinion vacating the order approving settlement and
remanding  for further  findings.  The General  Partner and its  affiliates  are
currently scheduled to file an answer to Objector's petition on May 18, 2005.

The  General  Partner  does not  anticipate  that any costs to the  Partnership,
whether legal or settlement costs,  associated with these cases will be material
to the Partnership's overall operations.

AIMCO Properties L.P. and NHP Management Company, both affiliates of the General
Partner,  are defendants in a lawsuit alleging that they willfully  violated the
Fair Labor Standards Act ("FLSA") by failing to pay maintenance workers overtime
for all hours  worked in excess of forty per week.  The  complaint  attempts  to
bring a collective  action under the FLSA and seeks to certify state  subclasses
in  California,  Maryland,  and the  District  of  Columbia.  Specifically,  the
plaintiffs  contend that AIMCO Properties L.P. and NHP Management Company failed
to  compensate  maintenance  workers  for time  that they  were  required  to be
"on-call."  Additionally,  the complaint  alleges AIMCO  Properties L.P. and NHP
Management  Company failed to comply with the FLSA in  compensating  maintenance
workers for time that they worked in responding to a call while  "on-call."  The
defendants have filed an answer to the amended complaint denying the substantive
allegations.  Oral  argument  relating to the  certification  of the  collective
action took place on May 12, 2005 and the parties await a ruling from the Court.
Although the outcome of any litigation is uncertain, AIMCO Properties, L.P. does
not believe that the ultimate outcome will have a material adverse effect on its
financial  condition or results of operations.  Similarly,  the General  Partner
does not believe that the ultimate  outcome will have a material  adverse effect
on the Partnership's financial condition or results of operations.

Item 5.     Other Information

            None.

Item 6.     Exhibits

            See Exhibit Index Attached.


<PAGE>


                                   SIGNATURES



Pursuant to the requirements of the Exchange Act, the registrant has duly caused
this  report to be  signed on its  behalf  by the  undersigned,  thereunto  duly
authorized.



                                    CONSOLIDATED CAPITAL INSTITUTIONAL
                                    PROPERTIES/3


                                    By:   CONCAP EQUITIES, INC.
                                          Its General Partner


                                    By:   /s/Martha L. Long
                                          Martha L. Long
                                          Senior Vice President


                                    By:   /s/Stephen B. Waters
                                          Stephen B. Waters
                                          Vice President


                                    Date: May 13, 2005


<PAGE>



               CONSOLIDATED CAPITAL INSTITUTIONAL PROPERTIES/3

                                  EXHIBIT INDEX


 Exhibit Number   Description of Exhibit


       3.1        Certificate  of  Limited  Partnership,   as  amended  to  date
                  (Exhibit 3 to the Registrant's  Annual Report on Form 10-K for
                  the year ended  December 31, 2002, is  incorporated  herein by
                  reference).

      10.34       Multifamily  Note dated  November 30, 1995 between  CCIP/3,  a
                  California limited  partnership,  and Lehman Brothers Holdings
                  Inc.  d/b/a  Lehman  Capital,  A Division  of Lehman  Brothers
                  Holdings   Inc.,   related   to   Park   Capital   Apartments.
                  (Incorporated  by reference to the Annual  Report on Form 10-K
                  for the year ended December 31, 1995).

      10.35       Multifamily  Note dated  November 30, 1995 between  CCIP/3,  a
                  California limited  partnership,  and Lehman Brothers Holdings
                  Inc.  d/b/a  Lehman  Capital,  A Division  of Lehman  Brothers
                  Holdings  Inc.,  related  to  Williamsburg  Manor  Apartments.
                  (Incorporated  by reference to the Annual  Report on Form 10-K
                  for the year ended December 31, 1995).

      10.36       Multifamily  Note dated  November 30, 1995 between  CCIP/3,  a
                  California limited  partnership,  and Lehman Brothers Holdings
                  Inc.  d/b/a  Lehman  Capital,  A Division  of Lehman  Brothers
                  Holdings  Inc.,  related  to  Sandpiper  I  &  II  Apartments.
                  (Incorporated  by reference to the Annual  Report on Form 10-K
                  for the year ended December 31, 1995).

      10.48       Multifamily   Note  dated  June  27,  2001,   by  and  between
                  Consolidated Capital Institutional Properties/3,  a California
                  limited partnership, and GMAC Commercial Mortgage Corporation,
                  related  to  Tamarac  Village  Apartments.   (Incorporated  by
                  reference  to the  Quarterly  Report  on Form  10-QSB  for the
                  quarter ended June 30, 2001.)

      10.49       Multifamily   Note  dated  June  29,  2001,   by  and  between
                  Consolidated Capital Institutional Properties/3,  a California
                  limited partnership, and GMAC Commercial Mortgage Corporation,
                  related  to  Lamplighter  Park  Apartments.  (Incorporated  by
                  reference  to the  Quarterly  Report  on Form  10-QSB  for the
                  quarter ended June 30, 2001.)

      10.50       Multifamily   Note  dated  July  23,  2001,   by  and  between
                  Consolidated Capital Institutional Properties/3,  a California
                  limited partnership, and GMAC Commercial Mortgage Corporation,
                  related to Cedar Rim Apartments. (Incorporated by reference to
                  the Quarterly Report on Form 10-QSB for the quarter ended June
                  30, 2001.)

      10.51       Multifamily  Note dated  September  19,  2001,  by and between
                  Consolidated Capital Institutional Properties/3,  a California
                  limited partnership, and GMAC Commercial Mortgage Corporation,
                  related to Hidden Cove Apartments.  (Incorporated by reference
                  to the  Quarterly  Report on Form 10-QSB for the quarter ended
                  September 30, 2001.)



<PAGE>


      28.1        Fee Owner's General Partnership  Agreement  (Incorporated by
                  reference to  Registration  Statement of  Partnership  (File
                  No. 2-97664) filed July 23, 1985).

      28.2        Fee Owner's  Certificate  of  Partnership  (Incorporated  by
                  reference to  Registration  Statement of  Partnership  (File
                  No. 2-97664) filed July 23, 1985).

      31.1        Certification  of  equivalent  of  Chief  Executive  Officer
                  pursuant     to     Securities     Exchange     Act    Rules
                  13a-14(a)/15d-14(a),  as Adopted  Pursuant to Section 302 of
                  the Sarbanes-Oxley Act of 2002.

      31.2        Certification  of  equivalent  of  Chief  Financial  Officer
                  pursuant     to     Securities     Exchange     Act    Rules
                  13a-14(a)/15d-14(a),  as Adopted  Pursuant to Section 302 of
                  the Sarbanes-Oxley Act of 2002.

      32.1        Certification of the equivalent of the Chief Executive Officer
                  and Chief  Financial  Officer  Pursuant  to 18 U.S.C.  Section
                  1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley
                  Act of 2002.


<PAGE>



Exhibit 31.1


                                  CERTIFICATION


I, Martha L. Long, certify that:


1.    I have  reviewed  this  quarterly  report on Form  10-QSB of  Consolidated
      Capital Institutional Properties/3;

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

3.    Based on my  knowledge,  the  financial  statements,  and other  financial
      information  included  in this  report,  fairly  present  in all  material
      respects the financial condition,  results of operations and cash flows of
      the small  business  issuer as of, and for, the periods  presented in this
      report;

4.    The  small  business  issuer's  other  certifying  officer(s)  and  I  are
      responsible  for  establishing  and  maintaining  disclosure  controls and
      procedures (as defined in Exchange Act Rules  13a-15(e) and 15d-15(e)) for
      the small business issuer and have:

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

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

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

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

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

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

Date:  May 13, 2005

                                    /s/Martha L. Long
                                    Martha L. Long
                                    Senior Vice President of ConCap  Equities,
                                    Inc.,  equivalent  of the chief  executive
                                    officer of the Partnership


<PAGE>



Exhibit 31.2


                                  CERTIFICATION


I, Stephen B. Waters, certify that:


1.    I have  reviewed  this  quarterly  report on Form  10-QSB of  Consolidated
      Capital Institutional Properties/3;

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

3.    Based on my  knowledge,  the  financial  statements,  and other  financial
      information  included  in this  report,  fairly  present  in all  material
      respects the financial condition,  results of operations and cash flows of
      the small  business  issuer as of, and for, the periods  presented in this
      report;

4.    The  small  business  issuer's  other  certifying  officer(s)  and  I  are
      responsible  for  establishing  and  maintaining  disclosure  controls and
      procedures (as defined in Exchange Act Rules  13a-15(e) and 15d-15(e)) for
      the small business issuer and have:

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

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

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

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

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

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

Date:  May 13, 2005

                                    /s/Stephen B. Waters
                                    Stephen B. Waters
                                    Vice President of ConCap Equities, Inc.,
                                    equivalent of the chief financial officer
                                    of the Partnership


<PAGE>


Exhibit 32.1


                          Certification of CEO and CFO
                       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 Quarterly  Report on Form 10-QSB of Consolidated  Capital
Institutional  Properties/3 (the "Partnership"),  for the quarterly period ended
March 31, 2005 as filed with the Securities and Exchange  Commission on the date
hereof (the "Report"),  Martha L. Long, as the equivalent of the Chief Executive
Officer of the  Partnership,  and Stephen B. Waters,  as the  equivalent  of the
Chief Financial Officer of the Partnership,  each hereby certifies,  pursuant to
18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002, that, to the best of his knowledge:

      (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/Martha L. Long
                                    Name:  Martha L. Long
                                    Date:  May 13, 2005


                                           /s/Stephen B. Waters
                                    Name:  Stephen B. Waters
                                    Date:  May 13, 2005


This  certification is furnished with this Report pursuant to Section 906 of the
Sarbanes-Oxley  Act of 2002 and shall not be deemed filed by the Partnership for
purposes of Section 18 of the Securities Exchange Act of 1934, as amended.