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

                                   Form 10-QSB

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

                    For the quarterly period ended June 30, 2003


[ ] 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 0-14187


                  CONSOLIDATED CAPITAL INSTITUTIONAL PROPERTIES/3
               (Exact name of registrant 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)

<PAGE>

                         PART I - FINANCIAL INFORMATION


ITEM 1.     FINANCIAL STATEMENTS

                  CONSOLIDATED CAPITAL INSTITUTIONAL PROPERTIES/3

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

                                  June 30, 2003


Assets
   Cash and cash equivalents                                              $ 704
   Receivables and deposits                                                 523
   Restricted escrows                                                       217
   Other assets                                                           1,325
   Investment properties:
      Land                                               $ 8,641
      Buildings and related personal property              50,589
                                                           59,230
      Less accumulated depreciation                       (27,136)       32,094
                                                                       $ 34,863
Liabilities and Partners' Deficit
Liabilities
   Accounts payable                                                       $ 202
   Tenant security deposit liabilities                                      306
   Accrued property taxes                                                   334
   Other liabilities                                                        614
   Mortgage notes payable                                                46,057

Partners' Deficit
   General partner                                        $ (968)
   Limited partners (383,033 units outstanding)           (11,682)      (12,650)
                                                                       $ 34,863



                   See Accompanying Notes to Financial Statements


<PAGE>

                  CONSOLIDATED CAPITAL INSTITUTIONAL PROPERTIES/3

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

<TABLE>
<CAPTION>

                                              For the Three Months      For the Six Months
                                                 Ended June 30,           Ended June 30,
                                               2003         2002         2003        2002
Revenues:
<S>                                          <C>          <C>          <C>          <C>
  Rental income                              $ 2,601      $ 2,895      $ 5,325      $ 5,871
  Other income                                   310          337          679          732
  Casualty gain (Note C)                          --           --           --          249
      Total revenues                           2,911        3,232        6,004        6,852

Expenses:
  Operating                                    1,228        1,208        2,533        2,332
  General and administrative                     132          147          278          300
  Depreciation                                   769          751        1,523        1,484
  Interest                                       872          890        1,748        1,776
  Property taxes                                 220          203          449          382
      Total expenses                           3,221        3,199        6,531        6,274

Net (loss) income                             $ (310)       $ 33        $ (527)      $ 578

Net (loss) income allocated to general
  partner (1%)                                 $ (3)        $ --         $ (5)        $ 6
Net (loss) income allocated to limited
  partners (99%)                                (307)          33         (522)         572

                                              $ (310)       $ 33        $ (527)      $ 578

Net (loss) income per limited
  partnership unit                           $ (0.80)      $ 0.09      $ (1.36)     $ 1.49

Distributions per limited
  partnership unit                             $ --        $ 0.98       $ 0.66      $ 0.98

                   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, 2002                  383,033       $ (960)     $(10,908)   $(11,868)

Distributions to partners                  --            (3)        (252)       (255)

Net loss for the six months
   ended June 30, 2003                     --            (5)        (522)       (527)

Partners' deficit at
   June 30, 2003                      383,033       $ (968)     $(11,682)   $(12,650)

                   See Accompanying Notes to Financial Statements

</TABLE>

<PAGE>
                  CONSOLIDATED CAPITAL INSTITUTIONAL PROPERTIES/3

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

                                                                   Six Months Ended
                                                                        June 30,
                                                                    2003        2002
Cash flows from operating activities:
<S>                                                               <C>          <C>
  Net (loss) income                                               $ (527)      $ 578
  Adjustments to reconcile net (loss) income to net cash
   provided by operating activities:
      Casualty gain                                                    --        (249)
      Depreciation                                                  1,523       1,484
      Amortization of loan costs                                       58          58
      Change in accounts:
        Receivables and deposits                                      (30)       (160)
        Other assets                                                 (149)       (141)
        Accounts payable                                               38         (50)
        Tenant security deposit liabilities                            12         (16)
        Accrued property taxes                                        130          72
        Other liabilities                                             117         334
         Net cash provided by operating activities                  1,172       1,910

Cash flows from investing activities:
  Property improvements and replacements                             (490)     (1,261)
  Net receipts from restricted escrows                                 18          24
  Insurance proceeds received                                          --         535
         Net cash used in investing activities                       (472)       (702)

Cash flows from financing activities:
  Payment of mortgage notes payable                                  (454)       (422)
  Distributions to partners                                          (255)       (380)
         Net cash used in financing activities                       (709)       (802)

Net (decrease) increase in cash and cash equivalents                   (9)        406

Cash and cash equivalents at beginning of period                      713         510

Cash and cash equivalents at end of period                         $ 704       $ 916

Supplemental disclosure of cash flow information:
  Cash paid for interest                                          $ 1,692     $ 1,724

Supplemental disclosure of non-cash activity:
  Property improvements and replacements in accounts payable       $ 30        $ --


                   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 and six month
periods ended June 30, 2003, are not necessarily  indicative of the results that
may be expected  for the fiscal  year  ending  December  31,  2003.  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, 2002.

Note B - Transactions with Affiliated Parties

The  Partnership has no employees and is dependent on the General Partner and/or
its  affiliates  for  the  management  and  administration  of  all  Partnership
activities. The limited partnership agreement ("Partnership Agreement") provides
for  payments  to  affiliates  for  property  management  services  based  on  a
percentage of revenue. The Partnership Agreement also provides for reimbursement
to the General  Partner and its affiliates for costs incurred in connection with
the administration of Partnership activities.

During the six months  ended June 30, 2003 and 2002,  affiliates  of the General
Partner  were  entitled  to  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  $290,000 and
$347,000  for  management  fees for the six months ended June 30, 2003 and 2002,
respectively, which is included in operating expenses.

Affiliates  of  the  General  Partner  received   reimbursement  of  accountable
administrative expenses amounting to approximately $212,000 and $319,000 for the
six months  ended June 30,  2003 and 2002,  respectively,  which is  included in
investment properties and general and administrative expenses. Included in these
amounts are fees  related to  construction  management  services  provided by an
affiliate of the General  Partner of  approximately  $13,000 and $89,000 for the
six  months  ended  June  30,  2003 and  2002,  respectively.  The  construction
management  fees are calculated  based on a percentage of current year additions
to investment properties.

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 six months ended June 30, 2003 and 2002, the Partnership was
charged  by  AIMCO  and its  affiliates  approximately  $146,000  and  $177,000,
respectively,  for  insurance  coverage and fees  associated  with policy claims
administration.

Note C - Casualty Event

In October 2001 a fire  occurred at  Lamplighter  Park  Apartments  which caused
damage to thirty  units of the  complex.  As a result,   assets  and  related
accumulated  depreciation  with a net book value of approximately  $237,000 were
written off in 2001 and an  insurance  receivable  of $237,000  was  recorded at
December 31, 2001. During the six months ended June 30, 2002 insurance  proceeds
of  approximately  $535,000 were received and an additional  write-off of assets
and  related  accumulated  depreciation  with a net book value of  approximately
$49,000 was recorded. This resulted in a casualty gain of approximately $249,000
relating to this casualty being recognized  during the six months ended June 30,
2002.

Note D - 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.  On June 25, 1998, the General  Partner filed a
motion seeking dismissal of the action. In lieu of responding to the motion, the
plaintiffs  filed an amended  complaint.  The General Partner filed demurrers to
the amended complaint, which were heard February 1999.

Pending the ruling on such  demurrers,  settlement  negotiations  commenced.  On
November 2, 1999,  the parties  executed and filed a Stipulation  of Settlement,
settling claims, subject to court approval, on behalf of the Partnership and all
limited partners who owned units as of November 3, 1999. Preliminary approval of
the  settlement  was obtained on November 3, 1999 from the Court,  at which time
the Court set a final  approval  hearing for  December  10,  1999.  Prior to the
December  10,  1999  hearing,  the  Court  received  various  objections  to the
settlement, including a challenge to the Court's preliminary approval based upon
the alleged lack of authority of prior lead counsel to enter the settlement.  On
December  14,  1999,  the General  Partner  and its  affiliates  terminated  the
proposed settlement.  In February 2000, counsel for some of the named plaintiffs
filed a motion to disqualify plaintiff's lead and liaison counsel who negotiated
the settlement.  On June 27, 2000, the Court entered an order disqualifying them
from the case and an appeal was taken  from the order on  October  5,  2000.  On
December 4, 2000, the Court  appointed the law firm of Lieff Cabraser  Heimann &
Bernstein  LLP as new  lead  counsel  for  plaintiffs  and the  putative  class.
Plaintiffs  filed a third  amended  complaint on January 19,  2001.  On March 2,
2001,  the  General  Partner  and its  affiliates  filed a demurrer to the third
amended  complaint.  On May 14, 2001,  the Court heard the demurrer to the third
amended  complaint.  On July 10,  2001,  the Court  issued  an order  sustaining
defendants'  demurrer on certain grounds.  On July 20, 2001,  Plaintiffs filed a
motion for  reconsideration  of the Court's July 10, 2001 order granting in part
and denying in part defendants' demurrer. On September 7, 2001, Plaintiffs filed
a fourth amended class and derivative action  complaint.  On September 12, 2001,
the Court denied Plaintiffs' motion for reconsideration. On October 5, 2001, the
General Partner and affiliated defendants filed a demurrer to the fourth amended
complaint,  which was heard on December 11, 2001. On February 2, 2002, the Court
served its order  granting in part the  demurrer.  The Court  dismissed  without
leave  to amend  certain  of the  plaintiffs'  claims.  On  February  11,  2002,
plaintiffs  filed a motion seeking to certify a putative class  comprised of all
non-affiliated  persons  who own or have owned  units in the  partnerships.  The
General Partner and affiliated defendants opposed the motion. On April 29, 2002,
the Court held a hearing on plaintiffs' motion for class  certification and took
the matter under submission after further briefing, as ordered by the court, was
submitted by the parties.  On July 10, 2002, the Court entered an order vacating
the trial date of  January  13,  2003 (as well as the  pre-trial  and  discovery
cut-off dates) and stayed the case in its entirety  through  November 7, 2002 so
that the parties could have an opportunity to discuss settlement. On October 30,
2002, the court entered an order  extending the stay in effect  through  January
10, 2003.

During the third  quarter of 2001, a complaint  (the "Heller  action") was filed
against  the same  defendants  that are named in the  Nuanes  action,  captioned
Heller v. Insignia Financial Group. 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.  Plaintiffs in the Nuanes action filed a motion to consolidate  the
Heller action with the Nuanes action and stated that the Heller action was filed
in order to preserve the derivative  claims that were dismissed without leave to
amend in the Nuanes action by the Court order dated July 10, 2001. On October 5,
2001, the General  Partner and affiliated  defendants  moved to strike the first
amended  complaint in its entirety for violating the Court's July 10, 2001 order
granting in part and denying in part defendants'  demurrer in the Nuanes action,
or  alternatively,  to strike  certain  portions of the  complaint  based on the
statute of  limitations.  Other  defendants in the action demurred to the fourth
amended  complaint,  and,  alternatively,  moved to  strike  the  complaint.  On
December 11, 2001,  the court heard argument on the motions and took the matters
under  submission.  On February 4, 2002,  the Court  served  notice of its order
granting defendants' motion to strike the Heller complaint as a violation of its
July 10, 2001 order in the Nuanes  action.  On March 27,  2002,  the  plaintiffs
filed a notice  appealing the order  striking the complaint.  Before  completing
briefing on the appeal, the parties stayed further  proceedings in the appeal in
light of a settlement.

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

In general  terms,  the  proposed  settlement  provides  for  certification  for
settlement  purposes of a settlement class consisting of all limited partners in
this  Partnership and others (the  "Partnerships")  as of December 20, 2002, the
dismissal  with  prejudice  and  release  of claims  in the  Nuanes  and  Heller
litigation,  payment by AIMCO of $9.9  million  (which shall be  distributed  to
settlement  class  members  after  deduction of attorney fees and costs of class
counsel and certain costs of settlement) and up to $1 million toward the cost of
independent  appraisals of the  Partnerships'  properties  by a Court  appointed
appraiser.  An affiliate of the General Partner has also agreed to make a tender
offer to purchase all of the partnership  interests in the  Partnerships  within
one year of final approval,  if it is granted,  and to provide partners with the
independent  appraisals at the time of these  tenders.  The proposed  settlement
also  provided  for the  limitation  of the  allowable  costs  which the General
Partner or its affiliates  will charge the  Partnerships in connection with this
litigation  and  imposes  limits  on the  class  counsel  fees and costs in this
litigation.  On April 11,  2003,  notice was  distributed  to  limited  partners
providing the details of the proposed settlement.

On June 13, 2003, the Court granted final approval of the settlement and entered
judgment in both the Nuanes and Heller actions.

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.

The  Partnership is unaware of any other pending or outstanding  litigation that
is not of a routine nature arising in the ordinary course of business.

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  at June 30, 2003  consisted of seven
apartment complexes. The following table sets forth the average occupancy of the
properties for each of the six month periods ended June 30, 2003 and 2002:

                                                   Average Occupancy
      Property                                      2003       2002

      Cedar Rim Apartments                          79%        91%
        New Castle, Washington
      Hidden Cove by the Lake Apartments            97%        96%
        Belleville, Michigan
      Lamplighter Park Apartments                   89%        77%
        Bellevue, Washington
      Park Capital Apartments                       93%        94%
        Salt Lake City, Utah
      Sandpiper I and II Apartments                 94%        95%
        St. Petersburg, Florida
      Tamarac Village Apartments                    87%        88%
        Denver, Colorado
      Williamsburg Manor Apartments                 92%        90%
        Cary, North Carolina

The General Partner attributes the decrease in occupancy at Cedar Rim Apartments
to a  poor  local  economy.  The  increase  in  occupancy  at  Lamplighter  Park
Apartments is due to units which were damaged by a fire in October 2001 and were
unavailable for rental during 2002. These units have been  reconstructed and are
now available for rental.

Results of Operations

The  Partnership  had a net loss of  approximately  $527,000  for the six months
ended June 30, 2003,  compared to net income of  approximately  $578,000 for the
six months ended June 30, 2002. The Partnership had a net loss of  approximately
$310,000  for the three  months ended June 30, 2003 as compared to net income of
$33,000 for the three months ended June 30, 2002. The decrease in net income for
the three and six month  periods  ended June 30,  2003 is due to a  decrease  in
total revenues and an increase in total expenses.

Total revenues decreased for the three and six months ended June 30, 2003 due to
decreases in both rental and other income and the casualty  gain  recognized  at
Lamplighter  Park Apartments  during the six months ended June 30, 2002.  Rental
income  decreased  due  to  decreases  in  average  rental  rates  at all of the
Partnership's  properties  except  Sandpiper I and II  Apartments,  decreases in
occupancy at Sandpiper I and II, Tamarac  Village,  Park Capital,  and Cedar Rim
Apartments,  an  increase in  concessions  primarily  at  Sandpiper I and II and
Tamarac  Village  Apartments,  and an increase in bad debt expense at all of the
Partnership's   properties  but  Hidden  Cove  Apartments  partially  offset  by
increases in occupancy at Williamsburg  Manor, Hidden Cove, and Lamplighter Park
Apartments.  Other income  decreased due to reduced  corporate unit rent at Park
Capital  Apartments  and  reduced  utility  reimbursements  at  Tamarac  Village
Apartments  partially offset by increases in late charges primarily at Sandpiper
I and II, Tamarac Village, and Lamplighter Park Apartments.

In October 2001 a fire  occurred at  Lamplighter  Park  Apartments  which caused
damage to thirty  units of the  complex.  As a result,  the assets  and  related
accumulated  depreciation  with a net book value of approximately  $237,000 were
written off in 2001 and an  insurance  receivable  of $237,000  was  recorded at
December 31, 2001. During the six months ended June 30, 2002 insurance  proceeds
of  approximately  $535,000 were received and an additional  write-off of assets
and  related  accumulated  depreciation  with a net book value of  approximately
$49,000 was recorded. This resulted in a casualty gain of approximately $249,000
relating to this casualty being recognized  during the six months ended June 30,
2002.

Total  expenses  increased  for the three and six months ended June 30, 2003 due
primarily  to  increases in  operating,  depreciation  and property tax expenses
partially  offset by  decreases  in  interest  and  general  and  administrative
expenses.   Operating  expenses  increased  primarily  due  to  an  increase  in
maintenance  and  advertising   expenses  partially  offset  by  a  decrease  in
management  fees.  Maintenance  expense  increased  due to increases in contract
labor at Williamsburg  Manor,  Sandpiper I and II, Tamarac Village,  Lamplighter
Park, and Cedar Rim Apartments.  Advertising  expense increased due to increased
periodical  expenses at Tamarac Village and Lamplighter  Park Apartments and web
advertising  and  referral  fees at  Tamarac  Village  Apartments.  Depreciation
expense increased primarily due to the casualty  renovations at Lamplighter Park
Apartments  during  the  past  twelve  months  that are now  being  depreciated.
Property tax expense increased primarily due to a prior year tax refund received
at Tamarac Village Apartments in 2002, an adjustment of property tax accruals at
Hidden Cove  Apartments,  located in Michigan,  and an  anticipated  increase in
property taxes at Sandpiper I and II Apartments.  Interest expense decreased due
to scheduled  principal payments on the mortgages  encumbering  Tamarac Village,
Lamplighter Park, and Cedar Rim Apartments which lowered the debt balances.

General and administrative  expenses decreased primarily due to reduced costs of
services included in the management  reimbursements  paid to the General Partner
as allowed  under the  Partnership  Agreement.  Also  included  in  general  and
administrative expenses at both June 30, 2003 and 2002 are costs associated with
the quarterly and annual  communications  with investors and regulatory agencies
and the annual audit required by the Partnership Agreement.

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,  due to changing  market
conditions,  which  can  result  in the use of  rental  concessions  and  rental
reductions to offset softening market conditions, there is no guarantee that the
General Partner will be able to sustain such a plan.

Liquidity and Capital Resources

At June 30, 2003, the Partnership had cash and cash equivalents of approximately
$704,000  compared to  approximately  $916,000 at June 30, 2002. The decrease in
cash and cash  equivalents  for the six  months  ended June 30,  2003,  from the
Partnership's  year ended  December 31, 2002,  was  approximately  $9,000.  This
decrease is due to approximately  $472,000 of cash used in investing  activities
and approximately $709,000 of cash used in financing activities partially offset
by approximately $1,172,000 of cash provided by operating activities.  Cash used
in investing  activities  consisted of property  improvements  and  replacements
partially offset by net withdrawals from restricted  escrow accounts  maintained
by the  mortgage  lenders.  Cash  used  in  financing  activities  consisted  of
principal  payments on mortgage notes payable and distributions to the partners.
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 and is studying new
federal laws,  including the  Sarbanes-Oxley Act of 2002. 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,
including increased legal and audit fees. Capital  improvements planned for each
of the Partnership's properties are detailed below.

Cedar Rim Apartments

During  the  six  months  ended  June  30,  2003,  the   Partnership   completed
approximately   $49,000  of  capital   improvements  at  Cedar  Rim  Apartments,
consisting  primarily of floor covering  replacements,  lighting  upgrades,  and
water and sewer improvements. These improvements were funded from the property's
operating cash flow. The Partnership  evaluates the capital improvement needs of
the property  during the year and  currently  expects to complete an  additional
$159,000 in capital  improvements  during the remainder of 2003.  The additional
capital  improvements  will consist  primarily of appliance  and floor  covering
replacements,  parking lot repairs, signage, and exterior building and water and
sewer improvements.  Additional capital  improvements may be considered and will
depend on the physical condition of the property as well as the anticipated cash
flow generated by the property.

Hidden Cove by the Lake Apartments

During  the  six  months  ended  June  30,  2003,  the   Partnership   completed
approximately  $58,000  of  capital  improvements  at  Hidden  Cove by the  Lake
Apartments,  consisting  primarily of air  conditioning  unit and floor covering
replacements and major landscaping improvements.  These improvements were funded
from the property's  operating cash flow. The Partnership  evaluates the capital
improvement  needs of the  property  during  the year and  currently  expects to
complete  no  additional  capital  improvements  during the  remainder  of 2003.
Additional capital  improvements that are considered necessary will need further
approval  and will depend on the  physical  condition of the property as well as
the anticipated cash flow generated by the property.

Lamplighter Park Apartments

During  the  six  months  ended  June  30,  2003,  the   Partnership   completed
approximately  $115,000 of capital  improvements at Lamplighter Park Apartments,
consisting  primarily of swimming pool upgrades,  interior painting,  structural
improvements, and appliance and floor covering replacements.  These improvements
were funded from the property's  operating cash flow. The Partnership  evaluates
the capital  improvement  needs of the  property  during the year and  currently
expects to complete an  additional  $63,000 in capital  improvements  during the
remainder of 2003. The additional capital improvements will consist primarily of
appliance,  floor covering,  cabinet,  and air conditioning  unit  replacements,
plumbing upgrades, and an irrigation system. Additional capital improvements may
be considered and will depend on the physical  condition of the property as well
as the anticipated cash flow generated by the property.

Park Capital Apartments

During  the  six  months  ended  June  30,  2003,  the   Partnership   completed
approximately  $28,000  of  capital  improvements  at Park  Capital  Apartments,
consisting  primarily  of floor  covering  replacements  and  major  landscaping
improvements.  These improvements were funded from the property's operating cash
flow. The Partnership  evaluates the capital  improvement  needs of the property
during the year and  currently  expects to  complete  an  additional  $29,000 in
capital  improvements  during the  remainder  of 2003.  The  additional  capital
improvements will consist primarily of floor covering and elevator  replacements
and walkway improvements.  Additional capital improvements may be considered and
will depend on the physical condition of the property as well as the anticipated
cash flow generated by the property.

Tamarac Village Apartments

During  the  six  months  ended  June  30,  2003,  the   Partnership   completed
approximately  $138,000 of capital  improvements at Tamarac Village  Apartments,
consisting  primarily  of heating unit  upgrades,  structural  improvements  and
appliance and floor covering  replacements.  These improvements were funded from
the  property's  operating  cash flow.  The  Partnership  evaluates  the capital
improvement  needs of the  property  during  the year and  currently  expects to
complete an additional $122,000 in capital  improvements during the remainder of
2003.  The  additional  capital  improvements  will  consist  primarily of floor
covering replacements,  elevator improvements and exterior painting.  Additional
capital improvements may be considered and will depend on the physical condition
of the property as well as the anticipated cash flow generated by the property.

Williamsburg Manor Apartments

During  the  six  months  ended  June  30,  2003,  the   Partnership   completed
approximately  $47,000 of capital improvements at Williamsburg Manor Apartments,
consisting primarily of structural improvements and appliance and floor covering
replacements.  These improvements were funded from the property's operating cash
flow. The Partnership  evaluates the capital  improvement  needs of the property
during the year and  currently  expects to  complete  an  additional  $16,000 in
capital  improvements  during the  remainder  of 2003.  The  additional  capital
improvements   will  consist  primarily  of  vinyl  siding  and  floor  covering
replacements.  Additional capital improvements may be considered and will depend
on the physical  condition of the property as well as  replacement  reserves and
the anticipated cash flow generated by the property.

Sandpiper I and II Apartments

During  the  six  months  ended  June  30,  2003,  the   Partnership   completed
approximately  $85,000 of capital improvements at Sandpiper I and II Apartments,
consisting primarily of floor covering, appliance and cabinet replacements,  and
water and sewer  upgrades.  These  improvements  were funded from the property's
operating cash flow and  replacement  reserves.  The  Partnership  evaluates the
capital  improvement needs of the property during the year and currently expects
to complete an additional $20,000 in capital  improvements  during the remainder
of 2003. The additional  capital  improvements  will consist  primarily of floor
covering  replacements,  parking lot  repairs,  and exterior  building  repairs.
Additional  capital  improvements  may be  considered  and  will  depend  on the
physical  condition  of the  property as well as  replacement  reserves  and the
anticipated cash flow generated by the property.

The additional  capital  expenditures will be incurred only if cash is available
from operations or from Partnership  reserves.  To the extent that such budgeted
capital improvements are required, the Partnership's distributable cash flow, if
any, may be adversely affected.

The  Partnership's  assets are thought to be sufficient for any near-term  needs
(exclusive  of  capital   improvements)   of  the   Partnership.   The  mortgage
indebtedness  of  approximately  $46,057,000  has  maturity  dates  ranging from
December  2005  to  October  2021.   Mortgage   indebtedness  of   approximately
$35,232,000  on Tamarac  Village,  Hidden Cove,  Lamplighter  Park and Cedar Rim
Apartments  requires  monthly  payments until the loans mature between July 2021
and October 2021 at which time the loans are  scheduled  to be fully  amortized.
Mortgage indebtedness of $10,825,000 on Williamsburg Manor,  Sandpiper I and II,
and Park Capital Apartments requires interest only payments, matures in December
2005 and has balloon payments due at maturity.  The General Partner will attempt
to refinance such indebtedness and/or sell the properties prior to such maturity
dates. If the properties  cannot be refinanced or sold for a sufficient  amount,
the Partnership may risk losing such properties through foreclosure.

Pursuant to the Partnership Agreement,  the term of the Partnership is scheduled
to expire on December 31, 2015. Accordingly,  prior to such date the Partnership
will need to either  sell its  investment  properties  or extend the term of the
Partnership.

The Partnership  distributed  the following  amounts during the six months ended
June 30, 2003 and 2002 (in thousands, except per unit data):
<TABLE>
<CAPTION>

                      Six Months      Per Limited       Six Months      Per Limited
                        Ended         Partnership         Ended         Partnership
                    June 30, 2003         Unit        June 30, 2002         Unit

<S>                     <C>              <C>              <C>              <C>
Operations              $ 255            $ 0.66           $ 380            $ 0.98
</TABLE>

Future  cash  distributions  will  depend on the levels of cash  generated  from
operations, timing of debt maturities,  refinancings, and/or property sales, and
the  availability  of  cash  reserves.  The  Partnership's  cash  available  for
distribution is reviewed on a monthly basis. There can be no assurance, however,
that the  Partnership  will  generate  sufficient  funds from  operations  after
required capital expenditures to permit additional distributions to its partners
during the remainder of 2003 or subsequent periods.

Other

In addition to its  indirect  ownership of the general  partner  interest in the
Partnership, AIMCO and its affiliates owned 203,932.70 limited partnership units
(the "Units") in the Partnership representing 53.24% of the outstanding units at
June 30, 2003. 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 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 53.24% 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  changes  in the
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 an impairment in the Partnership's assets.

Revenue Recognition

The Partnership generally leases apartment units for twelve-month terms or less.
Rental income  attributable to leases is recognized  monthly as it is earned and
the Partnership  fully reserves all balances  outstanding  over thirty days. The
Partnership will offer rental concessions during  particularly slow months or in
response to heavy  competition  from other  similar  complexes in the area.  Any
concessions  given at the inception of the lease are amortized  over the life of
the lease.

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.

                           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.  On June 25, 1998, the General  Partner filed a
motion seeking dismissal of the action. In lieu of responding to the motion, the
plaintiffs  filed an amended  complaint.  The General Partner filed demurrers to
the amended complaint, which were heard February 1999.

Pending the ruling on such  demurrers,  settlement  negotiations  commenced.  On
November 2, 1999,  the parties  executed and filed a Stipulation  of Settlement,
settling claims, subject to court approval, on behalf of the Partnership and all
limited partners who owned units as of November 3, 1999. Preliminary approval of
the  settlement  was obtained on November 3, 1999 from the Court,  at which time
the Court set a final  approval  hearing for  December  10,  1999.  Prior to the
December  10,  1999  hearing,  the  Court  received  various  objections  to the
settlement, including a challenge to the Court's preliminary approval based upon
the alleged lack of authority of prior lead counsel to enter the settlement.  On
December  14,  1999,  the General  Partner  and its  affiliates  terminated  the
proposed settlement.  In February 2000, counsel for some of the named plaintiffs
filed a motion to disqualify plaintiff's lead and liaison counsel who negotiated
the settlement.  On June 27, 2000, the Court entered an order disqualifying them
from the case and an appeal was taken  from the order on  October  5,  2000.  On
December 4, 2000, the Court  appointed the law firm of Lieff Cabraser  Heimann &
Bernstein  LLP as new  lead  counsel  for  plaintiffs  and the  putative  class.
Plaintiffs  filed a third  amended  complaint on January 19,  2001.  On March 2,
2001,  the  General  Partner  and its  affiliates  filed a demurrer to the third
amended  complaint.  On May 14, 2001,  the Court heard the demurrer to the third
amended  complaint.  On July 10,  2001,  the Court  issued  an order  sustaining
defendants'  demurrer on certain grounds.  On July 20, 2001,  Plaintiffs filed a
motion for  reconsideration  of the Court's July 10, 2001 order granting in part
and denying in part defendants' demurrer. On September 7, 2001, Plaintiffs filed
a fourth amended class and derivative action  complaint.  On September 12, 2001,
the Court denied Plaintiffs' motion for reconsideration. On October 5, 2001, the
General Partner and affiliated defendants filed a demurrer to the fourth amended
complaint,  which was heard on December 11, 2001. On February 2, 2002, the Court
served its order  granting in part the  demurrer.  The Court  dismissed  without
leave  to amend  certain  of the  plaintiffs'  claims.  On  February  11,  2002,
plaintiffs  filed a motion seeking to certify a putative class  comprised of all
non-affiliated  persons  who own or have owned  units in the  partnerships.  The
General Partner and affiliated defendants opposed the motion. On April 29, 2002,
the Court held a hearing on plaintiffs' motion for class  certification and took
the matter under submission after further briefing, as ordered by the court, was
submitted by the parties.  On July 10, 2002, the Court entered an order vacating
the trial date of  January  13,  2003 (as well as the  pre-trial  and  discovery
cut-off dates) and stayed the case in its entirety  through  November 7, 2002 so
that the parties could have an opportunity to discuss settlement. On October 30,
2002, the court entered an order  extending the stay in effect  through  January
10, 2003.

During the third  quarter of 2001, a complaint  (the "Heller  action") was filed
against  the same  defendants  that are named in the  Nuanes  action,  captioned
Heller v. Insignia Financial Group. 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.  Plaintiffs in the Nuanes action filed a motion to consolidate  the
Heller action with the Nuanes action and stated that the Heller action was filed
in order to preserve the derivative  claims that were dismissed without leave to
amend in the Nuanes action by the Court order dated July 10, 2001. On October 5,
2001, the General  Partner and affiliated  defendants  moved to strike the first
amended  complaint in its entirety for violating the Court's July 10, 2001 order
granting in part and denying in part defendants'  demurrer in the Nuanes action,
or  alternatively,  to strike  certain  portions of the  complaint  based on the
statute of  limitations.  Other  defendants in the action demurred to the fourth
amended  complaint,  and,  alternatively,  moved to  strike  the  complaint.  On
December 11, 2001,  the court heard argument on the motions and took the matters
under  submission.  On February 4, 2002,  the Court  served  notice of its order
granting defendants' motion to strike the Heller complaint as a violation of its
July 10, 2001 order in the Nuanes  action.  On March 27,  2002,  the  plaintiffs
filed a notice  appealing the order  striking the complaint.  Before  completing
briefing on the appeal, the parties stayed further  proceedings in the appeal in
light of a settlement.

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

In general  terms,  the  proposed  settlement  provides  for  certification  for
settlement  purposes of a settlement class consisting of all limited partners in
this  Partnership and others (the  "Partnerships")  as of December 20, 2002, the
dismissal  with  prejudice  and  release  of claims  in the  Nuanes  and  Heller
litigation,  payment by AIMCO of $9.9  million  (which shall be  distributed  to
settlement  class  members  after  deduction of attorney fees and costs of class
counsel and certain costs of settlement) and up to $1 million toward the cost of
independent  appraisals of the  Partnerships'  properties  by a Court  appointed
appraiser.  An affiliate of the General Partner has also agreed to make a tender
offer to purchase all of the partnership  interests in the  Partnerships  within
one year of final approval,  if it is granted,  and to provide partners with the
independent  appraisals at the time of these  tenders.  The proposed  settlement
also  provided  for the  limitation  of the  allowable  costs  which the General
Partner or its affiliates  will charge the  Partnerships in connection with this
litigation  and  imposes  limits  on the  class  counsel  fees and costs in this
litigation.  On April 11,  2003,  notice was  distributed  to  limited  partners
providing the details of the proposed settlement.

On June 13, 2003, the Court granted final approval of the settlement and entered
judgment in both the Nuanes and Heller actions.

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.


ITEM 6.     EXHIBITS AND REPORTS ON FORM 8-K

      a) Exhibits:

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

            Exhibit  3.2,  Agreement  of Limited  Partnership,  incorporated  by
            reference to Exhibit 3 to the Partnership's  Registration  Statement
            on  Amendment 1 on Form S-11 (Reg.  No.  2-97664)  filed on July 17,
            1985.

            Exhibit 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.

            Exhibit 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.

            Exhibit 32.1,  Certification  Pursuant to 18 U.S.C. Section 1350, as
            Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

      b) Reports on Form 8-K filed during the quarter ended June 30, 2003:

            None.


<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/Patrick J. Foye
                                          Patrick J. Foye
                                          Executive Vice President


                                    By:   /s/Thomas C. Novosel
                                          Thomas C. Novosel
                                          Senior Vice President
                                          and Chief Accounting Officer


                                    Date: August 13, 2003



<PAGE>



Exhibit 31.1


                                  CERTIFICATION


I, Patrick J. Foye, 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 registrant as of, and for, the periods presented in this report;

4.    The  registrant'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 registrant
      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
            registrant,  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 registrant'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  registrant's  internal
            control  over   financial   reporting   that  occurred   during  the
            registrant's  most recent fiscal  quarter (the  registrant's  fourth
            fiscal  quarter in the case of an annual report) that has materially
            affected,   or  is  reasonably  likely  to  materially  affect,  the
            registrant's internal control over financial reporting; and

5.    The registrant's other certifying  officer(s) and I have disclosed,  based
      on  our  most  recent   evaluation  of  internal  control  over  financial
      reporting,  to the  registrant's  auditors and the audit  committee of the
      registrant'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  registrant'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  registrant's
            internal control over financial reporting.

Date: August 13, 2003

                                /s/Patrick J. Foye
                                Patrick J. Foye
                                Executive  Vice  President  of ConCap  Equities,
                                Inc.,  equivalent of the chief executive officer
                                of the Partnership


<PAGE>



Exhibit 31.2


                                  CERTIFICATION


I, Paul J. McAuliffe, 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 registrant as of, and for, the periods presented in this report;

4.    The  registrant'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 registrant
      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
            registrant,  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 registrant'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  registrant's  internal
            control  over   financial   reporting   that  occurred   during  the
            registrant's  most recent fiscal  quarter (the  registrant's  fourth
            fiscal  quarter in the case of an annual report) that has materially
            affected,   or  is  reasonably  likely  to  materially  affect,  the
            registrant's internal control over financial reporting; and

5.    The registrant's other certifying  officer(s) and I have disclosed,  based
      on  our  most  recent   evaluation  of  internal  control  over  financial
      reporting,  to the  registrant's  auditors and the audit  committee of the
      registrant'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  registrant'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  registrant's
            internal control over financial reporting.

Date: August 13, 2003

                                /s/Paul J. McAuliffe
                                Paul J. McAuliffe
                                Executive  Vice  President  and Chief  Financial
                                Officer 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
June 30, 2003 as filed with the Securities  and Exchange  Commission on the date
hereof (the "Report"), Patrick J. Foye, as the equivalent of the chief executive
officer of the  Partnership,  and Paul J.  McAuliffe,  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/Patrick J. Foye
                                    Name:  Patrick J. Foye
                                    Date:  August 13, 2003


                                           /s/Paul J. McAuliffe
                                    Name:  Paul J. McAuliffe
                                    Date:  August 13, 2003


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.