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 June 30, 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)

                                  June 30, 2005
<TABLE>
<CAPTION>


Assets
<S>                                                                        <C>
   Cash and cash equivalents                                               $ 440
   Receivables and deposits                                                   494
   Restricted escrows                                                         170
   Other assets                                                             1,251
   Investment properties:
      Land                                               $ 8,641
      Buildings and related personal property              54,946
                                                           63,587
      Less accumulated depreciation                       (33,233)         30,354
                                                                         $ 32,709
Liabilities and Partners' Deficit
Liabilities
   Accounts payable                                                        $ 722
   Tenant security deposit liabilities                                        267
   Due to affiliates (Note B)                                               3,503
   Accrued property taxes                                                     329
   Other liabilities                                                          606
   Mortgage notes payable                                                  44,062

Partners' Deficit
   General partner                                       $ (1,009)
   Limited partners (383,033 units outstanding)           (15,771)        (16,780)
                                                                         $ 32,709


                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>

                                              For the Three Months      For the Six Months
                                                 Ended June 30,           Ended June 30,
                                               2005         2004         2005        2004
Revenues:
<S>                                          <C>          <C>          <C>          <C>
  Rental income                              $ 2,660      $ 2,577      $ 5,312      $ 5,130
  Other income                                   355          339          692          679
      Total revenues                           3,015        2,916        6,004        5,809

Expenses:
  Operating                                    1,561        1,484        3,033        2,791
  General and administrative                     148          169          293          335
  Depreciation                                   801          774        1,584        1,538
  Interest                                       879          867        1,767        1,737
  Property taxes                                 225          236          442          445
      Total expenses                           3,614        3,530        7,119        6,846

Net loss                                      $ (599)      $ (614)     $(1,115)     $(1,037)

Net loss allocated to general partner
  (1%)                                         $ (6)        $ (6)       $ (11)       $ (10)
Net loss allocated to limited partners
  (99%)                                         (593)        (608)      (1,104)      (1,027)

                                              $ (599)      $ (614)     $(1,115)     $(1,037)

Net loss per limited partnership unit        $ (1.55)     $ (1.59)     $ (2.88)     $ (2.68)


                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 six months
   ended June 30, 2005                     --           (11)      (1,104)     (1,115)

Partners' deficit at
   June 30, 2005                      383,033       $(1,009)    $(15,771)   $(16,780)

                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,
                                                                     2005      2004
Cash flows from operating activities:
<S>                                                               <C>         <C>
  Net loss                                                        $(1,115)    $(1,037)
  Adjustments to reconcile net loss to net cash provided by
   operating activities:
     Depreciation                                                   1,584       1,538
     Amortization of loan costs                                        56          59
     Change in accounts:
      Receivables and deposits                                        (71)       (129)
      Other assets                                                    (63)       (268)
      Accounts payable                                                 63          57
      Tenant security deposit liabilities                               5         (10)
      Accrued property taxes                                          117         134
      Due to affiliates                                               271         280
      Other liabilities                                              (114)        (21)
         Net cash provided by operating activities                    733         603

Cash flows from investing activities:
  Property improvements and replacements                           (1,158)       (572)
  Net receipts from restricted escrows                                 51           6
         Net cash used in investing activities                     (1,107)       (566)

Cash flows from financing activities:
  Payments on mortgage notes payable                                 (527)       (496)
  Advances from affiliates                                            932         305
  Repayment of advances from affiliates                               (81)         --
         Net cash provided by (used in) financing activities          324        (191)

Net decrease in cash and cash equivalents                             (50)       (154)

Cash and cash equivalents at beginning of period                      490         599

Cash and cash equivalents at end of period                         $ 440       $ 445

Supplemental disclosure of cash flow information:
  Cash paid for interest                                          $ 1,707     $ 1,701

Supplemental disclosure of non-cash activity:
  Property improvements and replacements in accounts payable       $ 519       $ 124

Included in property improvements and replacements for the six months ended June
30,  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 and six month
periods ended June 30, 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  $298,000 and
$285,000 for the six months ended June 30, 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  $331,000 and
$283,000 for the six months ended June 30, 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 six
months ended June 30, 2005 and 2004 are fees related to construction  management
services  provided  by an  affiliate  of the  General  Partner of  approximately
$64,000 and $9,000,  respectively.  The construction management service fees are
calculated based on a percentage of additions to investment properties.  At June
30, 2005,  approximately $977,000 of these reimbursement expenses are payable to
the General Partner and are included in due to affiliates.

During the six months  ended June 30,  2005,  the General  Partner  advanced the
Partnership  approximately  $932,000 to cover expenses related to operations and
capital  improvements  at Tamarac  Village,  Cedar Rim,  Lamplighter  Park,  and
Sandpiper  I and II  Apartments.  During the six months  ended June 30, 2004 the
General  Partner  advanced  the  Partnership  approximately  $305,000  to  cover
expenses  related to operations at Cedar Rim and  Lamplighter  Park  Apartments.
Interest  is charged at prime plus 2%  (approximately  8.25% at June 30,  2005).
Interest expense on outstanding  advance balances was approximately  $72,000 and
$11,000  for the six months  ended  June 30,  2005 and 2004,  respectively.  The
Partnership  repaid  approximately  $81,000 of the outstanding  advance balances
plus accrued interest of approximately  $69,000 during the six months ended June
30,  2005.  No such  repayments  were made during the six months  ended June 30,
2004.  Total advances and accrued interest of  approximately  $2,526,000  remain
unpaid at June 30, 2005 and are included in due to affiliates.

Subsequent to June 30, 2005,  the General  Partner  advanced to the  Partnership
approximately  $856,000  to cover  operating  expenses  at Tamarac  Village  and
Lamplighter Park Apartments, capital spending at Tamarac Village and Hidden Cove
by the Lake  Apartments and to pay fees related to the pending  refinance of the
mortgages at Sandpiper I and II and Williamsburg Manor Apartments. Interest will
be charged at prime plus 2% (approximately 8.25% at June 30, 2005).

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,   general
liability 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, 2005
and 2004, the Partnership was charged by AIMCO and its affiliates  approximately
$160,000 and $154,000,  respectively for insurance  coverage and fees associated
with policy claims administration.

Note C - 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.  Plaintiffs  took an
appeal from this order.

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 related 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.  On June 10, 2005, the California  Supreme Court
denied  Objector's  Petition for Review and the Court of Appeals sent the matter
back to the trial court on June 21,  2005.  The parties  intend to ask the trial
court to make further findings in connection with settlement consistent with the
Court of Appeal's  remand order.  With respect to the related Heller appeal,  on
July 28, 2005,  the Court of Appeals  reversed the trial court's order  striking
the first amended complaint.

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.

As previously disclosed,  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 excess of 40 hours
in a week. On June 23, 2005 the Court  conditionally  certified  the  collective
action  on both the  on-call  and  overtime  issues.  The  Court  ruling  allows
plaintiffs  to  provide  notice  of the  collective  action  to  all  non-exempt
maintenance  workers from August 7, 2000 through the  present.  Those  employees
will have the  opportunity to opt-in to the collective  action.  Defendants have
asked the Court to  reconsider  its  ruling or in the  alternative  certify  the
ruling for appeal on that issue. After the notice goes out, defendants will have
the  opportunity to move to decertify the collective  action.  The Court further
denied plaintiffs' Motion for Certification of the state subclass.  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
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.

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,  and  potential  fines or
penalties  imposed by such  agencies in  connection  therewith,  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,  operation and management 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
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")  continues its 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  have included  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, tax credit transactions,  and
tender offers for limited  partnership  interests.  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 six month periods ended June 30, 2005 and 2004:

                                                   Average Occupancy
      Property                                      2005       2004

      Cedar Rim Apartments (1)                      96%        86%
        New Castle, Washington
      Hidden Cove by the Lake Apartments (2)        80%        92%
        Belleville, Michigan
      Lamplighter Park Apartments (1)               93%        90%
        Bellevue, Washington
      Park Capital Apartments                       96%        96%
        Salt Lake City, Utah
      Sandpiper I and II Apartments                 94%        94%
        St. Petersburg, Florida
      Tamarac Village Apartments                    80%        78%
        Denver, Colorado
      Williamsburg Manor Apartments (3)             88%        95%
        Cary, North Carolina

(1)   The General Partner  attributes the increase in occupancy at Cedar Rim and
      Lamplighter Park Apartments to improved market  conditions in the Seattle,
      Washington area.

(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 $599,000 and $1,115,000 for
the three and six month periods ended June 30, 2005, respectively, compared to a
net loss of  approximately  $614,000 and  $1,037,000 for the three and six month
periods ended June 30, 2004. The decrease in net loss for the three months ended
June 30, 2005 is due to an increase in total  revenues,  partially  offset by an
increase in total  expenses.  The  increase in net loss for the six months ended
June 30, 2005 is due to an increase in total  expenses,  partially  offset by an
increase in total revenues.

Total revenues increased for both the three and six month periods ended June 30,
2005 primarily due to an increase in rental income.  Rental income increased for
the three and six months  ended June 30, 2005 due to  increases  in occupancy at
Lamplighter Park, Tamarac Village, and Cedar Rim Apartments, increases in rental
rates at  Williamsburg  Manor,  Sandpiper I & II, Park Capital,  and Lamplighter
Park Apartments, and decreases in bad debt at Sandpiper I & II, Tamarac Village,
Park  Capital,  Hidden  Cove  by the  Lake,  Lamplighter  Park,  and  Cedar  Rim
Apartments, partially offset by decreases in occupancy at Williamsburg Manor and
Hidden Cove by the Lake  Apartments,  decreases in rental rates at Cedar Rim and
Tamarac Village  Apartments,  and an increase in bad debt at Williamsburg  Manor
Apartments.

Total  expenses  increased  for the three and six  months  ended  June 30,  2005
primarily  due to increases in  operating,  depreciation  and interest  expenses
partially offset by a decrease in general and administrative expense.  Operating
expenses  increased  primarily  due to increases in  property,  maintenance  and
administrative expenses.  Property expenses increased primarily due to increases
in  utilities  at  Williamsburg  Manor  Apartments,  leasing  referral  fees and
commissions at Williamsburg Manor,  Tamarac Village,  Park Capital and Cedar Rim
Apartments and salaries and related benefits at Tamarac  Village,  Park Capital,
Sandpiper I & II and Cedar Rim Apartments, partially offset by reduced utilities
at Tamarac Village Apartments.  Maintenance  expenses increased primarily due to
an increase in  contract  services at  Sandpiper I and II and Hidden Cove by the
Lake Apartments.  Administrative expense increased due to increases in temporary
agency help at Tamarac  Village and  Lamplighter  Park  Apartments  and contract
common  area  cleaning  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 interest expense incurred on amounts due to affiliates.

General and  administrative  expenses decreased for both the three and six month
periods ended June 30, 2005  primarily due to a decrease in the cost 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, 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.

Liquidity and Capital Resources

At June 30, 2005 the Partnership had cash and cash  equivalents of approximately
$440,000  compared to  approximately  $445,000 at June 30,  2004.  Cash and cash
equivalents  decreased  approximately  $50,000  since  December  31, 2004 due to
approximately $1,107,000 of cash used in investing activities,  partially offset
by  approximately  $733,000  and  $324,000  of cash  provided by  operating  and
financing activities,  respectively. Cash used in investing activities consisted
of property  improvements  and  replacements  partially  offset by receipts from
restricted  escrows  maintained  by  the  mortgage  lenders.  Cash  provided  by
financing activities  consisted of advances received from affiliates,  partially
offset by principal  payments on the  mortgages  encumbering  the  Partnership's
properties and payments on advances 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  six  months  ended  June  30,  2005,  the   Partnership   completed
approximately   $60,000  of  capital   improvements  at  Cedar  Rim  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.
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  six  months  ended  June  30,  2005,  the   Partnership   completed
approximately  $74,000  of  capital  improvements  at  Hidden  Cove by the  Lake
Apartments,  consisting  primarily of floor covering and roof  replacements  and
interior  decoration.   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  six  months  ended  June  30,  2005,  the   Partnership   completed
approximately  $142,000 of capital  improvements at Lamplighter Park Apartments,
consisting  primarily  of floor  covering  and door  replacements,  heating  and
appliance  upgrades,  fitness  equipment  upgrades and dumpster  enclosures.  In
addition the  Partnership  has  committed to a phased  redevelopment  project at
Lamplighter  Park Apartments  which includes kitchen upgrades and other interior
unit  improvements.  It  is  estimated  that  the  costs  associated  with  this
renovation will be approximately $2.2 million.  Approximately  $285,000 has been
spent as part of this project  during the six months  ended June 30,  2005.  The
redevelopment  project is scheduled to be completed  during the year 2007. 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.  Other than the  redevelopment  project the
Partnership  has  no  material   commitments  for  property   improvements   and
replacements,  but 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  six  months  ended  June  30,  2005,  the   Partnership   completed
approximately  $69,000  of  capital  improvements  at Park  Capital  Apartments,
consisting  primarily  of  floor  covering  and  door  replacements,  structural
improvements,  fencing, and swimming pool 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  six  months  ended  June  30,  2005,  the   Partnership   completed
approximately  $380,000 of capital  improvements at Tamarac Village  Apartments,
consisting primarily of floor covering, door and appliance  replacements,  water
heater and fire safety  upgrades and signage.  In addition the  Partnership  has
committed to a phased redevelopment  project at Tamarac Village Apartments which
includes  kitchen and other interior unit upgrades,  exterior  painting and wood
repairs.  It is estimated that the costs associated with this renovation will be
approximately  $4.1  million.  Approximately  $137,000 has been spent as part of
this  project  during the six  months  ended June 30,  2005.  The  redevelopment
project is scheduled to be completed  during the year 2007.  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.  Other than the redevelopment project the Partnership has
no material commitments for property improvements and replacements,  but 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  six  months  ended  June  30,  2005,  the   Partnership   completed
approximately $114,000 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 and 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  replacement  reserves  and  anticipated  cash flow  generated by the
property.

Sandpiper I and II Apartments

During  the  six  months  ended  June  30,  2005,  the   Partnership   completed
approximately  $104,000 of capital improvements at Sandpiper I and II Apartments
consisting primarily of floor covering replacements, structural improvements and
air conditioning unit and cabinet replacements.  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 total costs  associated with this renovation
will be  approximately  $5.2 million.  Approximately  $258,000 has been spent as
part of this  project  during the six  months  ended  June 30,  2005,  including
approximately  $3,000 of  capitalized  construction  period  interest  costs and
approximately  $1,000 each of capitalized property taxes and operating expenses.
The redevelopment project is scheduled to be completed during the fourth quarter
of 2005. These improvements were funded from the property's operating cash flow,
replacement  reserves and advances  from the General  Partner.  The  Partnership
regularly  evaluates the capital  improvement needs of the property.  Other than
the  redevelopment  project  the  Partnership  has no material  commitments  for
property improvements and replacements, but 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.

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.

In order to cover  operating cash  shortfalls at Tamarac Village and Lamplighter
Park Apartments, capital spending at Hidden Cove on the Lake and Tamarac Village
Apartments and to pay fees related to the pending  refinance of the mortgages at
Sandpiper I and II and Williamsburg Manor Apartments,  the Partnership  obtained
advances of approximately  $826,000 subsequent to June 30, 2005, as discussed in
"Item 1. Financial Statements - Note B".

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  $44,062,000  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
$33,237,000  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 is in the process
of refinancing such indebtedness 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 had no  distributions  during the six months ended June 30, 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 payable to the General
Partner and the  redevelopment  projects at Sandpiper I and II, Tamarac  Village
and Lamplighter  Park  Apartments,  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 235,598.2 limited partnership units
(the "Units") in the Partnership representing 61.51% of the outstanding Units at
June 30, 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 61.51% 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.  Plaintiffs  took an
appeal from this order.

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 related 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.  On June 10, 2005, the California  Supreme Court
denied  Objector's  Petition for Review and the Court of Appeals sent the matter
back to the trial court on June 21,  2005.  The parties  intend to ask the trial
court to make further findings in connection with settlement consistent with the
Court of Appeal's  remand order.  With respect to the related Heller appeal,  on
July 28, 2005,  the Court of Appeals  reversed the trial court's order  striking
the first amended complaint.

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.

As previously disclosed,  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 excess of 40 hours
in a week. On June 23, 2005 the Court  conditionally  certified  the  collective
action  on both the  on-call  and  overtime  issues.  The  Court  ruling  allows
plaintiffs  to  provide  notice  of the  collective  action  to  all  non-exempt
maintenance  workers from August 7, 2000 through the  present.  Those  employees
will have the  opportunity to opt-in to the collective  action.  Defendants have
asked the Court to  reconsider  its  ruling or in the  alternative  certify  the
ruling for appeal on that issue. After the notice goes out, defendants will have
the  opportunity to move to decertify the collective  action.  The Court further
denied plaintiffs' Motion for Certification of the state subclass.  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
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.

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: August 12, 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.)

      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:  August 12, 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:  August 12, 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
June 30, 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:  August 12, 2005


                                           /s/Stephen B. Waters
                                    Name:  Stephen B. Waters
                                    Date:  August 12, 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.